Will Apple's HTTP adaptive streaming improve video viewing, revenues?

Liz Gannes of NewTeeVee has published an article in Business Week that suggests Apple’s use of HTTP adaptive streaming could dramatically improve the experience of viewing videos.  Gannes also implies it could affect business models.

In essence, HTTP adaptive streaming uses the highest available data rate and adjusts the video to compensate for different speeds of transmission.  A high speed data link typically will offer higher quality images than a low speed link.  But a key factor is the software will dynamically compensate for variable speeds without significant buffering so the video plays smoother rather than stuttering.

The iPhone’s Safari browser already incorporates this technique, although Apple’s computers won’t be able to take advantage of it until the new Snow Leopard operating system is available later this year, Gannes writes.

Business implications

Adaptive streaming isn’t a new concept and other companies offer it, such as Microsoft, Move Networks and Swarmcast, she says.  Apple didn’t publicly announce it until June, although the company worked secretly with video encoding firms Envivio and Inlet Technologies to produce demonstration projects.

Offering better quality cellular videos, especially with fluctuating data speeds, obviously is a useful feature.  But perhaps even more interesting is the possibility of using HTTP adaptive streaming for a new business model — at least from an Apple perspective.

“Because HTTP streaming is possible through the browser, developers who use it don’t need to pass through Apple and AT&T’s thorny App Store approval process.  (They also don’t have to expend the cost and effort of building out a specialized app.)  At this point, anyone who enables the technology is free to run it on 3G or WiFi,” Gannes says.

One commercial iPhone app

One iPhone application that already employs adaptive streaming is MLB.com’s At Bat program for live streaming baseball games and displaying a wealth of statistics, as I previously wrote.  At Bat costs a one-time $9.99, but MLB.com might offer new features — such as streaming local games that are now blacked out or more detailed statistics — for additional fees.

Obviously, streaming better quality video from Web sites directly to phones is another way to offer mobile video and mobile television programs.

Comments

[Marc]

There's also one porn web app, hotiphon which is using HTTP streaming... they even show you how to install and use it as an anonymous app...