What is Live Streaming and How Does Live Video Streaming Work?

Whenever you watch a video over the internet, you enjoy the fruits of video streaming technology. It is how videos are streamed over the internet, live, in real-time, as they are being recorded.

Live streaming technology is the internet’s response to live television broadcasts, with the most popular being news shows and sports.

However, this technology is much more accessible than live television broadcasts and is something your business can do. Today, we will explain what it is and how it works so you can put it to use for your business.

Live content holds viewers’ attention as much as 20 times longer than on-demand video streaming, allowing you to build a solid connection with your viewers. There are so many use cases for broadcasting across industries that it just makes sense to start creating live content for your business.

Here at Dacast, we are a content delivery and video hosting solution, putting us in a perfect position to help answer your question, “What is live streaming technology, and how do video live broadcasting platforms work?”

In this post, we will discuss what it is and how live content delivery works. Before diving into the various ins and outs of live streaming platform technology, we will briefly discuss use cases.

To wrap things up, we will cover a few important live streaming equipment and software broadcasters use to bring their streams to life. You will walk away with an understanding of how video streaming works and exactly what online content delivery is.

Table of Contents

• What is Live Streaming?
• How Does Live Streaming Technology Work?
• Latest AI-Powered Live Streaming Innovations in 2025
• Emerging Live Streaming Technologies for OTT and VOD in 2025
• Uses for Live Streaming
• The Benefits of Live Streaming for Businesses
• Live Streaming Industry Use Cases and Case Studies
• The Technical Setup for Live Streaming
• What is an HTML5 Video Player?
• What is Video Encoding?
• What is Video Transcoding?
• What is a Content Delivery Network (CDN)?
• Important Live Streaming Protocols
• Live Streaming Equipment and Software
• Comparison of Popular Live Streaming Platforms
• FAQs
• Conclusion

What is Live Streaming?

The live streaming definition states that it’s a process of transmitting video and audio content to viewers in real-time. It includes TV broadcasts, match streaming, social media videos, video game streaming, and more. Therefore, real-time broadcasting technology plays a crucial role in telecasting these events at that very moment, enabling real-time communication.

What is live streaming technology? It is a technology that allows people to view video broadcasts in real time right as they are happening. Unlike live TV, this is an internet broadcast that you can enjoy on internet-connected devices.

Live event streaming requires the use of proper equipment, including the following: 

• Video encoders
• Video transcoders
• Content Delivery Network (CDN)
• HTML5 Video Player

How Does Live Streaming Technology Work?

Online content delivery uses streaming protocols that dictate how the whole process happens. Basically, the streaming session starts with a video or audio input device capturing data. This is then compressed, encoded, segmented, and sent to a CDN for distribution. 

The goal of live event streaming is to complete the process without any video streaming latency. It is the delay between recording something and your viewers seeing the content on their screen. The goal is for viewers to experience what you are registering as closely as possible in real time. Here is how the whole process works:

1. To capture the content, use a camera, microphone, or any other audio or video recording device.
2. The content is then sent to be compressed and encoded into a digital format that will be suitable for streaming.
3. If needed, a transcoder is used to transcode the content into multiple bitrates and resolutions before it’s sent to a content delivery network (CDN) for distribution. 
4. The CDN caches each data segment to prevent bottlenecks, saves streaming bandwidth, and then sends it to all users watching the stream. 
5. When the user receives the stream, they access it through a media player on their device, which is almost always an HTML5 video player.
6. It decompresses, decodes, and converts the data back into video and audio information.

Latest AI-Powered Live Streaming Innovations in 2025

AI is changing the game in the live streaming industry. Here we discuss top live streaming trends in 2025 and how AI is aiding live streaming content delivery networks, making live streaming more engaging and efficient for businesses and users.

AI-Powered Video Encoding and Compression

AI is revolutionizing video encoding and compression by enhancing video quality while reducing bandwidth consumption. Tools like Nvidia’s AI-based super-resolution for live streaming improve clarity and detail, even at lower bitrates. AI also helps with adaptive bitrate streaming, adjusting the video quality in real time based on the viewer’s connection speed. This ensures smoother playback, reducing buffering and interruptions. These innovations enhance the overall live streaming experience, making it more accessible to audiences with different network capabilities.

