iWorld
Global video streaming market forecast to reach $184.3 billion by 2027
MUMBAI: The global video streaming market size is expected to reach $184.3 billion by 2027, registering a CAGR of 20.4 per cent from 2020 to 2027. Rising technological advancements such as the implementation of block-chain technology in video streaming and the use of artificial intelligence (AI) to improve content quality are expected to boost market demand over the forecast period. Furthermore, growing adoption of cloud-based streaming solutions to increase the reach is directly influencing market growth. This trend is observed in numerous parts of North America and Asia Pacific. Factors behind the growth of these regional markets include rapid digitalization, increasing use of mobiles and tablets, and growing popularity of online viewing.
Globally, the rising demand for on-demand video and extensive growth of online video are key drivers of the market. Moreover, increasing demand for high-speed internet connectivity acts as an advantage for the market. The growing acceptance of smartphones in combination with an extensive range of high-speed internet technologies such as 3G, 4G, and LTE has substantially led to the trend of online broadcasts. In addition, the growing demand for devices that can support digital media is helping consumers' access media content anywhere in the world.
Key findings from the report:
Increasing usage of videos in corporate training and in the education sector are anticipated to drive the market
The over-the-top (OTT) segment held the largest revenue share and is also expected to grow at the fastest pace over the forecast period
Asia Pacific is expected to witness significant growth over the forecast period, majorly due to increasing demand for high-speed internet connectivity and on-demand video streaming
Key players in the video streaming market include Akamai Technologies, Amazon Web Services, Inc., Apple Inc., Cisco Systems, Inc., Google, Kaltura, Inc., Netflix, International Business Machine Corporation (IBM Cloud Video), Wowza Media Systems, LLC, AT&T Intellectual Property, and Hulu.
iWorld
Snapchat parent Snap cuts 16 per cent of workforce in AI-driven restructuring
The Snapchat parent is axing around 1,000 jobs and closing 300 open roles to save $500m, as artificial intelligence makes smaller teams the new normal
CALIFORNIA: Snap is snapping. The Snapchat parent has confirmed plans to cut around 1,000 employees, roughly 16 per cent of its full-time workforce, as it bets that artificial intelligence can do what headcount once required. Shares jumped more than 10 per cent in premarket trading on the news, a brisk vote of confidence from a market that has watched the stock shed about 31 per cent this year.
The restructuring, which also closes more than 300 open roles, follows pressure from activist investor Irenic Capital Management, which holds an economic interest of about 2.5 per cent in the company and has been loudly pushing Snap to tighten its portfolio and lift performance. The firm got what it asked for, and then some.
Chief executive Evan Spiegel told employees the cuts would reduce annualised expenses by more than $500m by the second half of the year. The company expects to incur charges of between $95m and $130m related to the layoffs, mostly severance, with the bulk landing in the second quarter. Staff in Snap’s North America team were asked to work from home on the day of the announcement.
The financial backdrop is not without bright spots. Snap expects first-quarter revenue to rise around 12 per cent to approximately $1.53 billion, broadly in line with analyst estimates. Adjusted core profit for the January to March quarter is forecast at about $233m, comfortably ahead of Wall Street’s expectation of $186.8m.
The harder question surrounds Specs, Snap’s augmented reality smart glasses subsidiary, which Irenic has urged the company to spin off or shut down entirely. The unit has absorbed more than $3.5 billion in investment and burns through approximately $500m in cash annually. Snap is pressing ahead regardless, with a consumer product expected later this year, even as Meta leads the market in the segment.
Spiegel is betting that leaner teams, smarter machines and a consumer AR play can restore Snap’s credibility with investors who have run out of patience. The redundancy notices have gone out. The harder restructuring, the one that requires a hit product rather than a headcount reduction, is still very much pending.
