The history of streaming services represents one of the most significant transformations in how we consume entertainment. From grainy videos that took ages to buffer to crystal-clear 4K content available at our fingertips, streaming technology has redefined media consumption. In 1990, only 15% of Canadians had access to a computer. Now, in 2024, 74% of average households have smart devices. 80% of Canadians and 99% of Americans subscribe to at least one streaming platform. This evolution has fundamentally changed not only how we watch content but also how entertainment is created, distributed, and monetized.
A Timeline of Streaming Capabilities and Services
The journey from the first experimental streams to the advanced platforms of today spans over three decades. Propelled by technological innovations, changing consumer behaviors, and the rise of new entertainment giants, this transformation was first shaped by the society around it, before shaping society itself.
The Early Days of Streaming (1990s)
The Beginnings of Streaming Technology
The 1990s marked the dawn of streaming media, though it looked vastly different from what we know today. In May 1993, “Wax or The Discovery of Television Among the Bees” became the first movie streamed on the internet. A month later in June 1993, the band Severe Tire Damage made history by becoming the first group to perform live on the internet, rather than on traditional TV broadcasts. Both used a technology called multicast backbone (MBone).
Then, in 1995, the company RealNetworks enhanced the streaming process by releasing its first version of RealPlayer, then called “RealAudio Player.” The platform recognized the limitations of .wav files and slow 36K modems and was able to bring viewers and much smoother streaming experience. The player was so successful that it was included as part of Microsoft Windows 98 just three years later, quickly becoming the streaming standard.
Technical Challenges and Innovations
As with any new technology, streaming was initially riddled with problems. Internet speeds rarely exceeded 56 kbps, making streaming content a test of patience. Video viewing dimensions were tiny, often no larger than a postage stamp, and buffering interruptions were frequent. This created the need for bigger and better compression technologies that could deliver watchable content over limited bandwidth connections. While the history of video compression goes back nearly a century, the development of Motion JPEG in 1992 and subsequently MPEG-2 (aka H.262) in 1994 made the process easier than ever.
First Streaming Services
AudioNet, which later became Broadcast.com, emerged as one of the first commercial streaming services in 1995. The platform primarily streamed radio stations and sports events. Founded by Chris Jaeb, the company partnered with Mark Cuban, who eventually took majority control. In 1999, Mark Cuban famously sold the platform to Yahoo! for $5.7 billion (CA$7.9 billion). Earlier that same year, Victoria’s Secret made headlines by streaming their fashion show online, attracting an estimated 1.5 million viewers despite numerous technical difficulties.
The Rise of Online Video and Music Streaming (2000s)
The Emergence of YouTube and User-Generated Content
YouTube’s launch in 2005 put video sharing into the hands of people, effectively creating a whole new category of entertainment. The platform’s simple interface and ability to host user-generated content attracted 30,000 visitors per day. The world was hungry for online video content, and YouTube not only met that need but paved the way for legitimate streaming services to reach mass audiences.
The Growth of Music Streaming Services
While YouTube was a landmark event for video streams, the music industry had its own breakthrough five years earlier. In 2000, Pandora launched in the U.S. and introduced the public to personalized radio stations based on user preferences. Then, Spotify’s arrival in 2008, two years after its founding, brought on-demand music streaming to the masses. However, the Swedish platform wouldn’t reach Canada until 2014.
Improvements in Streaming Quality and Accessibility
The introduction of MPEG-4 ACV (H.264) video compression in 2003 marked a significant advancement in streaming technology. Coupled with increasing broadband adoption, this new codec allowed for higher-quality video at lower bitrates. In 2000, 70% of young adults used the internet, but according to Statista, only 4% of Americans had access to broadband. However, by 2009, that number had jumped to 64%.
The Advent of On-Demand Streaming (2010s)
Netflix and the Shift to On-Demand Streaming
Netflix’s transition from DVD rentals to streaming in 2007 set the stage for the streaming revolution of the 2010s. In 2012, Netflix launched its first original series, “Lilyhammer” and by 2013, the company experienced sensational success with the release of “House of Cards” and other original content. This shift demonstrated how legitimate streaming platforms could both distribute and create compelling content.
