Why low latency matters: Explained with 6 real-world examples

Ever found yourself biting your nails during a live football match, only to have the stream lag right at the crucial moment? Or maybe you've been following a global tech conference, hanging on every word, but the feed stutters just as the big reveal is about to drop? In a time where we crave real-time interaction and instant access to content, there's one unsung hero that makes or breaks these experiences: latency.

Whether you're cheering on your favorite team, catching the latest industry insights, or trying to snag a deal in a live online auction, the smoothness of the experience comes down to this one factor. So, how much does latency really matter?

A lot!

What is latency?

In the context of live streaming, latency refers to the delay between the event happening in real-time and when it reaches your screen. This lag can range from a few seconds to over a minute. High latency can result in viewers receiving information late, which can lessen the real-time excitement and engagement that makes live streaming so appealing.

In this blog, we will understand why low latency is crucial across various use cases.

1. Real-time engagement in sports events

When it comes to live sports, every millisecond counts. Fans across the globe tune in to watch their favorite teams compete in real-time, and any delay can diminish the thrill of the game. Imagine the frustration of receiving a push notification about a goal before seeing it happen on your screen. This is where low latency becomes vital.

Broadcasters like ESPN invest heavily in low latency streaming technology to minimize delays, ensuring that viewers experience the game as it unfolds. This real-time engagement is especially crucial for live betting, where odds can change in an instant.

For example, during the FIFA World Cup, millions of viewers rely on low latency streams to place bets and react to the game in real-time. Without it, the entire experience would lose its immediacy and excitement.

2. Providing a competitive edge in gaming tournaments

Low latency becomes non-negotiable in the world of online gaming, where precision and timing are everything. Players and viewers alike depend on streams that keep up with the fast pace of competitive gaming. Platforms like Twitch have set the standard for low latency streaming during major tournaments such as The International (Dota 2) or the Fortnite World Cup.

For gamers, even a slight delay can be the difference between victory and defeat. As online gaming involves a lot of interaction via live chat, it is where streamers get instant feedback and a direct line to their audience. This allows them to adjust their gameplay, commentary, or even the direction of the stream in real time based on viewer reactions and suggestions.

For viewers, low latency ensures they are in sync with the action, sharing the highs and lows of the game in real-time. The immersive experience is what keeps audiences engaged and coming back for more.

3. Bridging global barriers with virtual events

Covid-19 brought a massive shift to world of events. Events that were mostly held in-person at locations, have now mandatorily starting streaming online as well. Which again brings us to the point of low latency being extremely important.

Whether it's a global tech conference like Apple’s WWDC or Microsoft’s Ignite, low latency ensures that participants of the event can engage in real-time discussions, Q&A sessions, and get networking opportunities.

In the setting of a virtually streamed event, a delay can lead to missed opportunities to interact with speakers and other attendees. The goal of these events is always to make the live streamed event almost as engaging as their in-person counterparts – which is why streaming it with minimal latency becomes important.

Take a look at how beautifully Apple’s WWDC event of 2024 was streamed on their YouTube channel.

4. Bringing the stage to your screen with live concerts

Live concerts and performances have long been a staple of entertainment, and their transition to virtual platforms has only increased their reach. Low-latency streaming is crucial in these scenarios to preserve the energy and immediacy of a live show.

During the pandemic, global virtual concerts, such as BTS's Bang Bang Con and Billie Eilish’s ‘Where Do We Go? The Livestream’ clearly told us that live streams were the way to go - even with concerts. They were a spectacle of how a successfully live streamed concert can look like. relied on low latency to deliver an authentic experience to fans worldwide.

Fun fact: BTS's Bang Bang Con achieved a new Guinness World Records title for most viewers for a music concert live stream.

This is how Billie Eilish’s live stream looked like.

With low latency, viewers can enjoy the show in real-time, participate in live chats, and sometimes even interact with the performers, making the experience feel more personal and connected, despite the physical distance.

5. Delivering information via news broadcasting

In the realm of news broadcasting, low latency is essential for delivering accurate and timely information, especially during breaking news situations. Networks like CNN and BBC use low-latency streaming to provide up-to-the-second coverage of global events.

This is especially important for live coverage of rapidly evolving stories, such as natural disasters, political events, or emergencies, where viewers need up-to-the-minute information.

For viewers, this means access to the latest developments as they happen, rather than receiving outdated information.

6. Offering financial market updates

In the financial world, where markets can fluctuate in a matter of seconds, low-latency streaming is crucial. Platforms like Bloomberg TV and CNBC rely on low latency to broadcast live financial news, market updates, and analysis during stock market openings and financial briefings.

For those making split-second trading decisions, any delay in receiving this information can result in missed opportunities or significant financial losses.

Low latency ensures that the market information, charts, and analysis presented during live streams are as close to real-time as possible, allowing viewers to act on the latest data without delay.

Sometimes, latency is good too

Often, some channels intentionally introduce a slight delay, or latency, to manage sensitive content.

This allows moderators to intervene and censor inappropriate or offensive content, such as profanity or sensitive information, before it reaches the audience. This practice is common in live sports broadcasts, news channels, and even gaming streams where unexpected comments or actions might occur.

In scenarios where sensitive or confidential information might be accidentally shared, such as during live financial trading or high-profile interviews, a controlled latency provides a buffer period. This delay enables the team behind the stream to review and potentially cut out any sensitive details before they are broadcast to the public.

Last thoughts

Low latency live streaming is more than just a technical specification—it's a critical component that enhances the viewing experience. As live streaming continues to grow in importance across industries, prioritizing low latency will be key to delivering the seamless, engaging experiences that audiences demand.

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