Q&A with Videonet’s John Moulding on the Whole Home Video Debate, Part 2 of 2

logo-videonetHere is the second portion of our interview with Editor John Moulding who recently completed the “Supporting the ‘any screen, anywhere’ video consumer,” report now available on Videonet.

We tackle the drivers behind whole home video, current definitions of “cloud-based TV” and the technical challenges that operators still need to overcome to meet consumers’ expectations.

You can find the first interview here. 

Do you feel that developing new revenue streams is the main issue driving operators to offer whole home video services?  

JM: The key requirement is to protect the revenue streams they already have. We are about to enter a very disruptive period in television because convergence is finally happening and the wall between Internet entertainment and television entertainment is starting to crumble. Pay TV operators have to keep their younger audiences fully engaged or risk losing them, and that means giving them the content they want, when they want it and where they want it.

For their customer base as a whole, surely the best way to counter the threat of disintermediation from OTT providers is for Pay TV operators to play to their strengths and deliver their great, compelling broadcast and on-demand services (including premium sports and the best kids and nature channels) on every television. If your teenage child can’t watch that content in their bedroom then they are probably watching a terrestrial free-to-air service instead, going to the web with their PC or playing on a games console. I suppose they might do some homework if things get really bad! The key is to keep them ‘on platform.’

There is evidence that people will pay for whole home video services like multiroom DVR. It is not so clear that people will pay extra to watch their Pay TV services on their PC and it seems to be generally accepted that ‘TV Everywhere’ type services will wrap the online viewing into a bundle with the television subscription. But we spoke to one analyst in the report – Jayant Dasari at Parks Associates – who felt operators could eventually monetize this additional distribution. The example he gave was allowing a customer to watch online free with two devices but charging for access onto a third device.

What is the current definition of “cloud-based” TV services?

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Implications of Project Canvas Selection of Marlin as DRM Standard

marlinWe are pleased to see that Project Canvas has selected Marlin, a state-of-the-art, robust and non-proprietary DRM standard, to support the upcoming launch of its groundbreaking hybrid TV platform in the UK.

As the logic and variety of options are outlined on the Project Canvas web site, offering security mechanisms have clearly been identified as a key technology for Canvas devices. Even in this new video delivery age, a strong core security platform provides the essential support for revenue generating services and complements the fundamental free-to-air and catch-up services central to the Canvas vision. This partnership between commercial pay-TV services and traditional public broadcasting is a healthy example of how common platforms can benefit the industry and the consumer.

We have demonstrated our commercial developments of Marlin Broadband (Marlin BB) on a number of occasions, most prominently at IBC 2009 and IPTV World Forum events. In addition, we have incorporated Marlin support within our MultiRights DRM framework as an important complement to our globally deployed VCAS core technology.

As we move towards delivering fully commercial Marlin solutions, we look to Project Canvas as an important milestone in the selection and deployment of such standards track DRM options. There are a number of other projects around the world evaluating challenges similar to those faced in Canvas and we hope to participate in those initiatives on much the same basis.

Check back here frequently for news on how our value proposition meshes with these large-scale deployments.

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Q&A with Videonet’s John Moulding on the Whole Home Video Debate, Part 1 of 2

logo-videonetWe are very proud to underwrite Videonet’s latest industry report, “Supporting the ‘any screen, anywhere’ video consumer,” which provides an in-depth exploration of current whole home video approaches available as they are developing.

The home networking debate has existed for quite sometime. However, as new technologies emerge, such as adaptive rate streaming, standards become mainstream and broadband penetration reaches new heights, this topic is relevant now more than ever. This report illustrates the available choices and implications of alternate multi-screen video architectures.

We sat down with Editor John Moulding for his perspective on why this report breaks new ground on the topic of whole home video.

Tell us why this report, Supporting the ‘any screen, anywhere’ video consumer, was so ambitious on the topic of whole home video?

JM: This is a huge topic that encompasses the future of the home video network, the evolution of multi-platform TV strategies and the long-term evolution of TV delivery itself – looking at whether service providers are going to move from a position where they are married to a physical network to one when they could operate in the ‘cloud’ and deliver services to any home by becoming over-the-top broadband providers.

We wanted to get some informed opinion that reflected the support there is for home network centric and cloud centric approaches to multi-screen delivery. That meant we had to talk to a lot of people – over 20 interviews plus other primary input. We felt it was worth it for Videonet because our editorial focus is on the post-convergence TV experience, and a lot of this is definitely being shaped by the convergence of television, IP and the Internet.