The Rise of Subscription-Based Services
The success of Netflix inspired numerous competitors to enter the streaming market. Hulu, an American platform originally launched in 2008, expanded its service offerings throughout the 2010s. Amazon Prime Video evolved from a free addition to Prime memberships into a major streaming platform with original content. Crave launched in 2014 as CraveTV, and the decade concluded with Disney+ making a spectacular entrance in 2019, with the smash success of “The Mandalorian.”
Mobile Streaming and the Role of Smartphones
The proliferation of smartphones and tablets created new opportunities for streaming services. Mobile apps made it possible to watch content anywhere with an internet connection. This accessibility helped streaming services become a go-to source for daily entertainment consumption.
The Current Landscape of Streaming Services (2020s)
Diverse Content Offerings
In the United States, streaming surpassed cable in terms of viewership for the first time in July 2022. Just shy of two years later, streaming hit 40% of all TV usage. This incredible popularity is undoubtedly due in part to streaming’s unprecedented variety in content. From mainstream movies and TV shows to niche documentaries and international content, streaming services cater to virtually every imaginable interest. Netflix alone has over 6,700 titles in its Canadian library.
The Impact of Original Content
Original content has become a key differentiator for streaming services. In fact, Netflix Originals has a 7.7% market share in Canada, which is larger than any other channel or provider. Plus the company has devoted the majority of its $17 billion (CA$ 23.7 billion) budget to original content for 2024. This could be great for all kinds of content creators, from actors to writers to tech and design.
Netflix’s massive popularity is also great news for advertisers. In May 2024, Netflix had 40 million subscribers on ad-based plans alone. By November 2024, that number nearly doubled: The platform now has 70 million subscribers using ad-based plans, which is a giant market for any company looking to showcase its goods or services.
Live Streaming and Interactive Experiences
Live streaming has evolved beyond simple broadcasts to include interactive elements. Platforms like Twitch have created new forms of entertainment where viewers can interact with creators in real time, usually through chats. This style of engagement marks an interaction between broadcasting and social media. Streamers and viewers can now be part of the same community, participating in the same conversations and experiences as they happen.
The Future of Streaming Services and Technology
Artificial Intelligence and Personalization
AI-powered streaming and the recommendations it can provide are becoming increasingly good at predicting viewer preferences. However, there’s still room for improvement, since only 50% of respondents in 2023 found recommendations useful.
Personalized advertising is also becoming more commonplace, with ad algorithms specifically targeting users based on their profiles and streaming habits. However, such user insight does raise concerns about privacy and the treatment of user data, things that streaming providers will have to cautiously navigate moving forward. However, we at StreamSafel are confident that with the correct oversight and adaptation, these advancements will make the viewing experience more personal while helping viewers discover new content they’ll love.
Virtual Reality (VR) and Augmented Reality (AR)
The integration of VR and AR technologies promises to transform streaming entertainment into immersive experiences. Worldwide the VR and AR markets are expected to reach 3.7 billion users, and streaming platforms would be foolish not to seize the opportunity to get on board the trend. Viewers might soon be able to step inside their favourite shows or watch sports events from virtual courtside seats. These technologies could create entirely new forms of interactive entertainment that blur the lines between passive viewing and active participation.
5G and the Next Generation of Streaming
The rollout of 5G networks promises to resolve many of the current technical limitations that streaming platforms have in terms of quality and accessibility. Lower latency and higher bandwidth will make mobile streaming more reliable while enabling new features. Sports fans in the U.S. got an early look at what streaming could look like in the future with Peacock’s coverage of the 2024 Summer Olympics, which included multiview options, advanced search functions, and recaps and replays. These kinds of tools and viewing experiences, although debuted for worldwide events, will likely make their way into everyday streaming platforms before we know it.
How StreamSafely Can Help You With Responsible Streaming
As streaming technology continues to advance, viewers will have greater access to a wider array of entertainment and experiences, and we at StreamSafely cannot wait to see what’s in store! Our team will keep you updated with the latest developments and the best streaming services for all your favourite movies, TV shows, new releases, and sports.
Unfortunately, many malicious sites and bad actors are trying to take advantage of all the benefits that streaming provides, without considering all the people that made the technology and content possible. By understanding where and how to stream responsibly, you not only get the best possible viewing experience but also contribute to the amazing history and legacy of streaming. So stream safely, and let’s help build the next era of streaming together!
