21.9.2022
Livestream

This is how livestreaming works: explained in technically simple terms

Livestreams have become widespread. For an unforgettable event success and a positive event ROI, it must be clarified how a livestream works technically and how it differentiates itself from other formats.

Table of contents

For a successful event and a positive event ROI (return on investment), you should inform yourself about the technical conditions of a livestream. We have summarized the most important technical functions, the basic setup and the advantages and disadvantages of live streaming for you.

How does livestreaming work?

The basic setup of a successful livestream includes a video recording device (camera with microphone), an encoder and a server that displays the video image on a website. This can then be viewed by the viewers.

The recorded content from the video capture device is sent as a signal to the encoder, which in turn transmits the video and audio to the streaming platform.

In a larger setup with several microphones and cameras, there is also an image control unit with an image mixer between the video capture device and the encoder. This cuts a program image from the various incoming contents, which is then also sent to the encoder.

Image mixer in the image control room assembles camera images for a live stream

The video Encoder can be either a software or a hardware encoder.

A software encoder is a software solution on the PC. This is operating system dependent. The advantage of a software encoder is the simple installation as well as free and freely accessible encoder programs for download. An example of this is OBS. In contrast to the hardware encoder, however, software encoders are not as optimized for specific applications.

A hardware encoder is a physical device connected by cable to the camera and the server. Usually, this device is built exactly for the desired functionality of the live stream transmission. Moreover, the physical device is often more reliable than a corresponding software solution. The latter is not only operating system dependent, but must also count on a stable Internet connection at this point of contact.

The encoder delivers the output signals to the end point on the video platform . A stable Internet connection is essential for the seamless and smooth transmission of the live stream. These output signals use so-called protocols to transmit the data packets. RTMP, RTMPS or SRT are examples of such protocols.

The video platform then displays the transmitted content on the website with a short delay (latency, approx. 15 - 20 seconds).

For smooth live streaming in high quality, a transfer rate of 2 Mbit/s is advised. HD or 4K videos even require 5 Mbit per second.

Man sitting in armchair watching livestream

How does livestreaming differentiate itself from television?

The principle of livestreaming and also one-to-many communication is similar to television. Here, too, viewers can follow the content live via the TV. The signal here is transmitted either via satellite or cable.

However, the big difference between livestream and television is the livestream's possession of other features. A livestream has back channels for back communication or interaction between viewers. Through the chat function, viewers can communicate with each other, and with the Q&A function, for example, the participants of a livestream can interact with the presenters and ask questions.

In contrast, with television there is no interaction whatsoever between the two end points of broadcaster and viewer. The same applies to radio as another broadcast option.

How is livestreaming differentiated from on-demand video?

On demand videos, just like livestreams, can also be accessed by viewers via the Internet. Webinars, webcasts or livestreams can be uploaded to the media library after the event.

Livestreaming or on demand

The big difference to live streaming, however, is that the on-demand videos are not live, but stored on the server. This means that the on-demand videos can be accessed at any time. These videos (including movies and series) are usually stored in a media library. The best known of the numerous video-on-demand providers (VOD providers for short) are YouTube, Netflix and Amazon Prime Video. Secure video hosting is a decisive criterion for companies when selecting the right platform.

In addition, on-demand videos can be downloaded. Playback is then no longer dependent on a stable Internet connection, but can also take place offline. This guarantees smooth playback of the video, since no buffer memories have to be loaded. On the other hand, the large amount of storage space required is a disadvantage.

On demand Vieos can be viewed at any time

How does a livestream differ from a webcam?

The operation of a webcam is based on a different technology. This is similar to the principle of conferencing.

There is no delay between the live image and the image that gets to the viewers. As mentioned earlier, there is a delay of about 15-20 seconds in live streaming. An example of a webcam technology is WebRTC.

What are advantages of livestreaming?

The popularity and numerous offers do not deny that livestreams have numerous advantages. Content can be played back immediately. Server broadcasting eliminates the need to download content, which means no valuable storage space is lost. More and more livestreams are also being transmitted via social media platforms, which again expands the reach of the content enormously.

In addition, viewer data can also be evaluated for livestreaming events. This allows conclusions to be drawn about data transmission and interactions to be analyzed.

Livestreaming has also gained tremendous importance and scale, especially in the times of the Corona pandemic. Live video streaming now allows any number of people to be involved regardless of where they are. In addition to virtual events, livestreaming has also become an integral part of hybrid events. You can simplify the organization of an online event with a virtual event platform .

Reading Tip:

"How to make professional livestreaming a success".

What are the disadvantages of livestreaming?

The basic prerequisite for a successful live stream is a constantly stable Internet connection. For a successful streaming experience, this must be a prerequisite for every viewer. Stagnant or intermittent loading of the livestream reduces the success of the event.

In addition to fast Internet, further technical equipment such as software and hardware, camera, image mixer, etc. must be purchased for the transmission of the desired content. The search for a suitable live streaming platform or streaming provider can also be difficult.

Technical setup on site for a live stream transmission

How to find the right streaming platform?

It can often be difficult to find the right streaming platform. The following questions can make the search easier:

  • What content should be sent to viewers?
  • What types of interactions should be used during the livestream?
  • How should viewers be able to communicate?
  • Should the livestream be made available for further use afterwards?
  • Should the livestream be part of an online or hybrid event?
  • Should the platform interface be designed in your branding?
  • What languages should the livestream be translated into?


You are still looking for a suitable event platform for your livestream? STREAMBOXY offers you numerous possibilities to broadcast the livestream and design your individual event. Take a look and host your future events with us.

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