43
www.csimagazine.com march/april 2013 Tapping into big data OTT in Asia Q&A with Discovery Smart TV fragmentation nPVR

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Page 1: Tapping into big data - CSI Magazine€¦ · Subscription rates Per year: Europe £88; UK £68; Rest of World £98. Cheques payable to Perspective Publishing Limited and addressed

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march/april 2013

Tapping into big data

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ConferenceAd-DPS.indd 1 04/03/2013 14:44:13

Page 3: Tapping into big data - CSI Magazine€¦ · Subscription rates Per year: Europe £88; UK £68; Rest of World £98. Cheques payable to Perspective Publishing Limited and addressed

12 Analyst cornerScreen Digest’s Guy Bisson on the lessons that can be learned in the evolution from HD and 3D to ultra HD

14 Smart TVWill we see a shift to a common smart TV platform environment?

18 nPVRWith deployments taking place around Europe, are the stars finally aligning for network PVR?

22 COVER STORY — Data & analyticsWe explore the many ways in which broadcasters and

operators can exploit the multiple commercial opportunities that data opens up

26 Interview: Discovery NetworksCaleb Weinstein, SVP and GM of distribution for Discovery Networks EMEA, talks to CSI about the dif-ficulties of promoting content in a VoD environment, binge viewing and the need for a ‘social scheduler’

27 MPEG-DASHA look at how open DRM schemes can enhance cross-platform revenue streams for operators

31 Conference reviewThe FTTH Council Europe came to London for the first time this year to celebrate its 10th anniversary

34 OTT in AsiaAn overview of the online video market in South-East Asia and its evolution in the next few years

42 ViewpointOnline piracy can only be fought by making legal offerings more appealing

EditorGoran Nastic

Commercial managerTiro Bestonso

Design and productionMatt Mills (Manager)Jason TuckerMatleena Lilja-PellingKeem Chung

Regular contributorsAdrian Pennington, Philip Hunter, David Adams, Stephen Cousins, Joe O’Halloran

CirculationJoel Whitefoot (Manager) AccountsMarilou Tait, Lynta Kamaray

Editorialtel +44(0)20 7562 2401fax +44(0)20 7374 [email protected]

Advertisingtel +44(0)20 7562 2427fax +44(0)20 7374 [email protected]

Subscriptionstel +44 (0)20 7562 2420fax +44 (0)20 7374 [email protected] www.csimagazine.com

Subscription ratesPer year: Europe £88; UK £68; Rest of World £98. Cheques payable to Perspective Publishing Limited and addressed to the Circulation Department Printed by Buxton Press

Managing DirectorJohn WoodsPublishing DirectorMark EvansISSN 1467-5935

Perspective Publishing3 London Wall BuildingsLondonEC2M 5PDwww.perspectivepublishing.com

Editor’s report:There are at least 70 operators globally providing multi-screen services, and the number is growing steadily. Although the deployment costs are substantial (involving DRM, rights, CDNs and transcoding to name but a few) the lure and competitive necessity are proving harder for service providers to resist. Content owners and creators face their own set of issues when it comes to consuming video on different devices. Many of these relate to how

programming, what type of content and viewing experience people want, and also how it is discovered - and measured - in an on-demand, multi-device environment. Discovery Networks discusses these challenges exclusively with CSI on p26. Elsewhere, we cover hot topics such as smart TV fragmentation on p14, cloud-based PVR on p18 and unlocking the potential value of data and analytics on p22. Goran Nastice, editor

Contents

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www.csimagazine.com

For advertising opportunities please contact Tiro Bestonso:Tel: 020 7562 2427 or email: [email protected]

• Your window to the world of digital TV and media • Targeting top-level industry decision-makers • Independent news, insight and analysis

• International coverage • Market trends

Your window to the world of digital TV and media Targeting top-level

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thecover.indd 2 15/02/2013 15:32:02

Your window to the world of digital TV and media

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november/december 2012

Smart TV apps special

CSI

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cover.indd 1 11/13/2012 10:43:53 AM

Your window to the world of cable, satellite, IPTV, mobile TV

and home networking technologies

CSI magazine is now available as a digital-edition across all tablet and smart-phone devices

csi_magazine_advert2012_204x271.indd 1 04/03/2013 15:13:49

Page 5: Tapping into big data - CSI Magazine€¦ · Subscription rates Per year: Europe £88; UK £68; Rest of World £98. Cheques payable to Perspective Publishing Limited and addressed

news in brief

Telenet adds VoD to Yelo

Belgian cable operator Telenet is

enhancing its multiscreen service

with the launch of Yelo TV,

giving customers access to live

and reordered programmes. Yelo

TV will be available from early

March on tablet, smartphone and

computer, and the TV set from

April, all with the same UI

experience, including remote

record functionality. Customers

will also be able to view music,

photos and movies from their

devices. Telenet launched the

Yelo app in 2010, which offered

live TV but has now extended this

to on-demand programmes

following consumer demand, with

new features to follow in due

course. Yelo TV comes with no

extra charge, the company said.

Telco BT Group has confirmed it has

agreed to buy ESPN’s UK and Ireland

TV channels operations, after the

sports broadcaster was seeking exit

from these markets.

These primarily comprise the

ESPN and ESPN America channels

and their live sports rights portfolio,

including the FA Cup, Clydesdale

Bank Scottish Premier League,

UEFA Europa League, and the

German Bundesliga.

The deal will enable BT Sport

customers to see live coverage of the

FA Cup for the 2013/14 season, the

Clydesdale Bank Scottish Premier

League until the end of the 2016/17

season and the UEFA Europa

League and Bundesliga through to

the end of the 2014/15 season. These

join the broadcast rights that BT

Sport has previously announced,

including 38 live Barclays Premier

League matches as it cotniues to

aggressively flex its financial muscles

as it looks to compete with Sky’s

dominance in this market.

The transaction is expected to

complete in late July after which BT

will continue to operate at least one

ESPN-branded channel, which is

expected to form part of the BT

Sport TV package that will be

launched by BT this summer.

Additionally, the deal will allow

BT to continue to show a host of

US sports currently shown on

ESPN America, including NCAA

College Basketball, NCAA College

Football and NASCAR.

ESPN will continue to own and

operate its existing digital media

businesses which include

multisport news and information

portals and broadband streaming

service ESPN Player. The company

was reported to be exiting the UK

market due to high content costs

and mixed uptake. ESPN is also

proposing the wind down of ESPN

Classic throughout the EMEA

region and the non-UK ESPN

America TV businesses.

BT acquires ESPN business

News

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news in brief

Harmonic sells cable

business to Aurora

Aurora Networks has acquired

the assets of Harmonic’s optical

transmission equipment business,

which includes cable access, for

$46 million (EUR35 million) as

the latter moves away from this

space. Aurora said the acquisition

will increase its market share lead

in the optical transport market by

significantly increasing its

installed base for next-generation

service-providing products and

creating long-term strategic

growth opportunities. Equally

important, it will also give the

company entry into a number of

markets outside the US it might

have struggled to penetrate for a

number of reasons.

UPC looks to business

market

Swiss cable operator upc

cablecom is offerings its business

customers faster internet speeds

with the Business Internet Fiber

Power product.The performance

of the previous top end product is

going from 100 Mbps to 150

Mbps downstream and from 7

Mbps to 10 Mbps upstream at

the same price of CHF 148 per

month. All other packages are

seeing speeds increases as well as

the company is looking to

position itself as the product

leader in the asymmetric internet

market for SMEs, notably against

Swisscom’s VDSL network.

Cronk returns to GV

Mike Cronk has joined Grass

Valley as senior VP of marketing,

with overall responsibility for

product roadmap and strategy.

Cronk is returning to Grass

Valley having spent nearly 20

years with the company between

1989 and 2008. Current CMO

Graham Sharp will leave at the

end of March.

06 March-April 2013 www.csimagazine.com

News

CSI 2013 Awards launchedWe are delighted to launch our

annual awards, now in their 11th

year. Following last year’s extremely

well received ten-year celebration,

we are hoping the momentum

continues in 2013.

This year, we are introducing

two brand new categories. The first

comes in the form of ultra HDTV

(UHDTV), one of the hottest

industry topics that promises to

be around for years to come, and

we look forward to seeing some

exciting early services and products

entered here.

Also new this year is a new

TV accessibility category, which

aims to recognise developments

in subtitling, audio description,

text-to-speech and all other services

and technologies that help improve

the user experience for those

with disabilities.

Established in 2003 the awards

are among the most prestigious and

competitive technology awards in the

industry, designed to recognise and

reward innovation and excellence in

the cable, satellite, broadcast, IPTV,

telco, internet/online/OTT video,

mobile TV and associated sectors.

The awards are open to any

company or organisation supplying

relevant products, software or

services and embrace the entire

ecosystem, from production and

playout through to transmission

and in-home distribution and end-

user devices.

It is expected that the winners will

as usual be announced in Amsterdam

in September, with exact time and

location to be confirmed closer to

the time.

More details on this and all other

aspect of the awards can be viewed at

www.csimagazine.com/awards

Satellite vs cable in GermanySatellite continued to increase its

household reach in Germany last

year, with 18.07 million households

receiving their TV directly via DTH

at the end of 2012.

Based on figures from the

latest SES Astra TV Monitor, this

increase of 524,000 households

from 2011 (a growth of 3%) came

despite the switch-off of the

analogue satellite signals last April.

The company attributes the

performance to consumer demand

for the large programme on offer

via satellite TV, especially in HD.

44% all satellite households

watched HD at the end of the year,

nearly two million more than

before. Cable grew its HD reach by

1.27 million to 4.53 million

households, 27 percent of all cable

households. In total, the number

of HD households in Germany

increased to 13.1 million (from 10.0

million in 2011). The number of HD

channels on satellite was 63 at the

end of 2012, an increase of more

than 20 from the previous year.

Satellite serves 47% of all TV

households in 2012, compared to

44% for cable, which lost 570,000

households to finish on 16.7 million.

In digital TV, satellite reached a

record level of 59% of all digital

TV households versus cable’s 30%,

SES said.

Digital terrestrial (DTT) grew by

222,000 homes to 2.05 million, while

IPTV remain almost unchanged at

1.26 million, an increase of 10,000.

• TV shopping channels in

Germany, the UK, Italy and France

generate an annual turnover of

almost EUR4 billion, according to

Goldmedia. The study, on behalf of

the European Retailing Association

(ERA), found that Germany leads

ahead of the UK, with revenues of

around EUR1.7 billion in 2011. Of

the total 68 providers operating in

these markets, 31 were in the UK.

Italy has the highest growth

potential, Goldmedia said. The share

generated from TV will fall by 2017,

it added, as the internet and smart

TV and mobile apps begin to gain

in importance.

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news in brief

New EPG for Sky D

German payTV operator Sky

Deutschland has unveiled a new

interactive programme guide for

its Sky Go service. The new EPG

blends linear and on demand

content and is available across

over the top web and iOS devices.

New functions include a Mobile

Record feature that enables users

to record shows remotely and

save them on their Sky+ set-top

boxes.

More Eutelsat transponders

for MultiChoice

MultiChoice Africa has signed a

multi-year contract extension with

Eutelsat to boost the offer of its

DStv pay-TV service that covers

large parts of the continent.

MultiChoice Africa is activating

one additional transponder on

the Eutelast 36A satellite from

March, with a second to be

activated from May, which will

take to 22 the total number of

transponders leased by

MultiChoice at Eutelsat’s 36°

East video neighbourhood.

Ericsson intros LTE

Broadcast solution

Ericsson is launching an end-to-

end solution that caters for the

growing need for video over

mobile LTE networks and already

has a couple of operator partners

on board. Verizon plans to use

the broadcast technology for

sports content, concerts and even

distance learning and college

classes. Telstra will also partner

with Ericsson on a live network

trial of the technology in the

second half of 2013. Ericsson’s

LTE Broadcast platform

incorporates three emerging

standards: HEVC video

compression, MPEG DASH

adaptive streaming and 3GPP-

based eMBMS.

08 March-April 2013 www.csimagazine.com

News

A peak in UK time-shifted TV viewingThe trend towards multi-screen

viewing is causing overall viewing to

remain robust, with the average UK

viewer watching four hours and four

minutes of TV a day in 2012,

according to Thinkbox. Devices

other than the TV set, however, only

accounted for three minutes of daily

viewing and the advertising body

believes that on-demand viewing will

plateau at around 15%.

Citing figures from the

Broadcasters’ Audience Research

Board (BARB), this is the third

consecutive year that linear TV

viewing on a TV set has remained

above an average of four hours

a day.

Figures supplied by UK

broadcasters to Thinkbox,

meanwhile, suggest that viewers in

the UK watched an average of just

three minutes a day of TV, mostly

on-demand but some live streams,

on non-TV set devices via services

such as ITV Player, Sky Go, 4OD

and BBC iPlayer. This represents

an additional 1.2% of TV viewing

and is the first time the average

amount of TV watched via devices

such as tablets, smartphones and

laptops has been quantified. It

amounts to an average of three

30-minute TV episodes a month per

viewer (so 90 minutes).

Viewers are watching 27 minutes

more linear TV a day than ten years

ago although this growth is also

stabilising. Almost 90% of TV in

2012 was watched live, as it was

broadcast, versus 90.3% in 2011.

More than half (51%) of UK

households now own a DVR and in

these 84.4% of linear TV was

watched live compared to 84.7% in

2011. The level of time-shifting has

been very stable since the first DTRs

were released ten years ago, said

Thinkbox. Furthermore, 81% of all

time-shifted viewing is watched

within seven days of recording while

47% of time-shifted viewing is seen

within 24 hours of it being recorded.

BARB’s figures also suggest that

the growth in the amount of TV that

is recorded and played back is

slowing down. In 2010, 7.6% was

time-shifted; in 2011 9.4% was time-

shifted; and in 2012 10.1% was time-

shifted. Once all households have the

ability to digitally record TV

programmes, Thinkbox expects the

average level of recorded and

playback TV viewing to settle at

around 15% of total linear viewing,

although VoD will increase as a

proportion of the time-shifted total.

With the spread of internet-

connected TV sets, Thinkbox expects

that some on-demand viewing, which

currently takes place off the TV set,

will move to the TV set, as that is the

screen people prefer to watch TV on.

The average viewer watched 47

ads a day during 2012, the marketing

body added. Collectively the UK

watched an average of 2.7 billion ads

a day.

“Linear TV is the bedrock of how

we watch TV and that is not going to

change,” said Lindsey Clay,

Thinkbox’s managing director.

{HUMAX BOX PIC HERE +

room for caption please}

120,000 Horizon subscribers for UPCLiberty Global has seen robust

uptake of its recently launched

Horizon platform, which the cable

company hopes will help it keep and

attract new TV customers.

The Horizon TV advanced

home gateway has sold over

100,000 subscriptions since it

launched in the Dutch market five

months and has over 200,000

unique users enjoying online and

multi-screen services. The set-top

box is the only product now on

offer by the cable operator in the

Netherlands and has reached an

estimated penetration of around

6% of its TV customer base.

