8 NEWS & VIEWS
April 2016
SVoD complements traditional TV
SINGAPORE – Over-the-top ( OTT ) services , if they are not already so , will become a “ thriving business ” in Asia , as growth continues to accelerate in the next few years , declared Peter Bithos , CEO of HOOQ .
HOOQ is a joint collaboration between Singapore ’ s Singtel , Sony Pictures Television and Warner Bros Entertainment , offering a subscription-video-on-demand ( SVoD ) service to viewers in Asia .
“ Consumers today want what they want , whenever they want ; hence , the growing demand in OTT services ,” Bithos told APB . “ In Asia , the potential for OTT is very large , given the rapid growth in smart devices and Internet penetration .”
However , he does not expect SVoD to be a replacement for traditional TV services such as free-toair ( FTA ) and pay-TV , any time soon . “ Today , in mature markets , there is a growing increase in cord-nevers , cord-cutters and cord-shavers ,” Bithos explained .
“ However , in emerging markets , traditional TV is still seen as an essential in many households . This is also strongly co-related to the Internet penetration rate in emerging markets for SVoD services to be relevant to households .”
He cited the example of Thailand , where Internet penetration
( just over 26 %) pales in comparison to TV penetration ( over 98 %).
Therefore , while HOOQ “ wholeheartedly welcomes ” the entrance of Netflix into Asia , SVoD services currently serve as a complement to traditional TV services , a status quo that is unlikely to be altered in the near future , Bithos suggested .
He added : “ A large established player like Netflix will quicken the pace of the evolution of the OTT category [ in Asia ], which is still nascent .”
And in order to keep pace with this evolution , HOOQ has been working across Asia with mobile carriers to offer the payment mechanisms for the average viewer . Existing partnerships with the likes of Airtel in India , Globe in the Philippines and AIS in Thailand were established before HOOQ entered these markets , to ensure that at launch , more people can gain access to HOOQ , Bithos revealed .
“ We will continue to build and grow these partnerships in order for many millions more to get ‘ HOOQ ’ d ’.”
To find out more about the outlook for SVoD and OTT services in Asia , be sure to catch Peter Bithos and the HOOQ team at this year ’ s BroadcastAsia2016 and Communic Asia2016 .
While OTT and SVoD services are primed for expontential growth in Asia , they will not replace traditional TV services in the near-term , according to Peter Bithos , CEO of HOOQ ( pictured ).
‘ Broadcast TV needs to continue to innovate ’
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HDR and HFR . “ With the availability of new displays , which can present that countries in Asia-Pacific have a wider contrast range and also a been the “ first anywhere in the wider colour space , broadcasters world ”, to adopt IBB technologies now have the opportunity to deliver a more immersive experience and services . Freeview Plus , which is an HbbTV-supported service , to the home . has been launched in Australia and “ In addition , we have to define New Zealand , while Japanese public broadcaster NHK introduced its introducing a new immersive audio
higher frame rates and we are also
Hybridcast service as early as 2013 . system . This means that there will IBB technologies will also allow broadcasters to navigate the goes far beyond just increasing the
be a ‘ technology revolution ’, which challenges posed by subscriptionvideo-on-demand ( SVoD ) players Heed the lessons learnt from
number of pixels .”
like Netflix and iflix , as over-the-top the relative demise of 3DTV , because the broadcast industry can-
( OTT ) becomes increasingly an integral part of IBB , added Dr Amal . not afford the same fate to befall
OTT is already a big market for any future technologies , including broadcasters , although one key 4K / UHD , cautioned ABU ’ s Dr Amal , sticking point remains , said Simon who pointed out that one of the Fell , director of technology and key discussion points at ABU DBS innovation , European Broadcasting 2016 was how broadcasters can Union ( EBU ). take advantage of technologies to
He told APB : “ The main problem surrounding OTT today is the He explained : “ Technologies
create the “ wow factor ”.
