What Is Video Streaming? Meaning & Definition & How It Works?

Published On July 4th, 2024 18640How To
Learn More About Video Streaming

Streaming refers to the transmission of data from the storage device to another device through the internet. Data includes audio, video, images, and any other visuals. Streaming allows a smooth playback experience as the data is transmitted while a user is playing the video.

Video streaming has taken the world by storm in recent years. Be it in entertainment, education, brand building, customer engagement, or customer support. Video increases the chances of a prospective customer’s purchase by 40% and 96% of people watch a video to understand a product or service. In this article, we are going to discuss everything you need to know about how to start a video streaming business.

What Is Video Streaming?

Video streaming is the process of transmitting video data over the internet in real-time or near-real-time, allowing users to watch videos on their devices without having to download the entire video file first.

Streaming video content from a physical or virtual server to a user’s device using the internet is termed video streaming. Video streaming is a continuous process wherein the audio and video are transmitted for an optimized user experience. Streaming video offers an uninterrupted viewing experience.

Content is sent in a compressed format to the user’s device during data transmission. The user requires a video player to uncompress the video and prepare it for watching. In the best online video platforms, the video that the user uses uncompresses the audio, video, and text files.

How Does Video Streaming Work?

The video streaming stores recorded video on a cloud server. When a user clicks on a video in the online video player, the cloud server receives the request to transmit video content to the user’s device. The video file is broken down into streaming audio and video data packets containing bite-sized data.

Working of video streaming solution

A transmission protocol like User Datagram Protocol (UDP) or Transmission Control Protocol (TCP) is made use of to transmit data over a network. The user needs to have a high internet speed for data to be transmitted easily so that the video can be watched without any buffering. If the user opts to watch the video at a lower quality, medium-speed internet is sufficient. But for high-quality videos, high speed is mandatory, failing which the transmission of data will be interrupted, affecting the user experience.

Wondering How To Launch Your Next Video Streaming Business?

What Are The Advantages Of Video Streaming?

As a business, you ought to know the advantages of video streaming for a business owner in any demographic. Explained below are the main advantages of being the best video streaming solutions.

video streaming meaning

1. Downloading Vs Streaming

In video streaming services, there is no need to download a video to watch it. When the user hits the ‘play’ button of a hosted video streaming, the video content is streamed by the process explained above. Some allow users to download a video in addition to watching it.

2. High-resolution Videos

Video can choose to offer more than one resolution for the videos on their website/app for the users to choose from. In such a case, high-resolution videos require faster internet connectivity to stream videos seamlessly and low-resolution videos can be streamed even at a low internet speed.

3. Reduced Cost And Piracy

Video streams deliver on-demand and live video content to their audience globally. Users no longer have the need to download pirated videos of television shows and movies to watch it. Low subscription charges to build video streaming app encourage people to watch it. This has reduced piracy and the cost of protecting the videos.

4. Cloud Storage

Any entertainment house that wants to go digital does not have to worry about investing in physical servers. All the data is stored on cloud video streaming servers. Storage is expandable at any time and it is available at a reasonable cost. There is no involvement of investment and maintenance of servers for the storage of data.

5. Instant Access

Cloud-storage makes it easy for the business to stream video content to its users. Video Streaming can have virtual servers near the targeted geographic location for quick and easy streaming. This improves customer experience and there is no cost associated with it.

6. Easy Access To Content

Video content that you want to stream on your website can be stored on any virtual server throughout the globe. Since the Cloud servers can be accessed by anyone anytime from any part of the world, it becomes easy to manage your video streaming.

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Key Challenges that Video Streaming Faces in the Current Market

1. Lack of Bandwidth

Videos with high resolution and large bandwidth set new challenges. Consequently, bandwidth limitation has severely resulted in net neutrality, impacting on the quality of video content that consumers watch.  

2. Slower Performing

Video streams may begin to slow down or drop out if a device is older, is slowed down by apps that aren’t designed for it, or has too many processes running at once. As a result, consumers encounter challenges such as video lags during the playback. 

3. Copyrights

Users of white label video streaming content, particularly live streams, should be mindful of copyrighted content restrictions, such as music, that may appear in their broadcast. At the time of professional online broadcasting password protection & other encryption practices are essential.  

