Ksenia Trofimova

Head of Business Development

Techcast GmbH

How does a live stream work?

What is a live stream and how does it work? Discover the basics, technology, formats & platforms - clearly explained for beginners and professionals.

Ksenia Trofimova

Head of Business Development

Techcast GmbH

How does a live stream generally work?

A live stream is a form of digital transmission in which content is sent and received in real time over the internet. In contrast to pre-recorded videos or audio files that can be downloaded and played back later, a live stream enables the immediate transmission of events, videos or audio signals as they happen.

This process is often used for various applications, such as for:

  • Live sporting events
  • Webinars
  • News transmissions
  • Video games
  • Concerts

The viewer can follow the stream in real time, which means that there is no significant delay between recording and playback.

  1. Capturing the content
    The first step in a live stream is to capture the content that is to be transmitted. This can be done using a camera, microphone or other type of input device. In many cases, a combination of several cameras and microphones is also used to capture different angles or audio channels.

  2. Encoding and compression
    The captured raw data is often too large and uncompressed to be transmitted efficiently over the Internet. They are therefore converted into a digitally compressed format by an encoder.
    The encoder can either be a dedicated hardware or a software solution.
    Typical formats for video transmission are H.264 or H.265, while AAC or MP3 are used for audio transmission.

  3. Transmission via the Internet
    As soon as the content is encoded, it is sent in real time via the Internet to a streaming server.
    This server acts as an intermediate station that distributes the stream to many different viewers simultaneously.
    The transmission usually takes place via the Real-Time Messaging Protocol (RTMP) or the newer HTTP Live Streaming (HLS).

  4. Decoding and playback for the viewer
    On the receiving end, a media player decodes the received data packets and plays them in real time on the viewer's device.
    This can be done on various devices, such as smartphones, computers, tablets or smart TVs.
    The live stream is delivered in small packets, which the player buffers to ensure continuous playback without interruptions.

This process takes place in a fraction of a second and enables the online audience to experience content almost in real time.
However, there may be a minimal delay of a few seconds - depending on the quality of the internet connection and the technology used.

What is the difference between on-demand streaming and live streaming?
On-demand streaming and live streaming are two different approaches to broadcasting content over the internet, each with specific use cases and technical requirements.

How does on-demand streaming work?

On-demand streaming refers to content that can be accessed whenever the user wants it. Examples of this are platforms such as Netflix, YouTube or Spotify, where users can select films, series, music or videos from a library provided in advance. This content is not transmitted in real time, but is already recorded and stored on a server. The advantage of on-demand streaming lies in the flexibility for the user, who can decide when and how often they want to watch or listen to a particular piece of content. Content can also be paused, rewound or fast-forwarded, which ensures a high level of user-friendliness.

How does a live stream work?

Live streaming, on the other hand, refers to the transmission of content in real time as it is being produced or broadcast. There is no option to pause the event or watch it later, unless the stream is made available afterwards as on-demand content. Live streaming is particularly popular for events that are inherently time-sensitive, such as sporting events, concerts, news broadcasts or live gaming sessions. The biggest advantage of live streaming is the immediate experience that allows viewers to participate in current events as they happen.

In summary, the main difference between on-demand streaming and live streaming is the timing of transmission and consumption: on-demand content can be viewed at any time, while live streams are only accessible at the moment they are broadcast.

Peer-to-peer and streaming servers: A comparison of two approaches
When streaming content, there are two primary technical approaches that can be used: Peer-to-Peer (P2P) and streaming servers. Both methods have their advantages and disadvantages and are suitable in different ways depending on the application.

Streaming servers are the more traditional approach, where a central server takes on the role of hosting and distributing the content. Here, the stream is sent from the server to all connected users, who receive it in real time. This approach is easy to implement and allows precise control over the distribution of content. Streaming servers can be scaled to serve large numbers of viewers, but this requires significant server capacity and bandwidth, especially with high user loads. An advantage of this approach is reliability and the ability to monitor and manage the stream from a central source.

Peer-to-peer (P2P) streaming, on the other hand, uses a decentralized model in which the audience also acts as a distributor. In a P2P network, each viewer shares parts of the stream they have already received with other users who want to watch the same content. This approach reduces the load on a central server as the bandwidth requirements are distributed among many users. This can be particularly advantageous for very large events or in networks with limited server capacity. P2P streaming scales well as the number of users increases, as more viewers means more distribution capacity. However, there are potential disadvantages in terms of consistency of streaming quality and security, as the distribution of content is less controllable.

