Are we in the good times or the bad times in video? Mark Donnigan VP 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 innovation company.
Best & Worst of Times in Video Mark Donnigan Vice President Marketing at Beamr
Can a 4 character innovation conserve us?
This is an intriguing question since there is a paradox emerging in the video service where it feels like the the finest of times for many, however the worst of times for some.
Here we have Disney revealing that they have already accumulated one billion dollars in loses, and this even before launching their direct to consumer service. And after that we have Verizon Media announcing sweeping layoffs which represent an exit from a few of the core entertainment service and technology companies that were operating under the Oath umbrella.
And of course there isn't a reporting period that passes where the cable cutting numbers haven't grown, which puts increasing pressure on the video side of the company company.
Yet, Netflix stock is on the rise again, permitting the company to invest in material at levels that need to baffle their rivals. And after that we have news of PlutoTV selling for a mouth watering $340 million dollars in cash to Viacom (deal was announced on January 22, 2019), showing that the AVOD service model can be practical and quite important.
5G is going to save us all?
This is where I wish to get in touch with the huge financial investments being made in 5G and supply my point of view on why 5G may well break some video business while at the exact same time make others.
Let's take a look at AT&T.
In the last four years AT&T has actually added 80 billion dollars of extra debt leaving it with more than 160 billion dollars of brief and long term financial obligation. Now, 50 billion of this shocking 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 analyst, however rather provide a viewpoint that the financial scenario for AT&T going into its huge 5G investment cycle, while at the exact same time making understood their strategic effort to develop their video service capacity through Warner Media direct to customer offerings like HBO, and DirecTV, is going to be challenged, unless they do something very various with video.
So what can a company like AT&T do to resolve the economic capture, and the overall headwinds to the video business? Such as declining pay TELEVISION subs, and fragmenting OTT service offerings. This is the question on numerous minds who are examining the future of the video business.
It is my strong belief that ubiquitous high speed mobile networks powered by 5G will release a video tsunami of traffic on the network like we have actually never ever seen prior to.
This will be good news for the PlutoTV's of the world and other innovative video services like Quibi who will have the ability to reach more customers with a much better quality experience as an outcome of being able to leverage a quicker network thanks to 5G.
It's bad news for network operators without a plan to monetize this additional traffic load, and of course incumbents who are hoping to get by with incremental improvements to their services; such as switching from managed to unmanaged, or OTT distribution, while continuing to utilize aging video requirements like H. 264 to provide low resolution mobile profiles.
Video suppliers who continue to under serve their clients will rapidly be at a disadvantage, and ripe for disruption, I think, from brand-new organisation designs such as AVOD and the latest and most effective video innovations.
The four character video technology that may conserve the video organisation.
The 4 character video requirement that I believe will play a key role in the success of the video organisation is HEVC, the video codec that is now released on 2 billion devices. The following slide presentation supplies numbers relating to HEVC gadget penetration which are worth seeing.
There has been Learn more much blogged about HEVC royalty issues, something that triggered advancement of an alternative codec which probably is royalty totally free. However, while some in the market became preoccupied with questions around licensing and royalties, significant advancements have been made on the legal front, consisting of almost every CE gadget producer consisting of HEVC playback assistance.
For example, HEVC Advance waived all royalties for digital circulation of material. This implies, HEVC encoded material that is streamed will just bring a royalty for the hardware decoder and this is already covered by the getting gadget. Supplied that you are delivering bits over the wire and not through a physical system such as Blu-ray Disc, your business will not need to pay any extra royalties, a minimum of not to HEVC Advance.
Now, if it's any comfort, the business who have currently done their due diligence on the royalty question, and are streaming HEVC material to customers today, include: Amazon, Comcast, DirecTV, Meal Network, Netflix, Sky, Sony, Vudu, Vodafone, and Orange, just to call a few.
What about HEVC playback support?
This is an excellent and crucial question and possibly the location of development around the HEVC environment that is least known or comprehended.
Beginning with in-home playback, if your users have actually acquired a TV, video game console, Roku box or Apple TELEVISION in the last 3 years, you can be nearly guaranteed that assistance for HEVC is present without any requirement for extra licensing or player upgrade.
HEVC is now resident in practically every SoC that goes in to any mid to high-end CE video gadget. That's 400 million gadgets that support HEVC natively.
The data company ScientiaMobile preserves the biggest dataset of network device gain access to profiles by receiving data from the biggest wireless operators on the planet. This business reports that a tremendous 78% of all iOS smart device demands originate from gadgets that support hardware-accelerated HEVC decoding. And though iOS devices are predominant in many developed markets, Android is still an exceptionally crucial gadget profile, and here the ScientiaMobile information is really motivating with 57% of Android smart device demands originating from gadgets that support HEVC decoding.
These 2 numbers are where the image of HEVC as the most sensible video requirement to follow H. 264, starts to take shape. Here we have significant video suppliers and tech companies already encoding and dispersing material in HEVC. And offered the HEVC gadget penetration and hardware support any stress over a premature relocate to HEVC are not required. But, what other factors confirm the concept that HEVC will be a booster to the video service?
LiveU just recently released a report called 'State of Live' that revealed growing patterns in HEVC broadcasting, particularly worldwide of sports. And just in case you have ideas that making use of HEVC is a passing trend on the method to some alternative codec, think about that in 2018, 25% of all LiveU generated traffic was streamed using the HEVC video standard while the only other codec used was H. 264.
In truth, the report mentioned that the high HEVC use was a direct reflection on the increasing need for professional-grade video quality, a pattern that was plainly obvious at the 2018 FIFA World Cup in Russia.
So what does this mean for the industry?
The trends we simply analyzed reveal that we have an ever more demanding customer who wants material that displays the complete abilities of their seeing gadget, which implies greater resolutions and advanced video standards like HDR. However, this same user is now taking in more content, which contributes to further crowding the network.
This consumer consumption pattern is clashing with a shift from handled services to unmanaged, or OTT circulation and producing technical stress inside incumbent service operators who are facing technical shifts and company model fracturing. Surprisingly, in spite of a really clear risk to the incumbent services who are seeing video customer loses installing into the hundreds of thousands over simply a few brief quarters, some are continuing with the status quo even while new entrants are releasing services that offer the customer more for less.
This is where completion of the story will be composed for some as the best of times, and for others as the worst of times.
HEVC is more than an innovation enabler. It's a video standard that is set to disrupt a number of the traditional operators and early OTT streaming services. Not because the customer knows the distinction between H. 264, VP9, and even HEVC, however since the customer is realising that better quality is possible, and as they do, they will move to the service who delivers the very best quality economically.
At Beamr, our company believe that the proof of our item and innovation quality must be knowledgeable and not just discussed. Which is why we've created the very best offer that we have actually seen in the market where you can utilize our codecs in mix with our VOD transcoder, 100% free of charge.
HEVC is now resident in almost every SoC that goes in to any mid to high-end CE video gadget. These two numbers are where the picture of HEVC as the most sensible video requirement to follow H. 264, starts to take shape. Here we have significant video distributors and tech business already encoding and dispersing material in HEVC. And provided the HEVC gadget penetration and hardware support any concerns about a premature relocation to HEVC are not necessitated. What other aspects verify the concept that HEVC will be a booster to the video service?
You can experiment with Beamr's software video encoders today and get up to 100 hours of free HEVC and H. 264 video transcoding every month. CLICK HERE
Originally published by: Mark Donnigan