4. Device Compatibility 

Device compatibility is another major criteria for delivering with video services. Video streaming services must build streams in an adaptable way for a variety of devices in the market. It becomes quite difficult for service providers to capture one set of audience devoted to a single screen.

5. Network Latency

Massive amounts of data are supplied with increasing resolutions and bitrates, and this volume of activity might cause latency and reliability difficulties. The location of clients and servers on the network might affect latency. The greater the distance between the client & server, the longer the data must travel.

6. High Cost

The high cost is a big issue for video streaming firms. To create high-quality, original content, businesses must define video streaming with its core quality by investing in a significant amount of money. The key drivers to the rising expenses of video streaming services are cloud hosting, content delivery, and content generation.

How Is Video Streaming Different From Downloading?

When we define streaming it means, the entire parts of videos are encoded, transmitted, and decoded. Furthermore, what really does matter here, focuses on the streaming process. The user plays a part of the video where minimum load time is taken when a video is buffered & gets to watch them at a click of a button. 

On the other hand, during the time of download, the entire video file on the user’s device is downloaded for it to be played. Only then the viewer can access the file, however, in the case of streaming the video is loaded in chunks rather than as a whole. 

How Can You Use Different Technologies to Improve Video Streaming?

1. Transcoding

The process of re-encoding an existing video file into different file formats is known as video transcoding. To put it another way, this means that various copies of variable quality are made. This makes it possible to accommodate a wide range of bandwidth conditions as well as playback on numerous devices.

2. Adaptive Bitrate Streaming

The player identifies the end user’s internet connection and broadcasts the optimum video quality via adaptive bitrate streaming. This is something that the ABR technology can detect & elucidates its definition & sends an HQ stream instantaneously. As a result, there is little buffering which ensures a smooth viewing experience.

3. HTTP Live Streaming

When focussing on how does video streaming works and what’s the basic protocol that it carries to stream, talks about HTTP. To serve online content, it makes it very compatible with video playback. Videos can be effortlessly streamed from any HTTP server and played with ease using any HTML5 player.

4. Content Delivery Network (CDN)

If you wish to stream content to huge audiences in multiple locations or who are far away from where the video content is stored, a video CDN is recommended. It is a server located near the user that aids in reducing the distance between the user and the original server.

5. Storage

Organizations can now choose where video content is stored, which is often done by those with strict security and compliance needs. The flexibility of choosing videos to be stored in a centralized CMS makes it a necessary solution for content management in its entirety to be streamed either on cloud or on-premises. 

How To Create & Launch Your Own Video Streaming?

The video streaming market size globally is $419.03 billion in 2021. It is expected to generate a revenue of $932.29 billion globally by 2028. Any business that wants to create a video streaming website that is successful should have an attractive website and app that is developed using the latest technology which caters to the needs of its target audience. It is equally important to pick the right monetization method for streaming video and provide a top-notch user experience. There are multiple players in the market. You don’t want to do all the work and miss out on user experience only to see all your users migrate to your competitors. Do you?

what is video streaming

What Are The Key Features Of A Successful Video Streaming?

There are a plethora of features that a video streaming must-have, but there are a handful of key features that a business should not forgo. Some of them are

1. Cloud Hosting And On-premise Hosting

Most of the companies prefer to host their data on the cloud, yet there are a few companies who prefer hosting on-premise. A online video hosting should provide both options to the companies.

2. Third-party Service Integration

Every feature and service that you want your video streaming to have does not have to be built from scratch. You can utilize a video streaming app development programming interface (API) to integrate third-party tools and programs into your app to provide an exceptional user experience.

3. In-built Video CMS

Content presentation is as important as having in-demand content when creating a streaming website. An in-built video content management system organizes the content by category, language, preference, and other parameters. This helps the users navigate and choose the video content they want to watch.

4. HLS Video Player

HTTP live streaming is also termed as HLS video player. It is a tool that businesses can use to deliver audio and video to a large audience segment through the Internet. It can stream video content to any device including a television set and smart tv like Roku & Android TV app etc. It has low latency and high speed, thereby catering to a widespread audience.

5. Multiple Monetization Models

Monthly and yearly subscription plans are the most popular video monetization plans for any streaming video. This has gained widespread acceptance and popularity amongst people across the globe because users can choose when and for how long they want to pay. Free trial is something all viewers look out for before they decide to invest as a subscriber. So, don’t forget the free trial.

