Time Warner Cable Tests Live 4K Sports Broadcasts with
Sony�s F55 4K Cameras
- �The Chameleon Camera� Does Cinematography &
Live Broadcasts � All in 4K and at up to 60 fps
- Successful Proof of Concept at Two Live Sporting Events
- Sony Ready to Provide End-to-End 4K Solutions
The technology to broadcast live sports and TV shows in 4K
is here.
Four of Sony�s F55 4K cameras were used in two recent
proof-of-concept tests of 4K broadcasting that Time Warner
Cable and its Time Warner Cable Sports conducted in December
2015. Two live sports events were used for the tests: the
California Interscholastic Federation (CIF) high school
football Division I Championship game and an NBA regular
season game between the Los Angeles Lakers and the Golden
State Warriors.
�These tests successfully demonstrated the practicality
of 4K broadcasts,� said Dan Perry of Sony Electronics.
�Consumer awareness of 4K content is growing, 4K production
and distribution is making incredible progress and Sony is
ready to provide end-to-end 4K solutions.�
Sony calls its F55 the chameleon camera because it
supports both cinematography and live television
broadcasting. It shoots both onboard 4K and 2K/HD. Sony said
the F55 �can change personality depending on the needs of
the project, the day or the individual shot� and will serve
its owners well now and far into the future.
Sony said the F55 camera shoots fast action scenes well �
everything �from stunts and explosions to the fall of a
single raindrop.� It called the F55 �a powerful storytelling
tool.� The frame rates can be set from 1 frame per second
(fps) to the maximum fps in 1 fps increments. It does 60
fps, which is needed for fast action scenes and produces 4K
RAW, XAVC 4K and XAVC HD out of the box. More details about
the camera and a demonstration video are at:
https://pro.sony.com/bbsc/ssr/show-highend/resource.solutions.bbsccms-assets-show-highend-F55.shtml
Sony said the tests used a range of professional 4K
production equipment to simulate aspects of a typical live
broadcast: production, transport to the studio, processing
and final distribution to the home.
Each event was also televised in HD on Time Warner Cable
SportsNet.
The F55 can transmit 4K videos for live broadcasts to
devices as far away as 2,000 meters using SMPTE-standard
fiber cables.
Sony said the tests also used Sony�s PWS-4400 XAVC server
in two different applications:
- As a 4K clip server attached to the MVS switcher,
configured to playback the two 4K signals (key and fill)
required for the logo replays
- To record the 4K program output from the MVS switcher.
While the server is in record mode, it can stream MXF files
directly to an external HDD so that within seconds of the
event�s completion, the MXF file was completely transferred
so production teams didn�t need to wait for data to be
offloaded.
The only thing that owners of UHD TVs need now is for a
pay TV or OTT service to start making live sports in 4K
available. The major OTT services have their 4K
infrastructure in place. The pay TV companies do not. Which
will be first to broadcast live events in 4K? Even more
importantly, which will be doing the majority of it by the
end of the decade?
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Cablecos� Lead in Speed May Be Insurmountable for Telcos
- Do You Want 45 Mbps for $64.95 or 50 Mbps for $49.99?
- Or Maybe 100 Mbps for $69.95 or Even 150 Mbps for $79.99 ?
- Compared to AT&T�s Top Speed of 45 Mbps
By Charles Hall
We have been tracking the broadband and home network
business for over 15 years. Sometimes we have questions that
no one seems to want to answer. Here�s one.
How can telcos afford to deploy VDSL2 Vectoring, G.fast
and other faster broadband technologies when cablecos have
such a lead in speed? For example, Cox Communications
recently doubled my speed from 50 Mbps to 100 Mbps (I
actually average 112 down and 13 up) with no contract and no
increase in monthly rate. Other cablecos are doing something
similar. By comparison AT&T offers a maximum of 18 Mbps at
my address and charged only $5 a month less for 18 Mbps than
Cox charges for 50 Mbps.
AT&T�s Broadband Rate for My Address
Requires 12 month contract
Plan Mbps Monthly rate
Elite 6 $34.95
Max 12 $39.95
Max plus 18 $44.95
Power 45 $64.95
AT&T�s Web page says these prices are after deducting a
$16.05 monthly discount. For details, see: https://www.att.com/shop/internet/u-verse-internet.html#fbid=Qc5s06gfOdG
Cox charges $60 a month for 100 Mbps. It also has less
expensive rates that are slower, for example, 50 Mbps for
$49.95, only $5 more than AT&T charges for 18 Mbps.
Cox is very specific that it�s comparing its rates and
speeds to the telcos DSL broadband. See: http://www.cox.com/residential/internet/speed-test.cox
Here are Cox�s current rates at my address. (All
broadband is local!)
Cox�s Broadband Rate for My Address
Requires 12 month contract
Plan Speed Monthly rate
Internet Essential 5 $34.99
Internet Preferred 50 $49.99
Internet Premier 100 $59.99
Internet Ultimate 150 $79.99
Prices are for 12 months and include cloud storage whose
size depends on the broadband package that is selected.
Warning: Broadband rates vary from locality to locality
even from the same company. They also change somewhat
frequently.
The AT&T and Cox broadband packages shown here do not
require the subscriber to take a pay TV or telephone
subscription.
Is It Worth the Cost?
How much will it cost AT&T and other telcos to upgrade
their copper wire networks to provide 100 Mbps? And by that
time, cablecos such as Cox will already be using the 3.1
version of DOCSIS to offer upwards of 1 Gbps � and more.
We don�t know yet why a residence would need such speeds
but Google and others believe that if you build faster
broadband networks, then the applications that need those
speeds will come.
Can the telcos ever catch up? Although less expensive to
deploy than all-fiber networks, telcos� costs to upgrade to
G.fast will be sizeable because the fiber node in the
neighborhood has to be within 400 meters of the residence,
which increase deployment costs.
The exception to this is telcos that have already
installed all-fiber networks such as Verizon in 70% of its
footprint and others, mostly smaller telcos and independents
such as Google Fiber.
And, can telcos financially justify the upgrades when the
number of their broadband subscribers is heading downward?
And, after they have lost so many landline telephone
subscribers?
And why would a subscriber ever switch back from a
cableco to a telco. My @cox.com address is already in my
email and in the address books of everyone with whom I
exchange email.
AT&T�s CEO Randall Stephenson has said that AT&T is not a
pay TV company and gave that as a reason for buying the very
successful DirecTV. But broadband-based OTT services have
already started causing a decline in the number of pay TV
subscribers. People want to watch when they want and on a
device of their choosing. Satellite TV cannot offer that �
except as a broadband service.
Stephenson said AT&T is a broadband company but we ask
how long that will last with its slow speeds compared to the
cablecos and at their current rate of broadband subscriber
losses. Everyone knows that broadband is the future of
delivering content to the home � even DirecTV whose
currently announced 4K program is only available over a
broadband connection. Will AT&T�s DirecTV become dependent
primarily on the cablecos to deliver its content? Without
massive investment, will AT&T�s current wireline broadband
ever be capable of delivering multiple streams of 4K content
at about 25 Mbps per stream, which is recommended by
Netflix, the leader in delivering 4K over the Net?
AT&T has its own reasons for what it�s doing, some of
which we may never know. One of them that we do know is that
DirecTV plans to launch more satellites so it can beam 4K
directly to subscribers� homes, bypassing wireline
broadband. But that�s a one-way communication and does not
allow the interactivity that many like except over a
wireline broadband connection, which is more likely to be a
cableco�s than not.
AT&T knows it has to leapfrog the cablecos and keep up
with Google Fiber by building all-fiber networks. It is
currently offering its all-fiber U-verse GigaPower broadband
in parts of Austin, Dallas, Ft Worth, Raleigh and
Winston-Salem. Cities in its plans for the future are at:
http://www.att.com/att/gigapowercities
What is hard to understand is how telcos can financially
justify spending billions to build faster wireline broadband
networks in the face of what cablecos have already done and
are continuing to do � faster speeds at about the same
monthly rates, which is definitely a pre-emptive move that�s
targeted at the telcos.
What to Do?
Consumers need more broadband competitors to select
from, not fewer, so they need telcos to prosper in wireline
broadband.
What should telcos do? Hurry! Begin deploying as quickly
and prudently as possible whatever combination of advanced
wireline broadband technologies that best fits their various
geographies and network infrastructure. There�s a big
difference between what to install in sparsely populated
areas, in suburban areas and densely populated cities.
Telcos have a wide variety of broadband technologies to
select from: cellular, VDSL2 vectoring, G.fast, FTTdp Vinax
and FTTdp Vplus. But the cablecos aren�t waiting for the
telcos. They are moving briskly ahead in deploying faster
broadband and keeping prices low.
There�s a lot of talk about using cellular networks in
the future to deliver content but so far those cellular
broadband technologies have limitations in terms of capacity
and the ability to provide consistent bandwidth that�s
capable of delivering multiple flicker-free video streams.
