The Rise of Cloud-Based TV Services
August 2010
Just a few years ago, the idea of a cloud-based TV service would have seemed like a dream. For one thing, many people didn’t even understand the concept of cloud-based services, despite their growing popularity. Perhaps more importantly, cloud-based services were just relegated to online account offerings and applications like Google Docs or Salesforce.com.
Although cloud-based services have been around for a few years now, not many companies have focused on delivering Broadcast TV or VOD. Today, cloud-based services are becoming more prevalent and accepted especially with Pay-TV Operators. Two companies, ActiveVideo and Clearleap, have made good in-roads with VOD services that use the cloud, rather than in-house storage, encoding and streaming systems. The advantages of using the cloud is also clear: lower CapEx spending, better automation, and delivery to any set-top box or connected TV.
The downside is that many Service Providers want total control of their network and infrastructure, and may not see cloud TV services as something they can control. The idea of handing off a major part of their infrastructure to an Internet-based Provider can be scary for a cloud Service Provider. However, it seems the walls are coming down slowly. Already, many large U.S. Cable Providers have turned to cloud-based TV services to deliver IP-based video direct to consumers.
Perhaps most importantly, cloud-based VOD services can help Cable and TelcoTV Providers move into more interactive VOD systems that rely on IP, and ultimately help them make the transition to IP delivery.
Source: MRG, Inc., August 2010 IPTV Bulletin
iPad Becomes a Second TV Screen in U.S.
August 2010
This month, almost every major U.S. TV Provider in the U.S. announced their “iPad TV” strategy. Providers, including AT&T, Cablevision, Comcast, DIRECTV, DISH Network, Time Warner Cable, and Verizon, announced that they would have iPad applications that would allow subscribers to ease onscreen navigation, and allow them to watch TV on their tablets.
Why has Apple’s “iPad” emerged as a TV device? For one, it’s because iPad sales have been doing well, and are almost outselling regular Apple desktops and laptops. In just the first four months of its release, Apple has sold over 3.27 million iPads, which is also as many Macs it sold in the same quarter (3.47 million). If this trend continues, we may see iPad outselling Macs by the end of 2010.
The trend doesn’t seem like it will end anytime soon. A survey by Forrester Research found that 14% (27 million U.S. consumers) intend on buying some kind of tablet in the next 12 months. Another study, by the Magazine Publishers of America, found that almost 60% of U.S. consumers expect to purchase an e-reader or tablet within the next 3 years. By any measure, the iPad is a huge success, passing all the sales records of the original iPhone three years ago, and prompting many other manufacturers to release their own “copycat” tablets.
In just a few months, the iPad has become the de facto second TV screen in the home. With practically all U.S. TV Operators launching an iPad app (or iPhone) in the next 6 months, it seems clear that it’s now a race to see who can engage consumers more and deliver a TV service and user interface that is better than the TV.
Using a second screen in the home while watching TV opens up a whole new world of interactivity and social media activity that would be difficult to do on the TV screen. Perhaps the popularity and interest of the Hulu and Netflix iPad apps, proved that video can be delivered to the iPad and even smartphones.
Source: MRG, Inc., August 2010 IPTV Bulletin
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