ottexec.com/magazine Fall 2017 OTT Apps, Technology & Platform Integration Making all the Puzzle Pieces Fit Together Getting to the Bottom of Over-the-Top User Experience Reviews of Apple TV, Roku, Amazon Fire, and Android TV Mobile Integration Extending OTT Viewership Farm Journal Media Case Study Where Are You Watching? OTT and Geolocation Integration The Emperor Has No Clothes OTT Apps Are Naked Without These Innovations Not Your Father’s CDN Experts Weigh in on Video Compression, Processing, and Delivery

Inside this Issue

Case Studies 8 Boost in Mobile Use and OTT Viewership Extends Audience Reach for Farm Journal Media by Paul Brickel 22 WWOZ Uses Alexa to Bring Radio Back into the Home as an OTT Service by Kiriki Delany Trends & Analysis 5 The End of OTT Video as We Know It by Eitan Koter 12 Building a Business, Not Just an App by Fredrik Andersson 16 Understanding the OTT Business Model by Carlos Hulett Guinand 18 OTT Trajectories and Cloud Computing by Mark M. Myslinski Executive Insights 4 Integration Is the Key to Successful OTT Projects by Brian Mahony 14 At the Bottom of Over-The-Top: Review of the Leading OTT Apps/Devices by Nick Buzzell 21 Who Will Be King of the OTT Hill? by Terry Owen Best Practices 7 Next-Gen Compression Techniques Are Helping Eliminate Latency From Live OTT Video Delivery by Thierry Fautier 10 Driving Interactive Engagement Through Personalized Audio by Reto Brader 11 Delivering OTT Content? Don’t Fall into These Five IP Geolocation Data Traps. by John McArthur 24 OTT Innovation: Up Close and Personal by Francesco Moretti 26 Why Pay TV Operators Should Embrace Android TV by Hugo Santa Maria

OTT Executive Magazine Volume 5, Issue 3 - Fall 2017

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OTT Executive 3 Fall 2017 Magazine Executive Insights Integration Is the Key to Successful OTT Projects By: Brian Mahony

am currently working on two consulting of the vendors in the industry. These include projects. One is with a major new OTT OVPs, CMSs, CDNs, DRMs, Workflow Brian Mahony is the I CEO and Principal content studio/channel that will stream Tools, Subscriber Management, CRMs, Analyst of Trender video content worldwide. The other is with Apps, Devices, Metadata Management, Research. He is also a (primarily) cable TV equipment provider Social Integration, you name it. For each the Founder and Presi- dent of OTT Executive working on a new OTT strategy. They component, I list feature/capabilities and Summit & Magazine. are very different projects but they both even pricing. It’s become an invaluable tool Brian has 25 years ex- share a similar problem. Once the OTT for me and my clients trying to get a handle perience with consum- er-oriented technology vision and business model are defined, the on their technology options and come up products and companies. biggest challenge is with integration and with rough (or very detailed) ROI models or implementation. In short, there are MANY service pricing. moving parts with OTT, some of which are My consulting work has caused me to pitfalls of OTT platform integration, to help fairly well-defined and others which are not. conclude that the best OTT strategy can be you think about and hopefully avoid some Anyone who tells who they have “a fully dashed against the rocks of integration and common mistakes in implementation. We integrated platform that does everything you implementation. Yes, there are wonderful “all have several excellent articles on content need” is either grossly naïve or plain out you can eat OTT platforms” out there which delivery best practices, including insights lying to you. will do maybe 50%-75% of what you need from Harmonic’s Thierry Fautier and I have had the opportunity to work for a basic implementation. But even these Vimmi’s Eitan Koter. Mark Myslinksi has on many OTT projects over the past few vendors will tell you that beyond a certain returned with another excellent in-depth years—everything from strategy/vision, to point, you may want to integrate with a analysis—this time comparing the total cost technology platform definition, to financial third-party tool that does something specific, of ownership (TCO) of cloud vs. premise- modeling, all the way through RFP creation and does it well, such as DRM, subscriber based video compression and processing and vendor selection. In the process, I have management, or universal log-in. platforms. Brightcove’s Paul Brickel gives created what I call the “OTT Matrix,” basically In this issue of the magazine we try to us a great customer case study from Farm a spreadsheet listing the capabilities of most illuminate some of the opportunities and Journal Media, providing a roadmap for mobile device integration that includes OTT players, user data, content management, and advertising. On the user side of the equation, Accedo’s Fredrik Andersson provides us with a thoughtful cautionary tale warning against merely focusing on building OTT apps versus optimizing OTT business models. Fincons Group’s Francesco Moretti provides his short list of OTT innovations you should consider integrating into your next OTT deployment to keep your subscribers/viewers coming back. ADB’s Hugo Santa Maria makes a bold case for embracing Android TV for your OTT strategy. And Neustar’s John McArthur shows you how to integrate IP geolocation into your OTT service, while avoiding five common pitfalls. Finally, NBTV’s Nick Buzzell gives us a candid review of four of the leading OTT apps/devices from a user experience perspective. Together with our normal strategic faire including explorations on OTT business models, strategies, and case studies, this issue is packed with content to get you and your teams thinking and planning for truly successful OTT projects. � There are many moving parts to a well-oiled OTT machine.

4 Trends & Analysis The End of OTT Video as We Know It By: Eitan Koter

ideo consumption is going through content providers. Their legacy systems were Eitan Koter is co- Vthe roof. According to a forecast built with multiple vendors and inflexible founder and co-CEO published in the Cisco Visual Networking processes, and they are unable to cope with at Vimmi, and has Index (VNI), total Internet video traffic the fast introduction of new video services over 17 years of ex- tensive experience in will be 79% of all global Internet and often cannot provide anything better all segments of the traffic in 2020, up from 63% in 2015. than moderate video performance and a international telecom- This sounds like great news for the video substandard features set. munication and video industry, and it should be. But for thousands Poor performing legacy platforms mean markets. Prior to founding Vimmi, Mr. of video service providers and OTT platforms that CSPs and content providers are having Koter served as CEO of Bluebird TV, President of Sco- worldwide, this exciting statistic is a cause difficulties supporting the scale required for pus Video Networks (today Harmonic HLIT) and Sen- for a lot of stress, because it brings with it a today’s video OTT demands yet alone being ior Sales Manager of the Next Generation Telephony and DCME division of ECI Telecom. Mr. Koter holds a set of growing challenges and an uncertain able to meet the requirements to support the Business Administration degree from New England future. further growth predicted for the future. A College in New Hampshire, USA. He holds Degree in lack of real-time analytics makes it difficult Engineering from Management College Israel. The mobile video challenge to know how video is being served to end For many communication service users and what actions are required to resolve providers (CSPs), their video platforms performance issues, whilst uncertainty about within days rather than months is now vital. were built when online video was new, but the best business model to adopt means that Deep learning algorithms that use since then consumer demands for video new projects or upgrades are delayed. predictive modelling improve video content have skyrocketed. These platforms delivery and user experience whilst, in some cannot scale to meet current demand at the Edge computing squares up to the challenge instances, halving the network resources right price – especially if live services and To meet the demands of today’s video- required. According to Ericsson Mobility other advanced features are being offered. hungry subscribers, operators and content report (June 2017), mobile data traffic Today, the legacy systems cannot keep up. providers need video OTT and CDN platforms grew 70% between Q1 2016 and Q1 2017. Complexities and limitations in current that are based on software architecture This requires the implementation of new architectures, high operational costs, and that is open, agile and has the capability network architecture such as Multi Access poor video quality are just some of the to scale to peak demand within seconds. Edge Computing that is vital to optimise challenges facing today’s operators and The ability to add new features or services delivery, storage and processing at the mobile network edge. Global Virtual Reality traffic, according to Cisco’s VNI report, will increase 61-fold between 2015 and 2020. Therefore edge computing is now essential for the introduction of new video services such as VR, AR, 4K, HDR, HFR, live events, personalized advertising and user-generated content. With 73% of all Internet video traffic predicted to cross content delivery networks in 2020, service providers who want to be around in the long term need to act fast. For a start, they need to own the delivery platform and use advanced, open and scalable CDN technologies that work across both fixed and mobile networks. This will enable them to rapidly scale to peak demand at the right cost without dependency on external and shared CDNs that are challenged to guarantee performance at the right cost, especially with linear and 4K delivery.

The importance of quality Mobile viewing is just one trend pushing the limits of online video platforms. According to Unisphere Research’s OTT

OTT Executive 5 Fall 2017 Magazine Video Services report, 26.8% of survey The future of OTT reduce costs and increase the speed of respondents raised concerns about the The future of OTT is already here. implementation. There are ways for operators quality of service and quality of experience Service providers need to future-proof their to increase both their profits and the user’s provided to end users. This is almost video delivery by deploying a unified video video experience. But if they do nothing, double that of the second technical concern. OTT software architecture that will prepare then for many it may be end of OTT video as Service providers should now utilize open, them to meet any demand for video, and to we - and they - know it. � agile and scalable software platforms be equipped to introduce new services such not only for their CDN, but also for their as live 4K and VR, low latency OTT, nDVR CMS, content preparation workflows, and other advanced video services. and performance and marketing analytics. OTT players should not be failing Quick deployment and scalability are subscribers, but they are. Strategically, video critical. Deploying a new platform should is important to keep customers subscribed be quick and stress-free, and shouldn’t take and engaged, but the operators are in danger more than a few weeks. And once deployed, of having neither. They must look to creative any changes, such as launching new services business models for video and to new on- or projects, should take only a matter of days. premise and hybrid implementations that

Congratulations to our past OTT Executive Summit winners!