6. Security

Video security is of paramount importance when it comes to user data. Contact details and payment details of all your subscribers have to be secure. With cyber-crimes rising in 2021, investing heavily in data security is becoming all the more important.

7. Video Marketing

Video marketing is an integral part of any marketing strategy these days. Be it on social media, e-mail marketing or on websites, videos play an integral role in user engagement. Users tend to watch videos more when compared to other mediums of engagement.

8. Video Analytics

Analytics gives your business a complete picture of your user behavior. You can analyze your users on different parameters to gain a complete understanding and work towards framing strategies to maximize user engagement.


Now that you know all the technicalities and benefits of streaming videos, you can create a best video streaming services from scratch. Narrow down on the target audience you want to serve, use the latest technology for the killer software, and provide an exceptional user experience. Your video streaming website will be on top of the charts in record time.

If You Already Have An Idea To Build a Video Streaming, Schedule a Free Demo And We’ll Get You On The Road To Video Streaming Success

Frequently Asked Questions (FAQ):

1. Why Is Video Streaming Important For Your Business?

Professional-grade video streaming provides a great value while investing since consumer-grade solution aren’t capable of satisfying needs of large businesses. When it comes to video streams, they are cloud-based and provide advanced features like cutting-edge tech-stack, 6+ monetization models, everlasting ownership, robust CMS, first-class security, etc.

2. What Are The Different Types Of Video Streaming?

As global trends have been influencing consumer viewing habits the definition of video streaming sets to expand across wide range of niches. The media content is in the form of live or recorded streams, which are delivered to web, mobile or varied connected devices. Some of the common forms of streaming content are webcasts, podcasts, movies, TV shows, etc.

3. What Are The Benefits Of Video Streaming?

Some of the benefits that streaming businesses can own comprise of downloadable content at any circumstance, rendition of videos at flexible resolutions, reduced cost due to increased accessibility of the streaming, data storage is not with physical servers but on cloud, enhanced customer experience due to flexible options in playback, etc.   

4. How To Start A Video Streaming Business?

While you tend to own up streaming videos you can set your revenue model to rapidly increase streaming ROI. Also you can leverage on the facility of centralized storage, ensure flexible payment gateways, choose a standard embed player, get network of server connected to each other for smooth delivery of content, instill security paywalls, & much more.

5. How Do I Monetize Video Content?

You can now independently stream & monetize on demand as well as live streaming content with major monetization models like Subscription VOD, Advertising VOD, Transactional on demand, Premium VOD, Video Paywalls, Coupons & promotions & lots more. 

Vignesh D

Vignesh is an online video platform expert at VPlayed. I specialize in leveraging cutting-edge technology to optimize online video experiences. Outside of my professional endeavors, I enjoy delving into the latest advancements in movie streaming platforms and sharing my insights through blogging and discussions.


  1. Donna Fitzgerald says:

    Hi, I am interested in learning more about video streaming and its pricing. Meetings and demos are not something I want to go through. That’s what I’ve done. There’s no point in spending time on it. How much does this cost?

  2. Kara Fleming says:

    Hi, we are thinking about creating Android and IOS apps along with TV apps for our streaming movies. Our video streaming is powered by WordPress. A subscription-based online video streaming will cost how much?

  3. Essie Harmon says:

    Warm Greetings. In order to stream videos on my online video channel, I’m looking for an affordable solution. Thanks for your time.

  4. Evan Reynolds says:

    Greetings, We were looking for a video streaming solution with streaming capabilities and Android and iOS apps & how does video streaming work. UPI as well as standard international payments must be accepted in India for payments to be easy to use.

  5. Perry Hubbard says:

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  6. Elisa Mullins says:

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  7. Allen May says:

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  8. Bernadette Edwards says:

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  9. Franklin Gilbert says:

    As part of our efforts to improve our online presence for our clients, we are working on improving our website. We will improve our video streaming as part of this effort. It would be great to see what VPlayed offers and if it would be a good fit for us. Thank you

  10. Thelma Morgan says:

    Hello, I am interested in knowing what video streaming is and how much it costs. Meetings and demos don’t appeal to me. I’ve been there, done that. In what price range does this fall?

