Whenever you watch a video online, you are experiencing the benefits of video streaming technology. This technology enables videos to be streamed over the internet, live and in real-time, as they are being recorded.
Live streaming technology is the internet’s answer to live television broadcasts, commonly used for news and sports events. However, live streaming is much more accessible compared to traditional live television broadcasts and can be easily implemented by businesses. In this guide, we will explain what live streaming technology is and how it can benefit your business.
Live content captures viewers’ attention up to 20 times longer than on-demand videos, making it a powerful tool for building strong connections with your audience. With numerous use cases across various industries, creating live content is a logical step for businesses looking to engage their customers more effectively.
At Webnexs, we specialize in delivering innovative video hosting and live streaming solutions, making us uniquely positioned to answer the question: “What is live streaming technology, and how do live broadcasting platforms work?”
In this blog post, we will explore the concept of live streaming technology and explain how live content delivery functions. Before diving into the technical details of live streaming platforms, we will touch upon some of the most common use cases.
Finally, we will provide an overview of essential live streaming equipment and software that broadcasters rely on to make their streams successful. By the end of this post, you will have a clear understanding of how video streaming works and the fundamentals of online content delivery.
What is Live Streaming?
Live Streaming is the real-time broadcasting of video and audio content online. The fact that users can watch the video as it happens without downloading the content makes the experience very immersive and is one of the features that really makes it special. Furthermore, the platform offers live chat and Q&A to make it interactive.
It surpasses the Video on Demand method of streaming in terms of cost-effectiveness and has the ability to reach viewers across the globe. Commonly streamed content includes sports, concerts, webinars, gaming, ceremonies, both public and personal. The scope extends to streaming corporate events as well. Live streaming caters to both formal and informal events of all sizes; this is supported by deploying the right technological stack.This makes it a versatile method of streaming across various industries.
What are the Features of Live Streaming?
- Accessibility: It has cross-platform support across various devices to enhance convenience in usage.
- Scalability: The live streaming technology stack can be scaled according to audience size, including both upscaling and downscaling.
- On-the-fly encoding: An encoding method that processes raw footage into digital storytelling formats to make viewing easy for viewers without disruptions.
- Simulcast: The stream can be broadcast on multiple platforms at once (like YouTube, Facebook, etc.).
- Low Latency: Advanced technology helps in reducing the delay between live streaming and its viewing for the audience.
- Recording Capability: Most platforms have recording capabilities so the stream can be saved for future use.
- Analytics and Insights: Metrics such as viewer behavior, engagement rates, and other data can be used to analyze effectiveness and apply insights to improve live streaming for future events.
What are the Benefits of Live Streaming?
1. Wider Audience Reach
Worldwide broadcasting is made possible with global internet penetration, which is projected to exceed 66% by 2024. Platforms like YouTube and Facebook have been optimized for live streaming technology to allow adaptive bitrate streaming to ensure an uninterrupted viewing experience regardless of network conditions.
Furthermore, user preference is soaring the demand for live streaming services, with 80% of users favoring live streams over reading blogs.With the introduction of content delivery via faster internet technology (5G), the world of live streams is widening into rural areas.
2. Real-Time Engagement
Interactive elements like live chats, polls, Q&A sessions, and real-time feedback enhance audience engagement. At the very least, an immersive experience with live streaming technology will encourage a growing number of users to subscribe to live events through the platform, expanding the customer pool around the world.
It is not just for live interaction, but for live purchase as well. 67% of the people who watch live streams make a buying decision, either purchasing a ticket or an item after the live session. This is an upshot of the possibility for the generation of revenue.
3. Technological Advancements
For delivering seamless streaming, protocols such as RTMP (Real-Time Messaging Protocol) and HLS (HTTP Live Streaming) are deployed. Advanced CDNs (Content Delivery Networks) are also used for low-latency content delivery to augment the system’s response time.
The year 2023 witnessed CDNs dominating over 80% of the whole world’s internet traffic. Moreover, the world CDN market is projected to surge from 2023 till 2030 by 26% CAGR. The key factors include the rise in global demand for live streaming, the availability of faster internet speed, edge computing development, and the use of AI to optimize information.