As a comparison, Virgin Media’s

TiVo service, albeit further down the

line in terms of availability, had a

total of 1.14m customers at the end

of last year, which represents 30% of

its TV customer base.

Liberty, which operates under the

UPC brand across Europe, lost

169,000 video subscribers in 2012,

although this was a narrower loss

than in 2011 result. In Q4, only

12,000 had left the company and

Europe’s largest cablenet is confident

Horizon will reverse this trend.

Liberty finished the year with a

digital video base of 5.2 million

RGUs, for a digital penetration of

61%, as compared to 54% at year-end

2011. Again, it hopes that the

Horizon TV product will help

convert the remaining three million

subscribers to digital.

Horizon TV was introduced in

Switzerland in January since when

20,000 boxes have been sold, UPC

said. Ireland will follow later this

year, as will likely Germany.

UPC added 403,000 broadband

internet subscribers and 477,000

telephony subscribers in 2012, a year-

over-year decline of 4% for internet,

but an increase of 16% for telephony.

Full year revenues increased by 7% to

to €4.27 billion.

Boxes such as this one have helped bring catch-up TV and VoD to the main TV screen

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Driving Technology ForwardThe New Technology Agenda provides a comprehensive discussion and networking

opportunity to global technology professionals. Focused on bringing together industry

leaders to look at key technology trends and the market impact of these technologies over

the next five to ten years, this one day conference interrogates the business strategies that

will test the technologies of the future.

Register now

Standard fee: £445+VAT

t +44 207 424 2888

e [email protected]

w www.screendigest.com/events/sites/ technologyevent/registration

IHS Electronics & Media Events

The New Technology Agenda16 April 2013 | British Museum, London

Programme highlights:• Panel session/Fireside chat: What buyers want

• Panel session: Multimedia Home Gateways and advanced user experiences

• Fireside chat: User Interfaces

• Panel session: The future of the living room

• Panel session: Advances in distribution technology

• Consumer panel: How consumers use devices for multiscreen services

Confirmed Speakers

KEYNOTE SPEAKER: Anthony Rose, CTO and Co-founder, ZEEBOX

KEYNOTE SPEAKER: Nick Thexton, CTO, Service Provider Video Technology Group, CISCO

FIRESIDE CHAT: Mycal Elliott, Senior Manager, User Experience, ROVI CORPORATION

James Caselton, Head of Product and Partner Marketing, DOLBY

Vassilis Seferidis, Director, European Business, SAMSUNG ELECTRONICS

Thomas Wrede, Vice President, Reception Systems, SES ASTRA

Giles Cottle, Head of Strategy, FREESAT

Dr. Neil Foster, VP Global Sales, IA, ACCESS

Steve McCaffery, Vice President, MOTOROLA

Carl Furgusson, Head of Segments Strategy, TV Compression, ERICSSON

Speaker TBC, CISCO

Speaker TBC, SMART DESIGN

Speaker TBC, NDS

And many more to be confirmed.

Detailed speaker information: www.screendigest.com/events/sites/technologyevent/speakers

Page 10: Tapping into big data - CSI Magazine€¦ · Subscription rates Per year: Europe £88; UK £68; Rest of World £98. Cheques payable to Perspective Publishing Limited and addressed

news in brief

Tablet TV to explode

Nielsen is said to be working on

updating its TV rating system to

include ratings data for videos

viewed on streaming services and

connected devices including

Xbox, Playstation and iPad. The

move beyond traditional TV

ratings isn’t finalised yet, but

there are ongoing discussions

among a Nielsen committee

group that includes TV network

and ad agency reps, which appear

to be pushing in this direction.

The overall goal is to capture

video viewing of any kind from

any source.

SES overcomes setbacks

Satellite operator SES has

reported revenue growth of 5.5%

to EUR1.8bn in 2012 despite a

number of setbacks. The

company said a “strong sales

pipeline” helped offset the switch-

off in German analogue

broadcasting earlier in 2012,

which took EUR108m out of

revenue. The SES-5 launch delay

and reduction of capacity on

AMC-16 represented a further

EUR13m of lost revenue. Three

new satellites will create capacity

to fuel growth in 2013 and 2014,

as momentum is maintained in

Latin America, Africa and Asia.

Another four spacecraft are due

for launch this year, which will

add over 100 new transponders to

support growth, especially in the

developing markets.

Virgin embraces YouTube

UK cable operator Virgin Media,

has created a channel for

YouTube in its TiVo EPG, a sign

of further blurring between all

forms of content. The company

has integrated YouTube clips and

channels more deeply in TiVo’s

‘My Shows’ and ‘Search and

Browse’ areas.

10 March-April 2013 www.csimagazine.com

News

BSkyB in Disney content exclusive

Sky and Disney are working

together to create a new

television channel, Sky Movies

Disney, the studio’s first

co-branded movie channel, as

part of a wide-ranging agreement

between the two companies,

covering exclusive content and

Disney Channels across multiple

platforms and devices.

The new channel will be the

home of new and old Disney and

Disney/Pixar movies in the UK and

Ireland, including the likes of

Bambi and Pinocchio, and marks

the first time that Disney has been

involved in a co-branded linear

movie channel anywhere in the

world. It is also the first time that

viewers in the UK and Ireland will

be able to watch all Disney films

on one single channel.

The launch of Sky Movies Disney,

which will be timed to coincide with

the Easter holidays at the end of

March, builds on Sky and Disney’s

24-year relationship in the UK.

The channel will show recent hits

including Brave, Tinker Bell: Secret

of the Wings and Wreck-It Ralph in

their first pay TV window. Future

releases that will be available include

Oz: The Great and Powerful,

Monsters University and The Lone

Ranger. The new movies will be

available on Sky Movies Disney from

around six months after they have

ended their run in cinemas and will

be exclusive to Sky Movies for at

least a year.

The agreement also gives Sky

Movies the first subscription pay TV

movie rights in the UK and Ireland

to other titles distributed by

Disney, including new movies

from Lucasfilm, and also Marvel

Studios features such as Iron Man

3 and Avengers Assemble.

Moreover, the agreement covers

Disney’s TV channels - Disney

Channel, XD and Junior.

The deal covers live and on

demand rights, as well as the Sky

Go service and the recently

launched Now TV internet TV

service, which has 25,000

subscribers. Disney films available in

3D will be shown on the Sky 3D

channel.

• Sky has retained the rights to

keep new release films from Sony

Pictures exclusively for a year before

they can be shown by rival

broadcasters or VoD providers. The

renewed agreement retains Sky’s first

pay-TV window rights to Sony titles,

as well as rights to older Sony titles.

SIS explores 4k workflowsSIS Live has formed a working

group to explore the technology and

workflows required to deliver live,

4K, multi-camera event coverage

from an outside broadcast unit.

The company has undertaken tests

with camera and equipment

suppliers, including a Premiership

football match between Chelsea and

Newcastle captured in full 4K using

the Sony F65 camera in order to gain

experience in manipulating 4K

pictures within an OB truck setting.

SIS said all its recent OB trucks

have been built to be 3G capable,

designed to handle 4K signals, and

supported the BBC and NHK in

their super hi vision transmissions of

the Olympic ceremonies.

Sky is also known to be trialling

4k, having retrofitted some of its OB

vans to be ultraHD capable, in

anticipation of a 4k channel launch

in the near future.

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news in brief

PayTV subs fall in WE

Western Europe saw its first ever

decline in pay-TV subscriber

numbers last year, due mainly to

Italy and Spain, according to by

Informa Telecoms & Media.

There were a total of 92.6m pay-

TV subscribers in Western

Europe at end 2012, after

384,000 were lost during the year.

Italy lost 800,000 to reach 7.9m,

while Spain lost 261,000 to reach

4.3m. Of the rest of the Big Five,

Germany came top with 21.5m

(down 180,000), followed by the

UK with 14.4m (up 190,000),

then France with 12.2m (down

3,000). The rest of the countries

added 670,000 pay-TV subs to

reach a total of 32.3m.

Lithuania tops Euro FTTH

rankings

Lithuania tops the European

fibre-to-the-home league in terms

of penetration while the UK

doesn’t even make the cut,

according to official figures from

the FTTH Council Europe.

Russia has emerged as a clear

fibre leader in the region, having

added 2.2 million new FTTH

subscribers in the second half of

2012 - more than all of the 27

Member States of the European

Union combined - to reach a total

of 7.5 million fibre-connected

homes. Across the EU27

countries, the number of FTTH

subscribers grew by 15% in H2

2012, adding 820,000 subscribers

and bringing the number of fibre-

connected homes to 6.24 million.

Scandinavia and the Baltic

countries continued to set the

pace. Lithuania remains the

dominant fibre country, with

100% coverage of FTTH and over

31% of homes connected to fibre.

In total, ten countries have more

than 10% FTTH penetration,

including Portugal.

News

Smart TV penetration tops 25% Over a quarter of TVs shipped in

2012 were smart TVs, according to

IHS Screen Digest, which urges more

partnerships between manufactures

and payTV operators.

Worldwide shipments of smart

TVs came to 66 million units in

2012, up 27% on the year before, and

shipments are expected to rise to 141

million units and account for 55% of

global television shipments in 2015

and nearly two-thirds in 2016.

Despite a decline in global

television shipments in 2012,

consumer demand for internet-

connected televisions soared as

manufacturers refine their products

to add new features and to make

them easier to use and differentiate

themselves from the competition.

Screen Digest said that one of the

most promising features that can

drive consumers to the purchase and

use of smart TVs is partnership by a

smart TV brand with payTV

operators. “Using smart TVs as a

client device in a pay-TV household

can help TV manufacturers

distinguish their products in the

marketplace, reduce customer

premises equipment costs for

operators and ultimately benefit

consumers,” the analysts said.

An emerging trend of “smart-

ready” TV models has come about

through the partnership announced

by Roku during the CES with

several TV manufacturers,

including Coby, Hisense, TCL and

Westinghouse. Using the smart-

ready approach, any television

enabled with a mobile high-

definition link (MHL) can be

turned into a smart TV using a

Roku Streaming Stick. These types

of partnerships are highly valuable

to second- and third-tier brands

that wish to compete in the smart

TV market.

Sports rights costs top $1bn in LatAmIn line with other regions and markets

in the world, the cost of broadcast

rights in Latin America seem to be

growing exponentially, especially

in relation to Tier 1 sports such

as football.

According to Dataxis, the six

strongest football leagues exceeded

the $1 billion mark for the first time

in Latin America’s history. The main

domestic professional football

competitions in Argentina, Brazil,

Chile, Colombia, Mexico and Peru

attracted a combined $1.07 billion in

TV revenues in 2012, a rise of over

56% compared with 2011.

Broadcast rights for the

Brasileirão, Brazil’s domestic first-

division football league, were the

region’s most expensive, worth over

$610 million in 2012 and accounting

for nearly 57% of the regional total.

“Different local federations and

professional football associations are

currently experimenting with

different business models to

commercialise broadcast rights in

Latin America,” said Juan Pablo

Conti, senior analyst at Dataxis and

author of the report. “However,

regardless of the approach they have

been adopting, they have all been

increasingly successful in making

their margins grow.”

The Dataxis report also found that

there were a total of 116 different

dedicated TV channels broadcasting

sports programming in Latin

America’s seven main TV markets at

the end of 2012.

HD TV networks are fast gaining

space in the channel lineups of all of

the large pay-TV operators, with

Mexico exhibiting the largest

number of HD sports channels in

the region (12), followed by

Colombia (8) and Chile (7).

Argentina (with DeporTV), Brazil

(Esporte Interativo) and Venezuela

(Meridiano TV) were the only

countries to have a free-to-air sports

TV channel.

The second half of 2012 saw the

launch of Latin America’s first

OTT sports video services, in

Brazil (Esporte Interativo Plus,

featuring live coverage of multiple

sports) and Chile (Estadio CDF,

dedicated to football).

www.csimagazine.com March-April 2013 11

IHS Screen Digest Figure: Global Smart TV Shipment Forecast (in Thousands of Units and as a Percentage of Total TV Market)

2011 2012 2013 2014 2015 2016

Smart TV Unit Shipments 51,934 65,713 84,837 113,289 141,134 173,278

Percentage of Total TVs 20% 27% 35% 45% 55% 65%

Source: IHS Screen Digest Research, February 2013

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Here’s a column about

acronyms. Acronyms with

D’s in them. That’s a D for

definition and a D for

dimension. Sounds pretty

grand, right? First we had

High Definition (HD) TV,

and six years on the UK has 75 HD channels.

Then came Three Dimension (3D) TV. Three years

in and the UK has just one 3DTV channel. Pretty

soon we will have Ultra High Defintion (UHD) TV,

a technology that is being watched closely as the

next big thing in an industry that seems to go from

revolution to revolution every few years.

And if you like a proper revolution, rather than

those revolutions that turn out to be all talk,

you’re going to be hoping that UHD is the next

HD, not the next 3D. If you’re a channel, though,

you’re probably thinking, firstly: Not again… and

then, how do I make this pay?

HDTV represented a step-change in viewing

experience for both picture and sound. From a

business perspective, it made sense for a number

of channels to move rapidly to the new format,

especially those based around ‘experience’

content: movies, sports and high-scale

documentaries. For the channels there was a cost.

Firstly in content production or acquisition,

secondly in studio and play-out and thirdly in

transmission capacity, with HD requiring far more

bandwidth. The pay-off was an affiliate fee uplift,

though that differentiation is rapidly disappearing.

On the face of it, 3D also represents a step-

change in viewing experience. An image that

emerges from the screen allowing the viewer

almost to reach in sounds perfect for ‘experience’

content, again like movies, sport and

documentaries. Initially there was some

enthusiasm for 3DTV, with channel launches

globally keeping pace with activity in the early

days of HD. But that initial flurry of interest has

most definitely tailed off. So what went wrong?

And what lessons can be learned for the next

revolution in TV viewing?

One thing that did not limit channel launch

was the TV set. The natural replacement cycle

ensured that HD sets and, later, 3D sets reached a

high installed base relatively rapidly. But

otherwise the conditions that led to the HD

‘revolution’ were very different from the situation

that existed for the launch of 3D. For a start,

movie content shot on film was effectively already

HD and for some years prior

to the large scale launch of

channels, US series and

documentaries had been shot

in HD. Thus, there was no

appreciable content gap by the time HD channels

began launching. Secondly, there was no

fundamental change in the way television was

viewed with HD, simply an improvement in the

experience of the content received. The consumer

transition was thus simple.

3D could claim neither of these benefits. And

for the channels, the economics look particularly

unfavourable. The elevation in bandwidth costs is

the same as for HD, content availability is

extremely restricted and, unlike HD, rather than

attracting more viewers, a 3D channel is likely to

also have a limited audience, the very life-blood of

the channel economic equation is thus missing.

