The Best of Times & Worst of Times in the Video Business Mark Donnigan Marketing Head at Beamr
Read the original LinkedIn article here: The Best of Times & Worst of Times in the Video Business
Mark Donnigan is Vice President of Marketing for Beamr, a high-performance video encoding innovation company.
Best of Times & Worst of Times in Video Services Mark Donnigan Marketing Leader at Beamr
Can a four character technology save us?
This is an intriguing concern due to the fact that there is a paradox emerging in the video business where it seems like the the very best of times for numerous, however the worst of times for some.
Here we have Disney announcing that they have actually currently accumulated one billion dollars in loses, and this even before releasing their direct to consumer service. And then we have Verizon Media revealing sweeping layoffs which represent an exit from a few of the core entertainment service and innovation services that were operating under the Oath umbrella.
And of course there isn't a reporting period that goes by where the cord cutting numbers haven't grown, which puts increasing pressure on the video side of the provider service.
Netflix stock is on the rise again, permitting the company to invest in material at levels that must baffle their rivals. And after that we have news of PlutoTV selling for a mouth watering $340 million dollars in money to Viacom (offer was announced on January 22, 2019), showing that the AVOD service design can be viable and rather valuable.
5G is going to save us all, right?
This is where I want to get in touch with the enormous investments being made in 5G and supply my perspective on why 5G might well break some video business while at the same time make others.
Let's take a look at AT&T.
So in the last four years AT&T has actually added 80 billion dollars of additional debt leaving it with more than 160 billion dollars of short and long term financial obligation. Now, 50 billion of this staggering number was the outcome of the 2015 purchase of DirecTV.
My point is not to break down the AT&T debt numbers, I'm not an expert, but rather provide a perspective that the monetary situation for AT&T entering into its massive 5G financial investment cycle, while at the same time making understood their strategic initiative to build up their video service capability through Warner Media direct to consumer offerings like HBO, and DirecTV, is going to be challenged, unless they do something really various with video.
So what can a provider like AT&T do to attend to the economic capture, and the overall headwinds to the video business? Such as declining pay TV subs, and fragmenting OTT service offerings. This is the concern on lots of minds who are examining the future of the video company.
It is my strong belief that common high speed mobile networks powered by 5G will unleash a video tsunami of traffic on the network like we've never ever seen prior to.
This will be great news for the PlutoTV's of the world and other ingenious video services like Quibi who will be able to reach more consumers with a better quality experience as a result of having the ability to leverage a much faster network thanks to 5G.
However, it's bad news for network operators without a plan to monetize this additional traffic load, and obviously incumbents who are wanting to manage with incremental enhancements to their services; such as changing from managed to unmanaged, or OTT circulation, while continuing to utilize aging video requirements like H. 264 to deliver low resolution mobile profiles.
Video suppliers who continue to under serve their consumers will rapidly be at a downside, and ripe for interruption, I think, from new business models such as AVOD and the latest and most efficient video technologies.
The 4 character video innovation that might conserve the video organisation.
The 4 character video requirement that I think will play an essential role in the success of the video business is HEVC, the video codec that is now deployed on 2 billion gadgets. The following slide discussion offers numbers regarding HEVC device penetration which are worth seeing.
There has been much blogged about HEVC royalty issues, something that set off advancement of an alternative codec which most likely is royalty free. However, while some in the market became preoccupied with concerns around licensing and royalties, significant advancements have been made on the legal front, including almost every CE device maker consisting of HEVC playback support.
For instance, HEVC Advance waived all royalties for digital distribution of content. This suggests, HEVC encoded content that is streamed will just bring a royalty for the hardware decoder and this is currently covered by the getting device. Offered that you are providing bits over the wire and not via a physical mechanism such as Blu-ray Disc, your company will not have to pay any additional royalties, at least not to HEVC Advance.
