Evolving into new delivery platforms and business models

Currently, multiple technologies and delivery platforms are being deployed around the world for the delivery of TV and other multimedia content. With hindsight, it becomes clear that the advent of the digital broadcasting era was actually heralded by the development of the digital audio/video compression technologies. It was this technology that made it possible to multiplex a number of TV programmes into a single stream and transmit the same through broadcast channels hitherto used for the transmission of single TV programmes. Thus began a worldwide process of gradual migration from analogue to digital broadcasting and a corresponding demand for more TV content. The formation of the DVB project group, coupled with the resultant family of inter-related digital broadcast standards and their universal acceptance, played a key role in this migration process, leading to a worldwide deployment of digital broadcast networks based on different transmission media such as satellites, cable and terrestrial. 

The digitisation of the broadcast networks also made it possible to deploy processes and technologies developed earlier for use in the computing field. This was possible because once TV signals were converted into digital bit streams, they could easily be processed by computers for various purposes. This led to an important development. The packetised broadcast services could now be arranged into Ethernet frames and then encapsulated into IP packets for distribution over IP networks. Today, IP networks are being increasingly deployed to replace ASI interconnects between equipment in broadcast facilities around the world as it drives low-cost transmission of signals to multiple destinations (multicasting) and ease of signal monitoring, thus laying the foundation for the IP-based distribution platforms.

From one-to-one to one-to-many 

Now let’s look at a corresponding phenomenon occurring in the telecom sector. 

Unlike broadcast networks, telecom networks were meant primarily for establishing one-to-one connectivity. Many of companies started a reverse process of trying to have one-to-many connectivity in their networks, thus launching the telco-broadcast convergence era. Services traditionally provided in one sector began to be provided in other sectors and vice versa, leading to a gradual blurring of boundaries between the two sectors. 

What one witnessed next was a spate of technologies, collectively known as ‘“mobile TV’. Initial offerings of mobile TV over cellular networks worked by converting TV signals into data packets which were then transported over a 2.5 or 3G networks and then delivered in one of three ways—downloaded (push and store), streamed (pre-stored and then streamed) and live streaming. 

At the same time, the broadcast community, on their part, brought out the economical DVB-H/DMB standards, keeping in view the traditional one-to-many broadcast concept, for delivery of multimedia content to a variety of mobile/handheld devices. It is also worth mentioning here that the DVB-H technology provides a very good example of the convergence process in that it uses IP data casting (with multimedia content encapsulated into IP packets addressed to individual mobile devices), delivers this over the terrestrial broadcast path, and uses a cellular network for bidirectional communication between the service provider and the service consumer. However, DVB/DMB technologies were being closely chased by BWA and the 3G networks. For the former, the challenge is in establishing the networks and in incorporating the appropriate front-ends in the mobile devices, while such devices already had inbuilt receivers for 3G and BWA services. 

The thing called internet 

Growth of the internet and broadband is fuelling the concept of internet TV. These technologies aim to deliver content to PCs or internet-connected TVs, using the internet itself or using the internet mechanism. 

The simplest of these being online video, where content is pre-stored on servers and delivered to consumer devices, as streamed files content could be accessed on PCs or on what are known as ‘hybrid STBs’ which are equipped with fully functional web browsers supporting all major formats of internet-delivered video. 

The next one is IPTV which delivers linear television programming to households via a broadband connection using internet protocols and a last-mile access network based on either high-speed digital subscriber lines or a hybrid fibre coaxial cable network. IPTV can be bundled with other services such as VoIP. Although IP connection is used, each subscriber will have a dedicated line and can have full control of functionality such as rewind, pause, fast-forward and so on. The IP networks delivering the services are managed end-to-end to provide the required QOS, security and reliability. 

The popular choice 

As part of a global study on emerging industry trends, respondents were presented with a series of industry trends and asked to indicate their choice of the three topmost priorities in the next few years. The choice of more than 75% of the respondents was “Delivery of content on multiple platforms”. This was followed by the “introduction of HD services” and “IP networking and content delivery” in that order. 

When asked further to explain the reasons for their choice of delivery on multiple platforms as the most important trend, there was a marked contrast between the responses of pay TV broadcasters and those of licence fee-funded broadcasters. Pay TV operators were overwhelmingly concerned with new revenue streams while public broadcasters were interested primarily in ensuring the availability of their branded content on all distribution platforms. Second only to pay TV providers, respondents from the government, education and corporate sectors were also very interested in making their content available on all platforms. 

Given this scenario, it follows that in the coming years broadcasters of all hues will be striving hard to make their content available on all possible platforms to widen their reach and also to seek new revenue streams. The first steps in this direction concentrated on modifying and augmenting existing broadcast infrastructure to make it capable of delivering various new types of value-added services and to reach out to new segments of the population. 