So what of UHD? The economic argument will

have to be strong. Even with High Efficiency

Video Codec (HEVC) and DVB-S2, a significant

uplift in bandwidth costs will still be necessary.

Currently and for the near-term, there will be a

content gap akin to that for 3D. Not so good

so far. But the difference is that the other key

factors - the obvious and immediate benefit to

the fundamental viewing experience, coupled with

the smooth transition in the way that consumers

watch television - will be in place. That means

that the future for UHD looks a little brighter.

The revolutionaries can thus celebrate that UHD

shouldn’t be the next 3D. The channels can keep

working on making it pay.

Where next for the channel business?Lessons that can be learned in the evolution from HD and 3D to ultra HD

Guy Bisson is research director, television, at IHS Screen Digest. In this regular column, he gives CSI readers exclusive insight from the

company’s new channel strategies service

Analyst corner

12 March-April 2013 www.csimagazine.com

# c

hann

els

the first ten years: HD and 3D channels from year one of launch

1,200

1,000

800

600

400

200

01 32 4 5

years since first launch HD Channels (global) 3D Channels (global)

6 7 8 9 10

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The current fragmented nature

of the smart TV landscape

is creating a barrier to

investment in connected TV

applications. Developers,

broadcasters, service

providers and others argue

that to customise apps for each platform is costly

and time consuming, while research has repeatedly

shown that one of the issues slowing customer

acceptance of smart TV services is confusing

user interfaces.

The case made by Espial systems architect

Steve Morris is that by reducing fragmentation

among platforms and the cross-device differences

for a given service, the industry can help

consumers to see all the benefits of a smart TV.

Yet, as Ronald Brockmann, European MD at

ActiveVideo Networks explains, the TV ecosystem

is not only fragmented among vendors but also

across different model years of the same vendor.

The problem, he says, is compounded because of

the difficulty TV vendors have in maintaining

software on models more than one year old, and

the lack of motivation among many users to

provide system administration and updates on

their TV models.

Simple apps can cost £20,000, full VoD portals

up to £200,000, according to developer Capablue.

“Development requires significant engineering

experience,” says Jean-Marc Racine, managing

partner at consultancy Farncombe. “Even for a

given manufacturer you must port from one

model to another using different versions of the

software pack,” he points out.

Stunted smart TV market

According to Accedo CEO Michael Lantz,

fragmentation is possible to overcome (he points

to Accedo’s Cross-platform Development Kit) but

the main problem is that an app needs to be

submitted to each manufacturer for separate

approval and separate agreements. “This overhead

is many times much more cumbersome than the

actual development.”

All of this has resulted in a relatively slow

build-up of high-quality apps for smart TV

platforms compared with mobile where iOS and

Android dominate the landscape and present

scale for developers.

Apple, of course, effectively cornered the

mobile market by introducing browser-based

app development, but the use of apps on smart

TV is likely to remain very different, according

to David Watkins, research consultant at

Futuresource Consulting.

“TV apps are concentrated on a few popular

things that a lot of people might like such as

BBC iPlayer, YouTube and Lovefilm,” he suggests.

“Generating scale is much more relevant to

mobile platforms where

consumers will interact and

dispose of multiple apps on a

regular basis.”

Brockmann believes it near-

impossible for smart TVs to

reach their full potential if the

user experience is too poor or

if the library of apps is too thin. “If we’ve learned

anything from mobile, it’s that robust menus

of compelling apps drive adoption and usage,”

he says.

“Smart TV vendors need the help of content

providers and aggregators – including the leading

service providers - to provide a valuable

experience,” he adds. “But they also need

standards-based development environments that

can bring the innovation of small developers into

play, without the need to write content over and

over again for different devices.”

The BBC has been particularly vocal, claiming

that views of iPlayer via connected TVs have been

well below that of tablets and mobiles, in part due

to the ease of use on mobile platforms.

“Standardisation of TV browsers and the

implementation of scalable architecture for

smart TV app development are needed [the

14 March-April 2013 www.csimagazine.com

Defragmenting smart TVSmart TV

The shift to a common smart TV platform environment would allow app developers to reach a much wider audience in a cost-effective manner but in the long term would such standardisation stifle innovation, competition and market development? Adrian Pennington reports

0

50,000

100,000

150,000

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2011

Smart TV Unit Shipments

Global Smart TV Shipment Forecast (in Thousands of Units and as a Percentage of Total TV Market)

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BBC believes] to truly unlock the potential

of connected TVs and create scale for TV

applications,” says Futuresource’s Watkins,

although the BBC has been able to reduce

the customisation needed to deploy its iPlayer

app across multiple devices by using an

abstraction layer.

The vendor dilemma

The argument is that the entire smart TV industry

should look to standardisation in order to offer

more choice and better experiences which will set

them apart from their competitors and build new

and profitable business models. The sticking point

has always been on the TV vendor side who fear

that standardisation may reduce their ability to

maintain a competitive edge.

“Samsung, for example, is currently making the

running on smart TV with exclusive content deals

[eg, ITV player in the UK] and would see it as

undesirable for its competitors to provide exactly

the same content services,” suggests Watkins.

“Another point of differentiation for TV vendors

has been through control of the platform whether

it is through touch pad remotes, pointers or even

gesture and voice interaction. This has added a

further layer of complexity for app developers

wishing to optimise their apps for a particular

TV platform.”

Capablue founder Tom Cape says that for TV

manufacturers the dilemma is whether they want

to own the customer and start charging

broadcasters to be on their platform – or whether

they open their platform up, encourage more

and better app development, that may mean

more people buy connected TVs. “Manufacturers

don’t want their product to become the thin

client,” he says. “It commoditises what they do

when they’d rather retain as much value in the

device as they can.”

Yet, consumers will benefit considerably

from increased standardisation because it

will allow them to be able to have devices

talk to each other, irrespective of brands.

“Manufacturers are beginning to recognise

the value of this to the ecosystem as a whole,”

points out Shirlene Chandrapal, VP Connected

TV and Mobile, Smartclip.

“A big driver for this is the fact that consumers

are adapting to new technologies much faster,

especially when their devices are able to talk

to each other and the set-up process is simple

and fast. From this point of view, more

standardisation could set off a kind of ‘positive’

vicious circle, with easier to handle interfaces

and standardised smart TV platforms leading

to greater adoption by consumers.

“In turn, this makes it easier and faster

for content producers to take their services

or content to all smart TV platforms with a

better ROI. The networks can deploy campaigns

faster to market with a greater reach, while the

advertisers can reach a wider number of people

as well,” she says.

Smart TV Alliance prospects

Bowing to pressure, a group of content owners,

developers and CE manufacturers have banded

as the Smart TV Alliance (STA) to create a

common developer framework for Smart TV

apps based on the adoption of HTML5.

The group now counts 11 members, the newest

being Panasonic, Technisat, IBM, Specific Media

and ABOX42. With the addition of Panasonic,

the group now boasts four of the major global TV

brands which, Watkins points out, collectively

accounted for around 40% of smart TV sales

in 2012.

“Sony and Sharp are also potential partners

who would benefit from increased application

development for their platforms particularly as

they are unlikely to be able to compete with the

scale of Samsung on their own,” he says.

The ambition of the STA is widely applauded

but there are caveats. Accedo’s Lantz believes

it still tackles the lesser half of the problem -

the development platform - whereas the

submission and quality assurance (QA) process

remains separate.

“In order for this to take off, they need to

agree on a joint app store, which will be more

challenging the more members they have,” he

says. “If they pull off a common app store in the

next 12-18 months, I think this has potential to

be a huge success.”

The shift to a common smart TV platform

environment would make smart TV a “much more

promising arena for advertisers to experiment

with ad-insertion and pay-TV operators to develop

OTT service apps,” predicts Watkins.

For Capablue the initiative is a big step in the

right direction since they now need to consider

development for just three main platform groups

– the Alliance members, Samsung and third party

smart TV platform providers such as Roku and

NetRange (maker of Ikea-branded TVs among

others).

Apart from the STA, there are in fact

several other independent activities underway

to reduce fragmentation: Open IPTV Forum,

HbbTV, the Digital TV Group’s D-Book 7

specification, and Intellect’s profile for UK

products, among them.

“All of these activities are choosing from the

www.csimagazine.com March-April 2013 15

“If the Smart TV Alliance pulls off a common app store in the next 12-18 months, I think this has potential to be a huge success.”

Smart TV

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same set of standards, and probably the same

sets of features from those standards, but there

is still a risk of confusion in the market,” says

Espial’s Morris. “Hopefully all of these

organisations can co-ordinate their approaches

and be clear about the similarities and differences

in their approach and goals. We’ve already seen

this to a degree with HbbTV, OIPF, and the

DTG, and further co-ordination can further

improve the situation.

“Standardising at a platform level would be

far more beneficial than at an OS level, because

the operating system is only a small part of the

picture,” Morris says. “HbbTV is a good example

of this approach, where what matters to service

developers are the capabilities offered by the

browser and the choice of operating system is

irrelevant. Similarly, consumers are not concerned

about the OS. Instead they care about the

performance of the product and the quality of

the services that are available.”

HbbTV 1.5, he notes, features a unified

presentation layer, adaptive streaming with

MPEG-DASH and the ability to secure

streams with DRM plus a test suite to

ensure interoperability.

“Why then would you recreate something

with a proprietary solution?” asks Farncombe’s

Racine rhetorically. “The reason is that in a

proprietary environment vendors can editorialise

which apps gets onto their TVs but with HbbTV

they lose that control because it’s an open

door for broadcasters and service providers

to create applications.”

What about Apple…?

Major brands like Samsung, LG and Sony

believe they can establish smart TV-based content

and service platforms to drive their own growth,

inspired by Apple, but this approach may be

short sighted.

“I think it’s impossible for anyone else to have

a similar strategy to Apple,” contends Lantz.

“What they should do is to continue to open for

third party innovation instead of forcing everyone

to use their solutions. It’s not consumer friendly

that Samsung’s own second screen solution only

works with Samsung devices and that they’re

reluctant to open up for second screen solutions

using iPad.”

And what of Apple itself, arguably a smart TV

solution (streaming media device Apple TV)

without the screen (yet). Any entrance into a

smart TV market trending toward applications

and digital content delivery would allow it to

bring to bear the strengths that enabled it to grab

share in mobile.

Apple sold around five million units of Apple

TV in the year to September 2012, representing

growth of nearly 100% from 2011, according to

Futuresource Consulting. The device is building

an audience and while content remains a weak

point it has been bolstered by the addition of

Hulu Plus.

Of the major TV brands, Samsung is the only

one with enough scale and momentum to ‘go it

alone’ and mount a serious challenge to Apple

or Google but, as Watkins suggests, it seems

unlikely that the South Korean powerhouse will

be moving away from its own proprietary platform

anytime soon.

“A possible scenario is that other TV vendors

such as Sony, LG join forces as a defence to

Samsung by supporting standardisation initiatives

such as the STA or even adopting Google TV en

masse, although the latter seems unlikely given

the very limited support [LG excepted] for

Google TV at present,” argues Watkins.

..or Android?

Android is probably the closest thing to a

proprietary operating system that will be widely

deployed, more due to the large pool of Android

developers rather than any inherent advantages of

Android as an OS.

“It’s an OS which was originally created

for low powered chipsets and it’s open source

roots will make it easy to pick up for Tier 2 and

Tier 3 device manufacturers,” says Lantz. “The

big question mark is what role Google Play will

have as an app platform in this case. Many

manufacturers want Android but not to tie

themselves into a Google Play ecosystem. I think

we’ll see a fragmentation among Android devices

for TV as well, just as we see for mobile.”

However, using a standard OS can add

additional burdens in ‘managing’ the TV set,

including security and anti-virus considerations.

ActiveVideo’s Brockmann believes that what

makes most sense is for the smart TV industry to

consolidate more functions around the cloud.

“Virtualising most or all of the development

functions in the cloud allows a unified approach

that can work across all different devices,

reducing development cost and time to market,”

he says. “This capability can co-exist with local

OS functions to drive TV vendor differentiation.

“Streaming – not downloading – content and

apps from the cloud can solve issues of security

and virus protection in an easier and more

foolproof way. Synchronisation can happen in

various ways, but using the cloud may be the

easiest way to ensure that all relevant interfaces

and services are available and up to date. This

does not necessarily have to rely on any specific

OS in the TVs themselves.

“Smart TV operators will achieve more

by using open standards wherever possible

and differentiating their services from their

competitors by offering fresh and innovative

end experiences to the consumer (e.g. great UIs,

intuitive usability) and a deep breadth of content,”

he says.

From CTVs to connected devices

The shifts towards open source technologies like

WebKit/HTML5, a feature of HbbTV and STA

specs, leads Dr Neale Foster, VP global sales for

Access, to argue that the presence of multiple

operating systems is not an issue at all.

“HTML5 enables the creation of advanced UIs

and application platforms regardless of which OS

is in place,” he says. “Proprietary OS’s are not

preventing TV vendors from capitalising on the

multiscreen ecosystem as they move towards

standards like DLNA and its Premium Video

profile which enables the secure sharing of media

seamlessly between devices in the home.

“Many smart TV solutions are already running

HTML5 on their application platforms and this is

likely to increase. The strength of HTML5 lies in

its ability to simplify the process of developers

and the content industry by providing content and

applications for the widest possible spread of

vendors, truly unifying all smart TV platforms

with other devices including tablets and

smartphones,” notes Dr Foster.

For Farncombe’s Racine, the TV market needs

to evolve drastically not just to smooth the

complexities of app development but also because

the TV itself may no longer be needed to deliver

services to the TV screen.

“Manufacturers have a common interest to

solve the problem or they risk ending up with a

product that is a simple, dumb display. There is a

scenario where a TV may be used to render

applications but streaming can be the domain of

external devices - smartphones and STBs. Where

users have broadband access they are subscribing

to an ISP which usually provides a discounted or

free STB. So who needs a connected TV in this

environment?” he asks.

16 March-April 2013 www.csimagazine.com

Smart TV

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Is the age of network PVR (nPVR) finally

about to begin? I can remember writing

about this back in the middle of the last

decade and thinking then that in a perfect

world this would be a logical service for

most operators: capacity, control, only a

thin device in the consumer’s home and

lots of flexibility for upgrades. But we don’t live in

a perfect world, and in this case the imperfections

have come in the form of content owners nervous

about rights issues, as well as technical

shortcomings and complex, inadequate legacy

systems.

Today, those problems look less

insurmountable. Content owners’ objections are

fading in many markets, even in those, such as the

US, where they seemed particularly stubborn for

so long. The 2007-2009 Cablevision case, where

rights holders attempted to stop a trial of nPVR

services, now feels very distant.

Faced with the reality of the over-the-top

(OTT) world, a growing number of rights holders

have been prepared to let operators use a single

copy of content for all nPVR viewers, meaning

operators can make huge savings in storage costs

and capacity. At the same time, technical

improvements are making it easier and more cost

effective for operators to launch services, while

commercial pressures make the idea of doing so

look more attractive.

