Video, video, video. Everyone wants video — traditional, social, digital, and other media owners. Will this crowd out everything else in future years?
What will become of display advertising, social-media content, tweets, Instagram posts and everything in between?
A new report from Ericsson Mobility suggests 75% of all mobile bandwidth in five years will be video. Right now, it’s growing at a 30% rate. In five years, by 2025, video will account for 75% of mobile data traffic, up from 60% in 2019.
Though social-network content will grow as well — expected to rise 20% annually over the next six years — it’s relative share of traffic will decline to around 8% in 2025 from 10% in 2019. New quicker, lower latency 5G technology will help this growth along.
Some of this uptick comes from changing video habits — watching more video on the go, perhaps less at home.
For its part, social-media platforms — Facebook, Twitter, Snap and Instagram — are evolving. All are looking for more video executions, perhaps to compete with new premium streaming subscription services.
The Ericsson report says mobile data per smartphone is expected to rise to 45 gigabytes by 2025 from around 10 gigabytes in 2019.
Quibi, the short-form mobile-first video platform from longtime Hollywood entertainment executive Jeffrey Katzenberg and Silicon Valley tech executive Meg Whitman, might have the right approach. It intends to offer bite-size bits of premium video content, 10 minute to 12 minute episodes.
Investors have lined — and paid — up. Quibi has pulled in $1 billion in financial backing. At the same time, Quibi intends to initially spend around $1 billion in original programming efforts. This is a big bet. Quibi hopes to massively change behavior among key consumers, as well as feed video-ready younger consumers on the move.
One recent study from KPMG — an audit, tax and advisory services firm — says just under 70% of respondents ages 18-24 and nearly 80% of those between 25-60 currently pay $10 to $40 per month for a number of streaming subscriptions. That, in and of itself, is a major deal.
With other studies suggesting we are all pretty much maxed out on our waking time with media, what happens to other media platforms, new and old? Something’s got to give.