Past Winners: 1st Place 2nd Place 3rd Place NYC 2017 “OTT Genius”— JR McCabe, Poker Central & eSports Productions “OTT Hero”— Nick Buzzell, NBTV Studios “OTT Guru”— Paul Hamm, Endavo NYC 2016 “OTT Genius”— Kurt Michel, IneoQuest “OTT Hero”— Don Wilcox, PBS “OTT Guru”— Roger Keating, Hearst Television NYC 2015 “OTT Genius”— Brian Balthazar, Scripps Networks “OTT Hero”— Rich Antoniello, Complex “OTT Guru”— Rick Howe, The iTV Doctor NYC 2014 “OTT Genius”— Jean-Michel Planche, Witbe “OTT Hero”— Amit Ziv, EPIX “OTT Guru”— Steve Harnsberger, OTT Digital Services Boston 2014 “OTT Genius”— James Norman, Pilotly “OTT Hero”— Jim Turner, Net2TV “OTT Guru”— (Tie) Gabriel Dusil, Visual Unity; and Jason Thibeault, Limelight Networks

6 Best Practices Next-Gen Compression Techniques Are Helping Eliminate Latency From Live OTT Video Delivery

By: Thierry Fautier

s OTT video consumption continues to CDN workflow systems to resolve the delays As Vice President of explode, service providers today face that are often prevalent with live video A Video Strategy at a very big challenge. In order to provide streaming. Right now Microsoft and Apple Harmonic, Thierry the same high-quality video experience are working within the Moving Pictures Fautier is in charge that consumers are used to receiving Experts Group (MPEG) on the development of defining and driv- with traditional satellite, cable and IPTV of the Common Media Application Format ing the execution of offerings, OTT service providers need to (CMAF) to alleviate latency issues at this the long term strat- egy of Harmonic’s eliminate latency, especially for live sports level of the workflow. CMAF is designed to video business. In applications. unify MPEG TS and fMP4 media containers addition, Fautier is the current President of The latency for live OTT content currently in single format for OTT. Supported by the Ultra HD Forum, the global organization averages 30 to 60 seconds, compared with HLS and DASH, the International Standard responsible for promoting market adoption less than 5 seconds for terrestrial and satellite includes a low-latency mode that reduces of UHD. His previous experience at Harmonic delivery networks. Under those terms, it’s latency by a significant amount compared includes leadership positions in Solutions not hard to see why latency can negatively with other standards. At IBC, Harmonic was Marketing, where his area of responsibility covered Harmonic’s major markets. Prior to impact a video streaming experience for live showing a Live demo on Akamai network joining Harmonic, he was Vice President of sports. Let’s say you are streaming a live where the delay was below 5s. It achieves Marketing for Vsofts and held various posi- sporting event on your iPhone or connected this by mapping CMAF chunks efficiently tions at Philips in Research, Engineering and TV. If the latency is a significant amount more into delivery containers that are quickly sent Marketing. An experienced speaker, he has than traditional cable and satellite services, to an origin server. There are two caveats presented at leading industry conferences you might hear your neighbor celebrating a with CMAF low latency: encryption is not throughout the world. game-winning goal before you actually see it unified as CBC and CTR are not compatible, on the screen. although version 4.0 PlayReady player now Live sporting events won’t be limited to Solutions are being developed to bring the supports both, and it has to be modified to traditional pay-TV customers; rather, they’ll latency level for live OTT close to what it is work on existing Targeted Advertisement be available for viewing on any screen, with traditional pay-TV offerings. One area systems that are DASH based. without a subscription. of the video workflow that can be enhanced Once latency for live streaming video Harmonic has always been a supporter to improve latency is compression. reaches the same level as traditional of open standards because they enable Aside from compression, latency is also broadcast, without impacting video quality interoperability, which makes operations impacted by content delivery networks or bandwidth, OTT service providers will and infrastructure upgrades simpler for (CDNs). OTT service providers may need be able to compete on common ground broadcasters, pay-TV and OTT operators. � to tweak their packaging, origin server and with satellite, cable and IPTV providers.

Live sports presents the biggest challenge for OTT service providers to eliminate high latency.

OTT Executive 7 Fall 2017 Magazine Case Study Boost in Mobile Use and OTT Viewership Extends Audience Reach for Farm Journal Media

By: Paul Brickel

ideo views surpass goal in 6 months with Editorial Director of FJM’s Broadcast high traffic and audience engagement. Division. And as evidenced by FJM’s track Paul Brickel is the V Director of Product record, they’ve been doing just that. A perfect Management, OTT So- If you’re one of the 3.2 million farmers in example is the company’s transition from a lutions at Brightcove. He has extensive prod- the United States, chances are you’ve heard of single print magazine to an industry premier uct management and Farm Journal Media (FJM), one of the oldest website, AgWeb, and syndicated broadcast marketing experience agricultural publications in the country. What program, AgDay, which is also available on a helping media organi- started as a print magazine 140 years ago has variety of platforms, including Farm Journal zations navigate the digital landscape and now evolved into a full-blown multimedia On Air, RFD-TV, and the AgDay website. deliver market leading solutions. company focusing on the intricacies of the “The AgWeb site has now grown into a commercial farming industry. powerhouse of the industry,” says Griffiths. FJM’s evolution is apparent in its “It gets more than half the traffic from content delivery network, but during that collection of media properties, including people looking for agriculture news, markets time, the team recognized several challenges 11 print publications, eight broadcast and other related information. It’s just a preventing FJM from really optimizing its programs, 12 websites, two e-newsletters, behemoth out there in the business.” assets. For one, the network’s player, based and an OTT network, Farm Journal On Giving customers what they want has in Flash, forced content to load far too Air, which is available via web and mobile always been the driving force behind FJM’s slowly. Two, the platform lacked a smart app. Its programs are broadcast to 100 or business model. That’s why the company tagging system and a flexible player. This so local network affiliates, and they’re teamed up with Brightcove to further expand made it nearly impossible to play video also available on digital cable and satellite its digital footprint. In just about seven seamlessly within different browsers or channel, RFD-TV. Considering FJM’s months, Brightcove successfully supported mobile devices, and it erased any chance audience reach, high-quality content, and FJM in building and launching its OTT of enabling interactive content. And three, impressive viewership of nearly two million and mobile initiatives, driving incredible the entire platform was behind the times; it people weekly, the company is arguably engagement across all digital properties, and couldn’t provide FJM the tools it needed to the agricultural industry’s leader in media discovering new ad revenue opportunities to stay on top of the latest technology trends. publishing. help fund future video endeavors. That’s when the FJM team began looking In order to stay number one, FJM knows for an industry standard platform. it has to continue evolving and providing Farm Journal Media Supercharges Its An integrated video player proved viewers quality content in whatever mode Video Content the ultimate asset for FJM. Its optimized, they prefer. “It’s important we go where During the company’s transition to lightweight technology allows for fast the customers are,” says Clinton Griffiths, digital, FJM first delivered video through a load and play times, which is incredibly helpful for consumers living in areas of limited connectivity. Since FJM’s target demographic is located mostly within rural areas, consumers’ access to high-speed internet is spotty at best. That’s why the new player helps FJM deliver high-quality video content to any location, regardless of bandwidth. The player also supports smart tagging, making it easy to distribute video seamlessly, no matter what browser or platform people are using. “You can put one video up, and it deliver to multiple players,” says Griffiths. “That’s opposed to setting up and managing each player individually.” Because of its workflow efficiency, the new platform has truly transformed the way Griffiths and his digital team think about An integrated player helps FJM deliver high-quality video content producing and distributing content. Rather to any location, regardless of bandwidth. than managing separate players and playlists,

8 they’re now able to focus solely on managing video content; instead, they can distribute reach on-the-go audiences has skyrocketed. the videos themselves, which makes a big many versions of the same video, resulting “It makes sense that people are going difference as far as efficiency is concerned. in more viewing opportunities and a highly to get the content where they can actually efficient work process. In fact, within the stream it,” says Griffiths. “It looks like our Optimizing Content Helps Drive Ad first six months of using the new platform, viewers use their phones for that because the Revenue for Farm Journal Media FJM hit its max data limit for video views, connection is actually faster often times than Since partnering with Brightcove, FJM indicating incredibly high traffic and the internet connection they have at home.” has been able to take advantage of the audience engagement. From August 2016 to And with such an attentive mobile platform’s many benefits to drive an increase August of 2017 digital video and audio plays audience, FJM is now aiming to attract in ad inventory. have risen nearly 140 percent. even more users to its OTT channel, Farm The team is segmenting video content As FJM’s video assets continue to Journal On Air. The channel’s recently into short, strategically packaged pieces—a grow and its viewership increases, its sales revamped mobile app, built with the help helpful practice that drives more traffic team has begun seeking opportunities for of Brightcove’s OTT Flow, will be a huge to multiple distribution points. Griffiths additional revenue to support the company’s asset in extending reach to mobile consumers explains: video initiatives. Griffiths says the team is and at-home audiences. FJM expects their “We discovered shorter, more compact collaborating with sales staff to develop an mobile app will be especially appealing to clips are far better solutions for digital impactful approach to pre-, mid-, and post- those who have chosen satellite TV or have audiences. Now that we’re doing smart roll opportunities proving to advertisers just “cut the cord” in favor of other video services tagging, we’re shortening our clips and being how valuable FJM’s digital content is. for direct-to-consumer viewing. more specific. We’re writing new stories “We’re looking to roll out our OTT around everything and driving traffic to Boost in Mobile Use Allows FJM to Make channel to services like Apple TV and individual pieces of video, as opposed to the the Argument for OTT Video Roku,” says Griffiths. “We eventually want entire show every day.” While broadband connectivity poses a to deliver to bigger screens and living room FJM now is able to repurpose one piece challenge to most of FJM’s rural viewers, television sets.” � of video into individual segments and deliver it’s actually helped expand FJM’s mobile them separately throughout the company’s viewership. With more people investing in multiple digital properties and platforms. mobile technology, including increased data Therefore, FJM doesn’t have to create more plans and 4G speeds, the company’s ability to

