Kaltura's CEO tells us where the future of online video is headed

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BI Intelligence, Business Insider's premium research service, spoke with Ron Yekutiel, CEO of Kaltura, to get his insights on the emerging world of online video.

Kaltura is a cloud video company that provides both platform as a service (PaaS) and software as a service (SaaS). The conversation touched upon the growing pervasiveness of video, and how the medium will eventually permeate at all levels of society.

Kaltura's strategy is focused on three segments: Media and telecom, enterprise, and education. Yekutiel explains that each of these three segments is growing fast and will continue to for a number of reasons: 

• Media and telecom. Half of this segment consists of distribution and publishing solutions for publishers and large media companies; the other half consists of delivering a complete TV experience on the web, both on-demand and live. Yekutiel believes television will be the biggest market in cloud video, as internet TV opens the doors to new subscription and advertising opportunities. He estimates over-the-top (OTT) providers will reach $31 billion in revenue by 2019, doubling 2014’s level; and by 2021, US subscriptions on video on-demand services will reach 140 million, or around 40% of the country’s project population. This expected growth is why we’re seeing cable, satellite and telecom companies buy up content businesses right now.
• Enterprise. This refers to video solutions used within a company. Large corporations often employ white label video solutions – a kind of “corporate YouTube” – for communication, collaboration, on-boarding and training. Enterprise video is set for growth as employees become more and more video literate, especially as millennials make their way into the workforce. This effect will be magnified as people live longer, and work longer. More than this, Yekutiel anticipates video will become an increasingly essential communication tool in the future. As people spread geographically and work on projects across borders – and not to mention from their homes – he expects 90% of work to be carried out through video. 
• Education. Hundreds of schools in the US and around the world are integrating video into their learning systems. Yekutiel expects video to become increasingly important as the education paradigm evolves. E-learning and remote (distance) learning – where classes and lectures are conducted over the web – will become norms. So too will notion of the "flipped classroom," where students do most of their learning online, and come into the classroom to engage in the concepts with the guidance of a teacher. The growing cultural focus on lifelong learning will also drive video’s growth in education and the enterprise.

If 2015 was the year that brands and advertisers embraced online video, then 2016 will see the medium take the next step as live streaming takes off.

Live streaming video refers to broadcasts in real time to an audience over the internet. While the concept of live streaming has been around for years, mobile-first video platforms with user-generated content have just recently begun to make serious waves thanks to improved video quality, faster broadband speeds, and enhanced mobile technology.

Online video has become a key part of the strategic business model for both brands and marketers as they seek more innovative ways to capture consumer attention. Creative live streaming video initiatives and campaigns are a way for companies to cut through the digital clutter and have emerged as the medium of choice not only for person-to-person sharing, but also for business-to-consumer (B2C) and business-to-business (B2B) communication. 

Brands are increasingly using live streaming to reach audiences. Its importance has grown significantly thanks to substantial investments by social platforms such as Facebook, YouTube, Snapchat, and Twitter to build and enhance their live-streaming platforms.

And advertising dollars are likely to follow. 88% of agency respondents stated that they “might” or “definitely will” invest in live stream video advertising over the next six months, according to a recent Trusted Media Brands survey.

BI Intelligence, Business Insider's premium research service, has compiled a detailed report on live streaming video that examines the eruption of online video from the perspective of both consumers and advertisers and assesses how live streaming is emerging as the medium's next catalyst for growth.

Here are some key points from the report:

• Live streaming video will further accelerate streaming videos overall share of internet traffic. Streaming video accounts for over two-thirds of all internet traffic, and this share is expected to jump to 82% by 2020, according to Cisco’s June 2016 Visual Networking Index report.
• Live video’s value comes from its unique ability to add an authentic human element to digital communications. As a result, brands are leveraging three main streaming methods to connect with their viewers: tutorials, product launches, and exclusive and behind-the-scene footage.
• Advertisers will continue to invest heavily in online video, especially as live streaming video gains traction. Already in the US, digital video ad revenue reached $7.8 billion in 2015, up 55% from 2014, according to figures from the Internet Advertising Bureau.
• While live streaming is still in its early stages, brands are leveraging micropayments, mid-roll video ads and direct payments from social platforms, to monetize their live streaming videos.
• The success of live streaming video hinges on brands overcoming a lack of measurement standards in the space, as well as changes in social media sites' algorithms that affect what content users see.

In full, the report:

• Examines the eruption of live streaming video.
• Explores the differences between platforms that host live streaming video.
• Breaks down successful approaches from both brands and publishers.
• Discusses unique monetization opportunities live streaming presents.

To get your copy of this invaluable guide, choose one of these options:

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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of live streaming video.