Tracking Global Multiscreen Video (MSV) Services
to Profitability in IPTV, Cable & Satellite —
Taking OTT/Internet Video to Mobile
Quarterly Technology & Content Report — January 2012
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Published: January 2012 by MRG, Inc. |
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Pages: 98 |
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Press Release |
Executive Summary
Aside from the patent portfolio, the impending Google purchase of Motorola represents strong evidence of the marketplace’s recognition that video is destined to live on all screens, regardless of delivery format. Further, Google’s role in Over-the-Top (OTT) Video, reinforced by Motorola’s deep relationships with Operators, points to the merging of OTT with franchised video systems into a hybrid offering that becomes the standard-bearer for delivery of video content.
This trend has been building for a long-time and is shown in developments by major programmers, such as the BBC, CNN and ESPN, as well as the Operators such as AT&T, Belgacom, Cablevision, Telecom Italia and Verizon. The Global Multiscreen Video (MSV) Report covers the factors that are driving this change in business; one where content is supplied in an Over-the-Top fashion by Operators or through Programmers in concert with Operators. It also examines the attitudes of Operators, Programmers and Vendors regarding MSV, how they are implementing MSV and how MSV is evolving.
Often referred to as TV Everywhere, MSV is more than the content delivery implicit in that term. MSV is a continuum of features that deal with the receiving of metadata, control and streaming of content to a device, which may complement the primary screen (i.e., the TV) or in some cases be the primary screen.
One use-case is one where the Operator provides authentication, as well as authorizing and streaming video directly to the User. The Programmer still provides the programming (video and audio content & associated metadata) to the Operator, while the Operator is responsible for the storage, packaging the content in correct format and streaming it to the customer’s device.
Figure 1-1: MSV - Viewer's Device Authenticated By and Streamed From the Operator
Source: Copyright © 2012 MRG, Inc.
At first glance, Vendors appear to be much more optimistic than Operators regarding the movement of the electronic program guide to companion devices, with an approximate 2:1 margin expecting this will happen by the end of 2012. Upon closer review of the numbers, respondents from large Operators had a similar view that the guide on companion devices would be a “must-have” within a year.
Figure 1-2: Guide - Being Able to Extend an Operator's Guide to a Companion Screen
.jpg)
Source: Copyright © 2012 MRG, Inc.
Still, respondents from the Vendor community pointed out that the traditional guide is not necessarily the optimal approach for viewing program information on a companion screen.
This report is part of the IPTV Tracking Service published by the Multimedia Research Group, Inc.
Table of Contents
| 1 |
Executive Overview |
| 1.1 |
Multiscreen Video – A Continuum of Features |
| 1.2 |
Electronic Program Guide |
| 1.3 |
Search and Discover |
| 1.4 |
Control |
| 1.5 |
Access within the Home |
| 1.6 |
Access Everywhere |
| 1.7 |
Follow Me |
| 1.8 |
Quick View: Findings Overview |
| |
|
| 2 |
Dominant Protocols |
| 2.1 |
Dominant Streaming Protocols & Platforms |
| |
|
| 3 |
MSV Users and Operators |
| 3.1 |
How People Watch Video on Different Devices |
| 3.2 |
MSV Examples |
| |
|
| 4 |
Economics of Multiscreen Video |
| 4.1 |
Investment |
