Internet Infrastructure Challenged to Keep Pace with Video Demand, Irwin Gotlieb

By on 01/03/2013 7:53 AM @daisywhitney

The consumer appetite for digital video may bring the Internet to its knees, if the viewership of video streaming continues at its current pace, says Irwin Gotlieb, chairman of global media investment company Group M, in an interview with Beet.TV.

That’s because the Internet wasn’t designed to handle video delivery as efficiently as standard cable protocol, he tells us as he shares his predictions for how video delivery will change over the next ten years.

Gotlieb emphasizes that Group M is device neutral and doesn’t care whether consumers watch TV or ads via over-the-air, cable, satellite, computers or tablets. However, as digital consumption increases, the infrastructure of the Web will have a hard time keeping up. As a case in point, Netflix’s service was famously down on Christmas Eve, and users often encounter buffering at other times. Netflix comprises about 25% of North American Web traffic.The problem is, the Internet wasn’t built to handle so many video packets being sent at once, Gotlieb says.

Within ten years, he expects solutions will be in place and bandwidth will be plentiful, but expect some pain in the near term as vested parties try to figure out solutions for data and video delivery. “If demand for that kind of consumption grows, the viewing experience on the consumer side will degrade,” he says. “That impacts decisions made by the Comcasts, the  Time Warners, the costs of the service.  One day you may not get [all-the-data-you-can-eat plans]…We have an evolution that needs to be managed with care.”

Daisy Whitney

Recent Videos
image
Nielsen Onboarding TAM As Measurement Wars Heat Up

PALM SPRINGS – After comScore’s merger with Rentrak to combine multi-platform media measurement, it’s over to you, Nielsen. Ad agency Group M chairman Irwin Gotlieb last year told Beet.TV media measurement is broken because measurers are using the wrong yardstick in the multi-screen era. ...

image
Deloitte Gets In To TV Tech Tools Game: Ledger

LAS VEGAS — These days, it seems it is no longer enough for a consulting firm to just offering consulting advice – you have to back it up with implementation, too. That’s what Deloitte is doing by partnering with three software providers to wrap up their offerings as one of its own, the ...

image
Programmatic Ad Rates Will Be Higher Than Direct: Meredith’s Schenck

When programmatic ad trading entered the marketplace in the form of real-time buying from open online ad networks, many publishers feared it would devalue their inventory. But, slowly, publishers have begun to exert controls to keep pricing higher than that. Now rates could rise higher again, one exec ...

image
One Screen Good, All Screens Better: Bloomberg’s Caine

PALM SPRINGS — Bloomberg appears to have been undergoing a renaissance lately, with a line-up of strong products and a solid identity running across its many media outposts. In the latest new advertising tie-up, Bloomberg Media has sold a sponsorship for the green room, during its new Bloomberg Go ...

image
Hearst Reaches Maturity With Programmatic: Parker

Time was, newspaper folk sneered with apprehension at the rise of programmatic methods of digital ad trading, fearing automation in real-time open markets would devalue their ad inventory. But times have changed, and those publishers which have dipped their toe in the water are finding growing returns on ...

image
As Merger Closes, Rentrak & comScore Push ‘New Model’ For Media Measurement

PALM SPRINGS — The merger of media measurement houses comScore and Rentrak just completed, heralding what the pair say is a new era in consumer tracking for brands and publishers. According to comScore, the new entity can now see 260 million desktop screens 160 million mobile phone screens 95 million ...

Screen Shot 2016-02-01 at 12.05.34 AM
Turn’s New CEO On Video And The ‘Three-Legged Stool’

PALM SPRINGS — The world of advertising demand-side platforms is so new, most people may only have dealt with one or two. Bruce Falck says he has worked for five. Falck spent just four months as Brightroll’s COO until Yahoo acquired the company, last year joining Turn, the ad tech platform which ...

image
Sourcepoint Barokas’ Melds Ad Transactions To Beat Blockers

If you believe some of the market research about the prevalence of consumer ad blocking, the sky is falling on a publishing industry that has long depended on advertising. Those surveys may or may not be wholly accurate, but Ben Barokas is intent on solving the problem. Whilst working as general manager of ...

image
Genesis Media Figures Out Out-Stream: CEO Yackanich

LAS VEGAS — When should you put an in-article video ad on a page – and when should you hold back? Two-year-old Genesis Media of New York is an ad tech platform aiming to sensitively place auto-playing out-stream video ads, a format that is gaining in popularity. “Video ad formats are easy ...

image
Adobe’s TVMM Is First OTT TV SSP: Videology’s Gaskamp

LAS VEGAS — Back in December, Adobe updated its Primetime ad platform with TV-buying capability, dubbed TV Media Management (TVMM), powered partly by Videology. The feature aims to let broadcasters plan and package up ad slots in their over-the-top (OTT) offerings. So, what is the big idea? ...

image
Netflix Could Make $8bn From Ads: Analyst Broughton

LONDON — What if Netflix started running ads? It is a topic that has previously been debated here on Beet.TV, with one exec betting: “They’re going to have to start to deploy some type of advertising model to recoup some of the revenue that they’re spending on this programming.” A new ...

Linda Boff & Carolyn Everson both titles
GE’s Linda Boff: Wenda Millard is the “Beating Heart of our Industry”….and MediaLink...

As hundreds of executives from the media and marketing worlds gathered yesterday under the AWNY banner, at glitzy dinner to honor media luminary Wenda Harris Millard, we sat down with two of the evening speakers: GE’s CMO Linda Boff and Carolyn Everson, advertising chief at Facebook. Both longtime ...

loader