4. Cost-Effectiveness
A research report that compares traditional broadcasting to live streaming technology shows that only one device is needed for live streaming, which uses cloud-based CDNs for maximum application flexibility and economy.
According to the analysis, 25-30% of marketing spend is saved by using the live streaming format instead of presenting pre-recorded events. To maximize budget resources, the implementation of AI-based automation will help decrease the costs of video encoding, metadata tagging, and content moderation.
5. Authenticity and Engagement
A video streamed live is a greater source of trust for the content as it is uncut thus authenticity increases in the platform. An additional way of improving the experience of live streaming for the audience is the integration of state-of-the-art technology that offers insights into viewer behavior and the level of bandwidth used.
Statistics demonstrate that 82% of users prefer video content over other mediums. To serve the market, live streaming will bring a personal touch with AI-based features that enhance viewer engagement by providing the right content in the right way at the right time.
6. Monetization Opportunities
During live streaming, profit can be made through methods like pay-per-view, sponsorships, ads, and revenue models. These methods are secured through transactions made via payment gateways.
In addition, it is estimated that the market for live streaming will experience remarkable expansion at a CAGR of 21% from 2024 to 2030. The market, valued at $70 billion in 2023, is expected to expand during this period. In the sector, blockchain will serve as an e-payment system, enabling asynchronous transactions, decentralized content ownership, and transparent micropayments.
7. Versatility Across Industries
Simulcasting for live streaming technology is made possible via protocols like Secure Reliable Transport (SRT), making it suitable for gaming, education, healthcare, entertainment, and other industries. SRT works to deliver high quality content during unstable network conditions. This technology enhances user experience.
Among various industries, e-learning platforms experienced a 900% increase in live streaming due to the pandemic in 2020 and 2021. AI will be integrated into SRT for error correction and to further optimize the protocol for improved performance and stream reliability.
8. Data Analytics and Insights
Analytics tools should be integrated to provide a detailed insight into viewer demographics, session durations, and engagement trends. Tools such as Google Analytics, Streamlabs and OBS provide detailed information. This data must be utilized to optimize live streaming and deliver a better experience the next time.
This is backed by evidence showing that 78% of businesses have improved their content strategies using analytics. Predictive analysis using AI and ML will be implemented to forecast trends in live streaming, enabling better content strategies.
9. Scalability and Reliability
Advanced live streaming technology stacks include CDNs and edge computing to reduce server loads and ensure faster delivery of content for an uninterrupted streaming experience even during heavy traffic.
The right live streaming platform will be able to handle concurrent users without performance degradation. Furthermore, the integration of edge AI will reduce latency and improve real-time processing capabilities.
How does Live Streaming Work?
1. Content Capture
It is necessary to arrange all the equipment needed for the live stream, which comprises the following items:
- Camera:
There are several choices available, including webcams and professional cameras. Depending on the live streaming situation, the most appropriate camera can be chosen based on audience size, type, and requirements.The decision on video quality when choosing a camera also matters.
- Microphone:
Audio capture is another aspect of live streaming technology that needs to be addressed. For instance, quality lapel, shotgun microphones, and audio mixers that can manage more audio sources can be utilized by professionals when streaming.
- Additional Equipment:
High-quality live streaming usually comes with a sophisticated set of additional equipment, such as teleprompters, mixing boards, and lighting.
2. Encoding
- Encoding Software/Hardware:
The raw file of the video and audio needs to be converted to a digital format that is compatible with live streaming over the internet. There are 2 types of encoding:
Software Encoders: Several dedicated programs such as OBS Studio, XSplit or Wirecast are used to capture raw content and convert it to live streaming digital format.
Hardware Encoders: Encoding on their servers provides a more reliable and high-quality experience. When live drawing has already started, makers use encoding to convert it to a digital format so people at the venue can experience it.