| 4.1.1 |
An Exercise in Trade-offs |
| 4.2 |
Revenue |
| 4.2.1 |
Explicit Revenue |
| 4.2.2 |
Implicit Revenue |
| 4.3 |
Example: Customer Retention and Loyalty – Bright House’s iPad Application |
| |
|
| 5 |
ROI Analysis of Multiscreen Video |
| 5.1 |
Model |
| 5.1.1 |
The Model Assumptions |
| 5.1.2 |
Devices and Concurrency |
| 5.1.3 |
Number of Channels and Who Offers Them |
| 5.1.4 |
On-Network Versus Off-Network |
| 5.1.5 |
Bit Rate |
| 5.1.6 |
Incremental Revenue and Expense Assumptions |
| 5.1.7 |
Capital Costs |
| 5.1.8 |
Pre-Packaging Versus Post-Packaging Storage Cost Trade-off |
| 5.1.9 |
The Business Case Based on Churn Reduction Only |
| 5.1.10 |
The Business Case Based on Churn Reduction Plus Minimal Revenue |
| 5.1.11 |
Transcoding in the Home Versus the Network |
| |
|
| 6 |
Future of tving — the Ultimate MSV Service? |
| |
|
| 7 |
Glossary |
| |
|
| 8 |
Index of Companies |
Table of Figures
| Figure 1-1: |
OTT a Direct Relationship Between the Programmer and Viewer |
| Figure 1-2: |
MSV – Where the Relationship is Between the Operator and Viewer |
| Figure 1-3: |
MSV – Viewer’s Device Authenticated By and Streamed From the Operator |
| Figure 1-4: |
MSV – Viewer’s Device Authenticated By and Streamed for Operator by Third-Party |
| Figure 1-5: |
Multiscreen Video Services – A Continuum of Features |
| Figure 1-6: |
Guide - Being Able to Extend an Operator’s Guide to a Companion Screen |
| Figure 1-7: |
Search and Discover – Being Able to Search and Discover Video Content on a Device (e.g., phone) that is Independent of the Viewing Device |
| Figure 1-8: |
Control – Being Able to Search and Discover Content on One Device (e.g., phone) & Use that Device to Control the Output of Another Device (e.g., TV) |
| Figure 1-9: |
Home Access: Access Content From Any Device, Anywhere Inside the Home |
| Figure 1-10: |
Access Everywhere: Access Content From Any Device, Anywhere Outside the Home |
| Figure 1-11: |
Follow Me: Ability to Watch Video on Any Device, Pause the Video and Resume Watching on Another Device |
| Figure 2-1: |
Streaming Protocols in 2011 |
| Figure 2-2: |
Streaming Protocols in 2012 |
| Figure 2-3: |
How Do You Measure Concurrency |
| Figure 2-4: |
Concurrency Bottlenecks |
| Figure 3-1: |
Conversion Rate Q3/2011 (plays/displays) |
| Figure 3-2: |
Viewer Engagement Q3/2011 |
| Figure 3-3: |
Percentage of Audience that Watched at Least 3/4 Through a 10 Minute or Longer Video |
| Figure 4-1: |
End-to-End System |
| Figure 4-2: |
The Relative Amount Storage vs. Transcoders as a Function of Where Storage is Placed in the Network |
| Figure 4-3: |
Storage Location |
| Figure 4-4: |
Distributed Packagers |
| Figure 4-5: |
Transcoding & Packaging in the Home Gateway |
| Figure 4-6: |
Subscription Revenue Potential (US$) |
| Figure 4-7: |
Screenshot of AT&T's "U-verse Live TV" |
| Figure 4-8: |
Likelihood of When a Cable Operator Will Invade Another MSO’s Footprint |
| Figure 4-9: |
How Can You Earn Revenue From Third-Party OTT Services |
| Figure 4-10: |
What Other Business Models are Being Used or Considered by Operators with Regards to Monetizing MSV? |
| Figure 4-11: |
Example Bright House TV iPad App from iTunes |
| Figure 5-1: |
Client Application, How Will It Be Provided |
| Figure 5-2: |
Programmer Streaming Directly to Customer with Operator Authenticating and Authorizing Client Device |
| Figure 5-3: |
On a Scale of 1 to 10, Who Is Most Likely to Pay for the Streams From Programmer to Operator |
| Figure 5-4: |
Percent of Operator Channels that Will Be Transcoded by the End of 2011, 2012 & 2015, According to Operator and Vendors |
| Figure 5-5: |
