Enterprise Streaming to Swell to 2.8 Billion by 2005
By Clint Boulton / April 12, 2001 / InternetNews
Jupiter Media Metrix Thursday released what could be the most liberal estimation of enterprise streaming media expenditure to date, as it said it expects the $140 million spent on that sector in 2000 to balloon to 2.8 billion dollars in 2005.
Jupiter noted that the most prolific use will be communication with employees. For example, a few hundred workers could be assembled to see a CEO give a company pep talk broadcasting remotely from virtually anywhere in the world.
While real-time streaming video is often thought of in two veins -- corporate broadcasts and live, televised concerts or events, -- companies specializing in delivering streaming media, such as iBEAM Corp., stand to benefit from enterprise streaming more than live events.
The logic is this: while a Madonna concert may have a million "streamies" tuning in from all over the world as opposed to a few hundred workers listening to that CEO speak, there are a lot more requests from companies who want to pay for the streaming events then there are requests for massive streamed concerts. It's a numbers game, really. Madonna may get a million streamies tuning in, but that is only one show. You have to consider the thousands of Fortune 1000 high-tech companies angling to use the latest technology to reach out to global networks of employees in real-time.
On-demand viewing is the companion to real-time streaming and is currently just as important in the corporate sector because it is often used to train new employees on programs, products or services. In fact, according to Jupiter's calculations, while spending levels for live and on-demand streaming video are roughly equal, but Jupiter expects that expenditures for on-demand uses will reach 1.9 billion dollars by 2005, representing 65 percent of the overall market.
Indeed, Jupiter found that 90 percent of companies who have adopted streaming video technology say they use it to make their internal communications efforts more efficient. Executive addresses, sales training and intra-company meetings will pave the way for companies to use streaming video technology for external communications, including business-to-business collaboration.
David Rader, senior analyst in Jupiter's custom research and consulting group, noted that streaming video in corporations pairs travel expenses in addition to smooth program and product rollouts.
One company unwittingly bore the research out Thursday. Streaming solution provider Pinnacle Systems, of Mountain View, Calif., rolled out StreamGenie Presenter, which facilitates rich media presentations for corporate, ISP and e-learning markets.
Through a development, marketing and distribution alliance with sofTV.net of Ottawa, Canada, the solution was created to help corporations communicate to their employees, channel partners and customers on a regular basis without booking travel arrangements.
By the Numbers
A Jupiter Executive Survey revealed that more companies are already using streaming video technology for internal communications.
Internal Applications Currently Being Used By Companies
Executive address 48% 16%
Employee education 35% 29%
Sales training 32% 26%
Intra-company meetings 32% 32%
Within the next 18 months, however, some will move to bolster their external communications, as well:
External Applications Currently Being Used By Enterprises
Internal Application Percent of Companies
Using Streaming Video % Users
Within 18 Months
Product launches 29% 35%
B-to-b collaboration 23% 39%
Customer training 23% 39%
Customer Service 13% 45%
Earnings announcement 29% 16%
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