- Compression:
By using codecs like H.264 for video and AAC for audio, the original quality is preserved while ensuring efficient encryption of the video. Thus, the content can be properly transmitted for live streaming through the internet.
Key terms:
- Bitrate:
It is the amount of the data transported per second. Excessive data transmission per second can strain bandwidth, leading to inconsistent live streaming quality. Generally, a higher bitrate provides better quality but requires more bandwidth.
- Resolution:
The term refers to the number of pixels in an image, affecting color depth and contrast. The resolution of a projector affects the clarity of objects on the screen. 720p, 1080p, or 4K are examples as is the case with pixels.
- Frame Rate:
This refers to a factor whose speed affects the smooth transition of video in live streaming.The video is typically streamed at 30fps or 60fps, with variable digital picture and sound streams discussed in this context.
3. Transmission
- Streaming Protocol:
Through a protocol, the video and audio content is sent from the source to the server where it is streamed. The method could be HTTP Live Streaming (HLS), Real-Time Messaging Protocol (RTMP), or WebRTC. RTMP is widely used, ensuring efficient and timely live streaming while enabling cross-platform and multi-device accessibility.
- Server and CDN:
The server is often a part of the Content Delivery Network (CDN) where the encoded data is sent. CDNs are a system of servers specifically designed for delivering content with minimal buffering, and they are globally distributed. This ensures that each geographic region has access to a nearby server, enabling faster live streaming.
4. Content Distribution
CDNs deliver the content without buffering and delays. Multiple copies of the live streaming content are stored across servers called edge servers. This ensures that the live stream is delivered from the nearest available server.
5. Player/Viewer Playback
- Streaming Platform:
Platforms designed for live streaming reception include YouTube, Facebook Live, or custom-built websites. Embedded into the website is a media player that displays the content. The media player also supports a variety of video formats such as MP4 or WebM, adaptive streaming protocols such as HLS or DASH, and interactivity elements such as live chats, comments, and so on.
- Decoding:
It is the media player that decodes the video and audio for presentation on viewers’ devices by adapting the resolution and bitrate to what the device will support. Additionally, it synchronizes audio and video content to prevent desynchronization and ensure a smooth live-streaming experience.
- Adaptive Bitrate Streaming:
This advanced technology allows for automatically adjusting the quality of the video based on network conditions and matches it with the device’s capabilities.
6. Interactivity
While this is not a technical part of the live stream, many platforms now come with features such as:
- Live Chat:
Real-time live streaming can be discussed by the viewers in the chat section in real-time.
- Reactions and Polls:
Polls and emojis allow viewers to cast votes and share reactions during the stream.
- Two-Way Communication:
Certain live streaming events allow the audience to interact directly with the broadcast by offering video conferencing or call-in features.
7. Recording and Archiving
- Recording the Stream:
Live streaming platforms automatically record events and store them for later viewing. Platforms like YouTube and Facebook have this feature.
- Post-Stream Processing:
Recorded live stream content can be edited, refined, and repurposed for later viewing.
How to Identify the Best Live Streaming Service?
Understand the Technology
The underlying framework for the live stream is the deployed live streaming technologies responsible for delivering high-quality video and seamless live streaming experiences. Assessing the effectiveness of a service’s live streaming technologies is necessary to ensure minimal buffering, high-definition video, and smooth playback, especially during live events or broadcasts.
Consider Scalability
Scalability is the cornerstone of the entire service. This is due to the fluctuating demand that can skyrocket at peak time periods. To meet such a huge demand, ensure that the live streaming technologies support scalability with flexibility. Irrespective of the size of the stream, whether hosting small or larger broadcasts, the technology should be capable of handling spikes in traffic. Scalable live streaming technologies need to support the stream without compromising video quality or interrupting playback.
Check Compatibility with CDN
Content Delivery Networks are robust systems deployed for advanced levels of streaming for smooth content delivery. During the selection of the live streaming service, ensure that the live streaming technologies integrate seamlessly with the CDNs. As a result, low latency and high-quality playbacks can be delivered across multiple regions and networks for a global audience. Optimizing live streaming technologies ensures that location is not a barrier to streaming.
