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RIP Online Video; Long Live Video -- 5 Predictions for the Next 5 Years

Posted: 05/17/10 10:00 AM ET

For many, online video has become a part of our daily lives. It's become so pervasive that it's the talk around the water cooler and every day a new meme is captured by a camera and uploaded and shared with millions and millions of people around the world. Online video has become a part of the cultural zeitgeist, a reference point propelled by politicians, aspiring artists, protesting citizens and individuals who want their voices heard. In short, online video has overcome country boundaries and language barriers; it has intertwined disparate ideas and fundamentally connected and changed the world.

With five years gone since we first started YouTube, here are five themes for the next five years that will fundamentally change video as we know it:

  • Online video will die. Long live video - Five years ago, online video was known for being poor quality, and slow to playback. Today, there are two types of video: online and offline. Internet usage grew nearly 400% in the first decade of the 21st century and it's only increasing. Innovation around personal WiFi devices are among the technologies propelling projections of over 1 billion WiFi devices by 2012. Better, more robust infrastructure and improved computer processing power combined with support for 1080p full-HD and even 3D have pulled online video quality and innovation on parallel with offline video. And that innovation is just accelerating to the point where there the distinction between online and offline video will no longer exist. All there will be is video.
  • There will be only one channel - In 1988, there were 26 channels available in the US. In 1998 there were 52. In 2008 there were 110. The number of channels is exploding and sure to reach well into the thousands. But the true tectonic shift is not the number of channels; it's who's programming them. Five years from now there will be one channel that really matters and that is the "Channel of You." The "Channel of You" will be created from hundreds of thousands, if not millions of video sources, representing a wide spectrum of content creators and will reflect who you are and what you're interested in. There will be videos created by friends and family that showcase your cousin's wedding, or your son's graduation. There will be niche videos that speak to your unique interests like scuba diving, video game tips, or car repair. And there will be mass media channels that deliver content created by aspiring independent creators or mainstream studios, sports leagues and record labels.
  • Put down the remote. Content will find you - The remote feels easy, but at the end of the day, it's still inefficient. You shouldn't have to search for something to watch. What you want to watch should be delivered directly to you without you having to plug a number in. As search and discovery of video becomes more sophisticated, video will reflect your interests and serve you what like to watch, when you want to watch it. Searching and browsing will be joined by a mix of super-smart algorithmically-driven technology and social signals that allow your friends to share what they are watching.
  • Browsers - The sophisticated and robust Web browser of today will live way beyond the PC tomorrow. It will live in more phones and migrate into more living rooms. We will move from a device-specific model to a user-centric one, where your content is available anywhere you can log-in. And content creators and distributors will benefit from the browser's sophisticated ad serving technologies and audience data together with its low delivery costs.
  • The creator's rewards will grow - Online video monetization is in its infancy. But as more ad formats and sophisticated transactional models roll out, the content creator will see the rewards for their work grow and these rewards will be delivered to these content creators and distributors unfiltered. An advertiser will be able to micro- or mass target their campaigns, meaning TV ad budgets will shift quickly towards providers who can supply breadth, depth and performance analytics. And contrary to popular belief, consumers will be willing to pay for content so long as it doesn't come with consumption constraints (watch anywhere) and they are able to feel an emotional bond with the content creator. Tools like Twitter and YouTube will help artists create these direct relationships with fans, in some cases shifting the middleman out of the picture.


The world of video is changing. Users are consuming it on their computers, social platforms and microblogs. Online video's days as a standalone concept are numbered. It's an endangered species. Why? Because in the future ALL video will be online. Video will be faster, more powerful and more global than ever before. And you can be sure, it will connect and change the world. So sit back, grab your 3D glasses and enjoy what's on next.

 
 
 
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11:04 AM on 05/21/2010
Great piece, Hunter -- and we're seeing this future evolve every day in our work at Next New Networks. I'm very interested in your idea of mass media channels that deliver content for the Channel of You -- and the idea that those mass media channels will increasingly be curatorial in nature, supporting and collaborating rather than competing with independent content creators. We've already seen in the growth of platforms like blogging and Twitter that independent brands and curators (like Kottke, the Daily What, the Huffington Post, College Humor, and our own brands like Fast Lane Daily and Barely Political) can build mass audiences very quickly and live naturally in personalized aggregators like Google Reader, YouTube's subscription module, and Tumblr dashboards alongside long-established, mainstream media brands. The video future will increasingly be an open meritocracy, rewarding the best providers of content, whatever their origins.
07:56 PM on 05/20/2010
Suppose ultra smart alogrithms actually do decide what we want to see and when. That would mean that no one would discover a new interest or chance upon content that they didnt know would inerest them.. Wonder how that would shape human creativity and imagination ?
04:58 PM on 05/20/2010
Hunter, I agree with all of your points, and would add one more. "Video" will soon become the ubiquitous, real time communication tool we will all be using soon. The Dick Tracy video wrist watch is right around the corner.
02:03 PM on 05/20/2010
not really. 5 years from now its going to be pretty much as it is now. talking like you do
ignores an essential fact...................there are peaks and valleys in the flow history............
and we are going into a valley...................of consolidation of what is what now....but
to MAGNIFY VIDEO as you do is silly. there is already enuf content out there........for just about anything...............look at the number of videos there are on you tube alone for canary chirping.
its going to be like the late l950s the next few years............a few big thrills like the
ultra 59 chevy with wings, or disneyland, or even a new state.....but VIDEO IS DEFINITELY
AT A PEAK and going to LEVEL OUT....................
11:06 AM on 05/19/2010
Very well written and communicated Hunter. I have been saying the same type of things for awhile now, along with "social media" being referred to as just media once all media is social by design.