AI-Based Real-Time Transcription and Translation

AI technologies such as Whisper AI by OpenAI and Google’s Live Translate are transforming live video streaming by generating real-time captions and translations. These tools help businesses reach international audiences and improve accessibility. AI dubbing also makes it easier to expand globally by replacing the need for multiple voice actors, providing a cost-effective solution for businesses looking to localize content for different markets.

AI-Powered Audience Engagement Tools

AI-driven tools are enhancing audience interaction during live streams. Chatbots powered by AI can answer viewers’ questions in real time, keeping engagement high. Additionally, AI recommendations personalize content for individual viewers based on their behavior, improving user experience and retention on platforms. This allows businesses to create more engaging and tailored live video experiences.

Automated Live Production with AI

AI is streamlining live video production by automating tasks such as camera tracking and switching. Companies like Sony and Panasonic are leading the way with AI-powered cameras that automatically follow the action. AI also generates highlights for sports and events, while summarizing long live streams into short clips for easy sharing. This reduces production costs and saves time, making high-quality live streaming more accessible.

AI-Powered Content Moderation

Live streaming platforms are using AI to keep content safe and appropriate. AI-powered moderation tools can filter out harmful comments or offensive content in real time. Additionally, AI detects and removes copyrighted material, which is especially useful for user-generated content platforms. This ensures that live streams stay compliant with content regulations while protecting the community from inappropriate content.

These AI advancements in live streaming technology are not only improving video quality but also making live video streaming more engaging, accessible, and efficient for businesses and audiences alike.

Emerging Live Streaming Technologies for OTT and VOD in 2025

The future of live streaming technology looks bright. How does live streaming work with what’s to come? From 5G impact on live streaming quality to Immersive live streaming: VR and 360-degree video, here is a live streaming technology overview for 2025 and beyond.

Low-Latency Streaming (LL-HLS, WebRTC, SRT)

The future Low-latency live streaming protocols: HLS, RTMP, WebRTC are transforming how live video is delivered. LL-HLS, Apple’s new standard, reduces the delay from 30 seconds to under 3 seconds, providing faster video delivery. WebRTC, commonly used in apps like Google Meet and Zoom, offers real-time streaming with sub-second latency. SRT (Secure Reliable Transport) is gaining traction for its ability to deliver secure, low-latency video over public networks, making it ideal for high-quality streams in unpredictable environments.

5G-Powered Live Streaming

The introduction of 5G is having a major impact on live video streaming. With faster mobile streaming speeds, users can enjoy 4K and 8K content on the go. 5G also enhances live event production by improving the quality of multi-camera setups, allowing seamless streaming experiences for audiences.

Cloud-Based Live Production

Cloud-based platforms like AWS MediaLive, Vimeo Studio, and OBS Cloud are allowing businesses to produce live streams remotely. These services remove the need for costly hardware and infrastructure, making high-quality live streaming more accessible.

Immersive Streaming: VR and 360° Live Streaming

Immersive live streaming with VR and 360-degree video is set to change the landscape of virtual events, concerts, and trade shows. Companies like Meta, Apple, and Google are at the forefront, allowing businesses to provide more engaging and interactive experiences for audiences.

Decentralized Live Streaming (Web3 and Blockchain Video Platforms)

Web3 and blockchain technologies are driving the rise of decentralized live streaming platforms like Theta Network and Livepeer. These platforms reduce streaming costs, enhance privacy, and offer creators opportunities to monetize their content through NFTs, offering exclusive access to viewers.

Uses for Live Streaming

Numerous industries can use and feel the benefits of live streaming. At its core, streaming content is meant to help people be present at events, expos, and experiences they cannot attend in person. 

Businesses and other organizations use live streaming as an audience engagement tool across social media platforms. Live video broadcasting allows larger crowds to participate in live events regardless of the location.