AT&T and Verizon seem particularly intent on using cellular
networks in the future to augment and/or replace some of
their copper wire networks.
It took cablecos too many years to start aggressively
advertising their superiority in broadband speed. But they
are doing that now � often even specifically referring to
�DSL� as if it�s a dirty word. They�re not likely to ease up
now that they have a sizeable technological lead. If
anything cablecos should ramp up their broadband marketing
efforts while they have a sizeable speed superiority that
consumers can easily see and now that consumers are becoming
increasingly fans of OTT service and, soon, UHD TVs.
The sun is shining on the cablecos and their broadband
network. Now is the time for cablecos to make hay!
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The
Days of Pricey Cellular Service Are Ending
Who says big price decreases can�t unexpectedly occur in any
industry? Oil prices are down over about 50% in the last
year. In some States gasoline prices are as low as $1.50 per
gallon, down from well over $3 a gallon.
There is a major revolution taking place in the consumer
cellular industry. One part involves pricing, one part
involves eliminating the requirement for a contract and the
third involves the move to Wi-Fi delivered phone calls and
Internet connections when the subscriber is away from home.
Following in the trail originally blazed by T-Mobile USA
and then followed by Sprint, Verizon and AT&T, which have
quietly started offering no-contract plans at reasonable
monthly rates. The terms are strictly month-to-month. The
subscriber buys the phone. Here for examples are prices and
rates for the pre-paid service from Verizon, the US� largest
cellco.
1. Phone Prices:
Verizon offers a number of phones at: http://www.verizonwireless.com/prepaid/smartphone-plans
Examples of current prices are:
Model Price in dollars
Samsung Gusto, a basic flip phone $50
iPhone 4 $100
iPhone 4S $150
iPhone 5S $550
Samsung Galaxy S5 White $600
There is no activation fee. Walmart offers the same Samsung
Gusto for $12.99 but Verizon charges $35 to activate it.
2. Monthly Rates:
Verizon charges $45 a month for:
- Unlimited talk time, text and picture messaging in the US
- 1GB of data and additional data is available for a fee
with a 90-day carry over
T-Mobile USA has typically kept its monthly rates lower than
Verizon�s and offered more free monthly data.
3. Free public access Wi-Fi:
Free Wi-Fi hotspots are increasingly available. For example,
the cablecos in the States have banded together a
near-nationwide archipelago of Wi-Fi hotspots that are free
to all of their subscribers. Cellular customers can of
course connect free to the Wi-Fi in their homes and offices
plus most hotels, coffee shops and many stores.
This change has already taken place in France where Free
took the lead in reducing monthly rates and eliminating
onerous contract terms by creating a network of cells and
Wi-Fi hotspots. See: http://techcrunch.com/2012/09/03/how-the-telecom-company-free-disrupted-the-mobile-landscape-in-france
The change has recently started in the UK and has now
come to the States.
US cellular companies that once boosted big profit
margins have started struggling with the latest trend.
The move benefits content companies who will find their
audience can spend less on delivery and more on content.
These trends in the cellular industry may not have as big
an impact as the recent decline in oil prices is having on
consumers and oil companies but declining cellular rates
will keep money in consumers� wallets and purses � and bring
some angst to the bottom lines of Verizon and AT&T.
There�s No Free Lunch
Tim Hoettges, the chairman of Deutsche Telekom (DT), which
owns two-thirds of T-Mobile USA, this week warned that
T-Mobile�s gains in the United States are short term and
that it needs greater scale in the US to compete against
AT&T and Verizon. The FCC recently rejected a bid by Sprint
to acquire T-Mobile USA because it reduced the number of
major cellular services. Hoettges is particularly concerned
about being financially able to bid for more spectrum
against AT&T, Verizon and Sprint, which have greater
financial resources. He estimated that T-Mobile USA needs to
invest between $4 billion and $5 billion each year just to
keep up. T-Mobile USA is not exactly a money spinner. It
lost $94 million on revenue of $7.4 billion.
DT may not be able to let T-Mobile USA continue its
aggressive marketing approach for long, but the horse has
left the barn. It�s not just that cellular services cost
consumers less, it�s also the threat of free Wi-Fi that�s
pressuring cellular rates.
Wouldn�t it be good for consumers if there were, like in
cellular, a similar situation in wireline broadband:
- 4 major nationwide competitors instead of two � the
cableco and the telco
- Lots of local cellular services
- Third party resellers such as Walmart who sell services
that use other companies� networks
- A free or near free wireless service such as the one that
Elon Musk is planning for his SpaceX, in which the broadband
addict Google is thinking about investing $1 billion.
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Intel�s Black Hole:
Mobile
Mobile chips continue to create a black hole in Intel�s
finances, which reported an operating loss of $4.21bn for
2014, in otherwise solid results, according to Wireless
Watch. Although Intel, for the first time, can claim to be a
credible mobile processor vendor, it has spent billions of
dollars in acquisitions, R&D, subsidies and losses to get
there, and is still tiny compared to Qualcomm (it sold 46
million mobile SoCs last year, according to its filings).
Its use of subsidies to boost its tablet market share meant
that the mobile division made negative sales in the fourth
quarter of 2014, as well as a loss which would have wiped
out the total profits of most rivals - all of them except
Qualcomm and TSMC, according to Bloomberg.
For the complete analysis of Intel�s earnings, please email
[email protected]
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Four Trends that Are Driving the Digital Media Industry
1. Sales of UHD TVs will surprise even the most
optimistic forecasts because they are now priced for the
mass market. As a result, broadband-delivered 4K content
will begin blipping upwards in 2015 for the first time at
broadband companies. That�s even though there is very little
4K content available � it is probably less than one-tenth of
all content that�s available to consumers.
2. Telcos are beginning to deploy next-generation DSL
broadband technologies such as VDSL2 vectoring, G.fast and
other FTTdp (distribution points) that, they hope, will help
them compete against cablecos� faster DOCSIS technology �
and, unlike all-fiber networks, at prices telcos can
justify. Cablecos are raising the hurdle for telcos by
offering faster speeds at little of no increase in monthly
rates.
3. The declines that are already well underway in the
monthly rates for mobile phones and tablets will begin
impacting the bottom lines of cellcos � down � and content
owners � up.
4. Pay TV companies will accelerate their efforts at
offering a) 4K content and b) OTT services. Sports may prove
to be a differentiator compared to OTT services.
Words Matter
We use the terms telco and cableco rather than carrier to
specifically differentiate them and their very different
broadband technologies.
We once called for them both to be called �digital service
providers� but the differences in their broadband and pay TV
technologies are too great for that:
- Cableco: entirely with fiber-to-a-neighborhood node (FTTN)
and copper wire (coax) from node to home
- Telcos: mostly with copper-wired based DSL broadband and
transitioning to some type of fiber to a node (FTTN) in the
neighborhood and from there to the home over existing copper
telephone wires. They are technologies such as VDSL2
vectoring, G.fast or FTTdp (distribution point) for the
existing copper wire connection to the residence.
Then there are two types of FTTH service providers:
- Telcos that have built all FTTH networks in all or some of
their footprint such as Verizon, which has FTTH in 70% of it
footprint
- Fibercos: (a new term) that have built FTTH from the
ground up such as Google Fiber or local utilities.
Comments? Email
[email protected]
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ULTRA HIGH
DEFINITION (UHD)
Four Words for the 4K Naysayers: 4K Is Not 3D!
4K is not 3D. 3D TVs needed 3D content. That�s not true
for UHD TVs that upconvert lower resolutions to near 4K
quality. 3D TVs didn�t upconvert non-3D content to 3D. The
viewer needed special 3D glasses to watch 3D TVs. There are
no 4K glasses. 3D required scenes to be shot simultaneously
with multiple cameras. That�s not true for 4K so productions
costs will be less for 4K than 3D.
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Sony Bulks up
Its UHD TVs for 2015
Sony wasn�t nearly as active during 2014 in the
under-$2,000 UHD market, not nearly as much as Samsung, LG
and Vizio. That remained true at CES. However, Sony was
active at CES in launching new and better UHD TVs as well as
4K capable cameras plus a line of Hi-Res �high resolution�
audio products. At CES Sony announced:
1. 11 new 4K Bravia LCD TVs in three series that will
come to market in 2015. It will include the world�s thinnest
series of TVs (approximately 4.9 mm at their thinnest point)
and the first with Hi-Res capable speakers.
2. Sony is using its X1 4K Processor to upconvert non-4K
content to near 4K and to enhance native 4K content. The UHD
TVs continue to have the H.265/HEVC (High Efficiency Video
Coding) video compression technology, which is needed to
decompress 4K streams. For the first time the TVs also
support Google�s VP9 format, which YouTube uses.
