When people stream their favorite content, they hardly think of the effect of their entertainment on the environment. It is easy to overlook the climate change associated with streaming. This is because there is no direct visual link between the user’s device and carbon emissions like it exists with, say, driving an internal combustion engine car or running a diesel generator where you can physically see the exhaust.
However, there is an undeniable link between the OTT industry and carbon emissions. For instance, when you examine the lifecycle of streaming a video from Netflix, Youtube, Disney+ or even Pluto TV, you consume between 1 GB and 7 GB of data every hour. By looking at the energy use of the different components that are involved in the distribution and viewing of video content, you begin to get a clearer picture of the carbon impact of the OTT industry.
For instance, all the content you watch is stored in data centers and CDN’s like AWS, Amagi, Wurl, or OTTera. That content is then transmitted through underground and undersea cables to home routers before it ends up on your screen of choice (e.g. TVs, Laptops, Tablets, Smartphones), or TV peripherals (e.g. Set-Top Boxes, Streaming Sticks). Each step of the journey requires so much energy that it has been estimated that 60% of all the carbon emissions attributable to the internet come from video streaming. Furthermore, the Carbon Trust estimates that the carbon impact of streaming an hour of video is approximately 55 gCO2e.
It is therefore important for OTT companies to care more about the impact of their business activities on the environment. While some companies like Netflix are already making efforts, more could be done to reduce the effects of streaming on the environment. Below are ways the OTT industry can join in fighting climate change.
Furthermore, with the COP26 conference of world leaders going on in Glasgow, it is a good time to examine ways the OTT industry can join in the fight against climate change.
1. Switch to clean and renewable energy
OTT companies need power to operate, just like companies in other industries. They need power to run their in-house servers where content and other data are kept, maintain their offices, keep their vehicle fleet on the road.
By switching to renewable sources of power like solar panels and wind turbines, OTT companies can reduce their carbon footprints significantly. One advantage of cleaner energy is often cheaper, apart from being non-polluting, better for the environment and a boost to the company’s CSR initiatives.
Another environmentally friendly step is to electrify their fleet of operation vehicles. Transportation contributes a good portion of environmental pollution but switching to electric vehicles decimates this source of pollution. There are now a lot of options for companies to choose from to meet their transportation needs. This is something that Volty not only advocates for, but also practices as we have only used electric vehicles in our fleet.
2. Use only sustainable suppliers
The OTT industry requires an extensive supply chain, from equipment suppliers to cloud storage to technical services providers and maintenance. By mandating their vendors to achieve a certain level of reduced carbon footprint, OTT companies can spearhead the efforts to combat climate change within their spheres of influence. They can also insist on energy-efficient infrastructure from their vendors.
3. Go carbon negative by supporting initiatives for helping the environment
Even if the OTT companies cannot eliminate the carbon emissions from their operations or from their vendors’ operations, they can offset their environmental impact by taking some practical steps like planting trees. For example, Volty works with organizations like Eden Reforestation Project to plant trees to absorb the carbon impact of they produce. We call this our Trees For Streams initiative and urge others in the OTT industry to adopt this principle.
Another such organization is Plantyflix (now Treeferral) which encouraged people who watch Netflix to reduce or offset their carbon footprint by planting trees through a monthly carbon-offset subscription that matches their streaming habit. They determined that watching an hour of content could produce 0.4 kg of CO2, and then viewers can pay to offset their carbon impact. OTT companies can commit to planting trees to reduce or offset the carbon impact of their monthly or annual viewership. This is not as expensive as one might think. For context, 6 trees planted is expected to absorb 1 ton of carbon over a 40 year lifespan.
4. Promote content on green energy
Due to the nature of their operations, the OTT industry has a lot of influence. Together they represent a platform where billions of people get information regularly, allowing for the opportunity to help shape or promote conversations on environmental issues.
For example, streaming companies can acquire, produce and make more content on green energy, technology and transportation, available on their platforms and promote them adequately. Channels like Green TV and Volty TV are two examples of streaming channels available for distribution, that deliver content exclusively related to combating climate change. Shows and movies that educate viewers on the risks of environmental pollution, the carbon impact of their daily decisions, and push viewers towards climate responsibility in their private and professional lives should be given priority and preference as part of any Streaming or OTT company’s CSR initiatives.
Furthermore, OTT companies can also help increase visibility and reach for organizations fighting climate change by setting aside a portion of their ad inventory for messaging around climate change.
5. Stronger corporate climate policies
In boardrooms all over the world, investors and board members are demanding that their companies do more to fight climate change. Companies are making a statement on climate change by setting their own internal and external climate goals. It could be a target to reduce their carbon footprint, cut energy wastage, promote electric vehicles among their staff by offering free charging at their offices and other facilities, promote environmentally friendly workspaces, etc.
For many years, customer have also been voting with their dollars by choosing to support brands and businesses with an eco friendly agenda. Streaming companies which take climate change seriously will be rewarded by an increasingly climate conscious customer base. This is a viable business strategy from not only the OTT industry to adopt across the board, but also for every other industry that relies on the planet being hospitable in order to succeed.
While some people feel businesses should not dabble in politics, the truth is, after the last election cycle, consumers now expect business to take a stand on social issues. The climate is the most important social issue humanity is facing. Streaming companies can further use their powerful voice to support political candidates, parties and non-profit organizations with laudable environmental goals. The belief that “With great power comes great responsibility” is not only for the superheroes, but also for the companies that stream those superheroes into our homes.