The possibilities of using streaming live video are endless. You can get creative and incorporate it in any way that makes sense for your brand. Some of the most popular live-streaming use cases include:

• Virtual events
• Online education (lectures, training, etc.)
• Sports coverage
• Concert streaming
• Video sales (product demos, sales pitches, etc.)
• Video game streams
• Marketing
• Church service streaming
• Local government streaming

The Benefits of Live Streaming for Businesses

Higher Engagement Rates

Live video streaming holds attention 20 times longer than video on demand (VOD), making it an invaluable tool for businesses aiming to boost engagement. In various industries, this translates into higher viewer retention rates. For example, in the education sector, live streams of lectures or webinars can keep students engaged far longer than pre-recorded videos. In retail, live product demonstrations allow customers to interact in real time, leading to more engaged audiences and increased sales. The interactive nature of live streaming keeps viewers involved and invested, ensuring that your business can build a loyal, attentive customer base.

SEO Benefits

Live streams are often prioritized by social media platforms and search engines, offering significant SEO advantages. When businesses broadcast live, platforms like Facebook, YouTube, and Google favor this content, pushing it higher in search results. This helps increase visibility and reach for brands. Regularly hosting live events can improve organic traffic, as the algorithms tend to reward fresh, engaging content. For businesses, this means more potential customers discovering their offerings without needing to invest heavily in traditional advertising.

Monetization Opportunities

Live streaming offers multiple ways for businesses to generate revenue. Subscription models allow businesses to offer exclusive content to subscribers, while pay-per-view options let users pay for access to special events. Donations and sponsorships can also support live streaming efforts, especially for nonprofits or content creators. Additionally, in-stream ads can be integrated into broadcasts, providing another revenue stream. With the right strategy and alongside monetizing live streams: strategies and tips, businesses can leverage live streaming to create sustainable monetization opportunities that align with their brand and audience.

Global Reach and Accessibility

Live streaming breaks down geographic barriers, allowing businesses to reach a global audience with ease. Regardless of location, viewers can tune in to live events or broadcasts, making live streaming a powerful tool for expanding reach. Whether hosting a conference, a product launch, or a marketing campaign, businesses can engage people worldwide without the need for physical travel or infrastructure. This accessibility opens doors to new markets and customer bases, helping businesses scale efficiently and effectively.

Interactivity

Live streaming provides unique opportunities for real-time interaction, allowing businesses to directly engage with their audience. Features like live Q&A, polls, and chat enable businesses to answer questions, gather feedback, and create a more personalized experience. This interactivity increases viewer satisfaction and strengthens customer relationships. Whether it’s a product launch or a webinar, these interactive features encourage participation, making viewers feel valued and heard, which can foster loyalty and trust.

Cost Efficiency

Live streaming offers a cost-effective alternative to in-person events, such as conferences or product launches. With the right live-streaming equipment and software, businesses can host high-quality events remotely, saving on travel, venue, and staffing costs. This makes live streaming an attractive option for businesses looking to engage a large audience without the financial burden of traditional events. By eliminating these costs, businesses can allocate their budgets toward improving content quality, enhancing marketing efforts, or expanding their offerings.

Live Streaming Industry Use Cases and Case Studies

Use Cases

OTT and Media Companies

OTT platforms use live video streaming technology to offer personalized experiences, like Netflix-style recommendations powered by AI. They also leverage cloud-based live production for cost-effective streaming. Understanding the benefits of live streaming for businesses, these companies optimize content delivery networks and employ HTML5 video player for live streaming for smooth streaming.

Corporate Streaming

Many businesses use live streaming for internal town halls and training sessions. AI-generated meeting summaries help streamline communication. By understanding how live streaming works, companies can use video encoding and transcoding in live streaming to enhance quality while monitoring analytics to measure engagement.

E-commerce Live Streaming

E-commerce platforms use live streaming to showcase products, creating interactive shopping experiences. Shoppable streams like those on TikTok Shop and Amazon Live integrate AI for product recommendations, enhancing user experience. Leveraging video streaming analytics, businesses optimize sales strategies and analyze customer behavior.

Live Events and Sports

Live events and sports leverage multi-angle streaming and immersive 360° VR for dynamic experiences. AI-generated highlights offer instant replays, enhancing fan engagement. With the impact of 5G on live streaming quality, these industries are exploring new ways to connect with audiences while navigating challenges in live streaming technology.

Case Studies

Here are two case studies showing how two brands overcame and used challenges and solutions in live streaming. These examples highlight two real-world success stories of how live streaming can impact and improve business and live streaming analytics and metrics metrics.