Service providers moving towards OTT and

multi-screen delivery is driving nPVR

deployments, according to Mike Gannon, home

product architect at Motorola Mobility’s

Home Business. “The current availability

of viable OTT services is making nDVR

a must-have service right now. The

growth of video consumption on 2nd and

3rd screen devices is causing operators to

evaluate how to deliver all their services to

all their consumers’ devices. This is the

primary reason why network based delivery

of PVR services will grow rapidly in the next

18-24 months,” says Gannon.

Adriana Menezes Whiteley,

head of strategy practice at the

consultancy Farncombe, says

that for operators are under

pressure to simplify their devices, nPVR can save

15% to 30% of the cost of client acquisition,

depending on the solution used, and two to three

months in bringing product to market. This is

because the device in the home is simpler and

generates fewer customer care calls.

“Another reason is a second wave of IPTV

launches. IPTV operators are usually late entrants

and find it more difficult to get exclusive content.

Many are looking at alternative approaches, such

as leveraging devices already in the home like

connected TVs which cannot be used as a

conventional PVR.”

nPVR can also help IPTV operators facing

constraints in the last mile to the home. “Allowing

for two simultaneous PVR streams to the STB

while the viewer is watching another HD channel

and using the internet requires a fibre FTTx

connection, but nPVR just requires one stream at

a time,” notes Menezes Whiteley. However, she

adds, “If nPVR uses a unicast stream, operators

with backhaul constraints who use multicast are

less likely to benefit”.

The contents rights issue remains a problem.

This means that, as Joachim Roos, founder and

CEO at technology provider Edgeware puts it,

‘geography is a factor’. “The rights issue in North

America has prevented anybody from really

launching nPVR services, because it becomes

unmanageable and unscalable,” he says. “In

Europe it’s a better situation.”

“What has happened is that content owners

have negotiated separate rights for delivery of

content into separate devices,” says Nick Thexton,

CTO of the service provider video technology

group at Cisco. “The technology has got better:

the management infrastructure has become more

trustworthy and cost-effective. So we’re a little

way from content owners not worrying about this,

but we’re making progress.”

Technical advances such as those made by

18 March-April 2013 www.csimagazine.com

nPVR

“You want to be perceived as the intelligent broker: there is a competitive advantage in being the authority which allows devices onto the network.”

Personalisation in the cloudWith deployments taking place around Europe, are the stars finally aligning for network PVR, asks David Adams

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Motorola (now part of Arris) and other vendors

have helped. Its version of High Efficiency Video

Coding (HEVC) compression technology can cut

the size of HD files in half compared to when

MPEG4 and H264 are used. That reduces storage

costs and bandwidth use for operators and makes

it possible for a unified platform to deliver

content to multiple devices via a single headend

and nPVR solution. With the growth of HD and

future introduction of 4k Ultra HD services

consumers do not have to rely on limited capacity

in the home.

It also enables rights holders and broadcasters

to specify within the metadata which devices are

allowed to play their content. And consumers can

be prevented from fast-forwarding through ads.

The biggest barrier, however, rmains the

regulatory environment which is still not clear on

the copyright issues surrounding single/multiple

copy of content, according to Motorola’s Gannon.

“Some operators are waiting for clarity on this

issue before proceeding with deployment.”

nPVR today

What sort of role will cloud-based PVR services

play in the TV landscape? OTT providers are

using the cloud in a variety of ways – think of

Netflix, Apple or Boxee – and will take eyeballs

from mainstream operators.

“Cloud-based nPVR services are public cloud

hosted and often done for OTT distribution;

network PVR could be owned as a mainstream

high quality cable access infrastructure,” says

Cisco’s Thexton. “In 2013 and 2014 we will see

examples of both. Our work has shown that the

cloud works for scalability of some user

experiences in multiscreen TV. But I think it’s still

the natural instinct of operators to want to own

that infrastructure themselves, rather than hand it

to a third party. I personally think that will change

in time.”

In the more immediate term, nPVR services

are beginning to make a mark within multiscreen/

TV-everywhere services. In Portugal, subscribers

to ZON’s IRIS triple play offering can access

recordings of programmes from about 80

channels for seven days and record two

programmes simultaneously. Subscribers will soon

be able to select which programmes they would

like to retain for more than seven days. Dutch

telco KPN has been able to attract more than one

million subscribers to its nPVR service, launched

in 2011. Subscribers pay an extra EUR5 per

month for the service, which also offers the ability

to record up to six channels simultaneously.

There have also been deployments in

Switzerland, where the telco Netstream is using

Edgeware technology to provide wholesale IPTV

services to Swiss operators, while Swisscom uses

Alcatel-Lucent solutions to develop nPVR services

so that it will no longer need to maintain outdated

PVR equipment in subscribers’ homes.

Another technology provider, MobiTV,

launched nPVR services as part of its end to end

multi-screen platform in July 2012. CTO Kay

Johansson says the company is currently working

on several projects that will involve nPVR, in

Europe and the US.

Thexton adds that Cisco itself is involved in “at

least three” nPVR projects in Europe and North

America.

Offering multiscreen services will help

operators fight OTT competitors, but enabling

nPVR for multi-screen poses technical challenges.

“This is where you need to study the workflow for

these requirements,” says Nivedita Nouvel, vice-

president of marketing at Broadpeak.

“Components like CDNs can help. The CDN has

different treatment for popular content and this

could also be applied to network PVR. If content

is not popular you store it in one format and treat

it on the fly. When content is popular you have it

available in all formats.”

Embracing new technology is essential, says

Nabil Kanaan, senior director of product

nPVR

www.csimagazine.com March-April 2013 19

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marketing at RGB Networks. “A lot of the

traditional service providers have very proprietary

platforms but now need to compete with the next

iPad or iPhone, not to mention the Android

juggernaut,” he says. “In the past operators have

been controlling the end-to-end pipe and

controlling the EPG and how you pay for the

content. Now that’s beginning to unravel. The big

trend is cable operators becoming a platform for

app developers, who are typically third party

organisations.”

All providers need to make these services pay.

“Larger operators, who tend to have more

negotiation power with content owners – you see

this in the US with the likes of Comcast – have a

little more flexibility, so have been able to launch

services more quickly,” points out Kanaan.

“Smaller operators have less negotiation power

with the content owners, so they are held back.”

What about gateways?

If operators can make nPVR sustainable what

does that mean for another notable technology

trend of recent times: the home gateway?

“Technically it’s a lot easier to deploy in the

cloud than to provide or give away home gateways

with that storage,” says Boris Felts, vice-president,

product marketing at technology provider Envivio.

“The problem with home gateways is that

technology is evolving quickly: in two years’ time

your equipment might be obsolete. In the network

the operator has more control and it’s future-

proof. But for some operators – for satellite

operators, say, who have to pay for all these

connections – a home gateway is going to be

more attractive.”

RGB’s Kanaan believes this question is far

from settled. “These are the early stages of this

market and there is no clear winner,” he says.

“From the consumer’s perspective there really

isn’t a drastic difference. The factors which make

it more complex for operators are things like

reliability. If you have a hard disk in the house

that’s typically the piece of technology that breaks

down the most. With the current rate of

technological change, do you really want to

commit yourself to having a device in the place

where it’s least easy to upgrade? Remote upgrades

can go wrong. If you’re sending a guy in, a

technician, then that home gateway has become a

block.

“Another factor is the question of being able to

target the user with more content,” he continues.

“You could have it stored in the house, but that’s

a very constraining architecture. You really want

to leverage the capacity of the cloud or the

operator’s network in order to refresh content. It’s

an elegant way to deliver targeted advertising too.”

On the other hand, some operators may have

reasons to want to keep some kind of equipment

in the home. Thexton doesn’t think DVR in the

home is doomed yet. “We’re going to have a

mixed economy for a long time,” he says. “With a

gateway you have a physical presence in the

home. One of the problems with virtualising all

services is personalised experiences tend to work

better with devices in the hand. In the home the

gateway becomes the physical embodiment of the

service. So pulling everything out of the living

room might not be your best first choice. You

want to be perceived as the intelligent broker:

there is a competitive advantage in being the

authority which allows devices onto the network.”

But in the longer term he still feels the cloud

will play a greater role. “With the cloud time to

market for new services can be lightning fast and

you can do it on a pay-as-you-go basis,” he says.

“If you want integration with social networking

and other service offerings then integration in the

cloud is a fast way to do it. As the newer entrants

start to do that some of the traditional operators

will get more of an appetite for it. As a technology

provider we don’t take a position: it just depends

on getting the use cases right.”

The other complication appears where

operators use a hybrid model that incorporates

OTT input into a STB. “Where the project is

hybrid it makes sense to have a hard drive in the

STB,” says Jean-Francois Galtier, COO at

Netgem. “But nPVR will be used more in future.

Probably it won’t be this year when there will be

massive deployments, but we think for maybe the

next two to three years.”

In the longer term, he says, the way consumers

respond to these services will be as important a

factor as legal or technical issues. “The big

traction for nPVR in the future will be prompted

by consumer usage,” he concludes.

“It comes back to consumers wanting a more

personalised TV experience,” adds MobiTV’s

Johansson. In a system where operators seek to

make money out of increased use of

personalisation, he says, “when you look at PVR

services the only really viable source is going to

be a network PVR, one way or another”.

20 March-April 2013 www.csimagazine.com

nPVR

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Data has been described as

the new oil for the digital

media era, providing the

fuel for recommendation

and discovery that will

drive people to content and

create revenue. The talk is

of big data to reflect the vast amounts of

information now being generated about individuals,

the services they consume and the devices they use,

coupled with the growing ability to correlate and

then analyse this disparate information.

While the idea of big data has been creeping

up on us for years, it is only recently that the

hardware platforms and analytical tools are

coming together to harvest business value from it.

For broadcasting big data is bringing new

potential for deeper analysis by exploiting much

greater scale and diversity of data than before,

according to Steve Plunkett, chief technology

officer at Red Bee Media, the London based

media management and playout company that

spun out of the BBC in 2005.

“The television industry has historically relied

upon relatively small data sets such as those

provided by audience measurement panels,”

says Plunkett. “The big change now is that a

much wider range of data sources are becoming

available as the audience engages with content

using a two way medium, such as IP connected

smartphones, tablets, PCs, and connected TVs,

and socialises their thoughts on large public

platforms such as Twitter.”

Data as a tradable commodity

For TV, as for other sectors such as online

retailing, big data brings two dimensions. Firstly it

provides that fuel for competitive advantage, but

secondly it is becoming a commodity in its own

right because of the value it can provide, so in

that sense it is like the new oil,

or even a currency that can be

traded among providers.

Some of the bigger players

have recognised the value of

data as a tradable commodity

in its own right, with Liberty

Global, the cable operator now present in 12

European countries after its acquisition of Virgin

Media, releasing a report in 2012 entitled “The

Value of Identity” aiming to quantify the value of

personal data.

Then in February 2013 Cisco published a

whitepaper called “Unlocking Value in the

Fragmented World of big data Analytics: How

Information Infomediaries Will Create a New

Data Ecosystem”, arguing that large companies

should create big data repositories that could

serve whole industries including broadcasting.

These would be one-stop shops that collect the

data and perform analysis in real time on behalf

of customers within a sector.

Described as “infomediaries”, they would host

the storage and computational resources required

to aggregate data from a variety of sources,

process it into a standard form, make sure it was

secure, and then perform the required analyses.

The precedent for this infomediary model has

already been set in the financial sector, where the

same infomediaries provide centralised credit

checking for all parties.

Metadata and the OTT threat

Broadcasters and many pay TV operators though

have a more urgent and pressing need to exploit

data on a rather smaller scale to compete in the

multi-screen era and see off competitive threats

from new over-the-top (OTT) players such as

Apple, Google and Amazon. To do this, they

must use data to exploit the one key commodity

they do hold more or less exclusively, premium

content. “Broadcasters have something that

Google and Facebook don’t have today, high

quality content that attracts an audience, which

in turn attracts advertisers,” notes Plunkett.

22 March-April 2013 www.csimagazine.com

Data and analytics

The new oil for the digital media eraBig data will be big business for broadcasting, says Philip Hunter, who digs deep to uncover the many layers of value such data creates for broadcasters, operators and other companies in the TV value chain

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The role of data can then be seen as helping

optimise the delivery of this content to consumers

so as to increase their consumption, keep them

happy so they do not churn, and reduce costs

across the ecosystem. The first of these objectives

is achieved by harnessing data for content

discovery and proposing attractive offers.

Metadata, in this case data describing the

content in terms of genre, actors and other

categories, has a big role to play here and is

itself a source of competitive advantage, as

Samsung realised in partnering with RedBee

Media to improve content discovery and

presentation to its smart TV customers.

“This includes high quality editorial metadata

that describes programmes, links to other sources

of related material and images and videos related

to programmes that are then presented in

rich graphical user interfaces to the audience,”

says Plunkett.

Mark Cullen, chief executive of ETV Media,

said last year that the industry is at a very early

stage (‘baby steps’) as how to turn the potential

on offer into real revenues. “We think that

whoever grasps this opportunity - and scarily we

don’t think it will be from the TV industry

because we think the TV industry will be too

conservative to make these steps - will be in a

good place. Hence you look out at Google or

someone else, but whoever it is has a chance to

re-establish new value in the food chain. The

broadcasters couldn’t be nudged over by someone

else who comes and eats their lunch.”

Not so Channel 4, which was one of the first to

liken data to oil and is undertaking a number of

ventures to extract as much value as possible. The

broadcaster is embarking on a deeper level of

targeting with the launch of a new commercial

data initiative which will offer advertisers sub-

demographic targeting on its 4OD VoD service.

Channel 4 is one the most progressive

broadcasters in terms of seeing the value of data

and trying to gain a better understanding of its

commercial potential, and has also tapped into

Bristol-based social TV analytics start-up

SecondSync as it looks to understand the growing

trend of audience usage of social media channels

and dual screening, more of which later.

SecondSync tracks and analyse social media

conversations around TV broadcasts via a

dashboard to provide audience insight that can

be used along alongside more traditional audience

metrics. As a first step, Channel 4 is exploring the

correlations of social media conversations and

patterns alongside BARB (Broadcasters Audience

Research Board) overnight figures in order to

offer enriched insights to their business.

Service quality and viewing experience

Big data can also improve the quality of content

delivery, particularly for IP delivered services, but

also traditional cable TV where the existence of a

return path enables feedback from the customer’s

set top box. This is going to be an important

application of big data, according to Tom Weiss,

founder and CEO of Genius Digital, which

specialises in managing and analysing TV data.

“One of the key applications we see is identifying

viewers with technical problems and automatically

routing their calls to the technical support team,

or even pro-actively contacting them,” says Weiss.

This will be particularly valuable for IPTV and

OTT operators dependent on networks over which

they may not have complete control and are

subject to varying transmission conditions.