  11. Angel Perkins says:

    Hi, We’re considering creating IOS, Android, and TV apps with our current video streaming website and how does your video streaming work? Our video streaming is powered by WordPress. How much will it cost to make a subscription-based online video ?

  12. Leonard Sims says:

    Hi, I am looking for a company who can help me design and develop a video streaming by integrating current content from existing providers with an emphasis on cost control and social community. Additionally, the streaming will generate revenue through marketing and advertisements from content delivery, internet providers. More details can be provided during a meeting. Thank you, Doloreste Jean Baptiste

  13. Angel Miles says:

    Thank you for your time. I would appreciate it if you could explain video streaming’s meaning, how it works, and how much it costs for mobile apps and websites delivering streaming video. I would like to use a mobile application and a website to upload and share videos.

  14. Casey Ramsey says:

    Thank you for your time. I am looking for a company to assist me with building a video streaming for my business. Could you please tell me more about what is video streaming and your video services and pricing?

  15. Roberto Perez says:

    Hello, good morning. I would like to stream videos on my video channel at an affordable price. Thank you for taking the time to read this.

  16. Sheldon Bradley says:

    We were looking for a video streaming solution that could stream videos and had Android and iOS apps. The payment system needed to be easy to use in India and accept both UPI and standard international payment methods. We need a video streaming meaning before developing.

  17. Gustavo Rice says:

    Hey, I was wondering how streaming video works and how much a mobile app and website would cost for streaming video. Mobile applications and websites that allow video upload and sharing are of interest to me.

  18. Jeremy Turner says:

    Hi, I’m seeking assistance in building a video streaming. How do you price your video services and what exactly is video streaming?

  19. Deanna Rogers says:

    Hi, we are looking for a video streaming. Do you offer unlimited bandwidth? What about video storage? What packages do you offer?

  20. Candace Owen says:

    Would you be able to recommend a real time video streaming for us to use? Would you be able to provide unlimited bandwidth? Is there a way to store videos? Could you please tell me what packages you offer?

  21. Curtis Blake says:

    This company is looking for a new to host videos. The requirements are: – hosting of about 500 videos – subtitles with a “cc” button in the player – different streaming speeds -> 5000 customers. We do not know how many videos they will watch. Can we have a free trial for two weeks?

  22. Lois Cortez says:

    Hi, our business need a video streaming and we want to see if VPlayed has any free plans we can use since we are a Startup and we start off with almost no funds.

  23. Celia Klein says:

    Hi, I am looking for a web-integratable web-application live video streaming system. It should have a system where the viewers can send audio or messages to the streamer. Can I know the features, API, pricing and other details of your system? Feel free to contact me on my mail for follow-up

  24. Jeanette Stevenson says:

    Hello, I work with a company called Elevation Corporate Health and we are working on improving our online presence for our clients. One element of this is to improve our video streaming. I’d love to see what VPlayed has to offer and if it would be a good fit. Thank you

  25. Rochelle Robinson says:

    Hi, With our current video streaming website, we are thinking of creating IOS and Android apps along with TV apps. We use WordPress and have our video streaming. What will be the cost to make an online video streaming that can be subscribed to?

  26. Tami Olson says:

    Greetings. I’m looking for an affordable video streaming solution for for my video channel. Thanks for your time.

  27. Matt Parsons says:

    Hello Team, We needed a video streaming solution that had streaming capabilities and Android and iOS apps. Payments needed to be easy to use in India and accept UPI as well as standard international payments.

  28. Angelina Mckinney says:

    Hi, It would be helpful if you could let me know what is streaming video and how does it work and the cost would be for streaming video with a mobile app and a website. I am interested in using video upload and sharing with a mobile application and a website.

  29. Anita Gonzalez says:

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  30. Johnnie Diaz says:

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  31. Rufus Hernandez says:

    Hi I’m looking into having a site for my video streaming of workout videos, I currently use Vimeo but am looking into other options but I’m not seeing a price list?

  32. Janet West says:

    hi, we are UK based karaoke video production company and we are looking at building a video streaming website for our collection of karaoke videos, charging customers a subscription to access our catalogue of karaoke videos. We have been looking at UScreen but the costs are quite high, as our video catalogue is quite big, around 6000 videos, around 4 minutes each. I would like to get some more information on your to see if it might be suitable for us, and if so, if the costs might be less prohibitive than uscreen. Thanks

  33. Sergio Garza says:

    Hello, Artis futura is an art business and we would like to include an online video streaming, an LMS and live concert streaming. Artists should be able to monetize these using advertising and or subscriptions. I was wondering what your company could do for us.

