How Video Production Is Evolving With Technology
The video production industry is transitioning from the traditional hardware driven quality to software-driven quality. Years ago, it was all about the size of the camera, the lenses, etc, but now, even a small camera like Sony’s (SNE) PXW-FS7 Camera can do a whole lot in the video production market.
The shift from the hardware-focused video production devices to software-focused devices has brought down the cost of these devices with some of the software going for as littles $50 per month. In today’s market, you can get a high-quality video production camera at less than $10,000, which is quite cheap compared to historical prices.
The same trend is reflected in other tools used in video production with most software ideally being offered free online. This means that setting up a video production startup is now as easy as buying a camera, the rest of the stuff can be obtained from the internet at virtually no extra cost. This has resulted in a lot of free services offered online. We are talking about video production services via third-party platforms like Alphabet’s (GOOG) (GOOGL) YouTube, Vimeo, and Facebook (FB).
Once logged in to one of these portals, you can barely spend a minute before seeing a live coverage of an event on your timeline. Some of these videos are high quality and that tells you that the tools being used to produce them are as good. Again, the subject of cheap devices and software pops out when trying to reason out how such video could be offered at no cost.
Creating videos online has become everyone’s game now with even the least experienced video editors trying to capitalize on the rapid growth of the market. Computing device manufacturers have also embraced this paradigm shift and are now developing smartphones and laptops that can be used to record, edit and run videos online with ease. Today, it is hard to come across a computing device PC or otherwise, that has no screen recorder while others are heavily equipped with powerful editing software. And for the few that lack one of these necessary video production tools, third-party providers have made the market open to everyone by providing cheap alternatives that deliver as good or better results.
But why go through all the hustle to create videos that you plan to stream to the online community at no cost?
It’s simple, some of them have sponsors and that’s why at times just before the video starts, they try to discuss a certain brand or product depending on the type of video. On the other hand, others use these services to try to redirect viewers to their own platforms where they can then subscribe to one of their product offerings at a cost. And then, of course, there is the ad revenue from platforms like YouTube, which seems to be the main driving force behind most video content creators.
Ad revenue relies on the number of views, and based on YouTube statistics, there seems to be an insatiable demand for video content. The average number of hours every person spends watching video on YouTube is up 60% from two years ago due to market penetration that is driven by mobile devices and the platform has 300 hours of video content uploaded every minute. If you add this figure to other video streaming services including Vimeo, Facebook, Twitter (TWTR), Periscope, TV, and premium video streaming platforms like Netflix (NFLX) and Amazon (AMZN) Prime, among others, then it becomes clear that the demand for video content is immense.
This has triggered the rise of another market in the film industry with the likes of Netflix leading the disruptive force that is a potential doomsday for TV. And with use of mobile phones, people are now watching the news on their smartphones, so again, out the window goes the need for satellite TV. Companies in the media production industry have also adapted accordingly developing mobile apps capable of streaming live events and news coverage.
In summary, the video production market is in a transition period and more markets are cropping up while video production devices and technologies continue to become cheaper. Therefore, we are most likely to see the end of pay-TV within the next few years.