Case Study: How Brand A Transformed Employee Engagement with Live Streaming 

Before: Brand A relied on pre-recorded video messages for internal communication, which saw limited engagement. 

Solution: The company adopted a live streaming platform using HTML5 video players and secure content delivery networks. They incorporated AI-generated summaries for accessibility. 

Results: Engagement increased by 250%, and meeting feedback improved by 40%, showcasing the benefits of live streaming vs. video on demand.

Case Study: How Brand B Boosted Sales with Shoppable Live Streams 

Before: Brand B, a retailer, relied on traditional e-commerce and social media ads, with moderate conversion rates. 

Solution: They implemented live video streaming with AI-driven product recommendations, leveraging adaptive bitrate streaming and H.265 codec for smooth delivery. 

Results: Sales increased by 35% during live sessions, and customer engagement rates doubled, highlighting the potential for monetizing live streams effectively.

The Technical Setup for Live Streaming

In the past, sending a video file over the internet in real-time seemed impossible. However, live broadcasting technology has made leaps and bounds over the past decade. Today, broadcasters can capture a video and have it appear on their viewers’ screens in seconds.

Streaming uses a series of protocols, projects, and live streaming equipment to transmit high-quality live videos back to viewers. This process is highly technical and requires understanding HTML5 video players, encoding, transcoding, CDNs, and the various protocols. 

We prepared a technical live-broadcasting setup guide to help you understand why they are important in the process.

What is an HTML5 Video Player?

Back in the day, the most popular video player was Adobe’s Flash video player. However, Adobe’s Flash player wasn’t compatible with mobile devices, and its security wasn’t reliable, making it obsolete in the early 2020s. 

Now, the most popular video player is the HTML5 video player. You have probably viewed content on an HTML5 video player hundreds of times without realizing it. It is the most popular video player because it works with almost all internet-enabled devices and browsers. 

Two other reasons why HTML5 players are so popular are because it is secure and customizable. What does that mean exactly?

Security:

HTML5 video player can be embedded directly onto a website. It doesn’t require any plugins, which are a primary method hackers use to take control of your website and content. 

Customization:

There are lots of ways you can customize HTML5 video players, such as:

• Autoplay: Decide whether or not the video will autoplay when it is loaded. 
• Loop: Decide if a video will loop again when it ends.
• Muted: Decide if a video will play with the audio by default.
• Width and height: Determine the size of the player.
• Controls: Determine what video controls the user will have access to, such as pause, rewind, etc. 
• Style: Determine the appearance of the video player (custom colors, branding, etc.).

This video player works with HLS delivery, which we will talk about a little bit further on. HTML5 video player makes video content delivery accessible on a wide range of devices.

What is Video Encoding?

The RAW video files that cameras capture are very large and impossible to stream over the internet. Video encoders act as the “middleman” that solves this problem by converting these massive files into streamable digital files.

RAW video files include a collection of thousands of still frames that fluidly move when pushed quickly in succession. Naturally, many of the still frames are duplicates. Encoders use codecs, a portmanteau for “coder-decoder,” to compress video files by removing unnecessary still frames. 

Video encoding makes your RAW video files small enough to send and stream over the internet. In broadcasting, your encoded files are sent to a CDN. From here, they’re then sent to the viewers’ devices, where they’re decoded and converted back to video files for viewing. 

Compressing and decompressing the audio and video data is done through video codecs such as AVC, MP3, HEVC, H.264, H.265, VP9, AV1, and AAC.

What is Video Transcoding?

Transcoding, often confused with encoding, is a technological process that makes multi-bitrate and adaptive bitrate streaming possible. Just to clarify, a bitrate refers to the quality of a video. 

Video transcoding produces multiple renditions, or versions, of one video file in various qualities to enable multi-bitrate streaming. Many broadcasters prefer this streaming type because it allows users to access a rendition that works best for their internet connection.

Adaptive bitrate video players automatically choose the appropriate rendition based on a viewer’s internet speed. This helps avoid lagging and buffering if a viewer has a poor internet connection.

Basically, this allows the viewer to watch a live stream video in the best resolution possible for their internet connection and device, helping to ensure a great user experience.

What is a Content Delivery Network (CDN)?

