Best & Worst of Times in Video Mark Donnigan Vice President Marketing at Beamr
Read the original LinkedIn article here: The Best of Times & Worst of Times in the Video Business
Mark Donnigan is Vice President of Marketing at Beamr, a high-performance video encoding technology company.
The Video Business is in the Best of Times or the Worst of Times? Mark Donnigan VP Marketing at Beamr
Can a four character technology conserve us?
This is an interesting question since there is a paradox emerging in the video organisation where it seems like the the very best of times for lots of, however the worst of times for some.
Here we have Disney revealing that they have currently accrued one billion dollars in loses, and this even before introducing their direct to customer service. And after that we have Verizon Media revealing sweeping layoffs which represent an exit from some of the core entertainment service and technology companies that were operating under the Oath umbrella.
And obviously there isn't a reporting period that passes where the cable cutting numbers have not grown, which puts increasing pressure on the video side of the company service.
Yet, Netflix stock is on the rise once again, allowing the business to invest in content at levels that need to baffle their competitors. And then we have news of PlutoTV selling for a mouth watering $340 million dollars in cash to Viacom (offer was announced on January 22, 2019), proving that the AVOD organisation design can be practical and rather valuable.
5G is going to save all of us, right?
This is where I wish to connect with the huge financial investments being made in 5G and offer my point of view on why 5G may well break some video companies while at the exact same time make others.
Let's take a look at AT&T.
In the last 4 years AT&T has added 80 billion dollars of extra debt leaving it with more than 160 billion dollars of brief and long term debt. Now, 50 billion of this staggering number was the result of the 2015 purchase of DirecTV.
My point is not to break down the AT&T financial obligation numbers, I'm not an expert, but rather offer a perspective that the monetary scenario for AT&T entering into its huge 5G investment cycle, while at the very same time making known their tactical initiative to develop their video service capability through Warner Media direct to consumer offerings like HBO, and DirecTV, is going to be challenged, unless they do something really various with video.
So what can a provider like AT&T do to deal with the financial squeeze, and the overall headwinds to the video company? Such as declining pay TELEVISION subs, and fragmenting OTT service offerings. This is the question on numerous minds who are analyzing the future of the video company.
It is my strong belief that common high speed mobile networks powered by 5G will unleash a video tsunami of traffic on the network like we've never seen before.
This will be great news for the PlutoTV's of the world and other ingenious video services like Quibi who will have the ability to reach more customers with a better quality experience as an outcome of having the ability to utilize a faster network thanks to 5G.
However, it's bad news for network operators without a strategy to monetize this extra traffic load, and of course incumbents who are wanting to manage with incremental improvements to their services; such as switching from handled to unmanaged, or OTT distribution, while continuing to utilize aging video requirements like H. 264 to provide low resolution mobile profiles.
Video distributors who continue to under serve their customers will rapidly be at a disadvantage, and ripe for disturbance, I believe, from brand-new organisation models such as AVOD and the latest and most effective video technologies.
The 4 character video technology that might save the video company.
The 4 character video requirement that I think will play an essential function in the success of the video company is HEVC, the video codec that is now deployed on two billion gadgets. The following slide discussion offers numbers concerning HEVC gadget penetration which deserve seeing.
There has been much composed about HEVC royalty concerns, something that activated development of an alternative codec which most likely is royalty free. However, while some in the market ended up being preoccupied with questions around licensing and royalties, significant advancements have been made on the legal front, including almost every CE device producer consisting of HEVC playback assistance.
HEVC Advance waived all royalties for digital circulation of content. This means, HEVC encoded content that is streamed will only bring a royalty for the hardware decoder and this is currently covered by the getting device. Supplied that you are providing bits over the wire and not via a physical mechanism such as Blu-ray Disc, your business will not need to pay any additional royalties, a minimum of not to HEVC Advance.