A great way to generate visibility for your brand is to engage with our 45,000+ OTT Executive community. Our content marketing programs— including white paper promotions, webinars, and social media campaigns— build brand awareness and generate qualified leads at the same time. In addition to promoting to our network through email, social, and digital properties, your content marketing program will typically enjoy over a million potential impressions through other social media channels. Furthermore, your asset will be backed by our guidance in its creation and our advocacy throughout promotion.* White Paper Promotion • Dedicated week of promotion and advocacy • Landing page and lead capture form hosted by sponsor • Promotion through “OTT Video” and other LinkedIn groups • Tweet campaign via @OTTexec and @BrianMahony • Blog post on TrenderResearch.com and LinkedIn Pulse • Total potential impressions: 500,000-1.5 million • Expected leads 50-200 (based on past programs) Webinar Program • Four to six weeks of promotion and advocacy • Landing page and lead capture form hosted by Trender Research • Promotion through “OTT Video” and other LinkedIn groups • Tweet campaign via @OTTexec and @BrianMahony • Blog post on TrenderResearch.com and LinkedIn Pulse * Trender Research reserves the right to edit, or decline, assets that are • Total potential impressions: 500,000-1.5 million poorly crafted, overly promotional, or • Expected leads 50-100 (based on past programs) uninformative. More information: [email protected]

OTT Executive 9 Fall 2017 Magazine Best Practices Driving Interactive Engagement Through Personalized Audio By: Reto Brader

s audio, video and IT technologies output. Reto Brader is VP of Aconverge onto centralized IP networks, Opportunities for Audio Signage are Worldwide Sales & new solutions are emerging to personalize beginning to take shape. Many of the Business Development content for consumers. earliest deployments have been seen within at Barix AG, a Zürich, Switzerland based IP networks and streaming represent the museums and visitor attractions to provide manufacturer. Reto support system for OTT content delivery one-to-one audio connections at talking brings 20 years of in- and interactive consumer engagement. exhibits, providing each patron with his ternational experience Beyond television, there is no question that or her own informational audio stream. in sales, marketing and sales development a mass convergence of audio, video and IT Another emerging business model focuses in the audio, video and datacom technology space. technologies is taking shape across many on Audio Signage as a cost-effective solution He holds a Masters degree in Business and Adminis- industries. to provide live translation of presentations tration (MBA) and a Bachelors degree in Electronic Engineering. Before joining Barix, he worked as Digital signage is an ideal example of to the audiences within conference facilities Regional General Manager for Utah Scientific, Pix- how businesses and organizations are using and meeting rooms in hotels. elmetrix Corp., Alcatel and Hewlett Packard in Swit- IP networks to efficiently move valuable Hotels and hospitality settings have indeed zerland and Canada. visual content to multiple screens in a single been an early success, including the hotel building (local banks or restaurants), across lobby. A guest that is waiting to check in, for app download. This removes the burden of a large complex (corporate and university example, can tune into a private stream that hunting for the app, and quickly brings users campuses) or throughout expansive terminals provides information about the hotel and its into the Audio Signage environment. (airports). On a grander scale, IP networks services. This creates two-way relationship Collectively, Audio Signage represents a have grown robust and sophisticated enough between the presentation and the guest, true innovation in the convergence of audio- to carry content over IP networks in support without polluting the lobby environment with visual, streaming and mobile technologies of large retail and hotel chains. a voice track. A less disruptive background that, used effectively, can elevate While digital signage is now ubiquitous, more in tune with the lobby environment communications and guest engagement in the power of audio for interactive engagement music can continue to exist. hospitality – and personalize screen-related has been somewhat lost. However, new Audio Signage lives on the network, audio distribution. And with everything strategies for multimedia content delivery streaming single- or multi-channel audio living on a centralized IP network, it won’t be over IP networks are coming to market that tracks over WiFi to mobile devices. In a long before hotels taking advantage of Audio once again bring audio to the forefront. single-channel environment, an encoding Signage find a way to merge promotional Looking specifically at hospitality device picks up the analog audio stream content targeted for guests with their in-room environments, interactive audio is being and converts it into a stream delivered over over-the-top TV systems. � used to drive guest engagement in a very the network. An app on the mobile device personalized manner. For hotels already receives the stream and decodes it back to using digital signage, streaming audio to audio. mobile devices is one emerging trend that In a multi-channel deployment, users can can strengthen intimacy between the hotel select from multiple audio tracks on a single and the guest. screen; or separate audio tracks used on Most digital signage deployments today multiple screens. The former example works lack live audio tracks so as not to disrupt the well for multi-lingual audio tracks, where a natural environment. This can be very limiting guest can switch between English, Spanish or from a marketing and communications French languages of the same informational perspective, however. The delivery of audio program in the lobby. tracks to complement the video output allows The latter example is especially ideal in the business to leverage digital content on a a bar, where a patron can switch between far more intimate level. different TV sets. Think of a hotel with a This emerging trend is now oft-referred sports bar, where multiple football games to as “Audio Signage.” In an Audio Signage might be broadcast on various screens. Multi- deployment, an analog audio source is channel Audio Signage deployments require streamed to a smartphone or tablet with very an additional server that communicates the low latency, or delay. That minimal latency various channel information and availability is the key technical element to ensuring the to guests on their mobile devices. In both application works properly, and that the single-and multi-channel configurations, a audio stream is synchronized with the video simple QR code provides the gateway to the

10 Best Practices Delivering OTT Content? Don’t Fall into These Five IP Geolocation Data Traps. By: John McArthur

ou, the reader of this article, have a may be sufficient granularity, but identifying natural advantage because you already viewers in a household can require much John McArthur Y joined Neustar in know my identity. It appears right under the greater detail. November 2014 and title of this article, and you can reasonably has over 15 years of trust the editors of OTT Executive Magazine. Trap #2: Your IP discrepancy resolution experience serving Readers, on the other hand, have a natural process is slow or non-existent. businesses and end anonymity. I mention this because it It can take time to verify the location users in the digital underscores one of the biggest problems of an IP address behind a proxy server space. He is respon- sible for the product in content delivery today: identifying the or an organization’s VPN connection. In strategy and roadmap delivery of Neustar’s consumer. the meantime, OTT providers face a hard IP Intelligence product line. John joined Neu- Subscription-based content delivery, choice: provide content to the consumer star from JP Morgan Chase where he drove particularly streaming media, is challenging in the interim, or block them until they can digital banking solutions for the consumer to manage in our digital and increasingly be verified. Since you don’t want to annoy bank. Previously he served in project manage- mobile world. Unfortunately, there are people your customers, we recommend issuing ment, operations, and business process man- agement roles at Chase and Accenture. He who would try to cheat the system by hiding a temporary token that provides access graduated from the University of California at or altering their location and/or identity. And to content until the IP discrepancy can be Berkeley with a B.A. in Economics. there are shades of complexity in media resolved. Of course, it goes without saying licensing rights that can be hard to enforce, that the sooner you can solve the issue, the such as identifying when a device moves out better. problem-solving. That’s why OTT content of the state or, in some cases, even out of the providers need a partner who can provide initial home location. For these reasons, it’s Trap #3: You try to go it alone with the expert advice and support to find creative critical that OTT media providers use Internet data you’ve got. solutions to problems as they arise. Protocol (IP) geolocation decisioning data to No one is saying that your data isn’t good. Even with the best data, you won’t catch identify users, devices, locations and other It’s just that more data is better, especially all the bad guys all the time. But you’ll be risk insight to piece together a truthful picture when that data covers, say, 99.99% of all more successful if you invest in robust and of the consumer at a specific point in time. routable IP addresses. Partnering with a third- reliable IP decisioning data and processes. At Neustar, identity data makes up a big party data provider can help you uncover Finding an OTT delivery partner who can part of who we are as a company. Our IP fraud patterns that you might otherwise provide both is the ultimate goal. � Intelligence family of data is the authoritative miss, identify risky non-human traffic, create source of IP decisioning data for 99.99% of blacklists in a more timely manner and gather the world’s routable IP addresses. As a trusted data on new markets before you roll out provider of IP geolocation decisioning data services to those areas. for MLB.com, Sky and many others, we see first-hand the challenges that OTT providers Trap #4: Your data is less than fresh. face when streaming different types of IP addresses aren’t static; they change content around the world. Here are five of constantly. In fact, one in ten IP addresses the most common—and dangerous—IP data will change each month. So, if you only traps that OTT providers need to avoid when update your IP decisioning data every month, streaming content across mobile, digital you can expect that data to be wrong 5-10% domains. of the time. Updating your IP decisioning data every week (or more) will yield more Trap #1: Your IP geolocation data isn’t accurate and better results, but who has the detailed enough. time to do that? A quality third-party data We call this data granularity and it can provider, that’s who. run the gamut from basic user identification (name, address, etc.) to specific GPS Trap #5: Your data partner ends the coordinates, depending on the content and relationship at data delivery. the licensing agreement. An OTT video Using IP decisioning data isn’t simply a streaming service, for example, might limit matter of plugging the right information into its broadcast to a designated market area the right models. There are many nuances (DMA) or a single household. For a DMA, in licensing rights, integration issues and associating a postal code with the IP address other challenges that require real-time

