Standing Committee on Copyright and Related Rights
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E SCCR/30/5 ORIGINAL: ENGLISH DATE: JUNE 2, 2015 Standing Committee on Copyright and Related Rights Thirtieth Session Geneva, June 29 to July 3, 2015 CURRENT MARKET AND TECHNOLOGY TRENDS IN THE BROADCASTING SECTOR prepared by IHS Technology IHS TECHNOLOGY Current Market and Technology Trends in the Broadcasting Sector May 2015 ihs.com Introduction Like so many facets of the modern world, television has been transformed by the application of digital technologies and the parallel and related development of the fast evolving Internet. While some broadcasters – especially those in developing economies - still utilise traditional analogue transmission techniques, most have transitioned to more efficient and powerful digital means of sending their programming to viewers. Use of digital technologies has enabled explosive growth in the number of channels and choices of programmes offered. It has also ceded more control to the viewer, allowing on-demand access to programming – not only from broadcasters and pay TV service providers, but also increasingly from online video services delivered over the open Internet. Indeed, as this report outlines, the definitional boundaries between broadcasting and other forms of digital video delivery are increasingly blurred. The viewer is undoubtedly a winner as a result of these developments as we move ever closer to the ultimate provision of ubiquitous choice, convenience and control. And broadcasters are usually winners too as evidenced by the impressive global TV market growth described in this report. Inevitably, that growth and technological development is not evenly distributed geographically, and we outline some of the key regional trends in the pages that follow, as well as some more focused snapshots of the market evolution within selected countries. However, this report also highlights a paradox at the heart of this technological revolution; namely, that the ceding of ever more control to the viewer also inevitably means an increasing risk that broadcasters lose control of their programming. It becomes harder and harder to prevent unauthorised access to the copyrighted content that traverses the globe at lightning speeds as digital ‘bits’. This poses an ever greater threat to the economics of intellectual property that sustain the broadcast and related industries Current Market and Technology Trends in the Broadcasting Sector Table of Contents Introduction ................................................................................................................................................... 2 Executive Summary ...................................................................................................................................... 6 The economics of the broadcasting sector .................................................................................................... 7 Overview of the pay TV sector ...................................................................................................................... 9 TV Advertising ............................................................................................................................................. 10 TV in the wider media advertising context ................................................................................................ 10 Structural factors in television determine potential of online advertising ................................................... 11 The rise of online video: complementary in the mid-term, a threat in the long term to TV advertising ...... 12 Television and Video platforms ................................................................................................................... 14 Traditional Television Platforms ............................................................................................................... 14 Terrestrial TV ....................................................................................................................................... 14 Satellite TV ........................................................................................................................................... 17 On-demand and online video platforms ................................................................................................... 18 On-demand Video ................................................................................................................................ 18 HbbTV .................................................................................................................................................. 19 Netflix ................................................................................................................................................... 19 BBC iPlayer .......................................................................................................................................... 20 Amazon ................................................................................................................................................ 20 MLB.tv .................................................................................................................................................. 20 Okko .................................................................................................................................................... 21 Mobile television and video platforms .......................................................................................................... 22 Mobile TV ................................................................................................................................................ 22 Mobile Broadcast TV ............................................................................................................................ 22 Mobile Unicast TV ................................................................................................................................ 23 Mobile Video ........................................................................................................................................ 24 LTE Broadcast ..................................................................................................................................... 25 Consumer viewing habits ............................................................................................................................ 27 Viewing time ............................................................................................................................................ 27 Move to on-demand ............................................................................................................................. 27 TV Everywhere: a reaction to changing viewing habits ............................................................................ 28 VoD streaming ..................................................................................................................................... 29 Digitisation of content and piracy ................................................................................................................. 30 Main causes of piracy .............................................................................................................................. 30 Access Fees ........................................................................................................................................ 30 Deliberate restriction ............................................................................................................................ 30 © 2015 IHS 3 May 2015 Current Market and Technology Trends in the Broadcasting Sector Regulations .......................................................................................................................................... 30 Types of content piracy ............................................................................................................................ 30 Torrenting............................................................................................................................................. 31 Blocking by ISPs .................................................................................................................................. 31 VPNs .................................................................................................................................................... 31 Streaming............................................................................................................................................. 32 P2P Streaming ..................................................................................................................................... 32 Direct File Sharing ................................................................................................................................ 32 Hardware enabled-piracy ......................................................................................................................... 33 Control Word Sharing ........................................................................................................................... 34 Smart Card cloning .............................................................................................................................. 34 Mobile Video piracy .............................................................................................................................. 34 Physical Piracy .......................................................................................................................................