When analog signals are transferred from a VCR, TV set or video camcorder into a binary representation for the computer, the amount of data is enormous. Analog video displays video at a rate of 30 frames per minute and the size of such a file in digital format for just a few seconds could be many megabytes. And given that the majority of internet users use a 56 kpbs modem, sending several megabytes over the internet certainly takes a long time. Most users would not have the patience to wait several minutes to watch a short, low-quality video. Therefore, video compression software has been developed to minimize the file size of these videos.

Video compression software reduces the data representation of the original video source. It gets rid of the redundant frames and data in the video so that only the most important information is coded. While smaller file sizes usuallly mean lower quality in resolution, whether it be image resolution of the number of frames per second displayed, video compression software compresses videos so that this loss in quality is not too noticeable. Thus, the goal of the compression software is to reduce the file size immensely while still retaining the important elements of the video. Some video compression formats developed specifically for viewing video on the web include MPEG, ASF, and RM. But even with these compressions, the videos are still many megabytes in size. And to transfer such files, however well-compressed they are, over the internet, is still unreasonable to the average internet user. There is, however, an alternative: streaming video.

Streaming video essentially plays the first part of the video while the second part is being downloaded. Before streaming video can be streamed, the video file must be compressed to a format that interfaces, such as RealPlayer, can interpret and display the video properly. Each streaming video software developer provides a proprietary interface that allows users to receive and display the video while downloading is in progress. For example RealPlayer allows users to view streaming videos in .rm format (Real Media). Microsoft's verssion is the .asf format (Active Streaming Format).

What the user experiences when playing a streaming video:

The user clicks on a hyperlink that links to the streaming video file. The computer then downloads this file and begins playing the video shortly afterwards, even when the entire video has not been completely downloaded. While the user is viewing the video, more video is continuously being downloaded into the user's computer until the entire video is eventually downloaded.