This article includes a general overview of types of affiliates and agreements. Every business situation is unique, so be sure to get help from an attorney in preparing any affiliate agreement. There may be "gotcha" clauses or language that you may not have seen or included. For example, if you are the affiliate, check to see what percentage of ownership, if any, the other company has in your business.
Globally, devices and connections are growing faster (10 percent CAGR) than both the population (1.0 percent CAGR) and Internet users (7 percent CAGR). This trend is accelerating the increase in the average number of devices and connections per household and per capita. Each year, various new devices in different form factors with increased capabilities and intelligence are introduced and adopted in the market. A growing number of M2M applications, such as smart meters, video surveillance, healthcare monitoring, transportation, and package or asset tracking, are contributing in a major way to the growth of devices and connections. By 2022, M2M connections will be 51 percent of the total devices and connections.
● Video surveillance: New Internet-connected video surveillance cameras upload a constant video stream to the cloud for remote viewing. With a steady flow of video traffic from each camera, video surveillance is already having an effect on overall Internet traffic. It accounts for 2 percent of Internet video traffic today and will grow 7-fold to reach 3 percent by 2022. If such devices become mass market in the next five years, we could see video cameras generating a significantly higher volume of traffic, since Internet-enabled cameras can produce up to 300 GB per camera per month for full HD-resolution monitoring of high-activity areas.
After the number of Internet video users has been established, the number of users for each video subsegment must be estimated. It was assumed that all Internet video users view short-form video in addition to other forms of video they may watch. The number of Internet video users who watch long-form video (based partially on comScore Video Metrix figures for video sites whose average viewing time is longer than 5 minutes), live video, ambient video, and Internet Personal Video Recorder (PVR) is estimated.
● 5G roll-outs provide mobility innovation and new levels of fixed/mobile convergence. By 2022, 22 percent of global Internet traffic will come from mobile (cellular) networks (up from 12 percent in 2017). By 2022, about 3 percent of global mobile devices/connections will be 5G-capable (and nearly 12 percent of global mobile traffic will come from 5G). As expected, mobile carriers from around the world are beginning to introduce trial 5G networks (see 5G Availability Around the World from Lifewire). Many industry experts believe that large-scale 5G deployments will begin to take shape in 2020, when mobile spectrum, standards, profitable business plans and other operational issues are more fully fleshed out.
A multinational company may set up affiliates to break into international markets while protecting the parent company's name in case the affiliate fails or the parent company is not viewed favorably due to its foreign origin. Understanding the differences between affiliates and other company arrangements is important in covering debts and other legal obligations.