3. All Sony�s UHD and other smart TVs will use Android
operating system to increase cross-functionality between TV
and mobile devices. Sony is going against a trend. Its two
major rivals are using their own OS � Samsung its Tizen and
LG its WebOS. Vizio, its other major rival in the States is
like Sony using Android.
4. Sony says its One-Flick Entertainment interface
�provides a unique user experience with intuitive
flick-operation via touchpad remote to access a library of
content just a flick away.�
5. Sony said it�s bringing �a new level of 4K technology
to its digital imaging line� such as the new 4K capable
Action Cam model, a wearable that competes against the GoPro
models. Sony�s new 4K-capable Handycam camcorder is 30%
smaller and 20% lighter than the current model and has
Sony�s proprietary Balanced Optical SteadyShot technology.
6. Sony is plowing old ground and planting new crops in
audio. Its new Hi-Res line of products provides �superior
listening from inside the home to on-the-go.� There are 10
new devices including a high-end Hi-Res Walkman, headphones,
wireless speakers, home theater systems and multi-channel
integrated amplifiers.
7. Sony�s new LDAC codec technology compresses audio
files so they can transmit approximately 3 times the amount
of audio data as is currently possible with existing
technologies. That means users can listen to higher quality
music wirelessly over Bluetooth. Sony�s SongPal Link
feature, which is in the new products, enables simultaneous
audio playback through multiple connected devices.
8. Sony showed a number of SmartWear devices and
services.
9. Sony showed products in its Life Space UX concept,
including a 4K Ultra Short Throw Projector that can be
placed at the foot of a wall to �transform the entire wall
into a life-size window into another world with an expansive
147 inch image that boasts four times the clarity of Full
HD.� It plans to release a tiny Portable Ultra Short Throw
�approximately 10 cm per side � that can project a 50 inch
image on any wall in the home.
10. There were three models of its Symphonic Light, an
audio-emitting light fixture �that can fill a room with
crystal clear sound.� It also introduced a bulb-shaped
speaker that�s also a light bulb.
Sony�s UHD TV strategy appears to be aimed at the
high-end � UHD sets selling for $2,000 and up. That�s where
margins are best. It avoids the �race-to-the-bottom� in
which Samsung, LG and, in the States, Vizio are involved and
in which Chinese set makers such as Seiki Digital, TCL,
Haier, Skyworth and Hisense are expected to make a dent � a
very big dent if they can overcome their upconversion
shortcomings. But Sony may be the least impacted by the
low-end newcomers.
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DivX,
Altech Emphasize OTT in New 4K STBs
-Due Out Mid 2015
Altech Multimedia, a set-top box making division of
Allied Technologies Limited, will integrate DivX�s HEVC
technology into its new line of STBs, making them capable of
receiving and playing 4K video.
Both Altech and DivX emphasized streaming video in their
respective announcements about the 4K STBs. �[Altech�s]
investment in our technology shows pay TV operators, OTT
providers and even traditional service providers that DivX
can enable their premium entertainment services on virtually
any screen,� said DivX president and CEO Kanaan Jemili.
�We are prepared with best-in-class solutions�both AVC
and HEVC�for premium over-the-top video services,� said
Marco Caputo, Altech�s VP of sales and marketing.
Altech�s UHD STBs will use Broadcom�s BCM 7252, which
supports 4K resolution playback at 60 frames per second. The
STBs will appear in mid-2015. Altech�s STBs are used by
digital broadcasters across China, Australia, South Africa
and India. The 4K- capable STBs will be made available both
through retailers and service providers.
DivX was acquired earlier this year by NeuLion, an OTT
solution provider. A representative told The Online Reporter
at CES that NeuLion is developing UHD OTT solutions for
content owners, which was partly impetus for the company to
acquire DivX. �The transaction will place the combined
company at the forefront of the global shift to 4K video and
over-the-top services in the fast-growing online video
market,� the company said about the acquisition. NeuLion�s
OTT solutions are used by sports leagues NHL, NFL, NBA and
UFC, pay TV provider Rogers and CCTV.
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Fire up That New UHD TV or JVC Projector: UltraFlix Adds 11
More 4K Movies
- JVC Signs up for Its 4K Home Theater Projectors
You can argue about whether NanoTech Entertainment�s
UltraFlix offers the largest selection of blockbuster 4K
content but you can�t argue about whether it has the most -
because it does, and it�s getting better.
NanoTech has signed a global licensing deal with Crystal
Sky Pictures for 11 new titles for its UltraFlix UHD OTT
service. NanoTech�s 4K Studios is in the process of scanning
and uploading the films for what it calls an �immersive 4K
viewing.�
So get one of those new-fangled UHD TVs or, even better,
one of JVC�s home theater 4K projectors and start watching
some flicks with Jon Voight, Meat Loaf, Madeline Kahn and
Michelle Pfeiffer. The new titles include:
- �Baby Geniuses 5,� a live-action/animation movie with Jon
Voight and Skyler Shaye
- �The Final Song,� a romantic comedy with Bonnie Paul and
John O Nelson
- �Falling in Love Again,� a romantic comedy with Michelle
Pfeiffer and Elliott Gould
- �Slapstick of Another Kind,� an American comic science
fiction film starring Jerry Lewis, Madeline Kahn and Marty
Feldman
- �Absolute Killers (aka Witness Insecurity, aka Snitch),�
with Edward Furlong and Meat Loaf
- �Deadly Lessons,� a murder mystery with a twist staring
Jon Voight
- �Tekken 2 Kazuya�s Revenge� is based on the bestselling
videogame franchise from Namco and stars Kane Kosugi, Cary
Tagawa
- �Baby Geniuses 4� with Jon Voight, Skyler Shaye
- �Chavez Cage of Glory, a sports drama with Hector
Echavarria and Danny Trejo
- �Beyond,� a supernatural thriller with Jon Voight, Teri
Polo, and Dermot Mulroney
- �Pizza Man,� an action-packed superhero comedy starring
Frankie Muniz and Stan Lee
NanoTech Lands JVC for 4K Home Theater Projectors
NanoTech this week said it has a deal with JVC (JVCKENWOOD
USA Corporation), under which some distributors of JVC home
theater projectors will show in their showrooms� NanoTech�s
Nuvola NP-1 4K Media Player and UltraFlix 4K OTT service,
which comes preinstalled on the NP-1 player. Because the
NP-1 player uses the Android operating system, users also
get access to Webs sites and to thousands of video games and
apps from Nvidia�s Tegra Zone and the Google�s Play Store.
JVC distributors� showrooms are used for dealer trainings
and to provide integrators with a place to bring prospective
customers for demos.
JVC�s projectors have its 4K e-shift3 technology that
accepts Native 4K 60P through their 4K-capable HDMI inputs
and up-converts existing 1080P sources to 4K precision.
UltraFlix is now up to more than 500 hours of �pristine�
content, including 25 made-for-IMAX theatrical titles, 50
superstar concerts and a wide selection of action/thriller,
comedy, drama and family movies as well as breath-taking
extreme sports videos, TV shows and 100 hours of dazzling
free content.
�One of the biggest issues facing the 4K projector market
has been a lack of available content,� said Roger West at
JVC. �With NanoTech�s Nuvola NP-1 and UltraFlix able to
bring more than 500 hours of 4K Ultra HD content to our D-ILA
4K Projector customers distributors, the availability of 4K
content is no longer an issue. That creates a compelling
value proposition for the JVC distributors we�re targeting
with this special offer as well as their dealers and their
dealers� customers.�
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Pay TV Has Peaked
- What Media Companies Are Doing about It
Pay TV has hit its peak, The Online Reporter recently
reported, after several major pay TV channels said they�d
begin offering OTT services. Leichtman Research has
confirmed what we said in that article and in a new report
called �Welcome to the Internet TV Era.� Leichtman reported
that the 13 largest US pay TV providers lost almost 150,000
pay TV subscribers in 2014�s fourth quarter.
�Welcome to the Internet TV Era� explains why and how
mainstream media companies such as CBS, Disney, Time Warner
and Viacom are in a rush to launch Over-the-Top services
that�ll compete against Netflix and other OTT services � in
addition to and/or as replacements for their pay TV
channels.
The report is a to-the-point executive Briefing Paper for
executives and managers. It describes the state of the media
industry and reveals what media companies are doing. It was
prepared by The Online Reporter.
The topics are:
- Yes, We�ve Reached Peak Pay TV
- The Rise of Broadband-Delivered Services and Web Video
- Emerging Viewing Patterns and the Role of the Millennials
- Legal Issues: Net Neutrality and the Meaning of MVPD
- Conclusion: The Future Entertainment Landscape
The price of the report is $295 for a single reader.
Multi-reader rates are available. Details, prices and
purchase at:
http://www.onlinereporter.com/research-reports/welcome-to-the-internet-tv-era-report
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OTT
Amazon, Netflix and the New Movie Business
-SVoD Services Threaten Film Economics
Movie theaters may become collateral damage as the
Internet TV era gets underway. Studios have experimented
with straight-to-digital releases over the past few years,
but recent events have brought more bite to the prospect of
the digital film premiere.