User Interface and Ease of Use
Sophisticated live streaming technologies do not guarantee success unless they are incorporated along with a user interface that is intuitive and navigable. Managing the platform should be convenient, and setting up, operating, and monitoring should be easy. Straightforward controls, simple redirects, and clear dashboards make utilizing live streaming technologies hassle-free. Moreover, both time and effort are conserved.
Support for Multiple Devices
The live streaming technologies used must be compatible with various devices to ensure that the stream can adapt to each device’s specifications. High-quality streaming is essential for reaching a broader audience. Additionally, make sure to check whether the service supports cross-platform streaming so the live streaming technologies work smoothly.
Customization Options
The live stream must feature overlays that can reflect your brand and unique style. Logos, graphics, contacts, details of the stream, and others, if any, need to be included. This requires customizability to enhance the viewing experience and strengthen the brand presence. Advanced live streaming technologies offer built-in customization features to tailor the experience for the audience and make it more engaging.
Security and Privacy Features
Certain types of content that are sensitive and exclusive require increased attention to secure them over the stream. Robust and secure live streaming technologies need to be deployed to ensure encryption for an uninterrupted streaming service. Features include privacy controls, password protection, and geo-restrictions to limit access and enable only authorized viewers to watch the content.
Analytics and Insights
The more information you have on user behavior, the better it is to devise compelling streaming strategies to drive more user traffic. Live streaming technologies provide advanced analytics to monitor performance and track viewer engagement. These help determine the success of live streaming and optimize future streams.By learning your audience’s behavior and preferences, you can tailor your content accordingly.
Terminologies in Live Streaming
Stream Key
It is a unique code that allows streamers to broadcast video content securely to streaming platforms and is provided by the platform.
Push vs Pull Streaming
Push Streaming: The transmission of the stream from the encoder to the platform or server.
Pull Streaming: The process of the platform or the server requesting the video from the encoder.
Encapsulation
This process packages raw video and audio content into a container file or stream format for live streaming, enabling transmission over networks or storage for later viewing.
Overlays
Overlays are text or animations displayed on the live streaming screen, providing crucial information to viewers.
Transcoding
Transcoding converts a video or audio file from one format or bitrate to another, ensuring compatibility across different devices and network conditions.
Chat Moderation
Chat moderation oversees discussions during live streaming to ensure proper social conduct and prevent offensive content.
Encoding Profile
An encoding profile defines bitrate, resolution, and compression settings to ensure cross-platform and cross-device compatibility.
Timecode
A timecode is a numerical reference marking a specific moment in a video stream, aiding in editing and synchronization.
Stream Isolation
Stream isolation, used in high-security or professional events, keeps distinct streams separate to prevent mixing.
Bitrate Ladder
A bitrate ladder provides multiple bitrate options to optimize streaming quality across varying bandwidths.
Peer-to-Peer (P2P) Streaming
Peer-to-peer (P2P) streaming decentralizes the process, reducing strain on central servers and improving scalability by allowing each viewer to contribute to and consume the stream.
Stream Fragmentation
To enable adaptive bitrate streaming and facilitate content distribution across CDNs, the live stream is segmented.
Staging Server
The server is used in the pre-broadcasting of live streaming to ensure appropriate quality, synchronization, and performance are achieved before going live.
Stream Encryption
The video content of the live stream is encrypted to protect it from unauthorized access or piracy during transmission.
Best Practices for Live Streaming
Pre-Stream Preparation
Test your Equipment:
All the equipment should undergo testing to spot glitches or unexpected malfunctions. Troubleshooting must be done to correct the issues. It includes the camera, microphones, lighting, other hardware, and streaming software.
Rehearse the Content:
Certain issues will arise only when all the equipment works together and, for that reason, running a rehearsal (based on the content of the Live Stream) will help in identifying and solving technical problems like audio-video synchronization and other non-technical issues.
Check your Internet Connection:
An uninterrupted internet connection must be ensured. Use Ethernet for a reliable connection. Test the upload speed to ensure it is sufficient for the size and resolution of the streaming content.