OTT Executive 11 Fall 2017 Magazine Trends & Analysis Building a Business, Not Just an App By: Fredrik Andersson

ver recent years we have witnessed a States overall was on TV sets by mid-2016. massive shift in the industry and TV, But Millennials watched only 31% on TVs. Fredrik Andersson O is the SVP Business along with many other mediums, has become Eleven percent of the TV content watched Development of Ac- app-centric. Apps are a great, if not perhaps by Millennials was over streaming video cedo, which he jointly the only way to deliver video to multiple devices, while adults over 50 years of age founded in 2004. He has extensive experi- platforms and ensure a consistent look and watched only 3% that way. Nearly a quarter ence in the converging feel. With the delivery of video becoming of video consumption by millennials was via telecom and media in- ever more complex, content providers are mobile smartphones. dustries. Since found- ing Accedo, Fredrik looking to software to solve the challenges So we are seeing a rise in OTT services has been heavily involved with the roll-out of inno- that come with that. However, software is from a range of providers, including TV vative content offerings for IPTV service providers just a small component of a much larger networks, broadcasters, and movie studios. and Connected TV manufacturers. Prior to Accedo, Fredrik was a Senior Management Consultant at effort. Successful services are more than just In response to all of that, Pay TV providers Nordic consultancy company, Digiscope, which an app, they are video businesses, and as the are adding online video to their traditional he co-founded in 1999. Prior to Digiscope, Fredrik landscape gets even more complex, that is set-top-box user experience in an effort to worked for Ericsson, developing future services and becoming increasingly key. attract the millennial demographic. applications for the networked home. Fredrik holds an MBA from the Stockholm School of Ecoomics and has studied computer science at Linkping Insti- Changing Consumption Keeping Up with Technology tute of Technology and London Guildhall University. One of the biggest challenges for content Just as services and audiences are providers today is the continual change in the evolving, the technologies associated with way video is delivered and consumed. There video delivery and consumption continue to content, feature enhancements, and security is greater competition than ever before and proliferate, and change is the only constant. in a standard way, no single set of components consumers are watching content on a wider Device and OS providers like Apple, Google, works across all browsers range of different devices than ever before, Roku, Amazon, Sony and Microsoft each All of this may sound somewhat abstract all with different formats and a whole host of offer video content through vertically- until your end users start complaining that a technical challenges. integrated ecosystems in an attempt to create service that they are paying good money for For the traditional TV providers, there is differentiation and exclusivity. As a result, has suddenly broken. Most of them have no a struggle to remain relevant, with a higher each environment is different from the rest. idea that the app stopped working because the percentage of, especially younger, consumers There are few common denominators. latest release of the app no longer supported a opting for streamed video, rather than linear Browsers are even more complicated, legacy device, or that their Web browser was TV. According to Nielsen, 45% of the video even though HTML5 has been touted as a set to auto-install an update that rendered content watched by adults in the United common framework that accommodates the Web version of the video provider’s app

12 incompatible with the browser. Meanwhile, the video provider may have lost the ability to serve entire classes of devices overnight and not even know it.

Building a Business With all this change, it is natural for content providers to look to technology to solve these challenges, and of course it has an important part to play. However, unless the content provider has properly considered the business they are trying to build, even with all the latest technology, the service is unlikely to be successful. Development should always begin with setting top-line goals and objectives, which in turn can result in a clear definition of the App and device integration is one of the biggest OTT challenges. service and a clear understanding of both the business and technical environment that it At the same time, it is important to consider adapted over time. must exist within. This includes considering all the different dynamics down the line, as Ultimately, content providers need to the rationale behind creating the service, platforms change or consumers start to watch shed the mindset of simply creating an app i.e. is it for customer retention or pure content on different devices, the service and instead build a video business. � monetization? needs to be flexible enough to come and be

2017 Over-the-Top Video Accolades

Announcing the 2017 OTT Accolades (OTTAs), an awards program to honor the people, products, and companies that are driving the over-the-top video industry forward. For more information about how to nominate a person, product, or company, send inquiries to [email protected].

Submissions will be accepted on a rolling basis and awards announced in January 2018. Winners will also be highlighted in the next issue of the magazine and promoted to our 45,000 member OTT video community.

OTT Executive 13 Fall 2017 Magazine Executive Insights At the Bottom of Over-The-Top: Review of the Leading OTT Apps/Devices By: Nick Buzzell

he current over-the-top user experience decide that the first step is figuring out how sucks. Someone had to say it bluntly, to stream my NFL games on my Apple TV, so Nick Buzzell is a suc- T cessful entrepreneur, and the good news is that we are in the I search for the NFL app. I am met with two producer and me- nascent phase of OTT and there is still time different apps, NFL mobile and NFL Sunday dia executive with a passion to create to fix it. Just like any new media innovation, Ticket. As a new sports fan it’s hard to see the innovative media whoever gets it right first will reap the difference, but as a non-DirectTV customer, experiences across rewards. Yes, today we have more control do I want to pay $100 dollars for a Sunday multiple platforms over our streaming and media services than Ticket subscription? The only reason that this which led him and his partners to create ever. Yes, there is continuity between some diversion even exists is because of an out-of- the next generation media company: NBTV Stu- of my devices for some of my apps and yes, date TV contract in which DirectTV figured dios (where he’s the CEO and Chairman). Nick streaming is so commonplace in our daily out how to monopolize nationwide American also leads NBTV’s talent management practice. Prior to NBTV Nick was the VP of Opera- lives that it’s being used as an innuendo for football. We are living in 2017, yet we are tions for Big Fuel. Before Big Fuel, Nick ran op- having sex (i.e., Netflix and chill). Yet, if letting the business rules of 1999 govern erations at NBC Universal’s Digital Studios. we take a critical look at the way our OTT our way forward. We are letting legacy TV Nick serves on the board of directors for Dress For platforms are set up, the user experience dominate our “new and improved” streaming Success Worldwide the advisory boards of the Na- tional Association TV Programming Executives really just sucks! Today’s OTT platforms lack experience, but more on that later. (NATPE) Next Generation, Banff World Media Fes- logic, efficiency, and more importantly, ease- After starting to empathize with Tom tival and SOS Children’s Charities and has been a of-use. Worse yet, technical problems like Brady and his frustration with NFL featured speaker at Summit Series, SXSW, NATPE, AD Week, Internet Week, Universities and various endless buffering within apps tend to exist management, I decide the Bustle app is how film festivals. at every level on every device. Let’s take I’m going to clear my mind. I download the a critical look at what the major platforms app, and wait, and wait, and after a nice wait, have to offer currently and you be the judge I am met with an array of tiles for videos to subscription. Sure some bits and pieces of of whether we are really taking advantage of sort through and choose on my own. Just e-commerce are threaded in, but nothing is the technology at our disposal to build the a thumbnail and a title, no description or talking to each other seamlessly. And worse next generation media experience. curated playlist. Given my experience thus yet, most of my apps require me to verify my far, it might be time to start drinking so I cable subscription, so back to the “old TV” Apple TV decide to click on a video about beer. The model we go. So in order to truly enjoy this al Ah…the sexy and sleek Apple TV and la carte world, I have to fumble around with the self-proclaimed leader in the industry. these illogical apps that are also requiring me Upon setting up my Apple TV (version 4) to pay $100+ a month to one of the big three I am met with channels or “tiles” for apps cable companies just to access my content? such as photos, music, podcast, computers, TV has become our country’s most addictive you know, the apps you are supposed to be drug. Most people have to have it, even if you constantly using within the Apple connected don’t want all of it and when you don’t want device ecosystem. Nothing gets the blood any of it, trying to cancel (given our favorite pumping like a nice slide-show of my vacation process in the world known as customer photos on my TV. Anyway, I enter the App service) it is a process so debilitating, you Store to sort through the environment as if might as well stay addicted. I think I’m ready I’m a first time Apple customer. No smart to move on from what is only the third largest recommendations from my iTunes account, in the OTT streaming industry. no intuition whatsoever. Over the past 10 years I have spent thousands of dollars on Roku music, tv shows, movies and apps with the The number one OTT streaming device same iTunes account. At the very least, this content is from one of Bustle’s owned and in the industry, Roku, is my next experience means Apple has lots of my personal data operated web sites Elite Daily and it’s good to examine. This time, I am met with an available to create an Apple TV experience quality so I’m ok with that. I think I’m done interface that is not as sexy as Apple’s but, that is curated for me. with these apps for now. my mom always used to tell me never judge So now I spend my time sorting through Back on my Apple TV home screen, there a book by its cover. The nice part with Roku the 8000+ apps in the Apple TV App Store is no connection, interactivity or conversation is that my interface is preset with the most to choose from, because I have all the time between any of the apps. Each channel is its popular channels and gives me a place to in the world to scroll, read reviews, install own independent walled garden of content start exploring. The space is a bit easier to and launch each one to see for myself. I that’s either free, advertising supported or navigate as I’m not forced to enter an “app