�I�m excited about the changes that are happening in
digital distribution, and the falling costs of
distribution,� said John Calkins, president of programming
at US theater chain AMC Entertainment. �Digital brings a
flood of content production and access to consumers.�
Calkins was speaking on a panel about multi-platform
consumers. He pointed to Netflix�s upcoming film releases
and a recent announcement to show a handful of episodes of
HBO�s �Game of Thrones� on IMAX screens as indications that
the multi-platform nature of consumers� entertainment
behaviors are affecting the theaters as much as, say, the
pay TV providers. There are other examples he could have
mentioned: Sony�s �The Interview� or Spike Lee�s latest film
�Da Sweet Blood of Jesus,� which will debut on Vimeo before
its theatrical debut.
Internet TV services are flipping the theatrical window
release paradigm on its head, Calkins said. SVoD services
such as Netflix and Amazon have been typically at the end of
a film�s release life cycle. The head of that cycle has been
the theaters, followed by purchase to own and pay TV VoD,
then rentals, then syndication on TV and SVoD services.
�Today, the roll of the theaters in the ecosystem is
setting up downstream value, whether its home entertainment
type stocking decisions for DVDs � how big was this title? �
or directly influencing the pricing of a pay TV contract,�
Calkins said.
Digital and online outlets have been making their way up
the chain for a few years now � punctuated by SVoD services
in 2015 wanting to be at the top of the ladder of film
distribution, and getting there by commissioning and
releasing their own, original titles.
But as the windows between theatrical release and
streaming video continue to shorten, or are even skipped
altogether, it�s unclear how the economics of film
production and distribution will be affected. �It�s one of
the reasons why thinking about exhibitions [theaters] as
windows evolve is so tricky,� Calkins said. �When you run
the math, the couple that goes to the movies sets up for the
studio roughly $25 of value in the downstream windows. It�s
hard to migrate that to another platform.�
Back to
Headlines
Sony�s Online
Release Hits $40m
Sony Pictures� doomed comedy �The Interview� has now
generated over $40 million in revenue from online sales and
on-demand rentals, making it a huge success by digital
release standards, and a surprising turn-around for the film
that most thought was doomed.
The film has been rented or purchased over 5.8 million
times between its release December 24 and January 18. The
film is available on YouTube and Google Play, Apple�s
iTunes, Xbox Video and PlayStation, and through many pay TV
on-demand platforms.
Despite its online success, some industry members, such
as Patrick Corcoran, VP of the National Association of
Theatre Owners, predict Sony will still lose money on the
film, which cost around $44 million to make, and another $30
million spent in marketing. Still, the film is on track to
become the most successful online launch. The current record
holder is �Bridesmaids� a comedy that made $40 million
online in 2012.
After its brief exclusivity as a digital download and
rental, the film has already moved into the SVoD window �
the precise issue about which Calkins warned audience
members at CES. Netflix will begin streaming the film this
weekend, and Sony has said �The Interview� will appear on
its ad-supported OTT service, Crackle, sometime down the
road.
We don�t know how much Netflix paid for rights to the
film, and we don�t know why Starz � which was an output deal
in place with Sony � released �The Interview� from that
contract, but the film is unlikely to break even on its $74
million price tag, as it is already moving to other less
lucrative platforms.
Back to
Headlines
Internet TV Services Look to Disrupt Movie Biz
Netflix is already an exclusive distributor of
award-winning documentary films � see �Virunga� � and
beginning in 2015, it will also become an exclusive
distributor of entertainment films. Netflix will release the
sequel to �Crouching Tiger, Hidden Dragon� and four
as-of-yet unnamed Adam Sandler pictures.
Amazon announced this week it too will begin releasing
original films in 2015. �Our goal is to create close to
twelve movies a year with production starting later this
year,� said Roy Price, VP of Amazon Studios. �Not only will
we bring Prime Instant Video customers exciting, unique, and
exclusive films soon after a movie�s theatrical run, but we
hope this program will also benefit filmmakers, who too
often struggle to mount fresh and daring stories that
deserve an audience.�
While Netflix�s announcement irked theater chains,
because Netflix wants to release its films on its SVoD
service as well as in IMAX theaters, Amazon instead said it
wants to give its films an exclusive four-to-eight week
period in the theaters, before releasing the titles on its
streaming Prime service.
�Amazon has raised the bar with productions in the
episodic realm, tackling bold material in unique ways and
collaborating with top talent, both established and
emerging,� the company said. �Amazon Original Movies will be
synonymous with films that amaze, excite, and move our fans,
wherever customers watch.�
It�s unclear if either Amazon�s or Netflix�s films will
be available to rent or purchase � perhaps on platforms such
as iTunes or Google Play � or if the OTT services will
prefer to compel viewers to subscribe to access the films.
It�s hard to believe such films will be able to generate
anywhere near the amount of revenue they do in the
traditional window model.
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Headlines
NBCUniversal�s Burgeoning Digital Empire
-The Live News Internet Channel
-A Niche Subscription OTT
-And Now, Digital Ratings Beyond Nielsen
NBCUniversal is getting its digital ducks in a row in
2015. First, it launched an online-only live news service,
called Shift by MSNBC. Then, it launched its first
niche-targeted subscription OTT service, Radius. Networks
CNBC and NBC both announced they are using non-Nielsen
metrics to measure their respective digital audiences; and
NBC is showcasing its TV Everywhere platform with a �Super
Streaming Sunday� event that coincides with the Super Bowl.
There�s no question NBCUniversal has seen the writing on the
wall, and is positioning itself to become a leader in the
Internet TV evolution.
�The ecosystem of transacting media and reaching
audiences, has been generally the same ecosystem for
probably fifty, sixty, seventy years,� Scott Schiller,
NBCUniversal�s EVP of digital advertising sales, said during
a panel discussion at CES. �The ecosystem is looking for
content and distribution, as you look forward at 2015 and
beyond.�
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Headlines
Embracing Online Platforms and Distribution for Live
Streaming News
National network news is in a period of transition, as
consumers increasingly look to computer screens and mobile
phones for breaking news and instant updates. NBC�s response
to this reality includes putting live news online, through
its TV-on-the-Internet service launched late last year
called Shift by MSNBC, and its Breaking News app, which was
the result of an acquisition back in 2007, and is now part
of the NBC Digital News Network.
Shift by MSNBC launched in December 2014. The Internet
channel offers a network news-like experience online, with
original content and anchors exclusive to the site. The
live, online broadcasts occur weekdays 9 am to 4 pm, and
loops of programming Web-air during the �off� hours. MSNBC
is debuting 14 new programs on the Internet channel
targeting younger, more tech-savvy viewers.
The Breaking News app, which is available for iOS,
Android and Window Phone devices, initially offered text and
clips of video, but last week, NBC incorporated live
streaming video into the app feed for the first time. The
live stream feed feature has been added to iOS versions of
the app, and an Android update is forthcoming.
NBC is hoping to offer live streams of events throughout
the day, whether sports, protests, political speeches or
late-breaking press conferences. The app sends push
notifications to viewers when a live streaming event is
about to begin. The Breaking News app aims to live stream
primary source video of events, without anchor coverage.
Most of the live streamed content will come directly from
NBC, but other sources will be used, too, such as NBC�s
StringWire app, which highlights video shot by viewers in
areas where breaking news stories are developing.
Back to
Headlines
More Streaming
for TVE Platform
On the pay TV front, NBC launched its TVE ad campaign,
whose slogan reads �watch TV without the TV,� and the
company is now promoting its new TV Everywhere platform with
�Super Stream Sunday.� The streaming event, to be held on
February 1, will see 11 hours of NBC programming live
streamed over the Internet, including the mid-season episode
of �The Blacklist,� and of course the Super Bowl American
football match � including the pre-game and post-game
coverage, and the halftime show. The promotion will give
viewers the ability to stream TV content to PCs and mobile
devices without having to provide pay TV authentication.
�We are leveraging the massive digital reach of the Super
Bowl to help raise overall awareness of TV Everywhere by
allowing consumers to explore our vast TVE offering with
this special one-day-only access,� the company said. The
one-day-only access refers to the fact that viewers won�t
need to sign into the app via their pay TV logins. The
messaging here is clear: NBC is online.
Focuses on Digital Measurements, Too
The final part of its digital strategy includes updating
measurements for off-TV viewing. This week, NBC announced a
new program it is championing that will release digital
�ratings� of its shows, based on viewing that occurs on
mobile devices, tablets, PCs, game consoles, net-top boxes (NTBs),
smart TVs, VoD platforms after four days and DVR platforms
after seven days. The ratings will include out-of-the-home
viewing, an important and growing area of video
entertainment consumption that Nielsen cannot measure. Alan
Wurtzel, NBCUniversal�s president of research and media
development, said in a recent presentation NBCUniversal is
investing in digital measurements because it�s predicting
its online audiences will grow significantly in the coming
months.