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Selectable Output Control – What’s the big deal?

Niels ThorwirthThe FCC has recently granted a waiver filed by the MPAA to allow selectable output control for set-top box (STB) devices in the USA. The requirements for selectable output control are for a limited time and under certain conditions, but still a significant development in the evolving world of movie distribution windows.

It means that cable, satellite and IPTV operators are allowed to offer content that can only be displayed on screens with HDMI connections protected via high-bandwidth digital content protection (HDCP). Any analog or unprotected outputs from the STB device would be disabled during the viewing of that content.

The contention is that, by eliminating the “easy” piracy option of recording the signal from analog outputs of the STB, studios can now consider a new release window for their movie assets. As proposed by Time Warner Cable, it’s called “home theater on demand,” and enables operators to offer a movie for domestic consumption just 30 days after its theatrical release.

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Consumer Subsidized TV: The Role of More Open Standards

As we head into summer, Internet TV remains a hot topic among network operators.  Over the next few weeks, we will explore the OTT opportunity, the challenges associated with Internet TV services, and how we think the adoption of more open standards can help bridge the gap between those challenges and opportunities. Read Post #1 here and Post #2 here

Post #3:  Consumer Subsidized TV: The Role of More Open Standards

The era of the dedicated set-top box (STB) for each service to a TV is definitely coming to an end. What is emerging is a picture that involves a series of platforms that can support service specific applications or widgets selected and managed by the consumer. These platforms may themselves be based around standards such that service operators can create the applicaOITVF logotions that engage the consumer.

In certain kinds of systems, for instance the DirecTV view of the home media server, standards are only necessary to be able to share the content, they are not necessary to manage the device itself.  That device, therefore, can be a completely proprietary system that is wholly owned and subsided by the network or system operator. It is most likely project-canvas2-oproduced exclusively for that network operator, just like traditional STBs have been. 

IP-based standards in such platforms also allows operators to cost-effectively deploy a security system and business rules that can satisfy all demands of content owners while creating the transparent usage model that consumers demand.

We believe that IP and the sophisticated protocols built on IP are the common building blocks to make digital convergence happen inside the home.dtg

One such standards activity is the Open IPTV Forum – a cooperative of technology companies that is seeking to create an end to end platform for the delivery of IP video services. Another recent initiative is Project Canvas propelled by the BBC in the UK.  A standard becomes important like this when it can enable multi-vendor participation. 

As members of both the Open IPTV Forum and Digital TV (DTG), amohbbtv-logo_sourceng several other standards consortiums, we are seeing the central role that IP-based technologies are taking. However, we feel that a key component to these specifications is the ability to generate revenue. Creating the right experience that consumers are willing to pay for will most certainly generate continued innovation.

We are watching Project Canvas and others like HbbTV closely, like the rest of the industry.

Stop by our booth at CommunicAsia to discuss the current standards in Asia Pacific.

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Can Traditional TV Operators Embrace OTT Video as a Service?

As we head into summer, Internet TV remains a hot topic among network operators.  Over the next few weeks, we will explore the OTT opportunity, the challenges associated with Internet TV services, and how we think the adoption of more open standards can help bridge the gap between those challenges and opportunities. Read Post #1 The Latest OTT Opportunity: Connected TV here.

Post #2:  Can Traditional TV Operators Embrace OTT Video as a Service?VMX Chameleon

There is an assumption by many market pundits today that the service operators in the world of Internet TV services and that of traditional pay-TV are totally disjointed. We think this is rather too simplistic.

Just like the world of e-commerce in the early generations of Internet, the shift of consumption did not totally upend the value of existing brands and consumer loyalties. A few new players emerged for sure, but by and large, the brick and mortar brands have become just as prominent on the Internet as they are on Main Street – the power of branding transcends the medium.

When you apply this logic to video, the service operators that make the leap to multi-screen delivery can indeed be the same names that dominate the pay-TV market in cable, satellite and IPTV today. They have the content, the subscriber relationships and the scale to make service delivery compelling whatever the physical distribution network, and in many cases they also provide Internet connectivity.

The challenge for existing operators is that this requires a fundamental shift in the way they think. Progressive digital TV operators may have to embrace novel technologies that have been designed to effectively scale and solve IP video issues and apply them over their delivery networks. By integrating OTT and adaptive rate streaming technology with pay-TV services, operators can enhance ARPU, subscriber loyalty and lure incremental advertising dollars.

