New Data Shows That 4K Bit Delivery Growth is Still Flat Across CDNs
New data shows that 4K bit delivery growth is still flat across CDNs. In 2022, I detailed how many streaming services were optimizing their encoding and, in some cases, reducing the highest rung in their bitrate ladder to save money. CDNs I spoke to then were very open about seeing a drastic reduction in the volume of video bits delivered due to bitrate optimization.
According to new data this month from CDN77, 4K video playback is still not significantly driving traffic growth across the CDN industry. Across all their customers, while 4K titles make up less than 15% of available content and approximately 10% of initial requests, they account for less than 5% of overall playout time on their network. Other CDN vendors I have spoken to recently reinforce what CDN77 is seeing, with some CDNs telling me that 4K bit delivery still makes up 5% or less of the total bits they deliver each month, flat from last year.
CDN77 recently analyzed its logs and spoke to several customers to get insight into the latest trends regarding 4K content libraries and playback. They found that 4K video takes up 12-15% of their clients’ content libraries, meaning up to 15% of titles are available in 4K. 8-10% of all initial requests are made for 4K, but interestingly, 4K represents less than 4% of the overall playout time.
This discrepancy is partially caused by the fact that while users (or players) frequently request 4K content, it often switches to a lower profile during playout, reducing overall 4K playout time. Interestingly, some clients admitted adjusting their ABR algorithms not to push 4K as a default profile even if end users’ connectivity allows. Instead, they force lower quality (720p/1080p) as a default, leaving 4k as an option for the client to choose manually.
Also, some streaming services, like Max, charge more monthly to get 4K streaming as an option. Their With Ads and Ad-Free Plan offer up to 1080p, but to get 4K, you must sign up for their Ultimate Ad-Free plan at $20.99 monthly. The cost for the 4K plan is more than double their base plan at $9.99 per month. And while no third-party CDN delivers video for Netflix, they charge $22.99 monthly for a plan with 4K streaming, more than 3x the cost of their Standard with ads plan at $6.99 monthly. Today, fewer subscribers are taking plans that give them access to 4K content, and most live events don’t even offer 4K video quality as an option. Amazon’s TNF games, YouTube’s NFL Sunday Ticket package, MLS Season Pass and Friday Night Baseball on Apple TV+ max out at 1080p. For all the talk in the industry about how sports events must be in 4K, content owners are very open that offering 4K as an option does not drive more viewership or revenue to the streaming service.
What we saw just after the pandemic with content owners looking to cut costs in their video workflow has not changed. There is still pressure to cut costs at the lower end of the bitrate spectrum, as content providers tend to lower bitrates for smaller qualities, ultimately offsetting total bandwidth volumes. Some within the streaming industry keep talking about the “growth” and “need” for 4K video quality, but as the data shows, those statements are not grounded in facts, and the data from CDN providers says otherwise.