To summarize: A streaming server offers centralized control and reliability, but is better suited to environments with guaranteed bandwidth and server capacity. Peer-to-peer streaming, on the other hand, is scalable and relieves the burden on central servers, but can involve fluctuations in quality and security. Which approach is chosen often depends on the specific requirements of the stream, the size of the audience and the available resources.

Peer-to-peer and streaming server: What is a streaming client?

A streaming client is a software application or device that receives, decodes and plays content that is transmitted via a live stream or on-demand stream. So how does a live stream work with a streaming client? It acts as an interface between the user and the streamed content and ensures that the audio or video material is displayed correctly. Streaming clients are crucial to the user experience as they not only control playback, but also enable buffering, error correction and quality adjustment to the available internet connection.

A typical streaming client can take various forms:

- Web-based clients: These run directly in the web browser and often require no additional software installation. Examples include video players such as the HTML5 player or plugins such as Adobe Flash (although Flash is now largely obsolete).

- Standalone software: These are special programs that are installed on the user's device. Examples include the VLC media player, Netflix app or Spotify desktop application.

- Hardware clients: Some devices such as smart TVs, games consoles or special streaming boxes (e.g. Roku, Apple TV) have integrated streaming clients that make it possible to play content directly on the screen or via speakers.

The streaming client is responsible for receiving the data packets sent by the streaming server or a peer-to-peer network, decoding this data (using codecs) and displaying it in a continuous, uninterrupted form. The client also manages functions such as pausing, rewinding and adjusting the volume. The quality of the streaming client can have a significant impact on the user's experience, especially when it comes to handling connection issues or adapting to different bandwidths.

Peer-to-peer and streaming servers: What role do codecs play in live streaming?
Codecs (short for compressor-decompressor) play a central role in the live streaming process, as they greatly reduce the amount of data in audio and video content without significantly affecting the quality. They are responsible for encoding large amounts of raw data into a compressed format that can be transmitted efficiently over the Internet and then decoding this data again at the destination so that it can be played back correctly.

The role of a codec can be divided into two main processes:

- Encoding: During live streaming, the captured raw data (e.g. video recordings or audio signals) is compressed in real time to reduce bandwidth requirements. This process is crucial to ensure that the stream can be transmitted smoothly and in high quality even with a limited internet connection. Different codecs use different algorithms and techniques to reduce the amount of data, with some focusing more on reducing the file size and others on maintaining the best possible quality.

- Decoding: On the viewer's or listener's side, the compressed data stream is then decompressed again so that it can be played back in its original, human-understandable form and the live stream works. This process takes place in the streaming client and allows the user to experience the video or audio in a fluid and continuous form.

Which common audio and video codecs are used for live streaming?
Various audio and video codecs are used in live streaming, each of which has its own strengths and areas of application. Here are some of the most common ones:

Video codecs:

- H.264 (AVC - Advanced Video Coding): One of the most widely used video codecs that offers a good balance between compression rate and image quality. H.264 is the standard for many streaming platforms as it works efficiently in real time and offers broad support on almost all devices.

- H.265 (HEVC - High Efficiency Video Coding): The successor to H.264, H.265 offers even higher compression with comparable or better image quality. This makes it possible to transmit streams in higher resolutions such as 4K with less bandwidth. However, H.265 is more complex and requires more computing power to decode.

- VP9: An open-source video codec developed by Google that is mainly used in conjunction with the web, especially on platforms such as YouTube. VP9 offers similar benefits to H.265, particularly in terms of efficiency at higher resolutions, and is supported by modern web browsers and devices.

Audio codecs:

- AAC (Advanced Audio Coding): The standard codec for most streaming applications. AAC offers better sound quality than MP3 at comparable bit rates and is supported by almost all modern platforms and devices on which a live stream works.

- MP3 (MPEG-1 Audio Layer III): Although AAC is more modern, MP3 remains a widely used audio codec, especially on older systems and devices. MP3 is known for its compatibility and acceptable audio quality at moderate bit rates.

- Opus: A relatively new audio codec developed specifically for Internet transmission. Opus supports a wide range of bit rates and offers excellent audio quality, both for voice and music, and is particularly popular for real-time applications such as VoIP and video conferencing.

These codecs are crucial for the efficiency and quality of live streams. They allow content to be transmitted in high quality while minimizing the amount of data sent over the network to reduce buffering times and delays. Choosing the right codec depends on many factors, including the type of content, the available bandwidth and the target devices on which the stream is to be played.

What do you need for a live stream to work?