14 store,” which should be a given since I’m Smart TV I’m on a video platform, and I actually am already in this environment versus say, a cell Before I start with this device, can I watching video instantly without having phone. I still have to download the apps, and honestly ask if anyone actually uses a smart to click an app, pick a title, search or log although the overall experience is better, it TV for streaming? I have a Samsung Smart in separately to a channel. I am able to is still not curated to my preferences. I will TV, and with all the other streaming devices I seamlessly preview videos of what I want to say it was nice to have Hulu already on my have, I don’t even know why. But then again, watch in a very linear TV like environment, homepage when I set it up, so we’ll start that’s what this drug does to you. Upon taking which has a familiar feel to a new user who there. a look at the interface, we are met with a slow, may be just getting started with OTT. Yet, So, let’s go into Hulu and check out how static screen that looks right off a computer Amazon still was not able to deliver in terms this experience compares. At the first screen from the 80s movie War Games. There is no of curation even though I used my Amazon I am conveniently met with options for a interaction with the different channels, only Prime account log in. None of my preferences free trial, log in, or learn more. Seems like simple thumbnails and titles to tell me what from my Amazon Prime account played a better time than ever to start my free trial. each video or app is about. My biggest pet any factor in the curation or selection of Excited to binge watch Handmaid’s Tale peeve with my Samsung Smart TV is that I programming presented to me, forcing me to (don’t judge), I am disappointed when the am constantly being reminded of how much scroll through the myriad of options without next screen asks me whether I want the $7.99 memory I have left on the TV’s hard drive. So any guidance yet again. An improvement in option for limited commercials or $11.99 for now I not only need to go pick out the apps I terms of ease-of-use, but in terms of logic, no commercials. But it’s a free trial. On a free want, but now the choice of apps becomes a curation and efficiency, not so much. Again, app. I guess I was expecting, I don’t know, revolving door of characters that would make my daughter is calling me, so I have to go. free to try it? And this isn’t an issue exclusive Game of Thrones jealous. to Hulu as most of the “free” premium The launch of an app from my Smart What now? content subscription services state “free trial” TV feels much like the days of AOL dial All of the sarcasm and satire aside, I but demand I give them payment info upfront up internet, only this time I wish I had that remain optimistic, inspired and excited to or require me to have a cable subscription. weird static noise so I would at least know it shape this new media landscape. However, Why wouldn’t I be given the opportunity to is working properly. And yet, as I write this, we must remind ourselves that the consumer experience what I want to experience right the app still won’t open. In this case, it is the experience is all that matters as we live in a away, for free, with an option to buy once pinnacle of streaming apps, Netflix. This has fast changing, hyper connected world. It is a inside the monthly subscription worthy taken a lot of time and I hear my daughter new game today, and whether we like it or not, service? That experience seems like a better calling me while I have no indication that this we cannot apply old rules to this new world. way to convince me to be a customer. Already perpetual graphic will end. Narcos will have The changes in the music business may be on my fourth step, I start to lose interest and to wait. the greatest lesson in this shift in consumer think about what is worth more, “free” Hulu behavior, and as you may recall, it didn’t end or my time or should I move onto HBO Go? Amazon Fire well for the companies that held on to the past. Now HBO Go was seamless and easy As I pick up my fourth remote of the day The music industry used legacy business rules to use. How did I know that was going to and hit the button on my HDMI switcher for to impede innovation and ignored the needs happen? Because I had gone into HBO before the last time (since I don’t have enough HDMI of the connected consumer until a technology my cable subscription was saved from an ports to have all of these devices plugged in), company made the change for them which earlier date. The only reason it was easy, was we move onto the streamer from our favorite gave us the Apple IiTunes juggernaut. Just because I had already acquiesced to the rules provider of all things, Amazon. While we as we couldn’t apply radio’s rules to TV, we of TV that are attempting to govern the OTT started with the good-looking Apple TV, cannot try to apply the old rules of TV to the streaming space. Despite not being as sexy to which is #3 in terms of number of devices new world of OTT device streaming. Henry look at, Roku proved to be a solid streaming in the US, we end with Amazon, which is Ford once said, “If I had asked the people service, and probably where I would go for the #2 after Roku. Amazon Fire has a sleek, what they wanted, they would have said my quick OTT needs. polished and premium feeling interface and faster horses.” The world of streaming is not also manages to simply about creating faster or better TV, but succeed in a few about creating an entire interacting media areas that Apple ecosystem of entertainment and commerce and Roku do that is curated to the user’s preferences for not. Even though an easy experience at a reasonable price. No the interface cable contracts, no verifications, no more of Amazon is Big Three, no more walled gardens. There quite similar to is definitely plenty of work to do, but who Apple’s, Amazon knows, if the TV business gets it right and differs in many fast, maybe it won’t end up like the music ways I like. First business. Maybe we can think of a better off, Amazon Fire name than OTT as well. While I dare imagine uses up all the what the future of advanced TV looks like, real estate at the I’m obsessed with building a better solution. top of the screen � to play promos and trailers of what is available on the platform. What’s the point of a Smart TV if the user experience isn’t “smart”? Imagine that,

OTT Executive 15 Fall 2017 Magazine Trends & Analysis Understanding the OTT Business Model By: Carlos Hulett Guinand

TT, SVOD, TVOS, AVOD: allow that the scalability of the business Carlos Hulett Guinand OWhich business model is outside to be fast. Probably many users had is the CEO & Founder of the winner in the OTT Industry? access to the information on the product Vivoplay, OTT and vM- Everyone in the industry is asking that before they could can have access to the VPD app for hispanic content in Latin Ameri- question without ceasing. They all say that product itself. They all spoke of television can, USA and Europe. the new trend in television is OTT, and there through cable, but few had cable in the door. He is an entrepreneur is no doubt about it, but the common question In the case of OTT, using the distribution and consultant in the is: where are the profits? No OTT vendor platform of the internet allows the service area of communica- tion, with an expertise has reported company profits, including to be put in the hand of the consumer, since in production and distribution of audiovisual con- the suppliers of technology, programming they can acquire it in the App Store, Google tent. Carlos also is an academic researcher, spe- services. Even content generators ask Play, Roku Channels or even the Amazon cializing in digital media and new communication technologies OTT, IPTV and DTTV. He is a founding that question, where are the earnings? Store. Also, in any tech store you can buy member of MEDIAX Gente de Medios, a consulting The earnings of OTT are linked to the a Smart TV or a streaming device, and in firm for media industry in Latin America. As well as ability that these companies have to climb some cases for less than 50 dollars one a founding Partner of MEDIAX Audiovisual Institute, professional education center in Latin America. quickly, but for starters, with an ARPU average could have access not only to hundreds of Carlos also is a speaker and a university professor. of 10 dollars, one really needs to be massive channels, but to thousands of channels and to see the possibilities of delivering profits. VOD titles, of all the different genres. When The scalability of a business has many Netflix launched its streaming service it did content for their new streaming systems assumptions. However, in the television not offer more than 1000 titles, but leveraged and Netflix delivered that immediately. industry, there are two important components: its technology; first because of the high Imagine, shopping for a television set, worth 1) the ability of distribution (technology) penetration of the television sets connected more than $1000 and then wanting to use and 2) user adoption (evangelization). to the internet, then through streaming it with a technology platform that connects In the case of cable, the technology of devices, like the new tablets and the boom to broadband, and the first application distribution was very complex, and did not of smart phones. The manufacturers needed that you you find already preinstalled is Netflix. It is impossible not to subscribe. It took 40 years for the Cable Television industry to climb from 1 million to its first 50 million subscribers between 1950 and 1990, while it took Netflix less than 7 years to reach the same goal, and then it took less than 3 years to duplicate it. “Users are adopting television via internet and streaming players, and enabled smart TV penetration has grown strongly over the last four years. In Q1 2014, just 10% of tv homes had smart televisions and 15% had streaming players. in Q1 2017, smart TVs have narrowed the gap on streaming player penetration and grown to 29% and 31% respectively. So we are seeing some lumpiness in the quarters, depending on when we launch certain content, but the big picture is remarkably steady.So think of it, really, ace this big adoption of internet TV.” - Netflix CEO Reed Hastings - January 2017 Literally in no time, OTT service is in everybody’s reach all over the world, but then why don’t all systems scale at the speed of Netflix? Because the key is not in the technology anymore, the phase of the adaptation to technology has already passed The battle for OTT business model supremecy is raging. and the challenge is to create a model of

16 business that depends much more on the for users so that they feel comfortable, and services of OTT virtual multichannel video user and his ability to adopt the product. prove to them the interface is easy-to-use. programming distributors (VMVPD), that Now the challenge has doubled, older To the digital natives, the need is to according to a TIVO report, these services generations don’t feel comfortable with new show them that OTT provides content have doubled adoption from Q1 to Q2 2017. digital technology and do not understand or that add value, and if they really feel that This battle has prepared cable operators trust as they are constantly challenging their they need it, they will use their credit and they have determined to take take part knowledge of technology. On the other hand, card and compromise with a subscription. in it and not fall behind. Comcast with new generations (digital natives) that never But there is a great challenge “preaching Stream, AT&T with DirectvNow, Dish with had or ever used cable, are used to free internet our advantages” with content generators. In Sling, are only the beginning. Other players and not very willing to pay for content. the early days of VivoPlay we visited all the like HULU and the biggest of AVOD, channels and producers in Latin America, YoutubeTV, have also taken a step forward. This battle has prepared cable and explained what we do. Executives often The vMVPD presents itself as a solution operators and they have de- said, “OTT is a technological phenomenon” to the problem of cord cutting for the cable termined to take take part in it and many even handled the topic with fear. operators and carriers. Apparently the business It was difficult to explain to them that OTT model of television “a la carte” is something and not fall behind. Comcast is not a platform technology, it is a media that the public has adopted with enthusiasm, with Stream, AT&T with Direct- business model that uses a platform to not only for the price, but for the perception vNow, Dish with Sling, are only distribute content, we have to see it as the that “you only pay for what you need”. the beginning. Other players “path” and the content as a “destination”. OTT’s that want to introduce themselves All the cards seem be on the table. The to the market today MUST use a technology like HULU and the biggest of battle of SVOD is being won by Netflix. with apps present in most devices, and must AVOD, YoutubeTV, have also The battle of TVOD is being fought between select a business model coherent with the taken a step forward. Amazon and Apple. And while the AVOD needs and the values of its content. To think shows Youtube in first place, it seems that the that following Netflix is the “way to go” can There is a need to teach users and help them under value of CPM, plus the low credibility be the difference between living and dying. understand the product and why they need to of the advertisers, has created a new battle. � pay for it. It is necessary to create experiences This new battle is price-based offering

Congratulations to our past OTT Executive Summit Product Speedcase winners!