Back to
Headlines
Nielsen
Doesn�t Have Many Fans at CES
-Content Owners Are Looking for New Ratings Systems to
Capture Expanding Online Audience
NBCUniversal is the first to move out of the
world-as-dictated-by-Nielsen. CNBC announced it will no
longer use Nielsen ratings for its daytime TV programming.
CNBC will instead use research from Cogent Reports to
determine its ratings. That�s only for the daytime
programming, which CNBC says viewers watch in places outside
the home such as at the office, and on devices other than
the TV set. CNBC will continue to rely on Nielsen ratings
for its evening programs, which viewers likely watch on
their home TV sets. CNBC�s daytime ratings had suffered the
past few months, which was no was impetus for the network to
ditch Nielsen.
NBC will also release what it�s calling a digital ratings
program for its prime time shows. The program will include
data measured across platforms and devices such as tablets,
smartphones, PCs, game consoles, NTBs, smart TV platforms,
pay TV VoD platforms after four days and DVR platforms after
seven days. It will include out-of-home viewing, which
Nielsen isn�t really able to offer at this point. NBC is
using data from Nielsen, Rentrak, Omniture, Hulu and other
sources to compile the ratings.
NBC pointed to a number of its shows that will benefit
from the expanded view of audiences. For example, �The
Blacklist� ratings for viewers aged 18-49 jumped 70% when
seven days of time-shifted viewing are counted; �Parks and
Recreation� ratings more than doubles when more time-shifted
viewing is included, as does �Constantine.�
Much of the network�s growth going forward will be in the
digital space, said NBCUniversal�s president of research and
media development Alan Wurtzel, in a presentation about the
new digital ratings system, which he gave at the Television
Critics Association.
Those sentiments were echoed at CES, where content owners
consistently pointed to lack of measurements as one of the
largest obstacles facing the TV industry. It�s only
compounding the other issues facing content owners and
distributors, such as the migration to Internet TV,
predilections to multi-task while watching TV, and a growing
emphasis across demographics to watch TV shows on-demand and
off the TV set.
�Measurement is the biggest problem facing the industry
today,� said Lisa Hsia, EVP of digital at Bravo and Oxygen
Media, which is part of NBCUniversal. Hsai was speaking on a
panel about the future of TV at CES. �I think that people
writing in little books what they watch is archaic, and it�s
not measuring content across platforms.�
NBC isn�t the only network upset with Nielsen. Viacom,
whose pay TV content targets viewers that don�t spend much
time nowadays watching linear TV, has made similar threats
to drop Nielsen after its ratings tumbled last year. �We are
in a transitional moment with existing measurement services
that have not caught up to the marketplace,� said Viacom CEO
Philippe Dauman, during an analyst call. �They are trying to
catch up. I am sure they will eventually catch up. In the
meantime, we are not waiting for that.�
�Measurement systems are antiquated and we have to do
things that are very different,� said CBS� Les Moonves,
giving a keynote address at CES. He said overnight ratings
�are useless,� and that �the idea of success or failure is
very different now,� than during earlier periods in TV�s
history.
Back to
Headlines
Linear TV Misses Out on Data from Digital Platforms
The issue isn�t just about accurately measuring audiences
outside the live linear broadcast, but about capturing more
data about those viewers, which in turn will help networks
make programming decisions, and will help advertisers
campaign more effectively.
�You have to have the data,� said Hsai. �Companies that
started digital-only have a huge advantage over us. Facebook
is able to serve exact ads to exact people, and TV�s not
built that way.�
Starz�s chief revenue officer, Michael Thornton, agreed.
�Coming from a broadcast mentality, we�re in such a bad
position, relative to the Netflixes of the world,� he said.
Netflix knows exactly who is watching what, and how they
are watching it. All of Netflix�s viewership is tracked and
measured, across all platforms and devices. �Starz Play, our
HBO Go-type product, gives us that information, but it�s
still such a small segment of the population, it�s really
hard to track and figure out what�s going on with our
viewers,� Thornton said. That�s especially true when content
is available across TV Everywhere platforms and SVoD
services, and available on devices inside the home and
outside the home.
�It�s one of the biggest issues that we face and are
working on,� added John Mantell, VP of digital products and
video at CBS Interactive. �We�re trying to very actively
bridge that gap [between Nielsen ratings and measurements].
We�re still held back by some of the traditional processes
to measure audiences.�
Back to
Headlines
Watch
Out Nielsen, Google Is Coming for You
As data about viewers and their viewing habits becomes more
important in the TV industry, is it any wonder that data
king Google may have something to say about it?
�At Google, a big focus at the organization is around
enabling premium broadcasters to be able to deliver and
monetize their audiences across any screen, being able to do
that across live and linear programming, or VoD programming
across any screen,� said Jeff Clark, head of video platforms
and monetization at Google, speaking on the same panel at
CES. He said data is now a piece of pay TV content
negotiations. �Data is the new currency in our industry.
Having standardization is key. The transition from linear
television measurement to digital television measurement is
key.�
Clark said Google wants to lead as �an enabler for
programmitc television,� both linear and
digitally-delivered. �It�s a huge focus for us,� he said.
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Headlines
Hotel Rooms, Now With
OTT!
Remember when motels advertised in neon tube lights that
they rooms they offered had cable TV? Marriott International
is currently testing a new program that brings Internet TV
services such as Netflix, Hulu and Pandora to room TV sets
for guests to stream. The program is available in eight
hotels around the world. �We have invited leading technology
companies and content providers to work with us to design
the next wave in in-room entertainment focusing on on-demand
programming,� said John Wolf, a spokesman for Marriott. The
company plans to monetize the additional entertainment
offerings.
There�s only one problem with this idea � and it�s a big
one. Hotels and motels are known for having particularly
atrocious Internet speeds and networks in each room � at
least in the States. Wouldn�t it be better if Marriott and
its cohorts invested more on delivering useable Internet
experiences to guests in their rooms � where they could
easily access their own SVoD or TV Everywhere services!?
Back to
Headlines
2015 Is the Age of OTT
�2015 is set to be the year of OTT. Along with the new
services from CBS, HBO, and Dish, we expect several other
players to launch or announce services in the US market in
the next few months. Others are expanding their OTT
offerings in order to reach customers both in their home
markets and expatriates that want to watch programs from
home. This shift to the use of OTT on the TV screen will
impact the entire ecosystem, including pay TV providers,
broadcasters, cable networks, and advertisers. Everyone will
need to adjust to a new way of doing business.� � Brett
Sappington, director of research at Parks Associates. See:
http://www.fiercecable.com/press-releases/parks-associates-seventeen-percent-us-broadband-households-are-likely-subsc
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Headlines
YouTube Challenger Vessel Makes Entrance in Beta
Vessel is the latest online video network to hit the Web.
It comes from Jason Kilar, founder and former CEO of Hulu
and before that, longtime Amazon executive.
Kilar resigned his position at Hulu in 2013, when it
became clear the OTT services� broadcast owners had a
different vision for the company than Kilar. Since then,
Kilar and business partner Richard Tom have been working on
Vessel, which is somewhere in between Hulu and YouTube. The
service is both ad-supported and subscription-supported. The
service promises premium online video � things more like the
digital series �H+� than the bedroom confessionals.
The service is currently available on browsers and iOS
devices, with an Android app coming soon. Vessel costs $2.99
per month, but there is also an ad-supported service. For
$2.99, the viewer gets access to videos 72 hours before
those videos appear anywhere else. The free version gives
viewers access to videos that are no longer exclusive to the
platform, and will appear 72 hours after their initial
upload.
Vessel�s tagline is �Watch your favorites here first.�
�We are building the Web�s first window,� Kilar told
Businessweek. �Early access is very valuable and works well
for consumers and creators alike.�
Vessel has an uphill battle ahead of itself. As an online
video network, its business model requires scale, which
means Vessel needs lots and lots of viewers. It must compete
with YouTube, which has become a go-to destination in the
destination-less Web, and it must convince viewers to pay
$2.99 per month to watch videos on Vessel that will later
likely appear for free on YouTube.
Kilar must have hope that audiences will follow the
content, and thusly the content creators. That�s why it has
made its platform particularly attractive to YouTube�s
content creators. Vessel is offering a very competitive
70-30 revenue split, which favors the creators over the
55-45 split YouTube offers (meaning YouTube keeps 45% of ad
revenue). As for the subscription revenue, Vessel plans to
keep 40% for itself, and split the remaining 60% amongst the
content creators.
So far, Vessel has attracted a handful of content
creators, including Tastemade, Jack Vale, Epic Meal Time,
Ingrid Nilsen and Connor Franta � all of whom cut their
teeth on YouTube. Vessel has also signed up some large media
brands for content, including A&E, Sports Illustrated,
Entertainment Weekly and Warner Music.