This convergence of technologies also must encompass a proactive revenue protection and enhancement approach that enables digital TV operators to cast a much wider net with their service offerings. This shifts the central value proposition for the digital video enterprise beyond that of content protection alone, towards the broader perspective of revenue security.

Download our white paper, Pay-TV at an Inflection Point, and let us know if you agree.

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To Be Free, or Not to Be. Does VP8 Limit Revenue Potential for GoogleTV?

Petr PeterkaThere is a wave of reaction and analysis around the Google TV and VP8 announcements, and I hope this doesn’t simply add to the noise level.
 
From the point of view of revenue security, I get the impression that rather than uniting the world behind a common (OK, supposedly free) codec, Google is really driving a wedge between commercial content and user-generated content (or at least not fee-based content).
 
Why do I think so? VP8 is not suitable for revenue generating video services because Google believes that “DRM is fundamentally in conflict with open source and open standards.” As a result, commercial content will continue to be distributed using standards that are compatible with protection techniques such as MPEG-2 transport stream and AVC coding. Non-commercial content may use the VP8 open source solution. Google is doing the same thing with YouTube – converting user-generated free content to VP8 while using Adobe Flash for paid content.

But in reality, these two worlds are really not exclusive as they might seem.
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The Latest OTT Opportunity: Connected TV

As we head into summer, Internet TV remains a hot topic among network operators.  Over the next few weeks, we will explore the OTT opportunity, the challenges associated with Internet TV services, and how we think the adoption of more open standards can help bridge the gap between those challenges and opportunities.

Post #1:  The Latest OTT Opportunity: Connected TV

Steve OetegennOf all the new Internet TV delivery options, the connected TV is especially interesting to service operators: It’s already front and center in the living room, there is perhaps no expensive STB required, it features an already integrated remote control and has the potential for high-quality presentation without distortion or noise from connecting cables.

On the other hand, today’s connected TVs are fundamentally constrained by proprietary interfaces, wholly proprietary aggregation portals and simplistic navigational schemes. Limited or no storage means streaming-only presentation of content. 

Our current feeling is that the Internet-connected TVs are primarily an aspect of a features game in a highly competitive consumer electronics market and is one of the options least likely to be exploited for premium video delivery services. The more likely scenario will be facilitated via connected devices such as Blu-ray players game consoles and last but not least via STBs, although these may take on a new identities such as whole home DVRs, media gateways, etc. 

(more…)

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Meet us at HITEC to Secure Your Entertainment

hitecAccording to MRG, more than 11 million hotel rooms are a target for IPTV applications, indicating that analog is dead in this sector. IP video distribution in this environment has become the most advanced and cost effective technology, with many advantages, including: 

  • Flexibility in wiring infrastructure (CAT5/6, cable or telephone transmission)
  • Fully digital quality distribution and display, including HD support
  • Common components with in-room broadband access
  • True interactive program guide and guest service utility displays
  • Broad choice of middleware, video-on-demand (VOD) and in-room client technologies.  

When combined with earlier release windows that hotels enjoy, IPTV also allows network operators to take advantage of state-of-the-art digital TV security that enables licensing of on-demand content, including and most importantly HD.

Hotels must deal with more stringent content protection requirements to gain access and keep the rights to offer premium movie titles. In fact, the MPAA recently released its 57-page “Content Security Best Practices” document that provides 25 dimensions of content security across three areas. 

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Maintaining Top Position as Global Leader in IPTV Content Protection

MRG logoMRG released its IPTV Market Leader Report and we are pleased that we have maintained our global number one position for the eighth consecutive reporting period. Plus, we remained number one for Europe and Rest of World and was the only company to rank among the top four in each region globally. 

We are very proud of our continued growth in IPTV. We feel we have been able to keep this top spot for several reasons. 1) We have built a very strong partner ecosystem that includes global and regional system integrators, which allows each vendor to focus on what they do best 2) We offer effective security solutions that address changing business needs and gives operators the freedom and flexibility to growth their businesses.

Since launching VCAS 3, what we’re calling the next generation of digital TV security solutions, we have received tremendous response on how we support operators’ “cash registers” that enable them to grow their subscriber base and add revenue streams. We are able to create value for our customers by understanding the complex business issues for multi-screen video delivery and delivering solutions way beyond content protection. 

You can see some examples of this from our library of white papers and other resources.

This recognition also reflects the dedication of our customer care team to respond to the unique needs of our customers. 

Thanks to everyone that has contributed to this noteworthy feat!

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