Past Winners: NYC 2017

NYC 2016

NYC 2015 (Tie)

OTT Executive 17 Fall 2017 Magazine Trends & Analysis OTT Trajectories and Cloud Computing By: Mark M. Myslinski

ackground continue to cultivate the joining of the two. Mark M. Myslinski, B Companies competing in industries And here I will say that today we are not OpenVideo Consult- based on video compression and processing completely there yet, but this discussion gets ing, is a 15 year vet- eran of the digital are at a tenuous point today. This is a time us a lot closer. cable television where those companies will have to make industry combined a big fat choice as to whether to invest in Cloud Resources Today with over 7 years appliance-based capex that is frankly getting Our discussion of cloud infrastructure recent experience dirt cheap, or in a cloud-based model that is needs to address two components, the in the streaming opex-based. These are two very distinctly application software and the underlying media industry. A majority of recent focus on different types of investments and difficult compute resources. And today, the cloud streaming media distribution and the chal- lenges associated with live/linear and broad- to compare in total cost of ownership (TCO) cost curves for video processing in general cast television, both for large scale audiences models. Yet as a company competing in this are heading sharply in a good direction, but and high resolution content. Much of this lat- arena over the next 3 years, you will find it is elements of the underlying computing ter experience has been in association with yourself sitting in one camp and competing resources that need to be addressed for the new generation and hybrid content distribu- against companies in the other camp. And TCO model to be truly effective. tion networks. Most recently study of ATSC these technologies are so distinctly different Cloud application software is referred 3.0 advanced services and the next phase of opportunities in the Broadcast industry. Mr. that someone will likely have a distinct to as Software-as-a-Service (SaaS). The Myslinski can be reached at mmmyslinski@ advantage. mainstream SaaS application software that gmail.com. As you contemplate moving from covers storage, off-line encoding, Adaptive depreciation-based capex models, to overly Bit Rate (ABR) encoding, cloud DVR; all are opex-based models and considering TCO, coming into line to make the TCO model of computing resources, and b) egress costs. what I would say is that identifying some cloud-based solutions effective versus that of These computing resource costs become of the trajectories taking place within these traditional appliances. reduced as the volume of encoding resources technologies could provide some clarity for It is cloud-based Constant Bit Rate is increased. The primary way you might your path forward. I say this specifically (CBR) linear encoding in particular that increase this volume would be through the within my current strong suit, over-the-top lags effectiveness in the TCO model. addition of local systems to your plant (here (OTT) and broadcast television, of which I Here, most of this is due to a) the costs of plant can be cloud virtual), or through the increase in consumers such as by offering off-net OTT services to public consumers in addition to your cable subscribers. As for egress costs, these are the costs of sending media from the cloud to, in this case its local headend destinations. These costs can be quite substantial, although some commercial cloud providers are starting to cap egress costs based on volume. And if you’re wondering, the act of sending media to the cloud is called ingress, of which many commercial cloud providers today offer cost- free ingress. Hmmm… As for the cost of the SaaS application software for CBR linear encoding, these costs today are manageable in a TCO model, and will be getting even better as vendors are starting to enable their SaaS to run on multiple commercial clouds (called multi- cloud). This leads to price competition that will make the TCO of the overall cloud-based model even more competitive.

Timing the Choice of Compression Cloud-based computing and processing technologies are driving improved TCO. MPEG-4 compression (H.264) with

18 HEVC compresssion is more expensive, but as 4k content moves to mobile viewing, the comparative economics to create beautiful high quality content will improve dramatically. extensions produces very high quality HD to the next generation of compression is tightening up (getting more reliable). video today. Don’t forget this too soon. technology once that becomes available. And as today consumers are getting HEVC compression (H.265) has the promise primarily accustomed to watching media of producing higher quality video, as it Virtualization Efforts in Mid-Stride on predominantly second screens, which is requires less bandwidth to transport. Today Video processing vendors are more or ABR. Consumers are also getting their eyes this has become more of an important factor less in their progressions from traditional more trained to ABR viewing as television for mobile networks. Once HEVC extensions appliances, to virtualized appliances, to DVR implementations today are becoming have been developed, an even greater promise commercial cloud SaaS. Some are making more cloud-based and using ABR for the for higher quality HD followed by 4K will be a formal progression to preserve all the consumer’s time-shifted viewing. delivered by HEVC. rich broadcast features as they move to HEVC computing costs today can be virtualization. Others have jumped to SaaS The True Power of Metadata Coming almost twice that of MPEG-4, pretty much virtualized solutions quickly at a cost of About in both cases of using either a traditional fewer features out of the gate. New technology has become available to appliance-based or cloud-based solution. A secondary evolution is occurring exploit the true power of SCTE-35 markers Subsequently, the HEVC TCO model in currently as the virtualization progression for addressable or targeted ad insertion. And the near-term does not yet compete with the goes from Virtual Machine (VM) this technology is also needed as consumers TCO of MPEG-4. But continue to watch this implementation to Docker container-based continue to move from stationary to mobile closely as hardware-based acceleration to the implementation, of which the latter is much viewing. Here, both in-band metadata, like benefit of HEVC is on its way to the clouds. more efficient within the cloud footprint and SCTE-35, and out-of-band metadata, like When it comes to compression, the TCO underlying computing resources. SCTE-224, is further embellished to enable model can include ownership of the encoding the robust rights management required licenses, and consider that for good reason. Workflows to Unify to support consumers’ increasing mobile This would be the licenses for the SaaS Outside of the equipment evolution, there viewing. application software. The best example is an inflexion point coming up in the cable The key here is frame-accurate metadata would be for a company to start with an / OTT industries whereby traditional linear placement. This is the same accuracy appliance-based solution that runs virtualized services which today are CBR workflows, afforded broadcast corporations and post application software. The benefit here is that will eventually cross over to ABR workflows. production houses through their playout in many cases the application software can This will enable unified workflows which systems to create an intricate and pristine be ported to a commercial cloud once that will reduce the overall complexity and costs television broadcast. model is appropriate, and so the investment of your video processing. In addition, ABR As metadata is expanded to empower in the original encoding software (licenses) is services lead to very cost efficient targeted ad OTT programming, this metadata also must preserved. Another benefit is that some of the insertion that can also be done entirely in the be inserted frame-accurately as it traverses application software vendors offer encoding cloud. [1] cloud-based systems and goes on to span the licenses that are future-proofed, whereby the We are getting close to this possibility as globe. This is how the intricacies of television original license will automatically upgrade ABR end-to-end Quality of Service (QoS) will be maintained in OTT distribution,

OTT Executive 19 Fall 2017 Magazine specifically for rights management, these events can be supercharged through quality broadcast and the intricacies of blackouts and program substitution. Another the ability to target ads within that linear true television programming, as well as to key here is this technology works in existing broadcast event to as many different outlets enable addressable advertising within OTT workflows and does not impact traditional as possible. [4] broadcast television events. television delivery at all. [2] And as semantic audio and video analysis So What Does This Mean in 2017? • Metadata for ensuring rights management technologies progress, real-time metadata must be frame-accurately inserted and generation, insertion and delivery will enable • The cloud is unavoidable even when especially for the dynamic rights management contextual ad targeting based on frame- considering a 3-year TCO model, yet cloud required for a very mobile world. accurate metadata. A potential big boon for computing costs must be roped in through OTT television broadcasts. volume either today or as planned for The technology cost curves for video tomorrow. compression and processing for both Workflow Orchestration Must Become appliances and the cloud are currently so Dynamic • Don’t leave too soon the video quality realm steep that total cost of ownership models As workflows unify to ABR in the of MPEG-4 compression with extensions, need to be on the order of 3 years. TCO cloud, as viewers become more mobile, as because HEVC will only get better and its model considerations in the cable and OTT vMVPD operators become the norm – cloud- costs cheaper, and as some compression industry sectors need to embrace virtualized based workflows must become dynamically vendors will let you buy into the future. technology at a minimum such that it can be orchestrated. i.e. more resources when and moved from appliances to the cloud by the where traffic swells, and less resources during • A step into the next TCO cycle should end of this TCO cycle or sooner. Starting a off-peak times. And with this, the cost model consider investment into virtualized new TCO cycle in the cloud may indeed be for service delivery becomes close to all opex appliances, assuming you see an eventual practical if you anticipate unified workflows and as cost efficient as possible. move to the cloud. And with this, consider and if your target markets are unbridled by It is also through dynamic orchestration investment into buying your encoding geography to scale up. � that comprehensive resilience creating high licenses to get the most out of it. availability of OTT services comes about. References This will enable the robustness needed to • The inflexion point to wholly ABR [1] Shift2Stream, John’s Creek, GA, www. manage the dynamic swells of traffic that delivered video services is coming and being shift2stream.com/ will occur with true global OTT broadcast accelerated on two fronts. As end-to-end [2] Crystal, Duluth, GA, www.crystalcc.com/ television. [3] cloud-based ABR workflows are tightening A true opex-based model such as this up, and as consumers’ eyeballs are getting [3] id3as, London, www.id3as.co.uk/ departs from current conventional CDN more trained to ABR quality. [4] “Streaming Media is Stuck in the Muck,” distribution, as the costs of this new model Mark M. Myslinski, Over the Top Video Executive will enable a fixed top line margin to be • Clouds are a natural for dynamic Magazine (pg. 26), Spring 2017. assigned to the service delivery. For the orchestration. Tight, container-based OTT services provider this enables the cost dynamic orchestration will shore up cloud- per consumer to be known and ahead of the based ABR workflows to support the broad programming event. Here the golden goblet ebbs and flows of traffic that will come with I’ve referenced in previous articles comes global OTT broadcast television. about, as traditional linear advertising models are enabled for OTT broadcast television • Metadata must be fully exploited to events. Furthermore, the profitability of enable OTT streaming to support a pristine

If you are interseted in speaking at the OTT Executive Summit, contact: [email protected] New York City June 2018