For its ad-supported service, Vessel has signed up brand
advertisers such as Chevy, Corona Extra, Land Rover, Jaguar,
Frito-Lay and Unilever�s Axe, Dove, Suave and St. Ives.
Back to
Headlines
�Internet TV Is Growing Globally and Netflix Is Leading the
Charge�
-Now Has 57m Global Subs
- Will debut 320 Hours of Original Content This Year
Netflix added 4.3 million new subscribers in the last
quarter of 2014, to bring its total global subscriber count
to 57.4 million. �Internet TV is growing globally and
Netflix is leading the charge,� the company boldly declared
in its quarter report. �It is increasingly clear that
virtually all entertainment video will be Internet video in
the future.�
Netflix�s efforts in expanding into new markets around
the world are bearing fruit. Its international sub gains
outpaced its own forecasts to reach 18.28 million total. It
gained 2.43 million in the last quarter. Netflix launched in
six new markets in 2014: France, Germany, Austria,
Switzerland, Belgium and Luxembourg.
On the US front, Netflix�s subscriber growth was down in
Q4 compared to the year-ago quarter. Netflix added 1.9
million subscribers and now has 39.11 million subs in the
States. The company didn�t explain the shortfall, but noted
that it likely wasn�t due to the price increase it rolled
out last year. �We�ve found our growth in net adds is
strongest in the lower income areas of the US, which would
not be the case if there was material price sensitivity,�
the company said. �We believe there is big growth ahead in
the US market for Netflix, even if we may not get there in a
straight line of 6 million annual net adds.�
CEO Reed Hastings reiterated his belief that the
streaming video service will reach 60-90 million US viewers.
�Is Internet video going to be in every home in America in
10 years? That�s a pretty clear yes,� he said.
The company also touted its expansion on pay TV
companies� STBs during 2014. Netflix apps are now available
on 12 STBs:
-In the States, Dish Network, Atlantic Broadband, Grande
Communications and RCN
-In the UK: Liberty Global�s Virgin Media, British Telecom,
TalkTalk
-In Germany, Deutsche Telecom
-In France, Bouygues, SFR, and Orange
-In Belgium, Proximus
Originals Are Giving Netflix More Bang for Its Bucks
Netflix said its original content investments have
yielded some of the company�s �most efficient� programming,
when looking at cost and viewing metrics. In light of this
analysis, the company said it plans to invest an even larger
percentage of its budget to originals. Part of its push to
global markets is related to content acquisition, too.
Netflix said it wants to �source great stories from around
the world and deliver them to the world.�
In 2015, Netflix will debut 320 hours of original content
programming, spanning series, documentaries, films and
comedy specials. That�s three times the amount of
programming released in 2014.
A list of upcoming Netflix originals can be found here:
https://pr.netflix.com/WebClient/loginPageSalesNetWorksAction.do?contentGroupId=10571&contentGroup=Premiere%20Dates
During the earnings call, Netflix CFO David Wells said
the company�s original series top the watch lists in
international markets. That information �gives us more
confidence that when we make something, we produce, we incur
those production costs, that it will be an asset that can be
enjoyed across markets and across a bigger and bigger set of
international markets,� Wells said.
At a separate event this week, Netflix chief content
officer Ted Sarandos indicated the company plans to launch
around 20 original series each year.
�With the growth of the Internet over the next 20 years,
there will be some amazing entertainment services available
globally,� the company said. �We intend to be one of the
leaders.�
Back to
Headlines
comScore Releases New and Improved Internet TV Metrics
-Will Measure Views across Mobile Devices, PCs and OTT
Services
comScore is expanding its digital video measurement tools
to include more device platforms. The new measurement is
called Video Metrix Multi-Platform. It launched this week in
the States, and may prove to be a formidable challenger to
Nielsen in the digital space.
�As content continues to flow across an increasing number
of screens, content owners and advertisers need a
consistent, trusted way to transact in a platform-agnostic
world,� said Serge Matta, CEO of comScore. The metric
promises to deliver unduplicated audience measurements
comScore said that by including all devices � not just
desktops, which is what comScore was previously measuring �
audiences for a particular program can grow from 8% to as
much as 30%.
Internet TV providers Hulu, PBS Digital and Sony�s
Crackle are backing the comScore metric.
�Hulu has always followed our users wherever they go � we
need the measurement community to follow them too,� Peter
Naylor, SVP of advertising sales at Hulu. �We�re excited
that comScore is making strides to lead us into the next
generation of audience measurement and we are proud to be
part of the momentum.�
Public broadcaster PBS, which has been using the new
multi-platform metrics in beta, said the service �has
already offered us unique data insights into our mobile
video engagement.� Don Wilcox, PBS Digital�s VP of marketing
and services, said �We are excited to continue working with
this new product so that we are able to examine where our
audience is engaging most with our content, no matter what
device is being used.�
Eric Berger, EVP of digital networks at Sony Pictures and
GM of Crackle, said the new multi-platform video measurement
is �needed to better understand how and where video is being
viewed � especially on OTT.�
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Headlines
Overstock Enters
the OTT Business
- Will Rent and Sell Titles
Overstock.com will launch later this year a service to
compete against Amazon.com, iTunes and Vudu in selling and
renting digital films and TV shows. Initially, it�ll have
about 30,000 titles and will in time have original content
that it creates.
Overstock CEO Patrick Byrne said, �We think this makes
perfect sense for us to get into this business. The industry
is going to want to see a competitor to Amazon develop for
across the board digital distribution.�
The new Overstock service is connected to its
$20-per-year Club O membership program, which offers 5% back
on every order, free shipping and other discounts. There�ll
be an additional fee for members to stream videos.
The company has about two million Club O members, which
it expects will be 10 million by the end of 2015. Amazon is
estimated to have 40 million Prime members.
Back to
Headlines
Bravo Battles Eyeball Drift with Multi-Platform Programming
A popular topic among pay TV channel execs debated at CES
this year was how to find and reach networks� linear TV
viewers on online platforms and second screen devices. Lisa
Hsia, EVP of digital at NBCuniversal�s Bravo and Oxygen pay
TV channels, said her company is using transmedia
storytelling across platforms to keep viewers engaged in
shows.
�One of the challenges that we are facing is how do you
change a show from being a one-hour destination to a
seven-day-a-week, 24-hour destination, and how do you make
it discoverable?� she said. �How can you create content that
is not just a show?�
The answer, for Bravo, has been to utilize the second
screen as a place to engage with viewers, while at the same
time combating �eyeball drift� � the phenomenon of viewers
using a second screen device while sitting in front of the
TV.
�We�ve done a lot of work in second screen,� Hsai said,
pointing to a new companion digital series that Bravo
recently launched, called �Secret Service.� The digital
series is linked to the culinary competition series �Best
New Restaurant,� and runs parallel to the competition and
affects its outcome. �We do a lot of transmedia
storytelling, which is telling stories across platforms.�
The next task for content owners is to figure out how to
monetize those second screen interactions and companion
series � in which networks like Bravo must invest money and
devote personnel in order to succeed.
She said reaching viewers online, and creating and
distributing online video is �increasingly challenging for a
small network to do, unless you have scale like a Facebook
or Google or Twitter.� Part of the problem is that, on the
one hand, the second screen experiences are targeted towards
the �super fans,� while on the other hand, it�s hard to
monetize video on the second screen unless there is a large
audience. �The only way to monetize is through scale,� she
said. �Except for the big players, it�s a pretty challenging
environment right now, in terms of advertising,
distribution.�
Hsai said she thinks there is still an opportunity for
transactional components to second screen apps and digital
video experiences. �I think there�s a huge opportunity, once
it becomes really ubiquitous, to put a transactional layer
into television,� she said. �It�s that Jennifer Anniston
sweater thing, which has never proved to be successful. I do
think the second screen affords an opportunity to really be
a game changer.�
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BROADBAND BEAT
The
Doctor�s Three Predictions for 2015
- Wi-Fi Hotspots Will Reduce the Costs of Cellular
Subscriptions
- Subscribers Will Want Better Broadband, Not Just More
Broadband
- What Goes on Behind the Scene Will Count Even More
�The year 2015 will see the rise of roaming between Wi-Fi
and LTE networks as a new form of mobile service. Mobile
users will start experiencing seamless handoffs between
Wi-Fi and LTE networks, and will benefit from both better
performance and lower data-plan charges,� according to Dr
John Cioffi, the inventor of the telcos� favorite broadband
technology � DSL (digital subscriber line) � and founder and
CEO of the software company ASSIA, which develops software
that telcos use to manage and deploy their DSL-based
networks.
That was one of three industry-wide predictions that
Cioffi made, which a) impact ASSIA favorably, b) will
benefit consumers and c) that we have been reporting on for
over a year � not that we are so good but that they have
become increasingly visible trends.