To create a successful livestream, you need a combination of suitable hardware and software. These two components work together to capture, process and transmit content to an audience in real time. Here is an overview of what equipment and programs are required to run a livestream.

- Hardware: The hardware forms the physical basis of a livestream. It includes all the devices required to capture and process the video and audio material. Here are the most important hardware components required for a livestream:

- Camera: The camera is the central element for video recording. Depending on the quality of the livestream, this can be a simple webcam, a DSLR camera, a professional video camera or even a multi-camera rig for different angles and settings. The important thing is that the camera is able to deliver a clear and sharp image.

- Microphone: The audio quality is just as important as the video quality. A good microphone ensures that the sound is transmitted clearly and without background noise. It can be a simple USB microphone, a lavalier microphone for interviews or a professional XLR microphone for high-quality audio recordings. A mixer may also be required to control multiple audio sources.

- Computer or streaming encoder: A powerful computer is often required for the live stream to work and be managed, especially when using multiple cameras or software that requires a lot of processing power. Alternatively, special hardware encoders can be used to make the streaming process more efficient and reliable. These devices specialize in encoding the incoming video and audio signal and sending it directly to the streaming server.

- Light: Lighting plays a decisive role in video quality. Poor lighting can make the image appear grainy and unprofessional. Simple ring lights, softboxes or professional lighting kits can be used to ensure even and appropriate lighting.

- Tripod or gimbal: Tripods or gimbals are required to ensure stable recordings, especially for cameras that are not permanently installed. These ensure that the camera remains steady during the live stream and that there is no disturbing camera shake.

- Internet connection: A stable and fast internet connection is essential for a successful livestream. Ideally, a wired connection should be used to minimize interruptions and latency times. The speed of the upload bandwidth is particularly important here, as it directly influences the quality and stability of the stream.

- Software: In addition to the hardware, the right software is an essential part of a live stream. The software helps to process the incoming video and audio signal, control the livestream and send it to the streaming platform. Here are the most important software components:

- Streaming software: Streaming software is required to encode the live video and send it to a streaming platform. The best-known programs include OBS Studio (Open Broadcaster Software), Streamlabs OBS and XSplit. These programs offer functions such as scene changes, overlays, chat overlays and the integration of external sources such as screen content or additional media.

- Platforms and servers: In order to make the livestream accessible to an audience, you need a platform that hosts the stream. Such platforms include YouTube Live, Twitch, Facebook Live, Vimeo and Techcast Event Cloud. These platforms not only offer the infrastructure to broadcast the livestream, but often also additional tools for interacting with the audience, such as live chats and reaction options.

- Video editing software: Sometimes it is necessary to edit the video material of the livestream. Programs such as Adobe Premiere Pro, Final Cut Pro or DaVinci Resolve can be useful here to add graphics, create transitions or cut the video to the right length.

- Audio software: To optimize the sound, it can be helpful to use audio software such as Adobe Audition or Audacity. These programs make it possible to edit the sound, remove noise or normalize the audio level before going live.

- Chat and moderation tools: For interactive livestreams, it is important to moderate communication with the audience. Special programs can be used to filter messages, generate automatic responses or conduct surveys.

- Monitoring tools: Monitoring tools are important for monitoring the live stream in real time and ensuring that everything runs smoothly. These monitor the quality of the stream, the stability of the connection and provide warnings in the event of problems.

In summary, a livestream requires both solid hardware equipment and the right software. The combination of both elements makes it possible to produce a high-quality and interference-free livestream that appeals to and captivates the audience.

Where can you stream live?

As a streamer, there are now a variety of platforms that make it possible to broadcast live streams easily and flexibly - both on mobile and desktop devices. Whether via smartphones, tablets or computers: live streaming is now available on many devices and for various purposes. Well-known platforms such as Twitch, YouTube Live and Facebook Live offer streaming solutions for a broad target group. At the same time, there are specialized services that offer professional features for companies and content creators that can be used to operate and manage a live stream. Depending on the aim of the stream, the community and the desired functions, the right platform can be selected to reach your own audience in the best possible way.

** How does a live stream work with the platform of a streaming service?
In addition to the well-known social media platforms, there are also specialized streaming service providers that offer their own solutions and platforms for professional live streams. These services are often aimed at companies, educational institutions or event organizers who have high quality requirements and need advanced functions. They offer powerful tools for managing, monetizing and analysing live streams. They also make it possible to broadcast streams in high resolution, secure access or hold private events for specific target groups. Such platforms are ideal for conferences, webinars or commercial events.