Century Link, the third biggest US telco

after Verizon and AT&T, is on the verge of

deploying big data for IPTV quality assurance

monitoring, having already done so for its

voice over IP services.

The telco has been collecting and analysing

machine data from a variety of sources,

potentially including information such as

customer ID, product ID, order information,

Twitter ID and other important details which,

taken together, can provide highly accurate

measures of customer experience. This can

embrace both the quality of the service, and

also the experience interacting with help desks

and call centres in the event of a problem.

“The key is to make use of this data to in a

near real-time fashion to understand when

customers aren’t getting the service they need

and find out where and why,” notes Matt Olson,

principle architect at Century Link. “This

includes data that tells us what’s going on with

service and also the network. There is an

important link between two, and it’s of critical

incorporate not just to have service data but also

network data.”

Olson says the analysis of big data was

improving customer satisfaction by anticipating

problems increasingly before they occur, and is

now being applied also to provisioning of new

services and for new customers, nipping teething

problems in the bud.

“We’re now focused on IPTV,” he says,

indicating that the spade work had mostly been

done in collecting the data, but that new

analytical tools would be needed to obtain quality

of experience feedback at the video level. The

data comes from routers, servers, session border

Data and analytics

www.csimagazine.com March-April 2013 23

“Liberty claimed that the majority of the customers in the Netherlands that have signed up for its Horizon TV service have opted to allow their data to be used in exchange for personalised services.”

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controllers and CPE equipment as well as some

dedicated probes installed for the task, creating

data sets that have to be merged and then

analysed at different levels from the physical

media up to application layer.

The focus there is very much on quality of

viewing experience.

Audience measurement in a multi-screen

world

The third application of big data is about

efficiency and cost reduction, with an eye also on

comparing viewing figures across the various

platforms in the multi-screen age. Broadcasters

increasingly want to know which of their

platforms are generating the most eyeballs,

according to Justin Sampson, chief executive

of BARB, historically the principle source of

TV audience data in the UK through an ongoing

representative panel, currently comprising about

5,100 homes with 11,500 individuals.

“What we want to do is to let broadcasters

know what return they’re getting from the

different channels they distribute, so that they

and their advertisers can get a return for the

audiences they deliver on the various platforms,”

says Sampson.

The problem with present methods for

measuring audiences outside the panel system is

that they only count devices, not viewers. Only a

panel can drill down to viewers on the big screen

to count the audience size accurately and, as

Sampson points out, even on tablets and PCs with

supposedly one user at a time there is

considerable ambiguity.

“With tablets our anecdotal evidence is that

while the tablet may be owned by one individual,

it is being shared around, or alternatively using

technology such as AirPlay (an Apple product for

streaming content from iOS devices to TVs)

putting images up on the big screen,” says

Sampson. “It may be watched by four people.”

The solution is to combine panel data with

return path data generated at the site, which will

provide a base of solid data about tablet, PC and

smart TV viewing that will serve as an anchor for

the return path data relating largely to device

consumption alone. BARB is taking this hybrid

approach through its current project, Dovetail.

“The first stage of Dovetail is a data collection

specification, which we hope will provide census

level reports about what programmes are being

downloaded,” says Sampson. “Then we will put

this together at a later stage to determine who’s

watching what and when.”

The privacy conundrum

One other important big data aspect of concern

to both service providers and their customers is

privacy. It has been said that if data is

anonymised to the extent that it cannot identify

individuals such that privacy concerns are allayed,

then it becomes useless, but that is not quite right,

according to Gary Marshall, managing partner at

digital TV consultancy Farncombe.

“Big data in the TV space offers the capability

to provide detailed analysis of consumer

behaviour in an anonymous form which, when

allied to known demographic data, can be

powerful information for advertisers and

marketers,” argues Marshall. In that case the

data is useful but no threat to privacy.

But big data can also be used to help target

individual consumers or devices with advertising

and promotions, and then personal information is

involved. This is where the problems lie, not least

because, as Marsall indicates, legislation on the

matter is complex and differs across territories.

“This - coupled with the fact that the territories in

which data is collected, stored and analysed may

all differ - can lead to a considerable amount of

legal work to assure that the system operates

within the correct legal boundaries with regards

to privacy.”

As Marshall suggests, consumers will need

inducements such as loyalty schemes to volunteer

their personal data, but there are signs that they

will be willing to do in return for service benefits.

Liberty Global recently claimed that the

majority of the customers in the Netherlands

that have signed up for its Horizon hybrid TV

service launched September 2012 have opted

to allow their data to be used in exchange for

personalised services.

There are various shades to big data, with

both real time and historical applications, and

decisions to make such as whether to outsource

and what sources to integrate. The underlying

theme is that big data can no longer be ignored

and will play a key role in service delivery

and competition.

24 March-April 2013 www.csimagazine.com

Data and analytics

“The television industry has historically relied upon relatively small data sets such as those provided by audience measurement panels. It is only recently that the hardware platforms and analytical tools are coming together to harvest business value from big data.”

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Untitled-2 1 04/03/2013 17:03:09

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CSI: What have you

found as you make VoD

an increasing area of

focus going forward?

CW: VoD is emerging

with consumers, whether

it’s via the Netflix’s or

LoveFilm’s of the world,

or via operators like Sky

and Virgin. Consumer

demand is increasing

and operators are seeing

this as a way with technology to enable more

consumer interaction and more value. The idea of

watching what you want, when you want, and

where you want is becoming more real with

technology, and as one of the largest programmers

and suppliers of content to distributors we are

trying to answer that need.

The question we are trying to figure out is:

what is successful VoD and how is it different

from a linear environment? Because it is. One of

the simplest things - the lead-in - doesn’t exist in

an on-demand world. You have to find a show,

figure out if you like it, watch it, and then there’s

nothing that tells you what to watch next.

The on-demand platform in general is a

challenge compared to linear when you are

watching live TV. You launch all your new shows

in the linear environment on the back of your

most successful shows. For us, historically

Deadliest Catch or now Dynamo, our hit shows are

the platform for launch. But when you’re watching

in an on-demand fashion there’s nothing to

encourage you to watch future episodes or to

recommend similar content. There literally isn’t

the promotional element with on-demand that is

so core and critical to a linear environment. So

it’s these simple things that technology has yet to

grab onto. These are the questions we are

grappling with.

CSI: So is this a lack of decent metadata, and also

search, discovery and recommendations or is there

more to it than that?

CW: There are three dimensions here. What do

people want to watch on-demand? Is it catch-up

TV or a deeper experience? Are they what we call

‘enthusiasts’ and they want to grab the show they

love? Or do they want to be a ‘tourist’ and get

more content? Which means, do you provide box-

set archives that you couldn’t do in the same way

in a linear world or maybe you offer entire series

to watch in one sitting in a binge viewing? We’ve

experimented with these models based on certain

events and types of content.

Secondly, it’s from an operator perspective, and

working with them to enable people to find the

content. Is it first and foremost about the brand,

recent content, the show or the franchise? It’s

about making that content come to life on their

platform. This is where the role of social in TV

viewing also can come into play. Out of 5,000

people we surveyed, two thirds are on social

networks but there is no one solution that acts as

what we call a ‘social scheduler’ to highlight

programmes for them.

Third, it’s the in-show experience. Is it just

about watching the programme straight for 45

minutes or should there be promotions and ads?

With these three elements, the viewing habit still

has to be defined, mainly because the ratings have

yet to be developed.

CSI: There is some progress being made on this

front, with BARB in the UK and Nielsen in the US

for instance…

CW: We don’t know what success is in this

environment, so we don’t know how we are going

to be successful in it. As a programmer that’s the

issue affecting the industry and there’s no one

answer right now. Everyone is developing different

ways of doing it. In the US, there are 5,000 cable

systems, but everyone gets most of their VoD

from two clearing houses. In Europe, there are

7,000 operators and there is no one single

delivery point; it’s all 25 different equations. You

end up with different programmes because you

have to get it to them individually. And because

there’s that lack of conformity and momentum,

that’s holding back the development, but also

leaving a lot of freedom and flexibility to do a lot

of testing.

CSI: Other content owners have spoken of this VoD

fragmentation. I guess you feel their pain?

CW: There needs to be a clear VoD leader. VoD

leadership is emerging in Europe with the likes of

UPC, Sky, Telenor or Canal Digital, but in the US

there’s only one solution. When I started this role

two years ago there were ten completely different

programmes, driven by ten different decision

makers or programmers, there was no efficiency.

So we centralised a bit of that work to develop a

model, and that’s how we’ve gone to the 50

operators we are with today and pushing our way

into double that in the next year.

CSI: A lot has been said recently about ‘binge

viewing’. Is it something that might apply to

Discovery?

CW: It comes back to the fact that it is happening

because of on-demand. So we now are trying to

come up with our own strategy for on-demand,

looking at what is the best set of shows for this.

Technology is empowering viewer behaviour and

consumer demand: how do we meet it in our own

unique story telling?

Technology like HD and 3D has influenced

and empowered storytelling. That’s what we are

talking about with 2nd screen and VoD, and also

ultraHD/4k too; how it can help us tell a story in

a different way, we are always looking at it from

that perspective.

Q&AQ&A

26 March-April 2013 www.csimagazine.com

Dis

cove

ry’s

Ca

leb

Wei

nst

ein

Goran Nastic spoke to Caleb Weinstein, SVP and general manager of distribution for Discovery Networks EMEA, about the challenges and opportunities of content in an on-demand environment, and the role social TV can play in finding content

On the road to discovery

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ww

w.c

sim

agaz

ine.

com

MPEG-DASH: Unifying the adaptive streaming world

www.csimagazine.com

Focus sponsored by

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As video content becomes

more diverse and

ubiquitous, today’s pay-

TV operators must

adapt their services to

rising subscriber

expectations. Operators

are therefore increasingly targeting multiple

screens, ie TVs, PCs and various mobile devices,

in their attempts to offer competitive services

and reach the widest possible audience, anywhere

and anytime.

However, maximising the monetisation of

content across a multi-network environment

comes with several challenges: when the operator

wants to reach beyond its managed network to

various types of CE devices, including over-the-top

(OTT) video streaming delivery, the issue of

incompatible digital rights management (DRM)

systems arises.

Multi-platform challenges

Managing the interplay between multiple DRM

systems has long been asserted to be one of the

most significant barriers to successfully deploying

a multi-network, multi-screen delivery

environment. In fact, DRM schemes in general

are often regarded as presenting many challenges

for large-scale media distribution, leading some to

suggest that the approach in general may be

counterproductive. Interoperability, in particular,

has been a difficult technical problem when

dealing with a set of technologies that are, in

general, highly proprietary in nature and kept

closely guarded to limit the potential for

commercial exposure.

A unified security strategy based on an open

DRM scheme, such as the ISO/IEC standard

MPEG-DASH for Dynamic Adaptive Streaming

over HTTP, can help operators easily address the

unique requirements of different devices types,

giving them the potential to

open up the universe of multi-

network, multi-screen delivery,

and greatly accelerate the

growth of new revenue streams

based on this paradigm.

Today’s leading edge content security strategies

are characterised by the transition from a security

architecture with DRM technologies in multiple

competing “silos” to a more unified approach

across network types and stream formats. The

foundation of such an approach is that the typical

DRM silos are unified via a higher-level cross-

DRM “rights management” abstraction, which

enables the DRM servers to operate unimpeded.

This type of approach can be augmented by the

adoption of non-proprietary, open DRM

frameworks like MPEG-DASH. Such a framework

is particularly attractive as it offers operators an

ideal mix of unification and flexibility – media

delivery formats are unified and device

authentication and key management processes for

secure delivery remain flexible. In addition, this

type of standardisation can greatly accelerate the

growth of new services and revenue streams for

operators by opening up the universe of multi-

DASHing forwardPetr Peterka & Niels Thorwirth of Verimatrix discuss leveraging MPEG-DASH – and the role of open DRM standards - for enhanced revenue security

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network, multi-screen and delivery to a new range

of standards compliant smart CE devices.

It is also important to remember that rights

management between the pay-TV and OTT

environments should be carefully controlled since

glitches in this aspect of delivery cause havoc on

the management of overall subscriber

expectations. Most importantly, a single security

platform clearly opens up the potential for flexible

business models that can help up-sell OTT

content for premium services and cross-sell over

multi-network, multi-screen distribution.

Standardising on MPEG-DASH offers the

potential to open up the universe of multi-

network, multi-screen and multi-operator delivery,

beyond proprietary content silos. And, by doing

so, could greatly accelerate the growth of new

services and revenue streams for multi-network

operators. In combination with a robust

protection mechanism, a whole new generation of

premium services are likely to become available in

the market.

Exploring the status of MPEG-DASH

The DASH file specification is currently on track

to fulfill its promise to unify the adaptive

streaming world. Application standards HbbTV,

3GPP and DECE have standardised on MPEG-

DASH, and it is anticipated that broadcast

standards will likely follow suit as well.

In addition, earlier this year, the DASH

Industry Forum released DASH264

implementation guidelines 1 offering

recommendations for testing and assuring

interoperability. Industry-wide collaboration in the

creation of the DASH standard is a large part of

its success; another factor is the support of

technical features that, as years of experience with

adaptive streaming have shown, are crucial

components of a mature solution.

MPEG-DASH offers a number of technical and

commercial benefits:

• It is decoupling the technical issues of delivery

formats and video compression from the more

typically proprietary issues of a protection regime.

In the world of DASH, no longer does the

technology of delivery have to develop in lockstep

with the release cycle of a presentation engine or

security vendor. This has been true for the

de-facto standard of HTTP live streaming (HLS)

for some while – but is now being formalised with

a broader base of technology;

• It’s not blue sky technology – the standard

acknowledges adoption of existing commercial

offerings in its profiles and an implied transition

to full standards compliance over a period of

time;

• It represents a drive for a single delivery

protocol standard, which helps reduce

balkanisation of streaming support in CE devices.

More broadly available device-neutral services and

less proprietary silo implementations in devices

such as connected TVs should help the market

grow overall; and

• It provides a vendor neutral option to address

the obvious current shortcomings of video

support in HTML5 – the adoption of which itself

is an important dynamic. This is especially

notable on mobile devices, as it signifies the end

of Adobe’s push to try and dominate that space

with their own standards.

The Verimatrix approach

Verimatrix, by virtue of long engagement with

DECE and other industry initiatives related to

DASH, anticipated the need for more efficient,

state-of-the-art approaches to the management of

content protection. Consequently, content

distributors of every description can implement

the company’s rigorous multi-network and multi-

device protection mechanisms with full

confidence that they will be able to benefit from

these new developments in adaptive streaming

and electronic sell-through.

