retail news in context, analysis with attitude

The Washington Post has a story about a new Cisco study suggesting that "in five years, 80 percent of the entire world's Internet consumption will be dominated by video. That number will be even higher in the United States, approaching 85 percent."

Compare that to now, when the combination of services such as Netflix and YouTube consumes roughly half of all internet bandwidth.

The Cisco report "predicts that by 2019, the Internet will have become more or less a big video pipe. Part of the growth will come from adding new people to the Internet — for the first time, over half the world's population will be digitally connected. But individual Internet users are also expected to consume more video over time, and at a higher quality, which will put tremendous new burdens on the world's Internet infrastructure."

The Post goes on to write that "implicit in this idea is that mobile devices will be the primary way users will access all this video. And researchers agree on that point. Five years ago, Americans were spending less than an hour a day on mobile devices. Today, it's more like three hours a day, accounting for more than half of the time we spend consuming digital media in general."
KC's View:
The business lesson from this story comes from a basic competitive reality - if all those people are going to spend all that time consuming video online, it stands to reason that they won't be consuming it in ways that we consider to be traditional. (Think broadcast and cable.)

Which means that these traditional businesses have to find ways to continue to be relevant, and look for new business models that will allow them to stay in the game ... albeit a game that is radically changing.

This is what is happening to everybody. If it hasn't happened to your business yet, it will. Count on it. And start planning for how to deal with it now.