The Best of Times & Worst of Times in the Video Business Mark Donnigan Vice President Marketing at Beamr
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Mark Donnigan is Vice President of Marketing for Beamr, a high-performance video encoding technology company.
Best & Worst of Times in Video Mark Donnigan VP Marketing at Beamr
Can a 4 character innovation conserve us?
This is an intriguing concern since there is a paradox emerging in the video company 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 actually already accrued one billion dollars in loses, and this even prior to launching their direct to customer service. And then we have Verizon Media revealing sweeping layoffs which represent an exit from a few of the core entertainment service and innovation businesses that were running under the Oath umbrella.
And obviously there isn't a reporting interval that passes where the cord cutting numbers have not grown, which puts increasing pressure on the video side of the company business.
Netflix stock is on the increase again, permitting the company to invest in material at levels that need to mystify their competitors. And then we have news of PlutoTV selling for a mouth watering $340 million dollars in cash to Viacom (deal was revealed on January 22, 2019), showing that the AVOD company model can be practical and rather important.
5G is going to save us all, right?
This is where I desire to get in touch with the enormous financial investments being made in 5G and supply my viewpoint on why 5G may well break some video companies while at the same time make others.
Let's take a look at AT&T.
So in the last four years AT&T has included 80 billion dollars of additional debt leaving it with more than 160 billion dollars of brief and long term debt. Now, 50 billion of this incredible number was the result of the 2015 purchase of DirecTV.
My point is not to break down the AT&T debt numbers, I'm not an expert, but rather provide a viewpoint that the financial scenario for AT&T going into its huge 5G financial investment cycle, while at the same time making known their tactical initiative to build up their video service capability through Warner Media direct to consumer offerings like HBO, and DirecTV, is going to be challenged, unless they do something extremely different with video.
So what can a service provider like AT&T do to attend to the economic squeeze, and the general headwinds to the video organisation? Such as declining pay TV subs, and fragmenting OTT service offerings. This is the question on numerous minds who are analyzing the future of the video service.
It is my strong belief that common high speed mobile networks powered by 5G will let loose a video tsunami of traffic on the network like we have actually never ever seen prior to.
This will be excellent news for the PlutoTV's of the world and other ingenious video services like Quibi who will be able to reach more customers with a much better quality experience as an outcome of having the ability to leverage a much faster network thanks to 5G.
But, it's bad news for network operators without a plan to monetize this additional traffic load, and obviously incumbents who are hoping to get by with incremental improvements to their services; such as changing from handled to unmanaged, or OTT distribution, while continuing to use aging video standards like H. 264 to deliver low resolution mobile profiles.
Video suppliers who continue to under serve their consumers will rapidly be at a downside, and ripe for disturbance, I believe, from brand-new business designs such as AVOD and the newest and most efficient video innovations.
The 4 character video innovation that may conserve the video organisation.
The four character video requirement that I think will play a crucial function in the success of the video service is HEVC, the video codec that is now deployed on 2 billion devices. The following slide presentation provides numbers regarding HEVC gadget penetration which deserve seeing.
There has been much blogged about HEVC royalty issues, something that activated advancement of an alternative codec which most likely is royalty totally free. While some in the industry ended up being preoccupied with questions around licensing and royalties, significant advancements have actually been made on the legal front, consisting of almost every CE device producer consisting of HEVC playback support.
For instance, HEVC Advance waived all royalties for digital distribution of content. This indicates, HEVC encoded content that is streamed will just carry a royalty for the hardware decoder and this is currently covered by the getting gadget. Provided that you are providing bits over the wire and not via a physical mechanism such as Blu-ray Disc, your company will not need to pay any extra royalties, at least 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 material to customers today, consist of: Amazon, Comcast, DirecTV, Meal Network, Netflix, Sky, Sony, Vudu, Vodafone, and Orange, just to name a few.
What about HEVC playback assistance?
This is an excellent and crucial concern and maybe the area of advancement around the HEVC community that is least known or comprehended.
Beginning with at home playback, if your users have bought a TELEVISION, video game console, Roku box or Apple TELEVISION in the last 3 years, you can be nearly guaranteed that assistance for HEVC is present with no requirement for additional licensing or player upgrade.
HEVC is now resident in practically every SoC that goes in to any mid to high-end CE video device. Because 2015, market reports reveal this group of items numbers 400 million. That's 400 million devices that support HEVC natively. It's a terrific start, but what about mobile?
The information business ScientiaMobile preserves the biggest dataset of network gadget gain access to profiles by getting data from the largest cordless operators in the world. This business reports that a whopping 78% of all iOS smart device requests come from devices that support hardware-accelerated HEVC decoding. And though iOS devices are predominant in a lot of developed markets, Android is still an extremely crucial gadget profile, and here the ScientiaMobile information is really encouraging with 57% of Android mobile phone requests originating from devices that support HEVC decoding.
These two numbers are where the picture of HEVC as the most logical video requirement to follow H. 264, begins to take shape. Here we have major video distributors and tech companies already encoding and dispersing material in HEVC. And offered the HEVC device penetration and hardware support any stress over a premature relocation to HEVC are not warranted. What other elements validate the concept that HEVC will be a booster to the video business?
LiveU just recently released a report called 'State of Live' that revealed growing trends in HEVC broadcasting, specifically on the planet of sports. And simply in case you have ideas that making use of HEVC is a passing pattern 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 utilized was H. 264.
The report stated that the high HEVC usage was a direct reflection on the increasing demand for professional-grade video quality, a pattern that was clearly click here apparent at the 2018 FIFA World Cup in Russia.
So what does this mean for the industry?
The patterns we simply analyzed reveal that we have an ever more requiring customer who wants material that flaunts the complete abilities of their seeing device, which indicates higher resolutions and advanced video requirements like HDR. But, this very same user is now taking in more content, which adds to more congesting the network.
This customer consumption pattern is colliding with a shift from handled services to unmanaged, or OTT circulation and producing technical tension inside incumbent service operators who are dealing with technical shifts and business design fracturing. Astonishingly, in spite of a very clear threat to the incumbent services who are seeing video customer loses installing into the hundreds of thousands over simply a couple of short quarters, some are continuing with the status quo even while brand-new entrants are introducing services that offer the customer more for less.
This is where the end of the story will be written for some as the finest of times, and for others as the worst of times.
HEVC is more than a technology enabler. It's a video requirement that is set to interfere with many of the standard operators and early OTT streaming services. Not since the consumer understands the distinction between H. 264, VP9, and even HEVC, however because the consumer is realising that much better quality is possible, and as they do, they will migrate to the service who provides the very best quality affordably.
At Beamr, we think that the evidence of our product and technology quality should be skilled and not simply discussed. Which is why we have actually created the finest offer that we have actually seen in the market where you can utilize our codecs in mix with our VOD transcoder, 100% totally free.
HEVC is now resident in nearly every SoC that goes in to any mid to high-end CE video device. These two 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 business currently encoding and dispersing material in HEVC. And offered the HEVC gadget penetration and hardware support any worries about a premature relocation to HEVC are not called for. What other aspects validate the idea that HEVC will be a booster to the video service?
You can experiment with Beamr's software application video encoders today and get up to 100 hours of complimentary HEVC and H. 264 video transcoding on a monthly basis. CLICK ON THIS LINK
Originally published by: Mark Donnigan