Prepare your Stream Settings:
The streaming platform and software settings must be configured based on the available bandwidth. Additionally, streaming overlays like text and animations must be set up to display important information.
Stream Monitoring during the Event
Monitor the Stream:
The metrics such as viewer count, buffer rate, dropped frames must be monitored in real-time to ensure smoother streaming. If issues arise, it can be solved quickly through the streaming software or the platform’s dashboard.
Professional Audio and Video:
Make sure to use only high-quality equipment to prevent audio bleed and pixelation. Also, ensure that the lighting setup is adequate to avoid dark or washed-out visuals. Moreover, the camera positioning and angle should enable coverage of the event as needed.
Moderate Comments and Chat:
The live conversations through live chat, Q&A and polls should be overseen by placing a chat moderator. To avoid offensive information, comments must be controlled. Everyone can engage in expressing their opinions in a safe environment as a result.
Monitor Background Noise:
To provide a polished and excellent experience, the live streaming location must be soundproofed. You can also use microphones that can cancel out noise. Verify the audio levels both before and during the live stream to make sure distortions are avoided.
Stream Quality and Resolution Optimization
Adaptive Bitrate Streaming:
Since unforeseen events are unavoidable, use this technology to guarantee an unbroken live streaming experience just to be safe. Make sure that the live streaming functions correctly by minimizing buffering by matching the bandwidth and resolution.
Choose the Right Resolution:
Choosing the appropriate resolution is a useful recommendation for steady and seamless live streaming, taking into account the devices and internet speeds of your audience. The standard resolution is 1080p. However, 720p streaming can be the best option if you have a low bandwidth.
Keep Latency Low:
To get minimal latency, make sure you are using protocols like RTMP or WebRTC for live streaming. These protocols are perfect for live broadcasting because they are especially designed for real-time communication. This is necessary for live gameplay or Q&A sessions.
Interactive Features and Engagement
Use Overlays and Graphics:
Providing more context to the live streaming enhances content relevancy. Add text and graphics of important information to make the content look more professional. These include branding elements such as logos, social media handles, stream title, and other necessary details.
Encourage Viewer Interaction:
Create an immersive and engaging experience for your audience by responding to comments, creating polls, and doing Q&A sessions. This reduces the drop rate of the live streaming and creates a personal touch for the participants.
Post-Stream Actions
Archive the Stream:
The recorded live streaming should be archived for viewers to watch later, especially those who missed it. Additionally, the video should be made available for replay and automatically saved to the platform as a Video on Demand (VOD).
Analyze Stream Performance:
A performance check and report of the live streaming must be prepared to understand viewer engagement, such as watch time, peak views, and chat activity. Drawbacks can be identified and strategies can be devised to make improvements in the future.
Follow up with your Audience:
After the live streaming, follow up with your audience through social media or email. Post thank you messages, share highlights of the live streaming, and keep them updated about future live streams. By maintaining a rapport, a loyal viewer base can be created over time.
Backup Plans and Contingencies
Backup Equipment:
Having an additional set of equipment, including cameras, microphones, and encoders, will assist during unexpected streaming failure. Switching to the backup equipment can be done easily. In live streaming, there is no time for downtime.
Backup Internet Connection:
A secondary internet connection is required to tackle uncertain network conditions during live streaming. Make sure that the primary and secondary connections are from different ISPs. If possible, use a failover router that automatically switches to the secondary connection when the primary one fails.
Test Stream Recovery:
In case of a server crash, use the backup resources to get back on track with the live streaming. Communicate with the viewers about the issue and let them know when they can expect to continue watching the event. Use overlays to display a holding message.
Ensuring Security and Privacy
Secure your Stream:
Install a Digital Rights Management (DRM) system and use protocols to protect the live streaming technology from unauthorized access and piracy. Additionally, the video can be password protected or access can be limited as per the nature of the content.