Last year, Verimatrix introduced Verimatrix

VCAS™ for DASH, which offers a robust solution

for these multi-platform challenges by providing

DRM and content consumption transparency

across networks and devices. By providing DASH

support that is merged with existing Verimatrix,

PlayReady and Marlin DRMs, Verimatrix has

extended VCAS’ ability to enable content delivery

to millions of consumer devices without complex

client security integrations. This is having a

profound and positive impact on the time-to-

market for operators eager to extend their service

reach beyond their managed networks. Consumers

are benefitting from the ease of use and

transparency that follows from not having to be

concerned with different DRMs. Users don’t even

need to be aware what particular DRM is in use

for each device.

Conclusion

As we look toward the future, one thing remains

relatively certain: there’s no better way to future

proof an early-to-market multi-device service

strategy than by adopting architectures that

accommodate a multi-DRM approach. Moreover,

open DRM standards can go a long way to help

enable the type of consumer choice that all digital

TV operators are aiming for.

1 Guidelines for Implementation: DASH264

Interoperability Points: http://dashif.org/dash264-

available-for-public-review/

Sponsored feature

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19 March 2013Breakfast Forum • Hilton Olympia Hotelverimatrix.com/tvconnect2013

Join us for

Visit us at

TV ConnectLondon • 19 - 21 March • Booth #173

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Conference review

www.csimagazine.com March-April 2013 31

Around 3,000 delegates

gathered at the Excel

exhibition centre to get

an update on the state of

the fibre market in

Europe, marking the

tenth anniversary of the

gathering. While there was the usual bravado,

there was also a current of realism running through

the event, with some even admitting that hard core

‘fibre evangelists’ are doing more harm than good

when it comes to promoting the cause.

On the whole, FTTH Council Europe’s

position is that fibre is an absolutely necessary

component to guarantee Europe’s competitiveness

going forward and wants to achieve Europe’s

(admittedly meagre) 2020 digital agenda targets

with fibre networks. The FTTCE argues that fibre

increases quality of life, brings economic growth

and sustainable development.

“The world won’t end in 2020. Our vision

needs to be long-term. Countries are choosing

FTTH or FTTC (fibre to the cabinet). In the

Telecoms Olympics that’s the difference between

gold and silver,” said FTTCE president Karin Ahl.

By the same token, the conference took place

under the shadow of EU cuts, which saw the

Connecting Europe Facility budget slashed from

EUR8 billion to EUR1 billion. This was identified

as a huge missed opportunity, although not an

insurmountable one.

So the FTTCE is under no illusion as to the

challenges the region faces to gain ground on

other pacesetters. There were 7.3m FTTH

subscribers in the EU at the end of 2012,

compared to 7.5m in Russia alone, 79m in Asia-

Pacific and 11.1m in North America.

There are some bright spots, however.

Lithuania and Andorra have achieved complete

fibre availability nationwide, while Scandinavian

and Baltic countries in general boast strong

penetration rates (see http://www.csimagazine.

com/csi/Lithuania-tops-Euro-FTTH-rankings.php).

Idate, which compiles the figures for the

FTTCE, attributes the high take up rate in the

Nordics to lots of door-to-door marketing and

proactive local communities. In France by

contrast, the main players aren’t promoting fibre

enough, reckons Idate.

Ahl admitted to CSI on the sides of a press

conference that the aim isn’t so much to surpass

Korea, Japan and other leaders as merely try

narrow the gap. FTTCE’s forecasts do point to

some optimism on this front, with 41.5m

subscribers predicted by 2017 and ‘fibre maturity’

(meaning 20% penetration) by 2022.

While progress has been made in the last ten

years, much regulatory and other work will still

need to take place for these numbers to

materialise. The problem is partly due to a wider

technology lag - Europe’s ICT budget is barely

visible compared to more advanced economies –

which itself is a symptom of cultural attitudes that

the recent budget cuts merely reaffirm.

Incidentally, the UK government didn’t see fit

to send an official to appear on stage, and Chi

Onwurah, a British Member of Parliament and

the Shadow Minister for Innovation & Science,

argued this might be partly a result of the UK’s

low FTTH ranking but also due to a

misperception of the topic itself, which requires

greater engagement with policy makers. “Part of

the problem where the debate is today in the UK

and other European countries is that politicians

and policy makers don’t know enough. They see

FTTH as a small bunch of techy geeks.”

She summarised the challenges nicely in her

address. “Incentives for this long-term investment

don’t exist for now. BT would suffer as result of

mass FTTH rollout; it’s market reality.”

Anthony Whelan, head of cabinet of

Commissioner Neelie Kroes, echoed these

sentiments. “We are working hard to ensure that

investors see there is a way of meeting the latent

demand that is brewing for high speed broadband

use. Kroes’ package, due as reform this summer,

aims to get the investment signals right.”

In terms of supply side obstacles, he noted that

80% of fibre roll out costs are civil work costs and

estimates that 30% of these can be saved by

observing throughout Europe best practices that

have been developed in certain regions, which the

Commission will this year turn into legislative

proposal. These include access to physical

infrastructure on reasonable terms, single contact

points for permits, and new buildings and major

renovations being NGA-ready.

To this end, the technology itself is almost

irrelevant. Having said that, there were some

impressive demos of fibre as a platform for

innovation, with a dedicated Applications Dome

inside the exhibition hall highlighting advanced

services such as eHealth, teleworking,

entertainment and the smart home.

FTTH Council Europe came to London this year, keen to promote the message that FTTH is the only winner in the ‘Telecoms Olympics’. Goran Nastic reports

Going for gold

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One of the biggest

technical challenges

facing broadcasters and

content producers today

is the online delivery

of content. Consumers

now have a plethora of

connected devices, and expect television to be one

of the services available.

Adobe, Apple, and Microsoft have

implemented their own protocols for streaming

video to their platforms: HDS (Adobe), HLS

(Apple) and SmoothStreaming (Microsoft). All

three protocols are designed to scale and to work

well with content delivery networks (CDNs) by

being grounded in HTTP, the protocol that

underpins the web.

For the first time, these protocols – in different

ways – separate flow control from delivery of the

video data, and this can be exploited to provide

seamless, in-stream targeted advertising, a

potentially strong source of revenue. That is our

specialisation at Yospace, and is the reason why

understanding the inner workings of these

protocols is important to us.

Now there is a new entrant in the world of

HTTP-based streaming: MPEG-DASH – dynamic

adaptive streaming over HTTP. Its proponents say

it promises a single unified standard under which

all services can be delivered.

Broadcasters will no doubt twitch at the

suggestion of a single unified standard, perhaps

remembering that MXF was supposed to make all

digital content interchangeable. Because it aimed

to be all things to all people, the standard allowed

too much flexibility and manufacturers could

create “MXF compatible” systems which still

would not talk to each other.

There is a real risk this could happen with

MPEG-DASH. The MPEG-DASH specification

(ISO/IEC 23009-1) is in effect a data definition

language for HTTP-based streaming. It is

concerned with aspects of the MPD (media

presentation description file, usually referred

to as the “manifest” in existing adaptive bitrate

protocols) and the segment entities which contain

the video data itself. However, it does not address

codecs, nor does it mandate a great deal of the

client/server interaction regarding the delivery of

the data objects to the client device.

Profile incompatibility

This is where the concept of

MPEG-DASH profiles

comes in. Profiles detail all

the aspects that give you an

end-to-end specification from

which you can implement a

server, a client, an encoder/

packager and so on. The

MPEG-DASH standard sets

out the framework by which

it is possible to define any

number of profiles, based on

a control design constructed from a common

XML DTD.

This approach allows a framework in which the

designs of HLS, MSS and HDS can be

accommodated as individual profiles. But, as is

the case today, the MPEG-DASH profiles derived

from these protocols are incompatible with each

other. For a client system to implement all of the

proposed profiles is the equivalent of being HLS,

MSS and HDS compatible. This, you could argue,

makes MPEG-DASH irrelevant.

To deliver on the promise of unified streaming

suggests we adopt a single MPEG-DASH profile.

It appears that the enthusiasm for MPEG-DASH

is for a working group defining the ISO BMFF

profile. This profile owes its roots to Microsoft

SmoothStreaming, but would not be a great step

away from Adobe HDS either. However, it is just

about as incompatible with the

MPEG-TS profile of MPEG-DASH

as its parent HLS is with

SmoothStreaming and HDS.

Apple clearly has a significant

role to play in what happens with HLS and

whether support within iOS devices migrates to

the TS profile of MPEG-DASH. But it would

appear that Apple would have little to gain from

this.

What MPEG-DASH effectively promotes is the

migration from three competing and incompatible

protocols to two or three competing and

incompatible protocols, depending on whether

there is a schism between MPEG-DASH TS

profile and HLS, which in turn depends upon

what Apple does.

Today, broadcasters that

implement HTTP

streaming for video

delivery usually do not

implement both

SmoothStreaming and

HDS together. They select

one, usually implementing

HLS to reach iOS devices

and an increasing number

of other platforms

including Android. You could argue that in

practice MPEG-DASH gets us to somewhere that

is very similar to where we already are.

At Yospace we are supportive of any effort

to reduce complexity in the delivery of video

to connected devices. We are encouraged by

provisions in the ISO BMFF profile for in-stream

advertising insertion and content replacement,

and that consideration is being given to

functionally aligning these different approaches

to streaming.

However, while the work being undertaken in

this space is encouraging, we believe that nobody

should be expecting the concept of “unified

streaming” for connected devices being a practical

reality in the short term.

David Springall is CTO of Yospace

Knocking at the door of unified streaming MPEG-DASH has to be careful to avoid the pitfalls that plagued MXF in order to fulfil its promise, argues David Springall

Opinion

32 March-April 2013 www.csimagazine.com

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At this year’s Consumer

Electronics Show (CES)

in Las Vegas, there was

a clear shift from the

connected TV displays

of previous years to

smaller Wi-Fi devices

focused on creating a ‘connected home’.

Essentially the connected home is one which can

receive multiple services delivered over broadband,

hence its alternative title: the ‘internet of things’.

Such services could include media (movies, music,

photos etc) home automation and security, energy

monitoring and interacting with government.

Currently the connected home is more of an

ideal than a reality. However we have seen a big

move towards making it a reality. We already have

TVs and set-top boxes that can be controlled

remotely using a smart phone or tablet. Other

household gadgets, such as hi-tech alarm systems,

also benefit from similar connectivity to phones

and other wireless electronic devices. In parallel

to this we have seen the television transform from

a receiver terminal to a smart screen,

connected through the internet to a new world of

media and entertainment possibilities.

The Digital TV Group (DTG), the industry

association for digital television in the UK, has

been working with industry to explore TV white

space technology which can be utilised in the

connected home. TV white spaces are wireless

networks built to use TV frequencies that can be

used to improve broadband performance. The

networks can power ‘smart’ devices such as

in-home appliances and energy monitors or

enable rural broadband delivery by choosing

unused frequencies available in the area to

maximise efficient use of the spectrum.

The DTG is a member of Cambridge TV

White Spaces Consortium which conducted a

trial of TV white spaces and found that it can

be successfully utilised to help satisfy the demand

for wireless connectivity. The consortium

members are now recommending that Ofcom

complete its development of the enabling

regulatory framework in a manner that protects

licensees from harmful interference and

encourages innovation and deployment.

The connected home brings together the

information technology, telecommunications

and broadcasting industries and with them

their own technical standards. The CE

industry is now focused on developing

the home networking standards

required to link different products/

equipment in the home.

Often, connecting two products

from the same manufacturer will give

you a better experience compared

to connecting two similar products

from different manufacturers. While

this is great for the individual

manufacturer, consumers’ choice is

being limited to only buying CE

products from one manufacturer to

ensure the best experience.

Open standards for home

networked products

Creating clear open standards

for home networked products

will give consumers free

choice in the market and allow multiple devices to

interoperate. This will also ensure that product

innovation follows a pre-determined path and

we are less likely to see divergent technologies

competing for market share as with Betamax

versus VHS and more recently Blu-ray versus

HD DVD. The challenge for the industry is

to ensure people can get the most out of the

devices and services by providing a joined-up

and robust network.

This is an area where the DTG with its diverse

membership from across the supply chain, can

help industry come together again to develop a

core home networking standard. Work has already

begun in the DTG’s home networking group with

members such as Microsoft, Humax, LG and Sky

to achieve this.

The DTG is holding a technical seminar

on the Connected Home on 17 April. The

seminar will feature presentations from industry

on multimedia gateways, connectivity standards

and control and automation as well as a selection

of technical demos. For more information and to

register see www.dtg.org.uk/connectedhome

Making the connected home a realityThe DTH has been working with industry to explore TV white space technology which can be used in the connected home

Guest column

Simon Gauntlett is technology director at the DTG, the industry association for DTV in the UK. This is the latest in a line of regular guest columns to

provide CSI readers with updates on the DTG’s initiatives and activities.

www.csimagazine.com March-April 2013 33

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In South East Asia and India over-the-top

(OTT) markets are witnessing a flurry of

announcements, with Apple finally opening

its iTunes Store in India in December

2012, and offer from services such as

BigFlix, NyooTV, Eros Now, hungama and

DittoTV from Zee New Media. In

Malaysia, leading pay-TV provider Astro has

launched Astro-on-the-Go to compete with TonTon,

Maaduu, DETV and Fine TV.

In addition, sales of connected devices in the

SEA region continue to increase. GfK Asia has

stated that consumption of laptops and tablets in

the largest market, Indonesia, reached 2.76

million units—an increase of 37% (in first three

quarters of 2012) over the previous year and

collecting revenue totaling nearly $1.24 billion.

Malaysia ranked second in both sales volume and

value, thanks to consumers spending nearly $1.1

billion on 2 million laptops and tablets.

But will flagging broadband speeds prove an

insurmountable barrier and delay the

development of OTT in the region?

To answer this question, Farncombe undertook

a comprehensive study of the broadband markets

in five key SEA developing countries: Indonesia,

Malaysia, Philippines, Thailand, Vietnam and

India. The study analysed fixed and mobile

broadband service offers, technologies, nominal

and actual bitrates and pricing plans.

Our research shows that around 30% of the

existing fixed broadband residential subscriptions

offer speeds that are equal to or higher than

2Mbps – the threshold required by many OTT

service providers for delivering video content to

connected devices, including TVs.

We forecast that this percentage will reach

almost 50% by the end of 2017 – with more than

25 million fixed broadband connections equal or

greater than 2Mbps across the six countries by

then. India will lead, accounting for 28% of the

households in this segment, followed by Vietnam

and Thailand.

Indonesia is forecast to be the fastest growing

market of fixed broadband subs at or above

2Mbps of the six countries, with a CAGR for

2013-17 of 35%. Vietnam and

India will grow at 30%.

Platform wars

Farncombe’s research shows

that ADSL technology will

remain the dominant fixed

broadband technology in the region, but its share

will drop from 84% in 2012 to 65% in 2017.

Cable (HFC) will gradually increase its

presence and will increase with CAGR 2013-17 of

31%. Cable’s growth is however mostly driven by

the undergoing digitisation of cable TV networks

in India. In the remaining countries, cable will

continue to compete with ADSL, primarily, in the

capital and main cities.