The move to cellular-Wi-Fi handoffs will benefit
consumers because it reduces their costs for wireless
broadband. It particularly benefits cablecos that are
building near-nationwide networks of Wi-Fi hotspots. We have
reported previously on the �Wi-Fi first� trend where the
mobile device, phone or tablet, first looks for a free Wi-Fi
hotspot before it connects to a cellular network to make a
phone call � all done automatically and invisibly to the
user. Some cablecos are using, with prior approval, their
subscribers� router to let other subscribers temporarily
access the Net.
Telcos are also building near-nationwide Wi-Fi hotpot
networks that will help them move traffic off their
expensive cellular networks to less-expensive Wi-Fi
networks, thereby reducing their costs. Telcos will need
this capability as the monthly rates they charge their
subscribers declines � as it already has as a result of
several of T-Mobile USA�s recent marketing initiatives.
Cioffi�s next prediction can be expressed by rephrasing
what some say about 4K: �Not just more broadband; better
broadband.� As readers of The Online Reporter know, the
importance of quality video � broadband that is consistently
fast for every micro-second, will become increasingly
important to consumers as they stream more and more 4K
content from OTT services. Consumers expect to see flicker-
and freeze-free video on their pricey UHD TV sets.
A second Cioffi prediction addresses that issue: �We will
see an increased focus on measurement of fairness in the
speed and the quality of broadband internet services.
Measuring the speed of an Internet connection will move
beyond a simple �speed-test.� Consumers will increasingly
want to know the connection quality of their Internet
services, and what to do if quality is poor.�
Cioffi�s third prediction is not so visible to consumers
but it�s like the portion of the iceberg that�s below the
ocean�s surface � very, very big. It addresses telcos�
deployment, management and optimization of their large and
increasingly complex networks � networks that use multiple
technologies � xDSL, VDSL2 vectoring, G.fast and other FTTdp
networking � all of which are expensive and time-consuming
to deploy.
Cioffi said, �Service providers are spending billions of
dollars worldwide on building next-generation fixed
broadband networks delivering speeds of 100 Mbps to 1 Gbps.
In 2015, providers will come face-to-face with the
complexity of managing, monitoring and optimizing the
services offered over these multi-technology networks. They
will look for software-based, big-data-driven solutions to
improve their call-center operations, increase the
productivity of their technician forces, plan efficiently
for capacity upgrades, and raise customer satisfaction.�
Dr Cioffi�s company ASSIA makes software that does just
that. ASSIA doesn�t make the broadband; it makes it better.
Back to
Headlines
The Next-Gen Broadband Connection May Come from Outer Space
Elon Musk, who many consider the Steve Jobs of this
generation, wants to invest $15 billion to launch hundreds
of satellites 750 miles above Earth that are capable of
providing broadband that�s faster and cheaper than existing
wireline and wireless networks � and doing it globally.
That�s the same Elon Musk that founded Tesla, which is mass
producing all-electric cars and about to build the world�s
largest factory for making rechargeable batteries.
Musk�s satellite broadband company is called SpaceX. It
already has a contract to supply the International Space
Station.
Musk says the satellites, whose 750-mile height is much
less than existing communications satellites, will provide
speeds that are about the same as all-fiber networks such as
the one Google Fiber has deployed in a few cities. And guess
who is investing $1 billion in SpaceX other than the
bandwidth hungry Google, together with Fidelity. Google�s
investment in SpaceX is not a sudden impulse. Last year
Google paid $500 million to acquire Skybox Imaging, which
makes small, high-resolution imaging satellites. They take
pictures now. Maybe they�ll offer broadband access to the
world in few years.
Musk said it could take five years to get the satellites
launched and ready.
Google�s VP of corporate development will join the board
of SpaceX.
Musk told Bloomberg Businessweek, �The speed of light is
40 per cent faster in the vacuum of space than it is for
fiber. The long-term potential is to be the primary means of
long-distance Internet traffic and to serve people in
sparsely populated areas.�
The objective, he said, is to speed up the overall flow
of data on the Internet and to provide high-speed, low-cost
broadband to the three billion-plus people who still have
poor access to the Web. He told Bloomberg BusinessWeek the
focus �is on creating a global communications system that
would be larger than anything that has been talked about to
date.�
Musk�s even bigger goal for SpaceX is manned missions to
Mars. He said the SpaceX satellite broadband would be needed
to communicate with the Mars expeditions.
One rival to SpaceX will be Virgin Media and Qualcomm�s
OneWeb, which plans to launch 648 micro satellites to
provide broadband and phone services. Branson called it �the
world�s largest-ever satellite network.�
Virgin Media founder Richard Branson said there is not
physically enough room for two satellite broadband services
and suggested SpaceX join with OneWeb.
But Musk has one thing Branson doesn�t: Google.
Back to
Headlines
�Better Broadband and Private Investment Can Form a
Cornerstone of Europe�s Digital Agenda�
�I believe Europeans might have the opportunity to lead
the way when it comes to investment in broadband and digital
infrastructure. While every investor will think carefully
about the legal and regulatory infrastructure it interacts
with, it is clear that better broadband and private
investment can form a cornerstone of Europe�s digital
agenda. To be sure, regulation played an important role in
opening up former government monopolies, but the landscape
has changed dramatically in telecommunication over the last
15 years. A modern way of regulation has to reflect that and
leave more and more ground to market forces and innovation.
Europe is moving in the right direction.� � Matthias Kurth,
Executive, the chairman of Cable Europe, the association of
European cablecos at:
http://cablecongress.com/meet-the-speaker-matthius-kurth
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Headlines
LTE BROADCAST
AT&T Finally Held First Trial of LTE Broadcast
AT&T held the first trial of its LTE Broadcast (eMBMS)
technology at a recent college football playoff championship
game, held at the AT&T Stadium in Arlington, Texas.
AT&T had a number of partners for the trial, which
entailed broadcasting two video streams and one data stream
from ESPN to 40 eMBMS-capable Samsung devices. The
broadcasts include replay video, footage of plays from
different camera angles, and a stream of game stats and
trivia questions. Ericsson provided the eMBMS network
technology upgrades to AT&T�s 4G network in and around the
stadium; MobiTV developed the app that was used to access
the streams on the Samsung devices � which were using
Qualcomm LTE Broadcast firmware.
�This trial demonstration signifies the early stages of
our foray into LTE Broadcast, but we see a promising future
with this technology,� John Donovan, SEVP of technologies
and operations at AT&T, said in a blogpost. He listed
possible uses of the technology such as delivering software
updates to any connected devices in the Internet of Things,
or streaming lectures to university students, as well as
delivering bonus content to attendees at events.
AT&T�s chief cellco rival Verizon has already held a
number of trials showcasing its LTE Broadcast technology,
which is calls Multicast, at events such as last year�s
Super Bowl and a few Indy 500 races. Verizon has already
upgraded all of its networks to support LTE Broadcast, and
Verizon CEO Lowell McAdam said earlier this year Verizon is
hoping to launch a �mobile-first� video service in the
latter half of 2015.
Back to
Headlines
WIRELESS BROADBAND
Verizon
Cellular Business Gets Squeezed
- May Sell Some of Its Landline Footprint
An indication of the increasing competiveness in the
cellular market is Verizon�s fourth quarter financial report
that the results in its cellular business were less than
most analysts had expected. Verizon blamed the miss on a
surge in sales of heavily discounted phones. It said it had
to sell popular phones such as Apple�s iPhone at deep
discounts to attract buyers to its two-year contract. As a
result its wireless divisions profit margin declined to 42%
from 49.5% in the third quarter and 47% a year ago.
Verizon has also quietly begun offering a $35 and $45 per
month no-contract plan but the subscriber buys the phone
separately.
Verizon added about 2 million new wireless subscribers,
of which 1.4 million were new tablet subscribers.
On a different topic, Verizon said it might sell some
landline assets that might make more sense being owned by
other companies. Although Verizon has done that previously,
it�s an indication of what we have previously reported:
Verizon has bet its future on its all-fiber FiOS landline
network and on its cellular network, not its traditional
copper wire network. Verizon did not say whether it might
sell its copper or fiber network, but as far as we know it
has not upgraded or said it would upgrade any of its copper
wire networks.
AT&T has expressed similar sentiments, although it is
upgrading some of its copper wire network with newer DSL
technologies and has started replacing some of its
all-copper network with fiber-to-the-home.
Verizon and AT&T may have found that there is some of
their copper wire network they don�t want to upgrade to
newer copper wire broadband technologies or to all fiber
networks. Pressure from shareholders, subscribers, cablecos
and federal and state regulators may prompt them to sell
those footprints so they can invest in their remaining
networks, especially acquiring wireless spectrum.