20 Executive Insights Who Will Be King of the OTT Hill? By: Terry Owen

aptive consumer audience, targeted of content choices that cable provides at Terry Owen, co-founder affordable monthly prices. This dilemma has Canalytics that augment content of Akyumen Entertain- recommendations, ad selection and delivery, led to a rise in customer exodus from OTT ment System, is a se- along with great content working together, platforms with consumers jumping from one rial start up, consumer will be “king of the hill” in the new world of platform to another based on “free viewing” internet services and global over-the-top (OTT) distribution. watching periods and in some cases piracy or product guy who en- manipulation to access desired content free joys putting innovative and disruptive devices Internet, video entertainment, publishing, of charge. and services into the music, and video games are quickly shifting Customer churn, exodus and piracy are hands of millions of consumers worldwide to im- in the industry to those that provide over-the- critical factors in the financial viability of the prove overall consumer experience and improve top (OTT) services and monetize consumer over-the-top platform. In a competitive and stodgy entertainment business models. data. The global OTT market model is saturated market, companies are spending saturated, fragmented and chaotic with more and more each quarter in an effort the chaotic and saturated over-the-top (OTT) services providing selective offerings while to attract new consumers, retain existing market. The ability to design and curate your lacking in the variety of genres consumers consumers while spending significant own media diet has been one of the most continue to demand even as they cut the cord. funding for new content to quench consumers’ powerful trends from cord-cutting consumers Direct to consumer OTT models that offer consumption demands. to emerge in the industry. Whether in the U.S. the variety of content consumers are seeking In addressing global cord-cutting market or Uzbekistan, consumers are demanding with both affordable pricing and a variety trends, a comprehensive global distributive a greater ability for selection choices and of content options are going to eventually network needs to be delivered that connects options to consume their favorite content. win in the battle for over-the-top supremacy innovative and disruptive HD projection The approach outlined above, while as consumer spending on internet access, smartphones and tablet devices with a variety considered “outside the box” in today’s including mobile data, will rival advertising of content options. stodgy world of exclusivity and limited spending. It is my belief that OTT consumer trends content options, is designed to address and Global distributive networks that provide are not being addressed correctly within the improve consumer loyalty, significantly content partners a direct to consumer industry. Incumbent industry leaders, who lower subscriber acquisition spending, and “market” will offer more fertile ground to seem to remain oblivious to market changes, increase content options for consumers. � profitability for those that choose to partner need to take action to address the needs of together to quench OTT consumer’s thirst for content variety. The growing consumer cord-cutting trend is not because of the lack of channel options available to them, it is the associated costs that video and cable incumbents charge for access to their channels. Video and cable companies are attempting to fight back by offering their content on an integrated omni-channel basis, on TV, laptop, tablet, and smartphone calling their service offering what they have dubbed TV Everywhere. It should be noted again that while consumers in every market love the convenience of having their content aggregated in one place, rather than needing to root it out across a bunch of disconnected services, they still do not wish to pay the higher fees associated with cable for access to their TV Everywhere channels. Consumers are flocking to the OTT market but in fact, due to a lack of options within the marketplace, are settling for platforms that don’t or can’t offer the variety OTT content combined with innovations such as HD projection smartphones will drive the market.

OTT Executive 21 21 Fall 2017 Magazine Case Study WWOZ Uses Alexa to Bring Radio Back into the Home as an OTT Service By: Kiriki Delany

lexa voice navigation is giving radio creation, content delivery networks are a new personality and opening new in an excellent position to add interactive Kiriki Delany is the A Founder and President possibilities for the medium in the expanding voice functionality to smartphones and of StreamGuys. He OTT universe. tablets through the installation of apps. started StreamGuys Most consumers have witnessed the These custom Alexa skills add capabilities to in 2000, pioneering affordable streaming world of interactive voice commands taking Amazon Echo, Echo Dot and Echo Tap smart audio for the world. shape through their mobile devices. For home speakers, enabling listeners to access He enjoys serving con- Apple users, Siri has been part of the fabric live and on-demand content through intuitive tent creators and the broadcast community, for several iPhone generations, helping users voice commands. who StreamGuys have co-evolved with during the navigate directions, locate businesses and information age. recall phone numbers to dial. While video is certainly going to The rise of Alexa beginning five years play a bigger role in the future, ago has cast a wider net to the possibilities today Alexa is making waves as and evolve HD Radio systems for radio of voice interactivity. Where it was first broadcasters, but the industry never quite unclear whether Alexa would move beyond one of the more impactful plat- recovered from early consumer confusion an Amazon-only offering, it was a pleasant forms on the market for audio about how to receive it – not to mention the surprise to learn that Amazon included skills functionality. Therefore, it has high expense/limited options of available within the application that were publishable receivers. by third-party developers. It wasn’t long emerged as a way to keep radio Meanwhile, FM receivers have not before companies began developing proof- relevant in the digital age, as integrated with mobile phones to the point of-concepts for Alexa application in various well as a way for audio content of making any noticeable impact. And Smart industries. publishers – radio and other- TVs, while enabling access to digital, remain In broadcast, Alexa is starting to show mostly focused on video. its value as a consumer-engagement tool. wise – to enhance their pres- While video is certainly going to play Through the use of custom Alexa skills ence in the OTT market. a bigger role in the future, today Alexa is making waves as one of the more At its core, Alexa skills allow broadcasters impactful platforms on the market for audio and service providers to choose the words functionality. Therefore, it has emerged as a that users speak to launch programming, and way to keep radio relevant in the digital age, define the interactive experience surrounding as well as a way for audio content publishers their content. In addition to live streams, – radio and otherwise – to enhance their Alexa skills can provide intuitive, verbal presence in the OTT market. OTT is all access to podcasts and on-demand archives, about expanding reach, and as radio has with simple navigation between episodes. always thrived on audience engagement, Like web domain names, Alexa invocation broadcasters are finding Alexa to be a user- names – the words users speak to open a friendly platform that consumers can quickly custom skill – must be unique. This makes and easily learn and adapt to as a new way to it important that much more time-critical tune in. for each broadcaster, including OTT service For one, users of all ages and skillsets providers, to swiftly secure its preferred immediately have a more streamlined Alexa identity. interface to access content through voice navigation. The very young, as well as Attracting Audiences through Audio older demographics, have a direct portal to One medium where Alexa is proving browse a wide array of broadcast content value is broadcast radio. While radio using a hands-free service. This has the remains a strong medium globally, there’s added benefit of improving accessibility to little question its power has faded in some audio content for disabled consumers. In countries. Looking specifically at the United any case, listeners can navigate live streams States, HD Radio, while still a presence, has and podcast episodes by voice without any not quite had the impact many FM (and some intensive learning curve and through true, Alexa Voice Navigation- AM) broadcasters had hoped. Professional passive engagement. the best OTT interface? equipment suppliers continue to develop Second, Alexa, as an audio-centric device,

22 is clearly giving radio a fresh personality. The ads triggered through a voice activated consumer is given the power to tailor media call-to-action will further personalize ad preferences, such as setting a daily briefing delivery for the listener, which will enhance that matches the messaging and the talent. the relevancy of ad content delivered to that For example, Alexa custom skills such as audience member. voice prompt personalization would replace The importance of metadata integration the robotic Alexa voice with the voice of the also cannot be understated. The delivery of on-air talent. These personalized services artist/album title, show segment information can easily be expanded to each listener in the and other detail associated with the file as home, allowing content providers to create push-based metadata is yet another element unique experiences for all. to strengthen the audience experience. It is significant to note that Alexa’s display layer Alexa and the OTT Workflow played an integral role, seamlessly delivering Most broadcast workflows today are the visual information that correlates with the automated to a large degree, and Alexa audio content. Can Alexa breathe new life into radio? represents a new way to automate the playout of live streams and podcasts. These services The Benefits of Adoption their lives, the Alexa integration increases are fairly easily deployed as part of a broader There is little question that Alexa will our audience engagement, which we expect streaming and content delivery architecture. become a major platform and connected will drive more of the donations that fund However, there is a great degree of advanced device for the OTT market. Beyond its ability us.” functionality that can be added to strengthen to bring radio back into the home, Alexa’s Listeners can access WWOZ’s voice- the effectiveness of an Alexa deployment, integration with connected speakers and prompted menu by saying “Alexa, open particularly when integrated with OTT online audio services like TuneIn, iHeart and WWOZ”, or go directly to desired content services. Some of these opportunities include: Pandora makes it a winner for whole-house with commands such as “Alexa, tell WWOZ audio in the residential market. Furthermore, to listen live” or “Alexa, tell WWOZ to • Content management and publishing Alexa will certainly continue to evolve as play traditional jazz”. StreamGuys worked • Localization services a video service, and we anticipate that the closely with WWOZ to organize the station’s • Dynamic advertising platform will soon integrate with the Amazon show archive into an easily voice-navigable • Metadata integration Fire ecosystem, smart sticks and more. We’re structure, and to implement the new clearly just at the starting line with the integration. From a production perspective, content possibilities. “Since launching our on-demand archive producers have more options to quickly with StreamGuys using their SGrecast repurpose content on a daily basis using new Most broadcast workflows software-as-a-service platform to quickly software-defined tools. One such example is today are automated to a large repurpose content, it has become one of our SGrecast service (see case study sidebar), degree, and Alexa represents a the most popular features on our site,” said which is often used to create podcasts and/ Stafford. “Our new Alexa Skill enhances our or side channels out of live streams. This new way to automate the play- on-demand offering by giving our listeners provides an easy way to provide fresh content out of live streams and pod- a powerful and effortless new way to access daily over OTT services, and made easily casts. it.” accessible through voice activation. Podcasts The new custom Alexa skills offering and RSS feeds, for example, are seamlessly Radio, OTT and Alexa: A Case Study further extends the end-to-end SaaS platform integrated into an Alexa experience without One of the first stations to take advantage and toolset for producing, managing, the content producer having to publish over of StreamGuys’ Alexa skills development monetizing and delivering streaming media multiple platforms to create Alexa-specific was New Orleans based, independent and podcasts, providing broadcasters with content. This provides a much quicker and community broadcaster WWOZ. An early a comprehensive solution spanning content more efficient means of moving on-demand adopter of streaming technology, the music- creation through to consumption. The Alexa audio content into OTT services. focused station is always on the lookout for skills can also integrate closely with a push- Localization of content is another ways to grow beyond its terrestrial broadcast based metadata delivery system, allowing opportunity to enhance the listener experience. footprint, with roughly half of its listeners live stream listeners to ask the station “what’s Offering content targeted to the geographic now coming from outside Louisiana. playing?” or “what song is this?”, with Alexa location of the listener introduces revenue- WWOZ’s skill passed Alexa certification then speaking out the current song details. generating call-to-action opportunities and went live in May, enabling Echo users In addition to WWOZ, StreamGuys has including shopping experiences, membership to listen live, browse WWOZ’s archives or also created Alexa skills for forward-thinking opportunities, and accessibility to password- access specific on-demand programming by broadcasters including Internet radio outlet protected premium content. genre or title through easy verbal instructions. 808 Live Reggaecast (Alexa invocation name Dynamic advertising insertion extends the “Alexa lets consumers interact with their “Rasta Music”); NPR stations Rhode Island revenue-generating opportunities of the OTT devices in a very intuitive way,” said David Public Radio and Georgia Public Radio service. When deployed with a server-side ad Stafford, New Media Director, WWOZ. “It’s (“GPB”); RFC Media’s Third Rock Radio insertion platform (as StreamGuys offers), attractive to us because of how embedded (“Third Rock”); Christian FM; Positive which employs a single-stream feed that smart voice technology has become in Alternative Radio (“Walk FM”, “Joy FM”, eliminates the latency concerns of delivering people’s lifestyles. To be one quick voice “Spirit FM” and “Encouraging Radio”); ads client-side following a play request, the command away from people being able to and CHIRP Radio. All of these are available payload is delivered simply by accessing the hear us is very cool. By putting us in front of today on many OTT services. � content. Looking further out into the future, more listeners and embedding us further into