FTTx’s market share will also increase as more

operators (e.g. BSNL and MTNL in India; Biznet

in Indonesia, TM, TIME and Maxis in Malaysia;

Globe and PLDT in the Philippines; TrueOnline

and 3BB in Thailand; VNPT, FPT and Viettel in

Vietnam) are now offering fibre services for the

residential market with declining prices, although

overall reach of FTTx will remain limited.

Malaysia emerges in top position in terms of

FTTx connections across the six SEA territories;

this is also reflected to the average download

bitrates which are increasing at a CAGR of 25%

in the final three years to 2017.

Broadband Wireless Access (mostly WiMAX)

will remain a niche alternative. Farncombe’s

research shows that WBA missed its opportunity

to play an important role on the adoption of

broadband services in markets where wired

networks have limited reach. The improvements

on bitrates that mobile broadband technologies

(e.g. HSxPA/ LTE) can offer, led to an increasing

number of operators investing on mobile

broadband infrastructure rather BWA. For

example, this trend can be demonstrated by the

surrender of Broadband Wireless Access

spectrum from both India’s incumbents (BSNL,

MTNL), a move which signals the end of

WiMAX’s chances to compete with other

broadband access technologies in the Indian

market. Other technologies such as satellite and

Ethernet are likely to continue to have limited

appeal and low market share.

Investments in network infrastructure and

34 March-April 2013 www.csimagazine.com

OTT in Asia heats up Online video

South East Asia and India’s online video markets will boom as broadband subs over 2Mbps double by 2017, says Chris Chatzicharalampous, senior consultant at Farncombe’s strategy practice

2013f

0

10

20

30

million subscriptions

CAGR:22%

2014f 2015f 2016f 2017f

More than or equal to 2Mbps Fixed Broadband Residential Subscriptions in Indonesia, Malaysia,

Philippines, Thailand, Vietnam and India

Note: Based on nominal bitrates Source: Farncombe analysis

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upgrade plans from operators have also had an

impact on broadband speed offerings. India’s

Airtel announced that it is upgrading fixed lines

in 14 cities across the country to a minimum of

2Mbps. In another 80 cities connection speeds

are raised to a minimum of 1Mbps. Telekom

Indonesia announced plans to spend $2.30 billion

between 2011 and 2015 in the rollout of a

national broadband backbone capable of

delivering access speeds of 20-100Mbps in at least

497 cities, reaching 13 million homes. Network

rollout is underway and has reached 1.7 million

homes, stretching from Sumatra to Papua. In

Thailand, TrueOnline is covering three million

households with DOCSIS 3.0 and FTTx

technologies. With an investment budget of

$258 million for network expansion by 2013,

True aims to expand high speed broadband

coverage to 60 provinces, with “nationwide”

coverage expected in 2014.

However, further investment will be required

to improve broadband speeds across the

countries in the region. Average bitrates in

India, Thailand and Vietnam are increasing at a

quarterly average of less than 2% (based on

measurements between Q3 09 – Q3 12).

Malaysia and Indonesia perform better with

quarterly increases on bitrates of 9% and 8%

respectively (based on measurements between

Q3 09 – Q3 12). The average regional

connection speed is estimated at just 1.5Mbps

by the end of 2012.

Farncombe’s analysis, also, shows that the

adoption of mobile broadband will accelerate in

these countries. The driving factors are: the higher

percentage of rural populations; limited fixed

network infrastructure; the economic feasibility of

reaching reach remote areas; and the anticipated

commercial launches of LTE services following

mobile broadband spectrum auctions in 2013

together with an accelerated growth of

smartphone users.

Mobile broadband lines in India and Malaysia

are forecast to increase with CAGR of 49% and

31% respectively. Indonesia’s mobile broadband

subs will grow with a CAGR of 25% and

Vietnam’s at 23%. Nonetheless, mobile broadband

speeds have been relatively stable in last few years

and straggling to reach 400kbps (based on

measurements between Q3 09 – Q3 12). The

Philippines is the only country in Farncombe’s

study that maintained average mobile

broadband connections above 500kbps in 2012.

Indonesia’s bitrates have been increasing since

Q4 2011, reaching average of nearly 450kbps in

Q3 2012. India, Thailand and Malaysia show

similar performances of mobile broadband

speeds in the range of 350-400kbps.

Most fixed broadband plans now include

unlimited usage, unlike mobile packages, which

are typically ‘capped’ – an issue that still

inhibits OTT usage over mobile broadband.

Farncombe compared fixed and mobile

broadband costs by looking at how much each

charged ‘per Mbps’, taking into account actual

bitrates and mobile usage caps. We found that

on average mobile broadband users would have

to cap their monthly use at 1-3GbB to obtain

the same ‘per Mbps’ price-performance as a fixed

plan.

Similar results were derived across all six

markets, demonstrating that despite the

significant increase in mobile broadband users,

fixed broadband remains a much more cost-

effective choice for video use.

As competing two-way platforms will require

substantial up-front investment, especially for

countries with challenging landscapes like India,

Indonesia and the Philippines, OTT platforms can

offer significant opportunities for players in these

regions to reach audiences and capture market

share more cost-effectively and with tighter

launch-schedules.

www.csimagazine.com March-April 2013 35

Online video

2013f 2014f 2015f 2016f 2017f

0%

20%

40%

60%

80%

100%

79% 77% 75% 70% 65%

79% 77% 75% 70% 65%

3% 3% 3% 3% 3%4% 4% 5% 5% 6%3% 3%

4% 5% 6%

ADSL

Cable (HFC)

Other

Wireless

FTTx

700

millionMobile Broadband subs Smartphone users

600

500

400

300

200

100

0

2013f 2014f 2015f 2016f 2017f

Fixed Broadband technology market shares

Mobile Broadband Subs & Smartphone users in Indonesia, Malaysia, Philippines, Thailand, Vietnam and India

Source: Farncombe analysis

Source: Farncombe analysis

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TechnologyConference2013

TechnologyConference2013

Iain Dendle Director, Business Development Europe, Shazam

Chairman for the dayPaul RobinsonPrincipalPR Media Consulting/ Creative Media Partners

Maria Ingold CEO Mireality

Vassilis Seferidis Director of Business Development Samsung Electronics

Richard CrossleyBusiness Development Manager Intel

Mohammed HamzaTV and Video AnalystSNL Kagan

Neale Foster VP Global Sales IA Access

Paul Bristow VP Strategy Middleware & Consumer ExperienceADB

Tom Morrod Senior Principal Analyst IHS Screen Digest

Top Industry Speakers Include:

Darren Fawcett Chief Technical Engineer PACE

Edmund Barrett Product Manager RWE

John McGuire Director of Product StrategyS3 Group

The only independent event to objectively analyse what the gateway entails, the current state of the market and future potential.

Platinum Sponsor Research Partners Media PartnersGold sponsors Platinum Sponsor Research Partners Media PartnersGold sponsors

Following on from last year’s successful debut, CSI magazine will be organising and hosting a follow-up conference dedicated exclusively to the home gateways market. This remains one of the only events in the calendar that objectively and independently analyses the value of these devices – for consumers and the industry ecosystem – and their future potential. On the one hand, the connected home is becoming a reality, on the other, the proliferation of internet enabled devices, OTT services and cloud-based systems are putting an increasing question mark over operator controlled set-top boxes, Walled Gardens and other traditional broadcast and telco approaches.

The emergence of home gateways has to be placed inside this context, which this conference will critically evaluate.

Commercial deployments started

in 2012, most visibly in the form of UPC’s Horizon box, but also from Shaw, Cablevision, Bouygues and others. Moreover, the Home gateway Initiative (HGI) itself is this year due to release an official definition of what constitutes a gateway and provide technical recommendations. But what is the value proposition and business case of these advanced hybrid products? Is current technology fragmentation surmountable? Is it a case of too little, too late? This event aims to provide an answer to these questions, and many more besides.

The day will see expert speakers debate a range of topics in a series of lively panels, including those dedicated to regulation, technology, user experience and business models. In addition, unique case studies will be given by those directly involved in some of this work.

Liberty Global is the leading international cable operator with its U.S. headquarters in Englewood, Colorado and its European headquarters in both Amsterdam and London. They will be discussing the home gateways market and next generation broadband networks and will be sharing their experience of the Horizon TV gateway project before and after the launch.

Faycal Amrani

Managing Director and Chief Architect

Liberty Global

Keynote PresentationCSI Technology Conference 2013

• Pay TV operators

• CE manufacturers

• Suppliers & vendors

• Content owners

• Service providers

• Press

• Analysts

• Consultants

• Broadcasters

• Associations & Regulatory bodies

• Financial Investors

• Utility companies.

The Must Attend Event For:

Book Your Place:

Earlybird Price: £399 + Vat (earlybird ends 1st April 2013)Regular Price: £499 + Vat (FREE for Operators/Service Providers, Broadcasters and Content Providers)

BOOK NOW FOR £100 DISCOUNT

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Consumers today watch video

delivered to an array of

devices via numerous

platforms. As this shift

toward anywhere, anytime

media consumption continues

at breakneck speed, content

owners, producers, and distributors face the

growing challenge of providing not only high

volumes of content, but also a consumer experience

tailored to particular platforms and viewing devices.

In this multi-screen environment, numerous

media processing steps are required to ensure that

content is prepared and delivered to the target

platform and device in the appropriate format.

High-availability, high-volume storage systems

play key roles in supporting these processes and

in enabling content providers to meet the high

demand for quality digital media on smartphones,

tablets, PCs and connected TVs.

Mature media storage

The need to handle high (and continually

growing) volumes of content with speed and

efficiency has led many media facilities to

establish storage solutions that blend expensive

and complex Fibre Channel SAN (storage area

network) storage with a separate shared file

system, or NAS (network attached storage). A

more cost-effective solution, however, is to

implement one mass storage system that offers

both the performance and simplicity that SAN

and NAS systems respectively offer, along with

unlimited scalability to assure easy expansion.

With such a system, media facilities needn’t

compromise on speed or quality in the delivery of

multi-screen content.

Low-cost storage capacity and high-bandwidth

are being united in storage solutions that combine

scale-out storage hardware with sophisticated file

system software. Such systems boast a boost in

bandwidth —up to tens of GB/s per system and

exceeding 1GB/s per client with the right file

system driver — that facilitates editing at high bit

rates and improves the efficiency of transcoding

and QC processes. The jump in bandwidth

available along with affordable storage capacity

serves to speed the flow of content through to

distribution. Intelligent data protection is ensured

by integrated software RAID.

Mass storage systems already have been refined

to meet the requirements of high-volume

workflows in areas such as postproduction. In

these workflows, as footage is synthesised into a

finished product, editors and special effects teams

generate numerous files in numerous formats,

both compressed and uncompressed. This work

produces a massive number of files, just for one

project, and a facility may generate hundreds of

thousands of files for multiple ongoing projects.

Further advances in mass storage for high-volume

workflows now support operators in their shift to

multi-screen delivery.

In multi-screen delivery models, source video is

encoded at different bit rates, resolutions, and

frame rates, and all of these encodes are managed

and delivered in multiple chunks that are sized in

a way that makes the best use of available

bandwidth. As content is prepared for a broad

array of formats and devices,

this ability to handle high

volumes of content efficiently

and cost-effectively is essential

to providing a seamless

experience for the media consumer.

Storage optimised for multi-screen

In today’s multi-screen models, sophisticated file

system drivers play a critical role in the

optimisation of overall operations. File system

software with built-in software RAID can assure

high levels of storage efficiency, fast application

performance, and high availability. With both

RAID6 (dual-parity) and RAID4 (single-parity)

options, users can balance storage capacity with

performance based on their workflow needs.

By dictating, at the file level, how media files

of different types and sizes are striped across the

storage system, the user also can optimise the

balance of bit rate against system performance.

Recognising bit rate, latency, and other media

file characteristics, the system can use parameters

for even the latest codecs to store media with

different bit rates — from the lowest to the

highest — in the same folder without giving

up performance.

38 March-April 2013 www.csimagazine.com

Storage

Multi-screen storageSupporting the multi-screen model with mass storage solutions. By Vikramaditya Gupta, senior manager, product line management at Harmonic

The Harmonic MediaGrid

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While generic NAS or clustered NAS systems

provide slow serial access to media, the advanced

file system drivers in leading mass storage systems

leverage client-side software to provide

applications with fast and parallel access to data

distributed across multiple storage nodes.

Leveraging the throughput of all storage nodes,

this type of mass storage system provides

simultaneous read/write access to storage nodes

on both “sides,” rather than on mirrored

synchronised systems. Consequently, any addition

of storage nodes to the system results in a direct

increase in performance.

Narrowly focused enhancements to media

storage systems also are enabling improved

performance with broadly used applications, such

as leading edit systems. While using the same

familiar workflow, users realise benefits such as

faster load times for complex projects, a gain

made possible by the file system driver’s

improvement in how storage is accessed by a

particular client. Further efficiencies are being

realised through greater integration of media

storage systems with SOA-based platforms that

manage services across the workflow. In addition

to streamlining key processes from ingest through

archiving, these advances give operators a

content-aware window into the file system. All of

these operational gains contribute to faster

delivery of more multi-screen content.

Storage paired with processing

The processing activities enabled by a “media-

aware” mass storage system are a vital part of

IPTV and OTT content delivery models. In live

IPTV encoding applications, the storage system

supports stream processors in transcoding SD

and HD content in real time, complete with

multiplexing and scrambling capabilities, and

sometimes with automatic audio level adjustment

and forward error correction, as well. With this

approach, users can realise flexible high-density

transcoding between any two formats in a

minimum of space and without incurring high

power consumption costs.

Service providers are using this model to

deliver the highest quality video to any device

cost-effectively. By concurrently generating

their primary services and mobile/Web device

profiles from a single compressed SD or HD

input, media companies can very simply and

effectively monetise stored content via new

distribution outlets.

As operators strive to maximise use of available

bandwidth, they depend on real-time video

processing and transcoding systems to provide the

best possible picture quality for that bandwidth.

Implementation of carrier-grade transcoding and

adaptive streaming preparation systems enables

operators to transcode SD/HD MPEG-2 or

MPEG-4 AVC content into multiple H.264 video

streams, which then are packaged for adaptive bit

rate delivery via the appropriate OTT service.

Any number of streams can be generated

through this approach if the transcoding model is

sufficiently scalable and if it supports the most

popular major adaptive streaming protocol

standards in use today, including Apple HTTP

Live Streaming (HLS), Microsoft Smooth

Streaming, and Adobe HTTP Dynamic Streaming.

Operators thus can provide hundreds of

simultaneous streams, offering a variety of OTT

content for viewing on an even broader variety of

viewing devices.

To facilitate efficient delivery of VoD content,

operators are using their mass storage systems to

support file-based enterprise-class transcoding

solutions and HTTP streaming servers.

