Web Broadcasting

Szu-chia Wang (Editor: Veronique Autphenne)

People value the Internet because it enables them to reach anyone, anywhere, at anytime as long as there is the proper infrastructure and they have an equipped computer. To many broadcasters, the web seems like a perfect alternative carry out their business, which is transmitting content to as many people as possible. This has driven the web-broadcasting business since the technology propelled it in 1995.

ENCODEà COMPRESS à STREAMà DECODE

People often confuse web broadcasting technology with push technology. Literately, web-broadcasting technology is a way to delivery audio and video content through the Internet. Push technology, which makes possible for an intermediary to push customized information to subscribers before they ask for it, is only one type of web broadcasting. The two net distribution modes are live broadcasting and on-demand. Even though they are different in terms of the way they send content, they are all utilizing streaming technology.

Streaming technology propelled the widespread use of web broadcasting because it overcame the hurdle of speed and time capability in the existing network infrastructure. It has two main functions: to compress video/audio files, and to allow the recipients to watch/listen the content while downloading. To condense the large video/audio file, the content providers need to apply the process of codec. It efficiently reduces the size of the file and then enhances the transmitting speed. However, compression technology is still limited in terms of its quality. Viewers still cannot receive the clips immediately because the compressed files still take time to transmit, although they are faster than before. The more sophisticated the files are, the more time they take.

As a result, instead of letting users wait for storing the whole file, software programmers decided to keep the users' eyes on the process by deploying the buffer function. This means that when the host computers are sending the data, the receiving computers are showing the data almost simultaneously. Buffers allow the computers to organize the data packet in the right order and to display the retrieved pieces at the same time. If the transmitting speed doesn’t match the pace of showing, the buffers will slow down or even stop the presentation until the computers collects enough data and then continues to display the contents.

FIRST MOVERS DOMINATE THE MARKET

The modem most people use right now is 28.8 kbps which means if users wants to view a 1-minute video file, they have to wait for at least 15 minutes to download the. Unfortunately, compared to text-only information, the size of audio/video data is always extremely large. Of course, broadcasters assumed that many viewers didn’t have the patience for this and the web-broadcasting business looked dismal. The advent of streaming technology altered the whole horizon.

In 1995, Xing Technology and Progressive Networks (RealNetwork) introduced two streaming audio products: Streamwork and RealAudio. According to the statistics from International Webcasting Association in September 1997, the market share of RealAudio almost reached 90 per cent, while Streamworks only grasped 7 per cent of users. Observers indicated that the approach RealAudio adopted, which is to give away their software to recipients with no charge, is the main reason why Progressive Networks is able to dominate the market. By playing Santa Claus, the company established an industry standard that required any new entrant who wants to build a net-radio station to buy their products. It is also obvious that the revenues in this industry is from the server software and hardware whose prices range from $595 (RealAudio 1998) to $12,000 (VODLive 1998).

STILL IN THE EXPERIMENTAL PHASE

The enabling technology is available on the shelf, but taking advantage of it to create business opportunities is in the hands of content providers. To date, over 1,000 radio stations broadcast their programs on the Internet 24 hours a day and 10 per cent of them are exclusive web stations (Internet World Guide To Webcasting 1998).

As for the video distributors, they regard the web as a complement to existing programs. The main networks and professional cable companies are experimenting with the new medium and use it to enhance brand awareness. Others such as movie studios and video rentals already leverage the web as a promotional tool with interactivity and in-depth content. For example, the Blockbuster web site provides pre-recorded interviews with key actors/actresses and previews. The International Webcasting Association points out that most video providers use the web to distribute news and entertainment clips including sports and pornography. Other applications like telemedicine and distance learning are also being proposed.

After many years, with the help of web broadcasting technology, the new mass medium-- the web is finally here. This thought attracts many newcomers who cannot afford to compete with media giants in print, audio and video markets. For instance, to build an on-line radio station, the investors not only avoid a lot of overhead costs such as transmitting towers but can also reach listeners even farther than before. With a small amount of capital, everyone has the capability to start up a web-broadcasting site.

The thought also tempts a number of incumbent broadcasters. From the broadcasts' prospective, it is a wonderful chance to expand the market to other geographical areas without a heavy distribution fee. The interactive capabilities of the Internet offers advertisers, who support the broadcasters, a way to approach target consumers more efficiently and effectively. Moreover, they are able to achieve economies of scope by adding this new channel.

FCC HASN'T IMPOSED ANY REGULATION ON WEB

The Clinton administration has stated that it is necessary to regulate content on the Internet and will not impose any restrictions in the short term. This implies that even though in the real world broadcasters have to apply for licenses and the contents need to be censored, in the electronic world, as long as the investors know how to operate a web broadcasting site, they can deliver anything they want. Experts say that since the penetration of the Internet is far behind other media they will keep their hands out of the business until the industry matures.

The issue of content standard is being raised in the web broadcasting industry. Because almost every web broadcasting product is proprietary, users must download a certain kind of software in order to open a file. In addition to the time it takes to store the video/audio file, users waste times on downloading the software. Fortunately, most of the software is free of charge and the cooperation and mergers between companies will hasten the establishment of a uniform standard.

The future of web broadcasting mostly depends on the content providers and the consumers. Content providers are concerned about generating profits on the web, which means they must convince advertisers to invest in the new channel. To date, advertising revenue is disappointing to web broadcasters. Industry analysts attribute the result to the low penetration of Internet.

To improve the situation, software industry must play a critical role. The industry has to upgrade their products and familiarize the broadcasting industry with this new medium in order to best take advantage of it. Because only a few big software companies are involved and rely on this business seriously, I think they will devote their efforts to making this emerging business prosperous. In addition to the determination of the software industry, broadcasters are also eager to span these new territories. Consumers are also getting tired of the existing broadcasting channels. Based on those considerations, my opinion is that it is just the matter of time before Web broadcasting takes off.

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http://www.real.com (2 April 1998)

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