Content Rights: On a Scale of 1 to 10 (with 10 being the highest priority), which Rights Are the Highest Priorities for You to Obtain? |
| Figure 5-6: |
Net Revenue Improvement for Churn Reduction Only Case (US$) |
| Figure 5-7: |
Net Revenue Improvement for Churn Reduction Plus Minimal Revenue (US$) |
| Figure 5-8: |
Break-even Revenue Based on Subscribers and Zero Churn Reduction (US$) |
| Figure 6-1: |
Example of tving Packages |
| Figure 6-2: |
Example of tving's Social Features |
| Figure 6-3: |
Example of tving's Advanced Features |
| Figure 7-1: |
Time Warner iOS App |
Table of Tables
| Table 3-1: |
Select Worldwide MSV Deployments |
| Table 4-1: |
Ratio of Operator-Owned Packagers to Transcoders |
| Table 5-1: |
Summary of Assumptions for the Model (US$) |
| Table 5-2: |
Net Annual Savings for Reducing Bandwidth from 1.5 to 1.25 Mb/s (US$) |
| Table 5-3: |
Capital Costs (US$) |
| Table 5-4: |
Per Subscriber Capital Costs (US$) |
| Table 5-5: |
Net Revenue Improvement 2% to 1.8% Reduction in Churn (US$) |
| Table 5-6: |
Net Revenue Improvement 2% to 1.8% Reduction in Churn with US$1.25/Month Revenue/Subscriber Example (US$) |
| Table 5-7: |
Net Revenue Improvement 2% to 1.8% Reduction in Churn with US$1.25/Month
Revenue/Subscriber Example (US$) |
Index of Companies Referenced
| ABC |
me2DAY |
Adobe
(Flash, HTTP Dynamic Streaming) |
Microsoft
(Silverlight, Smooth Streaming, XBOX) |
| Amazon |
Morning Bridge |
Apple
(Apple TV, HLS, HTTP Live Streaming, iOS, iPad, iPhone, iTunes) |
Motorola |
AT&T
(U-verse)
|
NBC |
| Audible Magic |
Needham and Company |
| Avail-TVN |
Netflix |
| Azuki Systems |
Ooyala |
| BBC |
OpenTV |
| Belgacom |
Orange |
| BigBand Networks |
PacketVideo |
| Blackberry |
Pandora |
| Bloomberg |
Parks Associates |
| Bravo |
PCCW
(now TV) |
| Bright House Networks |
PictureBox |
| Broadcom |
Really Simple Software, Inc.
(Simple.TV) |
BSkyB
(Sky Go) |
RGB Networks |
| Cablevision |
Rogers |
| Canal + |
Rovi
(DivX Plus Streaming) |
| CCTV |
Samsung
(Galaxy S, Galaxy Tab)
|
| Ceton |
ScreenPlays |
| Civolution |
SeaChange International |
| CJ Group |
Shaw
(Shaw Direct Video on Demand, Shaw Video on Demand) |
CJ HelloVision
(tving) |
Shazam |
| CJ O Shopping Co., Ltd. |
Silicon Dust |
| CNBC |
Sling Media |
| CNN |
Sony
(PlayStation, PS3) |
Comcast
(XFINITY) |
Spotify |
| Coughlin and Associates |
Stofa Denmark
(WebTV, WebTV to Go) |
Cox
(Cox TV Connect) |
Suddenlink
(Suddenlink2Go) |
Deutsche Telekom
(Entertain)
|
Swisscom
(Swisscom TV air) |
DIRECTV
(nomad) |
Synacor |
DISH Network
(Blockbuster)
|
Syncbak |
| Disney |
SyncTV |
| Dr.Peering International |
TBS |
| EchoStar Corporation |
Telecom Italia |
| EPIX |
thePlatform |
| ESPN |
Time Warner |
| Facebook |
TiVo |
| Fox |
Turner Networks Television
(TNT, Turner Networks) |
Google
(Android, Google/Widevine, WebM, YouTube) |
TVersity |
| Hauppauge |
Twitter |
HBO
(HBO GO) |
Verizon
(FiOS) |
| Hulu |
Virgin Media
(Virgin Media Player) |
| JZ Analytics |
ViXS Systems |
| Kabel Deutschland |
Vodafone |
KT
(olleh tv) |
Zeitera |
Liberty Global
(Horizon) |
Zenverge |
| LOVEFiLM |
|
Tracking Global Multiscreen Video (MSV) Services to Profitability in IPTV, Cable & Satellite — Taking OTT/Internet Video to Mobile: January 2012 is 98 pages and is available in a printed English language edition for $2,995 USD and a PDF single-departmental license for $3,995 USD. It is available free as part of MRG's IPTV Tracking Service.
For more informationm, to order the report, or for a quote on a corporate license, contact Rob Smith at 1-408-453-5553
or rsmith@mrgco.com.
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