Transcoding stored content to meet industry-

standard protocols, including Apple HLS and

Microsoft Smooth Streaming, operators can

prepare and publish live, VoD, and network PVR

content to multiple viewing devices. In most

cases, the transcoding solution ensures that

outputs meet the parameters dictated by major

CDNs, as well as the encryption methodologies

used to keep content secure.

The multitude of multi-screen services — live

streaming, VoD, catch-up TV, start-over TV, and

DVR — requires that the transcoder be just as

scalable as the mass storage system supporting it.

Ideally, the system can support processing

volumes ranging from a single transcode to large-

scale multimode transcoding, automated and

controlled by a workflow management system.

This scalability, along with flexible transcoding

capabilities, allows operators to compete in the

TV anywhere, anytime environment.

Robust media storage and rapid any-to-any

transcoding in high volumes allows content

owners and distributors to monetise content

over additional service offerings while increasing

their brand visibility and boosting available ad

impressions. In an increasingly competitive

multiscreen market, these benefits are essential

not only to retaining existing customers, but

also to expanding viewership over current and

new services.

Foundation for multi-screen success

The delivery of live IPTV services to set-top boxes

and the provision of live and VoD services to

tablets, smart phones, and PCs using OTT

technologies require high-volume media storage

and processing, and the advanced media storage

systems today offer a mix of characteristics and

capabilities designed to meet this demand.

Seamless interoperability with media

applications and with numerous third-party

control and processing tools facilitates smooth

integration of mass storage into a growing number

of file-based workflows. At the same time, robust

performance and ever-more-appealing prices for

scalable storage capacity provide operators with

the power, reliability, and flexibility they need to

prepare and deliver quality linear and nonlinear

content with efficiency.

Deployed together, mass storage systems

and media processing systems provide the

foundation for the multiscreen workflow.

They not only support operators in providing

an extensive and growing array of channels, but

also open the door for additional growth —

whether it’s the enhancement and customisation

of conventional viewing platforms or expansion

into media delivery via entirely new platforms

and formats.

Storage

www.csimagazine.com March-April 2013 39

“To facilitate efficient delivery of VoD content, operators are using their mass storage systems to support file-based enterprise-class transcoding solutions and HTTP streaming servers.”

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To advertise contact Tiro Bestonso +44 (0)20 7562 2427 [email protected]

Business DirecTory

ATX Networks designs, manufactures, markets and delivers a broad range of products to the global cable television industry. Other sectors served include hospitality, education, institutional, government and health care.

A broad range of digital video products including digital signage & content streaming, bulk content transition, multichannel encoding, encoding & transcoding, RF & optical transmission, RF filters, transmitters/receivers, headend and MDU amplifiers, node segmentation, node/amp upgrades, monitor/control equipment, pads/EQs, drop amps, digital voice switches, and connectors.

VISLINK plc is a global business, strategically focussed on providing secure communication technologies to customers in our chosen markets. We have three international business units organised to serve our customers in Broadcast, Surveillance, and the related Services markets. Our world renowned brands of ADVENT, GIGAWAVE, LINK, MRC and PMR lead the way with award winning products including IP gateways, microwave radio, satellite transmission and wireless cameras.With offices in the UK, USA, Dubai, South Africa and Singapore, and dedicated sales and engineering teams, VISLINK has the experience and expertise to deliver the most comprehensive solutions for today’s challenges.

Irdeto empowers companies to protect and monetize their digital assets and maximize return on content with innovative and reliable software technologies end-to-end solution and services. The company’s products include conditional access, digital rights management, business support systems, set-top box software solutions and, through its Cloakware subsidiary, software and datacenter security. More than 400 customers worldwide trust Irdeto to secure delivery of their valuable content across digital broadcast, IP, Mobile, enterprise and government networks. Irdeto solutions currently enable simple to advanced business models on more than one billion devices and applications.

For more information, please visit www.irdeto.com.

ADB designs, manufactures and deploys solutions to distribute pay-TV and multimedia services to the connected home, for all types of networks, providing an amazing user experience.

ADB believes in a future where multi-media content will come from multiple sources and seamlessly move between multiple screens and devices, at the user’s preference. The Company has delivered over 30 million consumer premise devices to a global customer base. ADB’s innovations and software expertise have been recognized by numerous industry awards.

Taurus Avenue 105, 2132 LS HoofddorpThe NetherlandsTel: +31 23 556 22 22 Fax: +31 23 556 22 40 Email: [email protected] Web: www.irdeto.com

Address: 27 Maylands Avenue, Hemel Hempstead, Hertfordshire HP2 7DE, UKPhone: +44 (0)14 42 43 13 00 Fax: +44 (0) 14 42 43 13 01Website: www.vislink.com Email: [email protected]

Rödelheimer Landstrasse 75-85, 60487 Frankfurt am Main, Deutschland Tel: +49-17-1998-3676Email: [email protected]: www.atxnetworks.com

Advanced Digital Broadcast S.A. Avenue de Tournay 7, CH-1292 Chambesy, Geneva, Switzerland Tel: +41 22 799 0799 Fax: +41 22 799 0790 Web: www.adbglobal.com

NDS, now part of Cisco, creates the technologies and applications that enable pay-TV operators

to securely deliver digital content to TV STBs (set-top boxes), DVRs (digital video recorders),

PCs, mobiles and other multimedia devices. Over 90 of the world’s leading pay-TV platforms

rely on NDS solutions to protect and enhance their business.

NDS Group Ltd, One London Road, Staines, Middlesex TW18 4EX Tel +44 (0)178 484 8500 Fax +44 (0)178 484 8600Web: www.nds.com Email: [email protected]

40 March-April 2013 www.csimagazine.com www.csimagazine.com March-April 2013 41

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40 March-April 2013 www.csimagazine.com www.csimagazine.com March-April 2013 41

To advertise contact Tiro Bestonso +44 (0)20 7562 2427 [email protected]

Business DirecTory

Intelsat is the leading provider of fixed satellite services worldwide. Intelsat supplies video, data and voice connectivity for leading media and communications companies, Internet Service Providers and government organizations. Intelsat’s valuable regional video neighborhoods deliver more television channels than any other system. Intelsat’s terrestrial network of eight strategically-located teleports and over 36,000 miles of leased fiber complements a global satellite fleet of more than 50 satellites, covering 99% of the world’s population. Intelsat utilizes a fully integrated satellite operations model, enabling global delivery from a single platform. With Intelsat, communications with your customers are closer, by far.

Bridge Technologies designs, develops, and manufactures advanced analysis, measurement, and monitoring solutions for the digital media, broadcast and telecommunications industries.

The award-winning VideoBRIDGE series provides an advanced platform for converging TV services employing stream-based IP packets and all other Digital TV interfaces within DVB and ATSC for Cable, Terrestrial and Satellite. Compatible with all major industrial standards such as MPEG-2, h.264/AVC, HTTP based streaming and ETSI TR 101 290, the VideoBRIDGE series offers a complete end-to-end system for the continuous quality assurance of media services.

The Humax range of award-winning digital TV set-top boxes and recorders for Freeview and Freesat has a product to suit any TV viewer. Feature rich and technologically advanced, yet intuitive and easy to use, the Humax range offers the ultimate way to enjoy multi-channel, subscription-free digital TV, from high definition (HD) and on-demand content, to recording features and multi-media services.

Verimatrix specializes in securing and enhancing revenue for multi-screen digital TV services for more than 500 operators around the globe. The award-winning and independently audited Verimatrix Video Content Authority System (VCAS™) and ViewRight® solutions offer an innovative approach for cable, satellite, terrestrial and IPTV operators to cost-effectively extend their networks and enable new business models. As the recognized leader in software-based security solutions for premier service providers, Verimatrix has pioneered the 3-Dimensional Security approach that offers flexible layers of protection techniques to address evolving business needs and revenue threats. Maintaining close relationships with major studios, broadcasters, industry organizations, and its unmatched partner ecosystem enables Verimatrix to provide a unique perspective on digital TV business issues beyond content security as operators seek to deliver compelling new services. www.verimatrix.com

EchoStar Europe is dedicated to enabling digital entertainment providers to optimise revenues by delivering added-value connected device solutions, services and applications. Through a comprehensive product range, including STBs, DVRs, home networking and TV anywhere technology, our solutions enable the provision of state-of-the-art and cost effective entertainment services.

Headquartered in the UK, EchoStar Europe comprises a number of business units and is affiliated with EchoStar Technologies, a subsidiary of the publicly traded EchoStar Corporation (NASDAQ: SATS).

6825 Flanders Drive, San Diego, CA 92121, USATel: +1-858-677-7800 Fax: +1-858-677-7804Web: www.verimatrix.com

Humax Electronics Co., Ltd, The Mille Building (8th Floor), 1000 Great West Road, Brentford, London TW8 9HHWeb: www.humaxdigital.com

Sandakerveien 24c, Building D5NO-0473 OsloTel: +47 22 38 51 00 Office Switchboard Tel: +47 22 38 51 01 Office Fax Web: www.bridgetech.tv

3400 International Drive, NW, Washington D.C. 20008 USATel: +1 202 944 6800 Fax: +1 202 944 7898Web: www.intelsat.com

Beckside Design Centre, Millennium Business Park, Station Road, Steeton, Keighley BD20 6QW, United Kingdom Tel: +44 1535 659000 Fax: +44 1535 659100Web: www.echostar.com

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The online video market is

booming and, according to

figures released by Mintel

recently, sales and rentals of

digital movies and TV shows

have quadrupled since 2007

and look set to almost double

by 2017. However, with online piracy still posing a

major problem for content owners, the online

entertainment industry shouldn’t rest on its laurels.

The lure of free and easy-access online video is

strong in today’s always-connected world, where

the latest news and gossip about hot films and TV

shows spreads worldwide in seconds. Consumers

expect content to be available on demand

However, with the temptation of pre-released

content available for free on illegal sites, massive

numbers of consumers are knowingly or

unknowingly committing content theft worldwide,

costing the industry many billions of dollars each

year.

The business losses for content owners are

staggering with recent figures from the Institute

for Policy Innovation suggesting that it costs the

US economy more than $58 billion per annum.

Here at Viewster, we believe that content owners

have yet to get to the heart of the piracy issue. By

taking a superficial stance and prosecuting

individual illegal video sharing sites or the people

who access this content, consumer mindsets are

not changing. Online audiences are simply finding

alternative illegal sites to watch videos. If content

owners want to keep their hold over the online

video market, legal offerings must be made more

appealing.

Tech-savvy online audiences look for easy-

access to great content and the first point of call

for content owners should be to make their legal

content more freely available. A recent study by

Ofcom found that 32 per cent of UK adults who

have downloaded or streamed video content

illegally in the past would not do so again if all of

the films and TV shows that they wanted to see

were available from legal alternatives. At Viewster,

we believe that a good compromise is to make

video available through free-to-view services that

are monetised with advertising. Not only could

this lure viewers away from illegal services, it

could also generate substantial new revenue

streams for content owners.

While online video services revitalise their own

offerings, industry bodies also need to recognise

their responsibility in cracking down against

illegal video content sites. Starving them of

revenue would force them to shut down or go

legal. If credit card companies stopped consumers

making payments to illegal website owners and

advertisers stopped supporting these illegal

websites it would be much more difficult for

content theft to continue. Furthermore, search

engines could make illegal content harder to find

by filtering out these sites from their results, a

mission that Google has already made

considerable headway with. However, if we want

to make real progress in combating online pirates,

we need to convince far more bodies to take

action in order to drive uptake of legal

alternatives.

There is, of course, a careful line to tread in

enlisting the help of authorities in monitoring

piracy as consumers wouldn’t appreciate a ‘Big

Brother’ style monitoring of their activity. With

this in mind, the entertainment industry would be

wise to follow the music industry’s example and

tackle the pirates, rather than those who are

downloading content illegally. Last year’s closure

of Megaupload by US officials shows how

effective this can be. At Viewster we saw traffic

increase by 20% on the day that Megaupload was

shut down, as users searched for alternative ways

to access films and TV shows on demand. Clearly

audiences will seek out legal services if they are

well positioned to meet their needs.

TV’s Napster moment will come

As video-on-demand sites improve their offering

and access to illegal content sources becomes

more difficult, we expect that the film and TV

industry will experience the same ‘Napster’

moment that the music industry went through last

decade. While it may not be possible to ‘stamp

out’ online piracy altogether, just as it’s not

possible to eradicate shoplifting completely, we

can make it harder to steal movies and TV shows

online. At the same time, content owners can

work with VoD service providers to make legal

sites and services more compelling, helping to

drive a change in consumer behaviour and protect

content owners’ intellectual property.

Kai Henniges is managing director at Viewster

The fight goes onLegal offerings must be made more appealing if content owners are to combat online piracy, argues Kai Henniges

Viewpoint

42 March-April 2013 www.csimagazine.com

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page forty three www.cable-satellite.comAwards 2013CSI magazine l Awards

CSI Awards 2013

1. Best outside broadcast or playout technology or service

2. Best digital video processing technology

3. Best cable or fibre contribution/distribution/ transmission solution

4. Best satellite contribution/distribution/transmission solution

5. Best monitoring or network management solution

6. Best customer premise technology

7. Best workflow/asset management/automation solution

8. Best content protection technology

9. Best content-on-demand solution

10. Best interactive TV technology or application

11. Best IPTV technology or service

12. Best mobile TV technology or service

13. Best HDTV technology or project

14. Best Web TV technology or service

15. Best Ultra HD TV Technology or project - NEW

16. Best TV Everywhere/multi-screen video

17. Best Social TV technology, service or application

18. Best Contribution to TV Accessibility - NEW

For Sponsorship opportunities contact:

Tiro Bestonso, Commercial ManagerTel: +44 (0)20 7562 2427Email: [email protected]

For judging or entry enquiries:

Goran Nastic, EditorTel: +44 (0)20 7562 2416Email: [email protected]

Categories open for entries:

ENTER NOW: www.csimagazine.com/awards

The winners will be announced at an awards ceremony in September 2013, Amsterdam.

There are 18 coveted Awards up for grabs this year and remember you are welcome to enter multiple categories.

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EpicNG

www.intelsatepic.com

High Performance.Open Architecture.When you have it all, that’s

At Intelsat we’re used to big things.

We already own and operate the biggest satellite, teleport and fi ber infrastructure network in the world. But we’ve got even bigger plans.

Intelsat EpicNG – our Next Generation high-performance satellite platform with an innovative combination of C-, Ku- and Ka-bands, wide beams, spot beams, and frequency re-use. For broadcasters and media applications this means:

• Content Regionalization: advertising, time zone, language

• Customization: bitrate, resolution, encoding format

• More Throughput: HD content to smaller terminals

• Backward Compatibility: better performance through existing infrastructure

For you, this means lower cost of ownership.

More control. More choices. That’s Epic.

Meet with Intelsat during NAB 2013 at Booth SU3111.

Contact us at [email protected] for details.

6689-CSI.indd 1 3/4/2013 9:34:59 AM