• Major content providers are set to slow the quality of their streams
• YouTube, Netflix and Amazon throttle bandwidth and lower video quality, while Sony and Microsoft do the same for gaming downloads
• Despite this YouTube will not implement the same limitations on ad quality
• Several agency leaders claimed to be unaware of the changes, with Google not yet briefing them on the current situation, however, welcomed the news
• The decision comes as analysts report an 18% decline in total revenue for the digital giant in the wake of COVID-19

On the throttle

The two major global streaming platforms, YouTube and Netflix, have begun to 'throttle' bandwidth as network providers deal with the influx of web traffic due to COVID-19.

Both companies have begun implementing processes to limit the bandwidth on video quality, with YouTube reducing video quality to standard definition in some markets.

Unofficial word from an "unnamed Google source" is that ads won't be affected by the change as they don't take up anywhere near as much bandwidth as the videos themselves.

According to the sourse, the current YouTube ad policy remains unchanged. Netflix, which has no advertising throughout its platform, began testing its throttling strategy during the early stages of lockdown in Italy.

Last week, the streaming giant rolled out the same strategy in Australia.

"We continue to work closely with governments and network operators around the globe to do our part to minimise stress on the system during this unprecedented situation," A Google spokesperson told Mi3. "We recently announced that we were temporarily defaulting all videos on YouTube to standard definition."

For the most part, YouTube has seen little change in the peaks, and have mostly seen changes in usage patterns from more people at home-expanding across additional hours and lower usage peaks. Despite that, Google will continue taking this action globally to do our part to minimise stress on the system.

The change applies equally to all types of content, however, users can still manually adjust video quality based on their preference. The bandwidth throttling began on March 24 and lasts 30 days.

Agencies yet to be briefed

Despite YouTube already throttling the bandwidth of videos global, major agency heads confirmed with Mi3 that they were yet to hear anything directly from Google.

Omnicom Chief Investment Officer Kristiaan Kroon says the decision would be supported by most clients agencies provided the consumer experience wasn't impacted.

"We are supportive of the changes Youtube has made to stream in standard definition for a month to help reduce internet bandwidth issues caused by COVID19," Kroon says.

"We also support advertising remaining unchanged as Youtube is an ad-funded platform and adverts makes up a small percentage of time on Youtube. This is a practical solution balancing consumer and advertisers needs in challenging times."

Other major agencies including PHD, Vizeum, Publicis and key indie media shops all confirmed that they were yet to hear from Google but echoed the sentiment of Kroon.

The Duopoly Dive: crippled not crush

Despite the increased amount of online traffic as a result of lockdown measures, investment management company Cowen & Co estimated that Google and Facebook combined will lose over US$40 billion in ad revenue this year.

Google is due to roughly lose $28.6 billion, 18.3% below initial estimates, while Facebook will lose approximately $15.7 billion, 18.8% down from its original estimates.

Twitter is expected to take a smaller hit of $701 million, down 17.9% and social media sister Snapchat will shed roughly $977 million, 31.8% below estimate.