The others 

In India, the evolving digitisation scenario, coupled with HFC network, provides cable operators a tremendous opportunity to transform their business. On an HFC network, the BW used for analogue TV remains untouched. However, the remaining BW is utilized partly for downstream and partly for upstream communication. Part of the D/S channels is used for digital broadcasting and VOD services, and part of it is used as forward path for interactive services, high-speed internet access, VOIP, etc. The latest version of the DOCSIS standard known as video over DOCSIS (VDOC) enables triple-play services over infrastructure used today only for HSD/VOIP services. The triple-play services which could be delivered include: 

1. VOD in unicast mode. 

2. IPTV in multicast mode 

3. Video telephony. 

For CATV operators, evolving standards of DOCSIS bring many more efficiencies that allow better management, smarter use of resources and potentially higher returns on investment. 

Another recent development is what is known as hybrid broadcast broadband television (HbbTV) .This involves broadcasters using a combination of over-the-air (OTA) and internet paths to send coordinated content to internet-connected TVs and STBs. A European consortium is currently operating in concert with DVB under the name HbbTV. A specification has already been developed by ETSI, aiming to deliver broadcast and broadband services to the home through a single-user interface creating an open platform. 

The delivered services include: 

1. Traditional broadcast channels 

2. Catch-up services (TV shows are made available through the internet for a period of days after the original broadcast. The shows are made available by the broadcasters themselves) 

3. VOD, EPG, interactive broadcasting, voting, games, multimedia apps and social networking 

OTT and the disruption in business models 

As is usually the case, all emerging technologies bring in their wake new opportunities as well as new challenges. Let us take a close look at some of these challenges. The converging scenarios bring a great challenge to the content producers; the way content is being produced will have to undergo a paradigm shift. The content that adapts itself to a new platform will be the most successful one and will thus pave the success path for that platform. We all will remember that FIFA 2010 was expected to give a big boost to DVB H-based mobile TV but could not. The reason was not that sport is not the preferred content for mobile devices. But it needs to be customized into small edited capsules keeping in view the smaller screens of the devices. 

Given this scenario, the question as to which technology will ultimately succeed is very difficult to answer. The success of the newer platforms will be highly dependent on the type of content. For example, it does not make sense to deliver a 30-minute episode of a serial for viewing on a mobile phone, but may be a 10-minute edited highlight capsule of ongoing games, local news, information on theatres and hotels, etc. might evoke the interest of viewers on the move. 

An interesting business model that online video has caused is that over the top (OTT) content. It is challenging the licensing and the regulatory norms in any market by creating a new set of business models. The de facto decontrol of the IP networks has allowed the newer players to bypass the regulatory requirement of obtaining a licence, as is prevalent today for setting up a cable or DTH platform, and to reach consumers directly without any intermediary.

 With the continuing growth of the OTT and the likes of hulu.com, wudu.com, etc. gaining more and more popularity, it is estimated that OTT revenues over the next five years will grow to a cumulative of $32 billion, which will be equivalent to the traditional broadcast as the pay TV operators, media and consumer electronics manufacturers will invest in exploring and exploiting the OTT video delivery. 

Currently, free videos make up an overwhelming share of online video traffic, but this may change very soon. The reason for the OTT success lies in its ability to support multiple devices with a single stream, widespread partnerships, global reach and no need to be tied down by any licensing regime or any geographical borders. 

The success of the OTT is heavily dependent on broadband connectivity available and also on the demand for the content. For example, in a country like the US where broadband connections are strong and robust and having more of natives from the far-off countries asking for their native content, OTT is bound to have a growing model. 

Nevertheless, it is also true that we are slowly but surely moving to a ‘TV anytime anywhere’ scenario. The prospects of a marriage of the massive audience delivery of broadcast TV with the holy grail of HTML5 or Flash, an unfettered and fast broadband connection, and an HD screen are all strategic achievements for the distribution platforms and will ultimately help in generating additional ARPU for the same investments. 

Another challenge the newer distribution platforms face is the need to protect the IPR of the content owners. In the emerging scenario, where content is constantly getting easier to obtain, share and stream, the potential for illegal content copies to be accessible free outside the scope of subscription is preventing rights holders, and ultimately consumers, from fully benefiting from the TV Anywhere concept. Securing media content has become paramount for all content and rights holders to help to move forward to sustainable business streams. Content identification technologies, particularly water marking and fingerprinting, etc., are expected to further evolve in the coming years to prevent the illegal access of the content. 

In conclusion, we are on the cusp of an era where our content viewing habits and technologies are being redefined. It is fortunate that we are an active player in this growth. For us in India, the satellite still remains the most economical and viable mechanism to reach out to the masses. But we hope that other platforms move on to the digital and IP soon and our regulators and licensees provide appropriate incentives to facilitate the same.

Source: http://cablequest.org/news/technology-news/item/3492-evolving-into-new-delivery-platforms-and-business-models.htmlSource: http://cablequest.org/news/technology-news/item/3492-evolving-into-new-delivery-platforms-and-business-models.html