How does a live stream work on your own website?
It is also possible to embed a live stream directly on your own website, which is particularly interesting for companies, brands or content creators who want to increase their reach and retain full control over their content. This can be done via so-called embed codes, which are provided by platforms such as YouTube Live, Twitch or specialized streaming service providers such as Techcast. The embed code is simply inserted into the HTML code of your website, which plays the live stream directly in the visitor's browser. This enables seamless integration of the stream into your own online ecosystem and also offers the option of adding your own features to the stream, such as commentary functions, branding or a personalized design. This allows viewers to watch the live stream directly on their own platform without having to switch to external sites.

Why livestreaming?

Livestreaming has become an indispensable means of communication in recent years, both for individuals and companies. By broadcasting content in real time, organizers can interact directly with their audience, create an authentic connection and receive immediate feedback. Whether it's a product presentation, a webinar or an event, livestreaming offers the opportunity to reach people all over the world without geographical restrictions. Especially in times when digital presence is becoming increasingly important, livestreaming offers a dynamic and flexible way to share content and actively engage the audience.

What are the advantages of a live stream?
Live streaming has a number of advantages that make it an effective method of communication and presentation:

- Real-time interaction: Livestreams enable direct interaction with the audience, e.g. through live chats, surveys or Q&A sessions. This direct connection promotes engagement and creates a feeling of closeness.

- Immediate reach: A livestream can potentially reach thousands of people simultaneously without the need for physical venues or large infrastructure.

- Authenticity: Since livestreams are not edited, they often appear more personal and authentic, which strengthens trust and credibility with the audience.

- Cost efficiency: Livestreaming significantly reduces the costs of large events, travel and physical venues. All you need is a stable internet connection and the right hardware.

- Accessibility and flexibility: Viewers can watch livestreams from anywhere, be it on their smartphone, tablet or computer, making it particularly flexible and accessible.

- Reusability: Many livestreams can be recorded after the broadcast and reused as on-demand content, which increases the value of the content and enables long-term engagement.

In which scenarios can a live stream be used?
Live streaming can be used in many different scenarios, each of which has its own advantages and applications:

- Events and conferences: Companies and event organizers can make large events such as trade fairs, conferences or product presentations accessible to a global audience via livestreams.

- Webinars and training courses: Educational institutions and companies use livestreams to conduct interactive training courses, lectures or tutorials in real time.

- Gaming and entertainment: Livestreaming is particularly popular in the gaming community. Platforms such as Twitch allow gamers to broadcast their gaming sessions live and interact with viewers.

- Sports broadcasts: Live sports broadcasts have a long tradition in broadcasting, but smaller sporting events and niche sports also use live streaming to expand their reach.

- Corporate communications: Livestreams are an effective way for companies to broadcast employee meetings, announcements or investor conferences worldwide in real time.

- Cultural and creative events: Artists, musicians and cultural professionals can use livestreaming to bring concerts, theater performances or art projects to a wider audience.

Livestreaming is therefore an extremely versatile tool that can be used in numerous industries and contexts to distribute content quickly, efficiently and directly.

Professional live stream or do it yourself?

When deciding between professional live streaming and a do-it-yourself (DIY) solution, the choice depends heavily on individual needs, budget and the requirements of the live stream in question. Both approaches have their advantages and disadvantages and offer different ways of successfully carrying out a live stream.

Do it yourself (DIY) - flexibility and cost efficiency
The DIY approach offers flexibility and is usually more cost-effective, but of course you need to know one thing: How does a live stream work? With simple tools and the right equipment, almost anyone can start a live stream, be it on YouTube, Facebook or Twitch. Modern smartphones, inexpensive webcams and microphones make it possible to get started without any major investment. Tools such as OBS Studio or Streamlabs offer free software solutions that even beginners can use to create simple streams professionally.

The benefits of a DIY livestream include:
- Cost savings: Less money spent on expensive equipment or service providers.
- Flexibility: Complete control over the livestream, its content and design.
- Speed: DIY solutions can be set up and launched in a very short time.

However, DIY streaming often requires technical know-how and a stable internet connection. The quality can also vary, depending on the hardware and software used and the technical capabilities of the streamer.
**
Professional live streaming - quality and reliability**
If you are aiming for a particularly high-quality result or want to stream for large events such as conferences, company presentations or public events, you should consider professional help. Professional live streaming service providers offer comprehensive services ranging from set-up to production and post-production. They have experienced technicians to ensure that the stream is technically flawless and high-quality equipment such as HD cameras, special encoders and professional audio technology.