I've heard stats that online video ad dollars will mostly go to the big studios or networks but I'm not so sure of that. The same way that developers can challenge the big tech companies from their garages will soon be (and already is to some degree) happening in the video production world as well.
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Morgan Brown
06:18 PM on 05/18/2010
Great article Hunter and I agree with your vision. We do have some non-trivial challenges ahead of us on all fronts before we reach this destination. Content rights and compensation need to be addressed. I believe that better targeting, such as your video ad targeting software and Hulu's new ad feedback technology will help get us part of the way there; but there is a concern that short clips of video will be saddled with an excessive ad-to-content ratio. This is a very real danger - turning online video into a cumbersome experience.

I also agree that the convergence of video across all screens is at our fingertips. We're just waiting for the transmission technology to catch up. The keys to this will be net neutrality, better/faster internet access and a 4G network capable of handling large amounts of rich media to be delivered seamlessly to handheld devices.

YouTube has come a long way in the last 5 years - I'm excited to see what you'll do next!
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Roybe
You can't fix stupid.
02:55 PM on 05/18/2010
Folks, also keep in mind the digital divide! For those without the $, internet access/computer use is extremely limited right now.

Tie to that the growing demands on everyone's time to work to maintain our monetary status, and one can see that there is a time coming when two people inhabit this country: those with enhanced data capabilities and those that remain ignorant of the world around them!
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Roybe
You can't fix stupid.
02:50 PM on 05/18/2010
Unfortunately, this article does not discern the impact that 'Net Neutrality', if lost, will have. All the video delivered could conceivably still be delivered exactly the same way as it is today, IF the large ISP providers have their way.
05:46 PM on 05/18/2010
was going to type the same thing but you beat me to it. The article assumes the media conglomerates will sit idly by. Unfortunately, they have a long precedent of getting legislation passed that derails choice and competition.
12:14 PM on 05/18/2010
What about the 40% of us who don't have broadband, or even access to it?

And even if we did, the arguments present in these comments are valid: basically, corporations want to get us hooked upon online content so they can charge us for it --- and you can be sure the price will go up and up and up and...

Fortunately there's an old-fashioned technology that is widely available and can be had for free: the book, available at the library near you.
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sb250guy
A Cunning Linguist
10:45 AM on 05/18/2010
I have no idea if this guy is right or wrong. I know I got rid of my TV last year (after not really watching it for a couple of years). I've migrated online. But if the Internet starts to cost me much more than it already does, or the free content disappears, I'll get rid of it too. I might have to go for a walk or read books. Maybe I'll get a dog. What I do know is I'm not going to allow technology to control me. I have limits.
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TheWestLA-Banned
12:58 PM on 05/18/2010
My sentiments exactly. We ditched our satellite TV last year as well. It was costing around $70/mo to get anything decent.

Now we have cable broadband on a computer hooked to our TV. But we will also dump that if it starts to cost more. The fact that what we watch (what is available, anyway) is now totally on our schedule when we want it has opened up a new sense of freedom to get away from the tube and out in the yard more.
10:35 AM on 05/18/2010
I like these prediction articles. Things usually never really pan out as predicted, but sometimes people do get close.

For a really cool prediction website, look at: Paleofuture.com It has articles going back to the late 1800s of people making predictions of technology, mainly, of how we would live now (and in the future).

Looking at those references, it appears that some of this author's predictions are based on a given that the advancement of the infrastructure needed for many of predictions will be emplaced. That usually never happens.

The browser point, where "we will move from a device-specific model to a user-centric one, where your content is available anywhere you can log-in" does seem to fit into the pattern of which predictions come true. From the site, people have tended to think that a specific application requires a device special for that need. Usually, though, things have been engineered to have multiple uses.
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09:59 AM on 05/18/2010
"There will be only one channel"

Resistance is futile . . (where did they find this guy?)
09:50 AM on 05/18/2010
Wow, that's essentially a lot of semantic manipulation to say "Tomorrow will be just like today, but bigger and better!".

And unfortunately, that's basically never how technological trends progress...
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09:24 AM on 05/18/2010
Techno Triumphalism at it's best. LOL . . admit it.

We Believe!
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
09:10 AM on 05/18/2010
I have long experience in MPEG video, my code is in DirectTV DVRs (they run Linux).
"Content providers" jealously guard their video. It's encrypted, even on the disk of a DVR.
Free online music has all but disappeared on the Internet. Video is tolerated, but it's next.

No question, all prerecorded video will be seen "on demand", over the Internet.
That is like "one channel", but I doubt that channel will be free.

But "live" video, particularly sports, is "multicast" over the Internet, over separate channels (sort of).
We will pay separate subscriptions for each channel, like for cable channels or pay-per-view
ESPN is paid billions, and that won't stop. There is no chance that will be free, ever.
No difference on the Internet; probably more expensive.

I don't agree that content will find me - not free, quality content, which YouTube is not.

Our US system is based on maximizing profits, which maximizes cost to the consumer.
We pay more for cell phones and Internet than in other countries, with inferior service.

That's my five year prediction: regardless of the future of video, we in the US will pay the most for it.
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10:22 AM on 05/18/2010
Could not agree more with you.
Not only will it cost more but the free broadcast options will be gone soon too.