03/26/2013 11:46 am ET Updated May 26, 2013

The Future of Video Streaming in 2013

Streaming media continues to show great promise for premium content created by talented directors, producers and film-makers. The industry is undergoing immense change which will definitely result in a shift of the way we consume our content and there are three key points that highlight this transformation:

Cutting the Chord:
A new report by Nielsen shows that five million people in the U.S. no longer watch traditional television, but that does not mean they are not streaming video from their mobile devices. The American household spends, on average, nearly five hours per day watching video content, with the exciting part [in this industry] being that video content is one of the best methods we know for generating product interest. A new report by Nielsen finds that those people who have elected to go "NO TV" have more than doubled since 2007. Currently, more than five million people don't have broadcast television in their home, while in 2007, just two million didn't. This shows that while the vast majority of U.S. residents own televisions and watch them regularly, more and more people are opting to toss their cable plans and use their mobile devices as a means of entertainment.

Online streaming has a revolutionary opportunity to alter the way products accompany the delivered content and how it is delivered to viewers. The ways in which we can optimize our streaming experience are now limitless. The future of viewing content lies in the palm of our hands, and as we cross this threshold it will be exciting to see the full potential of combining streaming video and e-commerce.

Content With NO Borders:
Taking premium content across borders to reach new untapped audiences is a thrilling idea. It generates solid incremental digital dollars through subscription services, legitimizing the content experience that previously had been dominated by online piracy and building momentum for content and brand equity for years to come. Ironically, it is the U.S. market that sometimes moves the slowest. While not all territories are equally profitable, content is traditionally sold in a segmented manner slowed by language and country. Being able to slowly un-fragment these rights through global expansion provides scale and an upside in the future that is worth the investment.

Moving forward in 2013, it is also becoming increasingly important for a more unique digital platform to exist. There is huge market potential for niche programming that currently lives on the web but not one single go-to platform for this content. There are also a large number of content producers that target these acute demographics and don't usually ink deals on traditional networks because the programming doesn't appeal to broad audiences (and broad audiences attract advertisers). The market is ready for content that is personalized and can fill the void that safe, "for everyone" programming doesn't.

Subscription Model Monetized:
The Subscription Model will continue to be the most dominant business model in 2013. Viewers have demonstrated that they recognize significant value in having access to premium content across their continually connected digital lifestyle, and will pay for convenience of access on their mobile devices. Consumers will also continue to seek low-cost subscriptions, especially since there is a generous amount of content available on the web that doesn't cost anything aside from a data plan. Throughout 2013, we will see premium content delivered for an affordable price to viewers seeking specialized programming that is not only relatable, but also reasonably priced.

Delmond Newton is the CEO & Founder of UrbanClout, the only Internet subscription service for TV shows and movies targeting urban audiences. The service's subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their televisions, computers, and mobile devices domestically and internationally. UrbanClout is a new, unique way to offer urban programming.