THE FUTURE OF VIDEO A report by Cass Business School in association with Imagen 01 April 2016
Video is changing everything - including the way we do business. Is UK PLC ready for video? Find out with this groundbreaking study
The Future of Video Included in this exclusive report
How video is changing the way we communicate, work and play what does this mean for society and commerce?
The concerns of small and large businesses how will they adapt to take advantage of video for communication and operations.
The wave of new video technologies which are set to transform our lives. Is the infrastructure in place to enable this revolution?
How video has democratised communication but is leaving a dangerous digital footprint for individuals and businesses.
Download your copy of this exclusive landmark video usage survey for business and beyond here
Executive Summary A range of technological innovations (e.g. smart phones and digital cameras), infrastructural advances (e.g. broadband and 3G/4G wireless networks) and platform developments (e.g. YouTube, Facebook, Snapchat, Instagram, Amazon, and Netflix) are collectively transforming the way video is produced, distributed, consumed, archived and importantly, monetised. Changes have been observed well beyond the mainstream TV and film industries, and these changes are increasingly reflected in the way businesses communicate internally with employees and externally with customers and partners, and the way we communicate with one another both at work and in our daily lives. In September 2015, Facebook CEO and Founder Mark Zuckerberg claimed that he expected our society to enter the golden age of video' in the next 5 years[1]. Video has become a cornerstone of Facebook's business strategy.
The implications are profound. The rapid development of video is leading to a fundamental shift not only in business and the economy, but also in our culture and society. Further advances in affordable virtual reality (VR) and augmented reality (AR) may transform the way we interact and share experiences with one another. Internet guru Clay Shirky argued, [w]hen we change the way we communicate, we change society.' As video transforms the way we communicate, we are less constrained from established rules about communication, relationships, and the way we do business with each other. Organisations need to extend their focus from using video for marketing and staff training to redesigning their operations and business processes, which will help lower costs, foster collaboration, reduce environmental impact and create competitive advantages.
This report focuses on the business use of video, in the context of wider economic, social and cultural changes in the digital age. The emerging opportunities and risks call for a holistic, strategic approach to the management of video in organisations, rather than being left to technologists or to the users on an ad hoc basis. Those who manage the transition effectively will reap the rewards and avoid potential pitfalls; those that do not will risk being left behind.
Key findings
Video is not simply an important part of the online experience. Increasingly, video is the internet. Within the next few years the overwhelming majority of internet traffic will be video. According to Cisco forecasts, global consumer internet video traffic will make up 80% of all consumer internet traffic by 2019, up from 64% in 2014.
Until recently, video was expensive and required specialised, professional skills to produce and distribute. While high quality professional video remains expensive, the lowering of technological, financial and skill barriers for billions of people has resulted in the explosive growth of video in recent years.
On-demand video via digital networks to multiple screens has been growing rapidly, but the demise of traditional linear programmed TV predicted by numerous commentators has not happened, and it is unlikely to happen anytime soon. Linear TV still makes up 80-90% of all viewings in major markets around the world. The total cost of delivering all video content to users via the on-demand model is still too high and is not yet economically viable.
As video production and distribution become increasingly cheap and easy, the focus for video creators is extending from profit, utility or fame (which will remain important) to new forms of communication and socialising.
Smartphone is the No.1 device to reach the millennials. Marketers are increasingly treating mobile phones not just as a second screen, but a new screen that is as important as the TV. For marketers, TV continues to deliver unparalleled reach, but online video delivers depth and measurable impacts that cannot be matched by traditional TV.
The most anticipated change in the direction of video is likely to come from the mass adoption of virtual reality (VR) and augmented reality (AR). Citi analysts forecast the total market for AR and VR will be around $674 billion by 2025. This may fundamentally transform the way that operations and business processes are designed and managed, and how we interact and share experiences with one another.
Video is the most data-intensive and difficult to manage digital asset. As business use of video continues to grow rapidly both for marketing and operations, managing video assets effectively will become a complex task for a growing number of organisations. A well-considered video policy is essential in ensuring video content is stored and preserved for effective use both now and in the future.
The vast majority of websites featuring videos are using third party solutions rather than self-hosting, with YouTube being the most popular for embedded videos, and Vimeo dominating paid third party solutions.
We are entering the age of social video, when we do not merely consume and enjoy the
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THE FUTURE OF VIDEO A report by Cass Business School in association with Imagen 01 April 2016