Now, if it's any convenience, the companies who have actually already done their due diligence on the royalty question, and are streaming HEVC content to consumers today, consist of: Amazon, Comcast, DirecTV, Dish Network, Netflix, Sky, Sony, Vudu, Vodafone, and Orange, simply to name a few.
What about HEVC playback assistance?
This is an extremely good and important question and possibly the area of advancement around the HEVC environment that is least known or understood.
Starting with in-home playback, if your users have actually bought a TV, video game console, Roku box or Apple TELEVISION in the last 3 years, you can be nearly guaranteed that assistance for HEVC exists with no need for additional licensing or player upgrade.
HEVC is now resident in practically every SoC that enters to any mid to high-end CE video device. In truth, because 2015, market reports show this group of items numbers 400 million. That's 400 million gadgets that support HEVC natively. It's an excellent start, but what about mobile?
The information business ScientiaMobile keeps the biggest dataset of network gadget access profiles by receiving information from the biggest wireless operators in the world. This company reports that a massive 78% of all iOS mobile phone requests come from devices that support hardware-accelerated HEVC decoding. And though iOS devices are predominant in the majority of developed markets, Android is still an exceptionally important device profile, and here the ScientiaMobile data is extremely motivating with 57% of Android smartphone requests originating from gadgets that support HEVC decoding.
These 2 numbers are where the photo of HEVC as the most rational video standard to follow H. 264, begins to take shape. Here we have significant video suppliers and tech business currently encoding and dispersing content in HEVC. And provided the HEVC device penetration and hardware support any worries about a premature transfer to HEVC are not called for. However, what other aspects confirm the concept that HEVC will be a booster to the video service?
LiveU recently published a report called 'State of Live' that showed growing trends in HEVC broadcasting, specifically in the world of sports. And simply in case you have ideas that using HEVC is a passing trend en route to some alternative codec, think about that in 2018, 25% of all LiveU created traffic was streamed utilizing the HEVC video standard while the only other codec used was H. 264.
The report specified that the high HEVC use was a direct reflection on the increasing need for professional-grade video quality, a trend that was plainly obvious at the 2018 FIFA World Cup in Russia.
So what does this mean for the industry?
The trends we simply examined expose that we have an ever more demanding customer who wants material that shows off the full abilities of their viewing device, which indicates higher resolutions and more innovative video standards like HDR. But, this same user is now consuming more material, which adds to further congesting the network.
This consumer intake pattern is colliding with a shift from managed services to unmanaged, or OTT distribution and producing technical tension inside incumbent service operators who are facing technical shifts and organisation design fracturing. Astonishingly, in spite of a very clear hazard to the incumbent services who are seeing video subscriber loses mounting into the numerous thousands over simply a couple of brief quarters, some are continuing with the status quo even while brand-new entrants are releasing services that offer the consumer more for less.
This is where the end of the story will be written for some as the very best of times, and for others as the worst of times.
HEVC is more than a technology enabler. It's a video standard that is set to disrupt a number of the standard operators and early OTT streaming services. Not since the consumer knows the distinction in between H. 264, VP9, click here and even HEVC, however because the consumer is realising that better quality is possible, and as they do, they will move to the service who delivers the best quality cost effectively.
At Beamr, we believe that the proof of our item and innovation quality need to be knowledgeable and not simply talked about. Which is why we have actually put together the very best offer that we have seen in the market where you can use our codecs in mix with our VOD transcoder, 100% for totally free.
HEVC is now resident in nearly every SoC that goes in to any mid to high-end CE video device. These 2 numbers are where the picture of HEVC as the most rational video standard to follow H. 264, begins to take shape. Here we have significant video suppliers and tech companies already encoding and distributing content in HEVC. And provided the HEVC gadget penetration and hardware support any worries about an early relocation to HEVC are not called for. What other aspects validate the idea that HEVC will be a booster to the video organisation?
You can try Beamr's software application video encoders today and get up to 100 hours of totally free HEVC and H. 264 video transcoding on a monthly basis. CLICK HERE
Originally published by: Mark Donnigan