Now, if it's any convenience, the business who have already done their due diligence on the royalty concern, and are streaming HEVC content to customers today, include: Amazon, Comcast, DirecTV, Dish Network, Netflix, Sky, Sony, Vudu, Vodafone, and Orange, just to name a couple of.
What about HEVC playback support?
This is a great and crucial question and perhaps the location of advancement around the HEVC community that is least recognized or comprehended.
Beginning with at home playback, if your users have actually acquired a TV, game console, Roku box or Apple TV in the last 3 years, you can be almost guaranteed that assistance for HEVC exists with no need for extra licensing or player upgrade.
HEVC is now resident in nearly every SoC that goes in to any mid to high-end CE video device. That's 400 million gadgets that support HEVC natively.
The data business ScientiaMobile preserves the biggest dataset of network device gain access to profiles by getting information from the biggest cordless operators worldwide. This company reports that a whopping 78% of all iOS mobile phone requests originate from gadgets that support hardware-accelerated HEVC decoding. And though iOS devices are predominant in many developed markets, Android is still an exceptionally important device profile, and here the ScientiaMobile information is very motivating with 57% of Android smartphone demands originating from gadgets that support HEVC decoding.
These 2 numbers are where the image of HEVC as the most sensible video requirement to follow H. 264, starts to take shape. Here we have significant video suppliers and tech companies already encoding and distributing material in HEVC. And offered the HEVC gadget penetration and hardware support any fret about an early move to HEVC are not called for. What other aspects verify the idea that HEVC will be a booster to the video company?
LiveU just recently published a report called 'State of Live' that revealed growing patterns in HEVC broadcasting, especially worldwide of sports. And simply in case you have thoughts that using HEVC is a passing pattern en route to some alternative codec, consider that in 2018, 25% of all LiveU generated traffic was streamed utilizing the HEVC video standard while the only other codec utilized was H. 264.
The report mentioned that the high HEVC usage was a direct reflection on the increasing need for professional-grade video quality, a pattern that was plainly evident at the 2018 FIFA World Cup in Russia.
So what does this Learn more now mean for the market?
The patterns we just took a look at reveal that we have an ever more requiring consumer who desires content that displays the full abilities of their viewing gadget, which implies greater resolutions and advanced video requirements like HDR. But, this very same user is now consuming more content, which adds to further crowding the network.
This customer consumption pattern is clashing with a shift from managed services to unmanaged, or OTT distribution and developing technical tension inside incumbent service operators who are facing technical shifts and organisation model fracturing. Amazingly, in spite of an extremely clear hazard to the incumbent services who are seeing video subscriber loses mounting into the numerous thousands over simply a few short quarters, some are continuing with the status quo even while brand-new entrants are launching services that provide the customer more for less.
This is where completion of the story will be composed for some as the best of times, and for others as the worst of times.
HEVC is more than a technology enabler. It's a video requirement that is set to interfere with a number of the traditional operators and early OTT streaming services. Not since the customer understands the distinction in between H. 264, VP9, or even HEVC, but due to the fact that the customer is realising that better quality is possible, and as they do, they will migrate to the service who delivers the very best quality cost effectively.
At Beamr, our company believe that the evidence of our item and innovation quality need to be experienced and not just talked about. Which is why we've put together the very best offer that we have seen in the industry where you can utilize our codecs in mix with our VOD transcoder, 100% totally free.
HEVC is now resident in practically every SoC that goes in to any mid to high-end CE video device. These two numbers are where the photo of HEVC as the most rational video standard to follow H. 264, begins to take shape. Here we have major video suppliers and tech business currently encoding and dispersing content in HEVC. And provided the HEVC device penetration and hardware support any concerns about an early relocation to HEVC are not called for. What other elements verify the idea that HEVC will be a booster to the video business?
You can try out Beamr's software application video encoders today and get up to 100 hours of complimentary HEVC and H. 264 video transcoding each month. CLICK ON THIS LINK
Author: Mark Donnigan