The advantages of a professional live stream include:
- Higher quality: professional cameras, microphones and lighting ensure a more visually and acoustically appealing result.
- Reliability: Experienced technical teams ensure that the stream runs without technical problems.
- Complex productions: Multiple cameras, elaborate scene changes, fade-ins and interactions are easier to realize.

However, the professional approach is associated with higher costs and is less flexible, as planning and coordination with external service providers is required.

Conclusion: Which approach is right?

The DIY approach is ideal for small projects with a limited budget and manageable technology. Streamers who are looking for direct access to their audience and are not planning elaborate productions can get started quickly and cost-effectively with this method. For larger events where reliability and professional quality are paramount, however, it makes sense to invest in a professional live stream. Ultimately, the decision depends on what requirements the stream needs to meet and what resources are available.

The history of live streaming
The history of live streaming begins in the early 1990s, when the Internet began to be commercialized and technologies for the transmission of real-time media were developed. A milestone came in 1993 when the band Severe Tire Damage streamed the first live concert over the internet. It was a revolutionary moment as it showed that the internet was more than just a means of communication - it could also be used for the real-time transmission of media.

In the late 1990s and early 2000s, advances in broadband internet and video compression made live streaming increasingly accessible. Platforms such as RealNetworks developed the first technologies for streaming media. In 1995, RealNetworks introduced RealPlayer, which allowed users to stream audio and video content online. This was a significant step forward as it laid the foundation for modern streaming technologies.

The next big step came in the mid-2000s, when Web 2.0 made live streaming available to the masses with platforms such as YouTube (2005) and Ustream (2007). These platforms enabled users worldwide to create their own live content and make it available to a global audience without the need for expensive equipment or complex technical knowledge.

The 2010s marked the breakthrough of live streaming into the mainstream. Platforms like Twitch (2011) revolutionized live streaming, especially in the gaming community. Twitch allowed gamers to live stream their games and interact with their audience at the same time, creating a huge community of content creators and viewers. At the same time, social networks such as Facebook (Facebook Live, 2015), Instagram (Live Stories, 2016) and YouTube integrated live streaming into their platforms, further increasing its reach and popularity.

With the advent of smartphones and mobile networks, live streaming became possible on the go. Mobile apps such as Periscope (2015) and the livestream functions of Facebook and Instagram enabled any user to go live from virtually anywhere.

Today, live streaming is an integral part of the internet, used in many areas such as sports broadcasts, e-sports, corporate communications, online education, music and cultural events. It has established itself as an indispensable medium that makes it possible to interact with a global audience in real time.

Frequently asked questions about how a live stream works

What does live streaming cost?
The cost of live streaming varies depending on the platform and the technology required. Basic options on platforms such as YouTube or Twitch are free, but professional streams may incur costs for cameras, microphones, software and possible subscriptions to streaming services. Large events or high-quality streams may require investment in network technology and staff or a streaming service provider to manage the events with the appropriate technology.

What opportunities are there to earn money with live streaming?
Income can be generated through advertising, subscriptions, donations (e.g. via platforms such as Twitch), sponsorship contracts and product placements. In addition, some platforms also offer partnerships or monetization opportunities when certain viewer numbers are reached. Merchandise sales and exclusive content for paying subscribers are also common methods. Companies also often use live streams for webinars to attract new leads and customers.

How do you get viewers for a live stream?
To attract viewers, it is important to stream regularly and offer content that appeals to the target audience. Using social media to announce and distribute the stream and interacting with viewers also helps to build a community. Collaborating with other streamers or influencers can also increase reach.

What is streaming and how does it work?
Streaming means transmitting audio and video content in real time via the internet without downloading it to the end device. This requires a stable internet connection, an end device (computer, smartphone) and a platform or software such as Twitch, YouTube or OBS Studio to send the stream. The content is then streamed directly to the viewers. For corporate events, streaming service providers often take over the live broadcast with their own software and hardware.

What do I need to watch a livestream?
To watch a live stream, you need an internet-enabled device (smartphone, tablet, computer) and a stable internet connection. An app or platform that supports the stream (e.g. YouTube, Twitch or Facebook) is also required. You may need to log in or install the app.

How do you explain streaming?
Streaming is the transmission of audio or video content in real time via the internet. It allows you to watch or listen to content without having to download it first. The process only requires an internet connection and a suitable device to play the content directly.

What happens during streaming?
When streaming, audio or video data is broken down into small packets and sent to the user's device via the internet. These packets are then played there immediately, creating a continuous flow of content. This real-time process allows media content to be consumed without interruptions or waiting times for downloads.