Video set to become a cornerstone of the digital era
Earlier this month, tech research firm Omdia released its report Connecting the Dots: Key strategic opportunities in a post-COVID-19 world and within detailed a new emerging powerhouse, video. Long positioned for substantial growth, video consumption statistics have skyrocketed since the COVID-19 restrictions were introduced earlier in the year.
In this report, Omdia forecasts that video will account for up to 1.9ZB (zettabytes) of internet traffic this year, up from the pre-COVID forecast of 0.22ZB. The 12% growth in consumption is equal to approximately 200 billion hours of video streaming or conference calls. For context, one zettabyte is equivalent to one trillion gigabytes. Omdia expects entertainment and communication apps to be at the forefront of increased usage due to their “simple appeal to consumers and employees in lockdown worldwide.”
Also in the report were many other statistics surrounding video usage. Namely in the growth of video subscription services by up to an additional 8%, estimated to generate $65-68 billion in revenue, as well as the growth of active users for apps such as WhatsApp or iMessage totalling a record 4.5 billion users by years end. Of this 4.5 billion, Omdia expects users to send more than 6 trillion video messages in this year alone, more than double the number reported in 2019.
The report anticipates retailers and brands to use video to support brand new shopping experiences, including live-stream promotions and augmented reality enabling users to learn about or try products. With over 5 billion smart devices in use and 5G set to usher in the new digital economy, 2020 will prove a pivotal year for video and tech.
Beyond 2020, Omdia anticipates continued revenue growth for premium video thanks to the easing of lockdown and unlocked advertising spend. Furthermore, familiarity with video calling will continue to grow plus greater comfort with online shopping will pave the way for e-commerce to innovate with AR and AI-based solutions.