Best of Times & Worst of Times in Video Mark Donnigan Marketing Leader at Beamr
Get the original LinkedIn article here: The Best of Times & Worst of Times in the Video Business
Mark Donnigan is VP Marketing at Beamr, a high-performance video encoding technology company.
Best of Times & Bad Times in Video Services Mark Donnigan Marketing Head at Beamr
Can a four character innovation save us?
This is an intriguing question because there is a paradox emerging in the video organisation where it feels 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 already accrued one billion dollars in loses, and this even prior to introducing their direct to customer company. And after that we have Verizon Media announcing sweeping layoffs which represent an exit from some of the core home entertainment service and technology services that were running under the Oath umbrella.
And of course there isn't a reporting period that passes where the cable cutting numbers haven't grown, which puts increasing pressure on the video side of the company company.
Netflix stock is on the rise again, allowing the company to invest in material at levels that should mystify their competitors. And after that we have news of PlutoTV selling for a mouth watering $340 million dollars in money to Viacom (offer was revealed on January 22, 2019), showing that the AVOD service design can be feasible and rather important.
5G is going to conserve us all?
This is where I wish to link with the huge investments being made in 5G and offer my point of view on why 5G may well break some video companies while at the same time make others.
Let's look at AT&T.
So in the last four years AT&T has actually included 80 billion dollars of extra debt leaving it with more than 160 billion dollars of short and long term debt. Now, 50 billion of this shocking number was the result of the 2015 purchase of DirecTV.
My point is not to break down the AT&T financial obligation numbers, I'm not an analyst, but rather supply a viewpoint that the financial scenario for AT&T entering into its massive 5G financial investment cycle, while at the exact same time making understood their strategic initiative to develop 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 different with video.
What can a service company like AT&T do to address the financial squeeze, and the general headwinds to the video business? Such as decreasing pay TELEVISION subs, and fragmenting OTT service offerings. This is the question on lots of minds who are examining the future of the video organisation.
It is my strong belief that ubiquitous high speed mobile networks powered by 5G will unleash a video tsunami of traffic on the network like we've never seen prior to.
This will be excellent news for the PlutoTV's of the world and other ingenious video services like Quibi who will have the ability to reach more consumers with a better quality experience as an outcome of being able to take advantage of a quicker network thanks to 5G.
However, it's bad news for network operators without a plan to monetize this additional traffic load, and naturally incumbents who are wishing to get by with incremental enhancements to their services; such as changing from handled to unmanaged, or OTT circulation, while continuing to utilize aging video standards like H. 264 to provide low resolution mobile profiles.
Video suppliers who continue to under serve their consumers will rapidly be at a downside, and ripe for disturbance, I think, from new service designs such as AVOD and the latest and most efficient video technologies.
The four character video technology that might conserve the video business.
The 4 character video requirement that I think will play an essential role in the success of the video service is HEVC, the video codec that is now released on two billion devices. The following slide discussion supplies numbers relating to HEVC gadget penetration which deserve seeing.
There has been much discussed HEVC royalty issues, something that activated advancement of an alternative codec which most likely is royalty free. While some in the market became preoccupied with concerns around licensing and royalties, significant developments have actually been made on the legal front, including nearly every CE gadget manufacturer consisting of HEVC playback support.
For example, HEVC Advance waived all royalties for digital circulation of content. This means, HEVC encoded material that is streamed will only carry a royalty for the hardware decoder and this is currently covered by the receiving gadget. Provided that you are providing bits over the wire and not via a physical system such as Blu-ray Disc, your company will not need to pay any additional royalties, a minimum of not to HEVC Advance.
Now, if it's any comfort, the business who have already done their due diligence on the royalty question, and are streaming HEVC content to customers today, consist of: Amazon, Comcast, DirecTV, Meal Network, Netflix, Sky, Sony, Vudu, Vodafone, and Orange, simply to name a few.
What about HEVC playback support?
This is a great and crucial concern and possibly the area of advancement around the HEVC environment that is least recognized or understood.
Starting with at home playback, if your users have actually acquired a TELEVISION, game console, Roku box or Apple TELEVISION in the last 3 years, you can be nearly guaranteed that assistance for HEVC exists with no requirement for additional licensing or gamer upgrade.
HEVC is now resident in practically every SoC that goes in to any mid to high-end CE video gadget. That's 400 million devices that support HEVC natively.
The data business ScientiaMobile keeps the largest dataset of network device gain access to profiles by receiving information from the largest cordless operators in the world. This company reports that a tremendous 78% of all iOS mobile phone demands originate from gadgets that support hardware-accelerated HEVC decoding. And though iOS gadgets are predominant in a lot of industrialized markets, Android is still an incredibly essential gadget profile, and here the ScientiaMobile information is extremely motivating with 57% of Android smartphone requests originating from devices that support HEVC decoding.
And given the HEVC gadget penetration and hardware support any worries about an early move to HEVC are not required. What other aspects verify the concept that HEVC will be a booster to the video service?
LiveU recently released a report called 'State of Live' that revealed growing trends in HEVC broadcasting, specifically in the world of sports. And simply in case you have thoughts that making use of HEVC is a passing trend on the way to some alternative codec, consider that in 2018, 25% of all LiveU produced traffic was streamed using the HEVC video requirement while the only other codec used was H. 264.
The report stated that the high HEVC usage was a direct reflection on the increasing demand for professional-grade video quality, a trend that was plainly obvious at the 2018 FIFA World Cup in Russia.
What does this mean for the industry?
The trends we just analyzed reveal that we have an ever more requiring consumer who wants content that flaunts the full capabilities of their viewing device, which means higher resolutions and more sophisticated video standards like HDR. But, this exact same user is now consuming more content, which adds to more crowding the network.
This consumer usage pattern is hitting a shift from handled services to unmanaged, or OTT circulation and developing technical stress inside incumbent service operators who are dealing with technical shifts and organisation design fracturing. Surprisingly, in spite of an extremely clear risk to the incumbent services who are seeing video customer loses installing into the numerous thousands over simply a few brief quarters, some are continuing with the status quo even while new entrants are introducing services that give the consumer more for less.
This is where completion of the story will be written for some as the finest of times, and for others as the worst of times.
HEVC is more than an innovation enabler. It's a video requirement that is set to disrupt a number of the traditional operators and early OTT streaming services. Not since the consumer knows the distinction in between H. 264, VP9, or perhaps 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 best quality affordably.
At Beamr, our company believe that the proof of our product and technology excellence should be knowledgeable and not simply spoken about. Which is why we have actually created the finest deal that we have seen in the industry where you can use our codecs in combination with our VOD transcoder, 100% totally free.
HEVC Get More Info is now resident in nearly every SoC that goes in to any mid to high-end CE video device. These 2 numbers are where the photo of HEVC as the most logical video requirement to follow H. 264, begins to take shape. Here we have major video distributors and tech companies already encoding and distributing material in HEVC. And offered the HEVC gadget penetration and hardware support any concerns about a premature move to HEVC are not called for. What other elements verify the idea that HEVC will be a booster to the video company?
You can try Beamr's software application video encoders today and get up to 100 hours of totally free HEVC and H. 264 video transcoding each month. CLICK HERE
Originally published by: Mark Donnigan