Protect Viewer Privacy:
Ensure adherence to data protection regulations such as GDPR or CCPA if collecting viewers’ data is necessary to maintain the privacy of their data. While doing so, ensure viewers have access to your privacy policy.
Live Streaming Usage Statistics
Market Expansion
- The live streaming market worldwide is now worth over $60 billion and is anticipated to grow beyond $3 billion by 2027.Currently, there are about 12.3 million active live streamers across various platforms. The active user count is anticipated to hit 770.5 million by 2029, alongside a growth in user penetration from 10.2% in 2024 to 12.2%.
Streaming Engagement
- Nearly 30% of internet users consume streaming content worldwide as of 2024. Hours of consumption converts to over 8.5 billion in live streaming alone for the second quarter of the year. This marks a 10% increase every year.
- From the peak percentage of dedicated hours for content consumption during the pandemic of 30.4%, there is a decrease of 1.9% bringing the percentage down to 28.5% of users viewing live streams weekly.
Platform Dominance
- Twitch had gained the leading position for live streaming technology in the first quarter of 2024 with over 3 billion hours of engagement.
- The concurrent viewership for live streams for the platforms Twitch and YouTube gaming is 3 to 3.6 million on an average.
- Although cut-throat competition is given by YouTube Live and Kick, Twitch managed to lead the industry with the highest market share of approximately 60.3%, this translates to 5.2 billion hours of total engagement time in Q2 2024. This marks a decrease of 70% from the previous year due to the fierce competition.
- The second leading platform, YouTube Live, gained a 20.5% increase from the previous quarter in the second quarter of 2024. This totals 15.2 billion hours approximately.
Audience Demographics
- The most active age group is between 18 and 34, with 15% of them watching several times per day.
- Live streams have become a channel for shopping and this is becoming a growing trend. In the U.S., 18% of viewers shop through the live stream, making it effective for generating revenue.
- A survey conducted in 2024 discloses that over half of the respondents globally prefer watching live streaming. This is shifting perspectives and redirecting the entire industry’s focus to produce quality content.
Content Categories
- Gaming leads all content genres for live streaming, with a total of 5.488 billion hours of watch time. This figure represents the combined hours from Twitch and YouTube Gaming in the third quarter of 2023.
- Live streaming platforms are versatile even though certain categories are more prominent. With that said, live shopping and music performances are also gaining positions gradually.
Engagement Metrics
- Every minute, the concurrent viewers’ consumption equals 43 years of live video content approximately.
- Live video content has higher engagement than Video on Demand (VOD) on platforms like LinkedIn.
Top Insights
- Live streaming technology enables viewers to consume real-time content over the internet, and it has advanced to the extent of providing immersive experiences with a rich feature setup.
- The live streaming technology platforms are optimized to deliver an engaging experience by catering to diverse audience preferences. Moreover, they are designed to be future-proof, making them adaptable for long-term usage.
- When the content streamed is compelling, live streams can attract a huge viewer base. Especially when this is combined with revenue-generating streams, greater monetization benefits can be reaped.
- The process of live streaming begins with equipment set up, followed by encoding the media content. Subsequently, it is then delivered via streaming protocols and CDNs. Once decoding is complete on the viewer’s device the playback is available for viewing.
- Awareness of industry specific jargon will enhance working style and knowledge to communicate effectively with experts and adapt to trends and practices.
- Prior testing and rehearsals will highlight issues and insufficiencies. They can be resolved along with a pre-broadcasting checklist to ensure a smooth live streaming experience.
Conclusion
Live streaming services enable you to broadcast professionally and create engaging videos that capture the attention of mobile viewers. Live streaming is a vital tool for businesses to connect with their audience, demonstrating innovation and technological expertise.
These platforms are specifically designed to help you create content that highlights your brand as forward-thinking and capable of implementing modern solutions. Live streaming services also allow you to reach a broader audience and customize the viewing experience to cater to diverse consumer needs.
Insecure about which live streaming service to choose? Explore comparisons of top platforms and take advantage of free trials to find the one that suits your needs.
Get started with Webnexs and explore our solutions today.