  34. William Boyd says:

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  35. Josephine Spencer says:

    Hi, we have iOS and android app and we would like the users to upload one video each made on their mobile device. Max 30 second video. Video to be reproduced by other users. We are looking for video to start instantly on a device and to play in a loop. We expect to end up with up to 5000 videos after a year. No ads to be displayed, just video. What can you offer us?

  36. Marsha Craig says:

    Hi there, I need a video library area for members and I need to be able to restrict access to that area when monthly contracts with customers expire. I was hoping for an automated video streaming solution for turning access on and off to the members’ area based on their date of purchase.

  37. Troy Sanchez says:

    Hello, We wanted a video streaming solution for, live streaming capabilities and Android and iOS apps. The payment gateway should be easily accessible in India with UPI payment systems as well as standard international payments.

  38. Merle Garza says:

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  39. Ryan Shelton says:

    Hi, Can you please explain your video services and also and what is the price. I am trying to find a reliable digital company to help me with building my video streaming.

  40. Floyd Hanson says:

    Thank you for your time. I’m looking for an agency that can assist me in developing a video streaming that integrates current content from existing providers with a focus on cost control and social community.

  41. Ray Hill says:

    Greetings, I am interested in creating a video library for my members & what does streaming video mean. I would like to restrict access when the monthly agreements expire. Ideally, I wanted an automated video streaming system that could turn access to the members’ area on and off based on their purchase date.

  42. Brandy Hardy says:

    Hi, Need a highly scalable and secure video streaming that can be accessed through android TV, Mobile apps and website.

  43. Marian Hicks says:

    Hi, We are looking for a video streaming that allows us to charge the user a subscription to access the live streams and view the streams again later. We would need to type subscriptions, per month and per day and the billing needs to be compatible with a South African Credit card company. Can you help us with this?

  44. Colleen Phelps says:

    Hello, I am interested to know more about your services to build a customized on demand video streaming. Please reach out. Thanks

  45. Joel Ford says:

    Hello, I’d like to know the definition & pricing of video streaming. I don’t want to go through the entire process of scheduling meetings and demos. Been there, done that. It’s a waste of time. How much does this cost?

  46. Clifton Greer says:

    Greetings, I would like to create a video library for my members, which I want to be able to restrict access to when the monthly contract with customers expires. In order to turn access to the members’ area on and off based on the date of their purchase, I was hoping for an automated video streaming.

  47. Steven Gray says:

    Greetings, I am interested in building a video library for my customers that I want to be able to restrict access to after their contracts expire. An automated streaming video feature would allow me to turn access to the members’ area on and off based on their purchase date.

  48. Jana Marsh says:

    Hello, I’m searching for a live video streaming solution that can be integrated into a web application. It must to offer a method for viewers to message or transmit audio to the streamer. Can you tell me about the features, API, costs, and other information about your system? Please feel free to contact me for follow-up via my email.

  49. Maria Elliott says:

    We are looking at creating ios and android apps along with TV apps from our current video streaming website. We use wordpress and have our OVP as Rumble. What will be the cost to create a online video streaming with subscription.

  50. Kimberly Munoz says:

    Hello. I am independent videographer and looking for an affordable video streaming solution for my video channel. Look forward for cooperation. Thank you.

  51. Chad Rivera says:

    Hey there, I’d want to learn more about the video streaming meaning & services you offer. Below is a priority-ordered list of our needs, wants, and requirements. We would be interested in discussing price, setting up a demo, and gathering the necessary information if you were able to offer these options.

  52. Kayla Rios says:

    Hello, I’m curious to learn more about what is video streaming & your services for developing an individual on-demand movie streaming business. Please get in touch. Thanks

  53. Mercedes Hampton says:

    Greetings, we are hard at work improving our website for clients. We will improve our video streaming as part of this process. I would love to learn more about VPlayed and see if it is right for me. Thank you

  54. Ignacio Porter says:

    Hi I’m looking into having a site for my video streaming of workout videos, I currently use Vimeo but am looking into other options but I’m not seeing a price list?

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