A content delivery network (CDN) is a network of servers strategically placed around a geographic region. Their purpose is to deliver content to viewers who are physically distant from the streaming location, minimizing delay and load times. A high-quality live-streaming CDN can revolutionize and streamline the entire process.

CDNs connect with each other through Internet Exchange Points, which are physical locations strategically placed to reduce the video’s transmission time. This allows the stream to be delivered as close to real-time as possible.

Understandably, you should ensure a CDN provider has multiple endpoints around the globe that are close to your viewers when launching your live streams. This is especially important if you want to live stream to China, as it requires Chinese servers.

Important Live Streaming Protocols

There are a variety of streaming protocols that work behind the scenes to carry videos through the live streaming process.

These protocols are highly technical, and most broadcasters that use a dedicated streaming solution don’t typically have to worry about these since they are working behind the scenes. However, it is a good idea to at least be familiar with what is happening on the back end.

Let’s look at a few of the most popular video-streaming protocols.

HLS

HLS (HTTP Live Streaming), is a protocol Apple created to deliver media to an HTML5 video player and makes mobile streaming possible. Known for its security and compatibility, it’s primarily used for delivery but can also help with ingestion.

However, since RTMP encoders are more easily accessible and can be converted to HLS, it is not common to use HLS for ingestion.

RTMP

RTMP (Real-Time Messaging Protocol) has been a part of broadcasting since the Flash player was the standard video player. It is a transport protocol previously used for live stream delivery, but now its main task is RTMP ingestion from the encoder.

RTMP is often paired with HLS delivery to optimize the streaming setup. This combination yields low latency and reliable security.

RTSP

RTSP (Real-Time Streaming Protocol) is a protocol structured similarly to RTMP and is used to send user commands to the video player. RTSP servers sit between the live stream and the viewer, issuing “play,” “pause,” and “record” commands.

SRT

SRT (Secure Reliable Transport) is used to ensure secure streaming over public networks. This open-source streaming protocol is easy to implement and can contribute to low latency and fast streaming.

SRT may not be as popular as HLS and RTMP because it is relatively new, and the most popular broadcasting tools are not yet compatible.

WebRTC

First developed and launched by Google in 2011, WebRTC is an open-source and standardized audio and video live-streaming protocol that supports direct peer-to-peer communication.

Supported by all major browsers, it facilitates global real-time communication without end-users needing to download specific apps or plug-ins. The idea behind this protocol was to power web conferencing platforms such as Zoom and video chats.

Live Streaming Equipment & Software

The live broadcasting setup requires various live streaming equipment and software to bring the live stream to life. Each tool is available for broadcasters hosting professional live streams at any level in terms of functionality and cost.

To find out more about how live broadcasting works, these are the tools that make it possible.

Content Delivery Platform Solution

A live streaming solution is one of the most essential tools for live streaming at the professional level. It can also help you turn pre-recorded videos into live streams.

A well-equipped live streaming solution includes:

• A white-label HTML5 video player
• Easy video embed options
• Video monetization 
• 24/7 support
• Powerful video analytics
• Top-tier security
• Reliable content delivery.

Dacast offers a powerful streaming solution that includes all the desired features we’ve mentioned and more. To see how Dacast stacks up to some of the best options on the market, please take a look at our live-streaming solution comparison.

Camera

Cameras are essential tools for live streams, but choosing the right one from the extensive available offer may be challenging. You could go with anything from a simple webcam to a 4K streaming camera and all the way up to a television-grade camcorder. You could also choose to use a smartphone with a high-quality camera, eliminating the need for any other devices.

Choosing a camera depends on the purpose of your live stream. For example, a webcam stream should suffice if you are live-streaming a college lecture to a couple of dozen students. Once you move into more professional scenarios, like a national sporting event or large virtual event, it may be worth investing in more advanced live-streaming equipment.

Microphones

Most cameras have built-in microphones, but still, many live streamers opt for an external mic. It provides a simple way to improve the audio quality of a stream.

A simple lapel or handheld mic are two popular options, both relatively inexpensive. If you’re on a shoestring budget, you could also use the built-in microphone in your smartphone. However, live streams are from an area where there’s not a lot of ambient noise since it could hamper the audio quality.