OTT Executive 23 Fall 2017 Magazine Best Practices OTT Innovation: Up Close and Personal By: Francesco Moretti

ith recent reports estimating that by the market which broadcasters should have Francesco Moretti, W2020 the OTT market value will reach on their radar. Deputy CEO, Fincons $ 62.03bn and achieve an estimated CAGR Firstly, scene analysis provides a key Group began his ca- of 17.2%,1 fuelled by high speed connectivity example of customisation that can really reer in 2007 interning at the USA base of the and increasing customer demand for appeal to the viewer. Scene analysis focuses Italian multinational personalised service and choice, it is not not on the behavior of the viewer in front company Italcementi surprising that a wealth of innovation and of the screen, but on elements of the scenes in IT and Account- tools are being developed around this area. being streamed in order to set off parental ing. During his first 10 years of working at Also not surprisingly, non-traditional TV control for example, or offer more tailored Fincons, he studied the company’s business model viewing is increasing with multiscreen and content such as suggesting that if the and then managed client relations, operations and ‘second-screen’ viewing becoming the norm. current movie is a spine-tingling thriller, the internal organization alongside his father Michele. The knowledge he gained about Fincons, the way If broadcasters wish to increase and maintain sentimental viewer may want to switch to a international businesses work, and the USA environ- their client base, they will need to rapidly more customary romantic comedy. ment in particular, enabled him to play a key part in address the popularity of OTT content Another technology that leverages the expansion of Fincons Group – a specialist in IT Business Consulting and system integration initially and the marked consumer preference for customisation is gesture control. Thanks to based in Italy and Switzerland – in the UK, and most customisation by developing business models multimodal interfaces viewers will be able to recently in the US, in New York and Los Angeles. that increase loyalty through personalisation interact with their TV through sound such as as well as appeal to advertisers through their voice. For example, by speaking basic accurate customer targeting. key words such as House of Cards viewers recognition front will be expression In this article we aim to provide a birds- can trigger a multimodal TV interface to recognition via sensor technology that will eye-view of some of the most interesting offer the latest episode. automatically understand when content is not solutions that are currently being trialed in A further frontier on the gesture interesting or relevant by analysing behaviour

OTT service providers should always be looking into innovations to help them compete. 24 such as looking elsewhere or moving about distractedly, or even falling asleep! From an advertising perspective, understanding who is viewing from the device is critical allowing OTT providers and broadcasters to move far beyond interactivity based on second screen or remote-control interaction. In fact, with HbbTV it is now possible for regular TV viewing to be interrupted so that a relevant advert is channelled-in via broadband, or so that an advert that is not interesting to the viewer is swapped for one that is. New developments will show the TV set understands whether the viewer has changed and can swap the advert programmed with something more appealing. Based on a bidding system programmatic TV advertising allows brands to bid for high- value advertising slots in real-time. This is especially effective, for example, during the finals of important sporting events when the sponsor of the winning team wants to make Gesture control is just one example of innovations that sure their products really come to the fore- will differentiate OTT from traditional TV. front at a time when their team is shedding a positive light by doing well. The highest looking into in order to ride the wave of into the future. � bidder wins this key slot and as more people changing consumer viewing habits. As new developments ranging from virtual and 1MarketsandMarkets, Over the Top Market by Content tune in their audience is bigger and well- Type, by Platform (Smart Devices, Laptops, Desktops, targeted and highly engaged. But it’s the immersive reality to Object-based video, and Tablets), by Service (Consulting, Installation, and broadcaster of course that takes home the Social TV and ATSC 3.0 continue to make Maintenance), by Revenue Model, by Deployment Model, by Vertical, by User Type, by Region - Global bounty as brands are willing to pay premium their way into the tech panorama it is critical Forecast to 2020 rates for this type of highly engaged exposure. to ensure that you remain up to date with new These are just a few key examples of tools developments and regularly consult expert broadcasters and OTT providers should be views on what could propel your business

For more information on advertising or submitting an article for OTT Executive Magazine: Nichole Janowsky, [email protected]

Summer 2017

ottexec.com/magazine OTT Hits the Fast Lane The Race Is on for the Future of the Industry Crowning a New Content King Arrived—OTT content emerges from the shadows SKY Goes All-In Delivering World-Class Video 4K Content Over OTT Better than Broadcast & Cable? You’re Doing it Wrong Programming Rights in an OTT World A How-to Guide Installing Apps on OTT Devices

Executive Q&A Series Quality of Experience Is “Broadcast-Like” Even Possible? Barbara Ford Grant HBO Facebook Live OTT Monetization David Mendels A Step-By-Step Guide for Brightcove Broadcasters Navigating the New Wave Charlie Dunn Cloud and Virtual Tektronix OTT Case Studies Brenton Ough National Hot Rod Association; Reality Touchstream Media Footprint.TV An OTT Mirage? Israel Drori A Vision For OTT Zixi An Interview with Piksel’s

Fabrice Hamaide

OTT Executive 25 Fall 2017 Magazine Best Practices Why Pay TV Operators Should Embrace Android TV By: Hugo Santa Maria

ccording to 2017 Ovum’s Industry churn reduction (see table below). Hugo Santa Maria, ASurvey Report (1) 50% of more than 300 As we can see in Table 1, although AOSP Senior Manager of TV TV service providers surveyed (including gives full control over user experience Product Management Pay TV operators, telcos and OTT streaming and installed applications, the time and at ADB and a TV/Video enthusiast, has more services) have plans to deploy Android-based cost required to launch new versions does than 15 years of expe- STB platforms by 2021. The expected impact rience in the TV and Android will make to the TV landscape is such Android TV ecosystem offers a Telecommunication in- dustries and a strong that the majority of the surveyed TV service vast range of content with its background managing providers believe that by 2025 Android will hundreds of applications. It’s both product and project teams in the development become the leading TV platform. of next generation TV platforms. Prior to ADB, Hugo However, before deciding to invest and hard to compete with that living was Head of Multiplatform and Video on-Demand at Portugal Telecom. starting development, it’s important to have ecosystem. What’s the point of a clear view on the existing Android-based having full control of the typically associated to heavily customizable STB options and, more importantly, what platform if users consider it platforms. Another important aspect, and in TV service providers can get from each my opinion the most relevant one, is content of them. Table 1 below focuses on Pay TV incomplete? availability. Android TV ecosystem offers operators and the importance of assuring a a vast range of content with its hundreds of seamless and across-device user experience, not cope with the fast pace of today’s TV applications. It’s hard to compete with that which is fundamental in maximizing user industry. One cannot underestimate the costs living ecosystem. What’s the point of having engagement and product monetization and of maintenance and new release deployments full control of the platform if users consider

Table 1 – Android TV vs. AOSP: (2) For simplification, I assumed that lead time of STB and its components is the same in both scenarios (3) Netflix availability requires an agreement with Pay TV operator 26 Figure1 - graphyne2 Pay TV operator’s launcher on Android TV provides a sleek user experience. it incomplete, not only in terms of content – Chrome, Firefox, Edge, Safari; Smart TVs, References but also in terms of native features like, for etc.) (1) Ovum Industry Survey Report – Is Android the example, Google Assistant? • Make sure new features are deployed future of the set top box, Ovum (2017) Moreover, Android TV comes with periodically and disseminated to all the everything an Android mobile device user is devices and platforms. Again, all devices Android TV, YouTube, Google Play Store already accustomed to – in fact they expect and platforms must be coherent and have the and Android are trademarks of Google LLC. the same User Experience, applications and same level quality of experience. graphyne2 is a trademark of ADB SA. discovery capabilities but transposed to the • And finally, embrace and consider big screen. So, adding Android TV to the Android TV as a natural extension of the portfolio is the most direct way to address Pay TV operator ecosystem. This can be this highly attractive segment. done smoothly by deploying the mentioned TV launcher with Pay TV operator’s User Pay TV operators that react Interface (see Figure 1), while taking the best fast and follow this approach of Android TV capabilities and native set of will be better positioned to features (obviously following its guidelines exactly as it’s done in every other platform. make a big impact on Android’s Pay TV operators that react fast and follow user segment (attract new this approach will be better positioned to users while keeping current make a big impact on Android’s user segment users engaged) before their (attract new users while keeping current users engaged) before their competitors. competitors. ADB, with its graphyne2 Suite, is one of the only companies on the Pay TV technology However, this comes with several supply market, capable of providing a challenges and risks attached. The mentioned complete end-to-end TV platform, from lack of control of the applications is clearly video processing and delivery to the end-user one of them. Nevertheless, I strongly believe devices including STBs, Android and iOS this can be significantly minimized by Mobile applications, web portal – Chrome, applying the following: Firefox, Edge, Safari, Smart TVs; and now • Provide an immersive and engaging also Android TV (including the hardware, quality of experience across all existing DVB middleware and CAS/DRM and TV devices and platforms (proprietary STBs, launcher). All this blended in a best-in-breed Mobile devices – Android, iOS; web portal user experience. �

OTT Executive 27 Fall 2017 Magazine