Back to
Headlines
LIES, DAMN
LIES AND STATISTICS
Broadband Delivered Sports to Increase 10-Fold by 2015
Pay TV services had better get ready for their own OTT
services and other OTT services to offer live sports over a
broadband connection.
The viewing of broadband-distributed sports will increase
ten-fold between 2015 and 2025, according to the research
house The Diffusion Group, which studies such matters. It
said the consumers� passion for sports coupled with the
growing availability of OTT services on the TV and mobile
devices will fuel demand. Here�s a summary of the report
that TDG did on the matter:
�Whether measured in ratings or revenue, TV coverage of
live amateur and professional sporting events is a defining
part of the television experience. According to new TDG
research, adult broadband users spend one-fifth of their
weekly TV time viewing live sports. As broadband
distribution begins to play a more important role in feeding
this demand, weekly per-capita viewing of OTT TV sports will
grow from just under 25 minutes in 2015 to more than four
hours in 2025. These and other insights are discussed in
TDG�s new report, Game On! The Future of Sports Video
Viewing, 2015-2025.�
Joel Espelien, TDG senior advisor and author of the
report, said, �Most TV viewers enjoy live sports. There are,
however, certain segments that do so more than others. This
reality was not lost on Dish, who positioned ESPN front and
center in its new �skinny� Sling TV broadband service.�
�TDG research finds that 72% of adult broadband users
consider themselves avid fans of least one sports genre
(that is, ranking their fan status �7� or higher on a
10-point scale. One-fifth (19%) of ABUs are avid fans of six
or more sports, a rate that swells to one-third (33%) among
25-34s. These consumers spend significant time and money
feeding their sports habits, forming a group of passionate
and knowledgeable fans that is the mainstay of ticket sales
and multisport networks like ESPN.
�That said, the majority of adults tend to fall somewhere
in the middle, with 52% of ABUs being avid fans of 1-5
different sports. This segment constitutes the modern
mainstream sports fan who, because of time, tradition, the
popularity of hometown teams or other factors, are more
selective in the sports they choose to follow.�
Espelien said, �It is safe to say that the NFL and
Olympics do well among this group, as do other traditionally
mainstream sports like MLB and the NBA. This group also
includes those who are fans of the same sport at both the
college and professional level (eg, college football and the
NFL count as two sports).�
TDG said the new report, called �Game On! The Future of
Sports Video Viewing, 2015-2025,� is a must-read for
operators, networks, and sports rights buyers seeking to
understand the future of televised live sports. It includes
the first publicly-available forecast of the future of
sports viewing that includes broadband-based consumption.
The report:
- Discusses the dominant role that sports plays in the
legacy TV market, as well as the growing use of
sports-related apps and Websites;
- Goes beyond ratings or streaming counts of individual
sporting events to understand the extent to which sports
will transition to a TV-as-an-app platform and at what pace;
- Offers long-term forecasts for sports video viewing on
both broadband and legacy TV platforms; and
- Provides strategic recommendations to key industry
stakeholders on how best to respond and adapt to these
trends.
For more information, please see www.tdgresearch.com or
call 469-287-8050
Back to
Headlines
US Counties with Faster Broadband Grow Faster than Those
with Slower Broadband
- 25 Mbps Is the Breaking Point
Most every launch of faster broadband in a particular
area carries a boast about how it�ll increase the area�s
prosperity. Maybe there�s some truth in that, although keep
in mind that this research was done by Broadband Communities
Magazine.
The report says US counties that do not have high-speed
broadband (less than 25 Mbps by its definition) also have
lower population growth and are more likely to see
population declines than counties where high-speed broadband
is available. It said counties with the highest broadband
speeds available (25 Mbps and higher) have the greatest
population growth.
The report said, �Access to 25 Mbps service is a
realistic indicator that a household or business can use
most available broadband applications.�
Broadband Communities studied all 3,144 US counties. It
said counties in the bottom half with access to 25 Mbps had
an average population growth of only 0.27% from 2010 through
2013 but the top half increased at almost ten times as much
- about 2.8%.
The top 10% of counties had a population increase of 3.2%
in their states compared to a decline of 0.55% in the bottom
10%.
The unanswered question is which broadband service
providers don�t offer at least 25 Mbps.
Back to
Headlines
Half of HBO OTT Would-Be Subs Will Likely Cut the Cord
Parks Associates is predicting 17% of US broadband homes
will want to subscriber to a standalone OTT offering from
HBO � if and when Time Warner launches such a service. Parks
said the vast majority of these subscribers will also be pay
TV subs.
The bad news for Time Warner and the pay TV providers is
that Parks is also predicting about half of those who will
subscribe to HBO�s OTT service will cut their pay TV cord in
its stead.
�Television is not dying, but it is evolving,� said Glenn
Hower, research analyst at Parks Associates. �Linear video
comprises only a slim majority of video viewed on the TV
screen at 51%, and overall video consumption has shifted to
on-demand sources. The age of appointment television is
coming to a close, and programming will need to adapt to an
on-demand environment.�
Back to
Headlines
DIGIGRAMS
A Trip to the Movies Costs the Same as 1 Year of Amazon
Prime?!
�One obvious question arising from the shorter window to
SVoD release is whether audiences might be reluctant to buy
increasingly expensive theater tickets to Amazon�s movies
when they�ll be on the service so soon after (a year of
Amazon Prime costs less than taking a family of 4 to the
movies, when including pricey concessions).� � Will
Richmond, in a VideoNuze post. See:
http://www.videonuze.com/article/amazon-expands-into-movies-for-theaters-and-prime-instant-video
Back to
Headlines
Broadcasters Must Rethink Everything for Internet TV
�To be successful online broadcasters are going to have
to completely reinvent the way they think about their
business. The requirement that they serve the public
interest led them to be generalists; providing a mix of
entertainment, news and local interest content. Most Web
content providers tend to be specialists, zeroing in on a
particular content genre or audience. Unlike in the
traditional television world, the Internet affords
broadcasters no special privileges enshrined in law. They
are just one of any number of other content providers
fighting for the viewers� attention.� � Colin Dixon, chief
analyst at nScreenMedia. See:
http://www.nscreenmedia.com/broadcasters-will-fight-define-online-tv-role/
Back to
Headlines
TV�s �Not
Your Mother�s Media Anymore�
�I don�t watch linear television anymore, and I haven�t
for years. I only watch shows I�m interested in; I don�t
watch networks any longer and I think that�s true for a
growing number of people. The closed system will break up
with all of these other opportunities. People�s television
viewing is going to be to a program, to a theme of a
concept. It�s simply not your mother�s media anymore.� � IAC
chariman Barry Diller, speaking on CNBC this week. See:
http://www.cnbc.com/id/102341621
Back to
Headlines
PBS
Digital Meets Young Viewers on YouTube
�We saw an opportunity to find an audience that probably
grew up with PBS, and had a real affinity for the brand, but
really wasn�t watching it on television now. A more
Web-native audience. [On YouTube] we�re trying to create the
same kind of loyalty that PBS broadcast has.� -- Lauren
Saks, programming director of PBS Digital Studios, which
runs the PBS YouTube channel. See:
https://www.yahoo.com/tech/how-pbs-thats-right-pbs-learned-to-thrive-on-108009265254.html\
Back to
Headlines
Digital and Traditional Media Companies Swapping Roles
�The industry is approaching a point where the companies
in the digital space are starting to look like traditional
media companies, and traditional media companies are
starting to look a bit more like [digital companies].That�s
a natural evolution. It�s not just short video, it�s a whole
new medium: how it�s created, how it�s produced, how it�s
amplified through social media, how it�s native on devices
that are not traditional devices � all of that is now
becoming a conversation for all media companies.� � Courtney
Holt, chief strategy officer at Maker Studios, speaking at
CES.
Back to
Headlines
Google May Sell Sprint�s & T-Mobile�s Service
�The US wireless business was looking inhospitable
already. Then Google showed up. The search giant is
reportedly preparing to sell wireless service directly to
consumers through new network deals with Sprint and T-Mobile
US. The arrangements would, in effect, give Google a way to
prod the wireless industry into offering higher data speeds
at lower prices, much as it has aimed to do to wireline
Internet providers via its Google Fiber offering. For the
four major wireless carriers, already in the midst of a
bruising price war, such competitive pressure seemingly
couldn�t come at a worse time.� The Wall Street Journal in
its article �Google�s Call Can�t Be Ignored by Wireless
Investors� at:
http://www.wsj.com/articles/googles-call-cant-be-ignored-by-wireless-investors-heard-on-the-street-1421959241?mod=djemheard_t
Back to
Headlines
Piksel
Forms Content Acquisition Division
Broadcast OTT services specialist Piksel says it is
branching out into content acquisition with a new unit,
Piksel Content Services, to help telcos, Internet service
providers, cable operators and media companies to launch OTT
ventures by taking over the task of negotiating content
rights for them, according to Faultline. It has
relationships with half the world�s broadcasters.
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