Broadcasting Software Solution

These tools offer a wide range of functionality, including source switching, simulcasting, adding graphic overlays, editing streams in real-time, and even encoding.

OBS Studio is an example of an open-source and free video streaming software that many broadcasters start with. However, many benefit from upgrading to paid tools. Read our broadcasting software comparison to check out the features and use cases of some of the top tools on the market.

Encoder

Encoders are essential to streaming live video because they help to convert videos into smaller, streamable files. Broadcasters have the option to choose between a hardware and software encoder.

Hardware encoders are dedicated tools for live stream encoding. They are more reliable, but they are also much more expensive. On the other hand, software encoders are also quite reliable and considerably less expensive. 

Currently, most streaming solutions use RTMP ingest, so RTMP encoders are a safe bet.

Comparison of Popular Live Streaming Platforms

For the best live streaming platforms for businesses, here’s a handy comparison table. It compares some of the most popular live streaming platforms based on various important features.

FAQs

1. What is live streaming and how does it work?

Live streaming technology allows sharing video and audio streams with your viewers in real-time over the internet, much like how live TV works. However, live streams are only transmitted through internet-enabled devices.

2. What is the difference between live TV and live streaming?

Both broadcasting and live TV enable viewers to watch content in real-time, but there’s a basic difference between the two. Live TV works through cable or satellite broadcasting transmission, while live streaming solely works through the internet and requires internet-enabled devices.

3. What are the disadvantages of live streaming?

Some of the prime disadvantages of live streaming include:

• Susceptible to internet connection issues
• Viewer’s internet connection determines video quality
• You can’t redo something that happens in the stream as it’s real time
• Technical problems can hamper user experience

4. How do I stream live video?

To start live video streaming, all you need to do is follow these steps:

• Purchase equipment for video and audio
• Choose from the best live streaming platforms to help you live stream
• Conduct a test live stream to check audio and video quality 
• Start streaming

5. What is the difference between live streaming and video streaming?

Live streaming is all about real-time communication with the viewers, so once the stream is over, the viewers won’t be able to see it. On the other hand, video streaming is when a viewer watches videos that are continuously transmitted from the server to the client. It eliminates the need to download the video to watch it. These videos don’t necessarily have to be live ones.

6. How can businesses monetize live streams?

Businesses can monetize live streams through ads, sponsorships, pay-per-view models, and e-commerce integration. Offering exclusive content or implementing shoppable streams can increase revenue, leveraging HTML5 video players for seamless transactions.

7. What are the best platforms for hosting private corporate live streams?

Platforms like Microsoft Teams, Zoom, and Vimeo offer secure options for corporate live streaming. These platforms support video encoding and transcoding for reliable streaming while ensuring data security.

8. What is the best AI tool for automating live captions and translations?

AI tools like Google Cloud Speech-to-Text and Microsoft Azure Cognitive Services can automate live captions and translations. These tools support multiple languages and are ideal for large-scale corporate or media streaming.

9. How do you optimize a live stream for low latency?

Optimizing a live stream for low latency involves using adaptive bitrate streaming, the H.265 codec for efficient compression, and a robust content delivery network. Ensuring minimal buffering with a reliable HTML5 video player also helps.

10. What are the best analytics tools to measure live stream performance?

Tools like Streamlabs, Restream Analytics, and Wowza offer insights into viewer behavior and engagement. Analyzing metrics like view duration and drop-off rates can help optimize future live streaming strategies.

Conclusion

Using live-streaming technology is a precious tool for businesses, schools, and professional organizations. It allows brands to connect with their audiences in real-time to create highly engaging content. It also makes virtual event streaming possible. 

If you are looking for an end-to-end streaming platform with live, on-demand, and video monetization capabilities, Dacast is the solution for you. Dacast offers a more traditional streaming setup with HLS/RTMP and plug-and-play WebRTC solutions. Try our platform risk-free for 14 days with no binding contracts or credit cards required. Get started by creating an account today.

If you want to leverage live broadcasting for your business and have additional questions about live broadcasting, we invite you to contact our customer support team. We can point you in the right direction to get started on your live-streaming journey.

In the meantime, feel free to browse our Knowledge base for more live-streaming articles. A quick search for “live streaming” will produce dozens of results and broadcasting tips for you to choose from.