In the world of live streaming, latency is defined as the time delay between when video content is captured at the source and when it is displayed on the viewer’s device. Latency is a particularly important metric for assessing the performance of live streams: the higher the latency, in other words, the slower the delivery, the more room there is for improvement. This seemingly short period of time, often measured in seconds or just milliseconds, can have a significant impact on the overall viewer experience, engagement, revenue opportunities and even churn rates. Latency essentially determines how “live” your live stream really is. 

This article unpacks the concept of latency, explores why it matters, and offers a deeper look into how System73’s Data Logistics Platform can improve network latency as well as your overall content delivery strategy.

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Different types of latency relevant to live streaming

When discussing latency in live streaming, it is important to recognize that there is no single, uniform delay, rather it is the result of multiple layers of processing and delivery. For example, glass-to-glass latency refers to the total amount of time that passes between a camera capturing the content (the first pane of glass) and the moment it is displayed on the viewer’s screen (the second pane of glass). This end-to-end delay can range anywhere from a few seconds to over 30 seconds, depending on the infrastructure, protocols and delivery pathways involved. Within that total amount of time, several other specific contributing factors should be taken into account. 

First, there’s encoding latency, which is the time it takes to compress and prepare the content for transmission. Then, there’s network latency, which is how long it takes for the content to travel across global networks to reach the final viewer. And finally, decoding or playback latency on the user’s device, which could be impacted by factors such as their device’s processing power, internet strength, and the efficiency of the video player in handling incoming data streams. Network latency is a particularly critical pressure point that many streaming platforms struggle to address effectively. 

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Why latency matters

The importance of measuring latency goes beyond its use as a technical metric. Latency is a decisive factor that shapes both user experience and business results in live streaming. When latency is too high, it hinders the immediacy that makes live content so compelling. For sports broadcasters, even a few seconds of delay can lead to spoilers on social media, push notifications, or a neighbor's shouts of triumph, destroying the experience and eroding viewer satisfaction. In interactive formats, such as live auctions, gaming or sports betting, latency can directly disrupt the fairness of the experience, making it impossible for participants to react in real time. In short, high latency can lead to a loss of trust among viewers, reduced engagement, or even churn, which ultimately results in lost revenue for content providers. 

From a business perspective, high latency can eat away at profits, and not just from subscribers. Advertisers are generally less likely to invest in platforms that are unable to accurately sync real-time ad placements or branded moments within a live broadcast. Some e-commerce platforms that use live streams to advertise product drops or promotions also need ultra-fast live streams to avoid losing sales. In this highly competitive environment, content providers must ensure they are monitoring and assessing the latency of their streams to ensure both viewers and stakeholders are enjoying the best quality of experience (QoE). 

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How System73's Data Logistics Platform helps reduce latency for live content

Traditional CDNs frequently encounter difficulties supporting real-time streaming, particularly when traffic is high or in areas lacking robust infrastructure. System73 is able to address these challenges with our Data Logistics Platform, which leverages AI-powered technologies to optimize content delivery routes, minimize latency and enhance the overall viewer experience. At the core of this platform is Edge Intelligence, a live content delivery solution that creates a centrally orchestrated peer-to-peer (P2P) network across which to send data. By leveraging end user devices throughout the network to distribute content, Edge Intelligence reduces reliance on traditional CDNs, successfully offloading up to 80% of streaming traffic. 

This approach avoids network congestion, as Edge Intelligence uses machine learning to route content over the least congested and most efficient pathways, resulting in lower network latency and higher quality streams. The basis of this technology is Edge Analytics, which provides unprecedented levels of real-time visibility across the open internet and the entire delivery pathway. This essential monitoring capability allows System73 to proactively identify and resolve any potential issues, such as congestion, before they become a problem, ensuring consistent QoE for viewers around the world, even in hard to reach areas. Take a look at our Resources library to see how we successfully delivered the 2024 UEFA Champions League final to viewers, keeping over 90% of our customer’s viewers on the highest bit rate for their device.

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For more insights into trends in live streaming and content consumption or to find out more about our content delivery solutions, visit system73.com.

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