lack of return on investment . For such as 4K / UHD may not be that example , it may currently cost effective or practical in Asia at the broadcasters 15 % of their total moment . Rather than working on distribution costs to garner 3 % of 4K / UHD , would it be more effective on-demand viewing . for us to go for other enhancements
“ Therefore , if OTT becomes for HDTV — HD with HDR , HFR and even more popular , it is going to WCG ( wide colour gamut )? cost more than what broadcasting “ These augmentations for HDTV does today .” can potentially be more effective The challenge , said Fell , is to because you don ’ t need a significant increase in capacity to deliver take the traditional free-to-air ( FTA ) experience into something consumers have to pay for . “ You shouldn ’ t The Malaysian Communica-
that signal , compared to 4K / UHD .”
have to be forced into paying for tions and Multimedia Commission a subscription to watch TV . You ( MCMC ), meanwhile , has observed should have access to good-quality a rapid shift in the way content is FTA content , and unless you invest consumed in the country , similar in the ecosystem , you don ’ t get to trends being witnessed around that virtuous circle and once you the world . start to weaken that , it leaves the An MCMC spokesperson told market open to disruption .” APB : “ Broadcasters today need
Broadcast TV needs to continue to align themselves to suit the to innovate , urged Dr Peter Siebert , demands and lifestyles of viewers executive director , DVB Project while maintaining audience loyalty . Office . Speaking at a conference In lieu of this changing landscape , session during ABU DBS 2016 , Dr broadcasters are now positioning Siebert updated delegates on the themselves to embrace new digital UHD-1 Phase 2 specification , which technologies .” will incorporate elements such as To date , DTT trial service coverage is available to almost 80 % of populated areas in Malaysia , with the official launch of DTT commercial services slated for Q3 2016 , whereby a simulcast period of two years will be put in place .
The MCMC spokesperson said : “ We believe that broadcast TV is still relevant and important , not only in Malaysia , but also across Asia- Pacific . In emergency situations , broadcast TV services remain available to the consumer , in comparison to telecommunication services .”
Agreeing with MCMC , Dr Amal believes that DTT will remain relevant for many years to come , because there simply is no technology at the moment that can surpass broadcast technology ’ s efficiency in reaching out to mass audiences .
However , in order to ensure that populations around the world continue to have free access to information , the battle for the preservation of spectrum has only just begun , despite the positive outcomes of WRC-15 , where spectrum below 700MHz was safeguarded for future broadcasting , or at least until 2023 .
Dr Amal explained : “ Already , telcos are planning to wrestle this spectrum away in 2023 . If we do not formulate a clear plan on how we are going to use this broadcast spectrum , it will inevitably be allocated for other services .”
He urged governments and regulators in Asia-Pacific to follow the example of Australia and New Zealand , where the broadcast industry came together to secure the support of their regulators . “ One of the problems we find in other countries in our region is the lack of leadership or strong support from governments and regulators , because they fail to understand the importance of spectrum .
“ If we lose this broadcast spectrum in the future , the consequences will be very serious — populations will no longer have access to information freely .”
Full IP : The industry is ‘ slowly getting there ’
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upon IP , stemming from last year ’ s creation of the LiveIP Project , an international , multi-vendor platform put together by VRT and the EBU to demonstrate IP-based live broadcast production using open standards .
It is premature to talk about live IP production as if it were already a “ done deal ”, reiterated IABM ’ s Ive . “ In reality , however , there are many issues to be solved and hurdles to be overcome ,” he added .
These include the requirement to work on open standards — a key goal of the LiveIP Project — while system design , workflows and business models need to be re-visited , because producing an SDI environment in IP will not , in the long term , deliver full benefits to broadcasters .
There is also a “ huge issue ” with regards to the ‘ softer ’ issues of change management — changing work practices , skills , expectations and the more human elements associated with the move to IP .
Close collaboration between suppliers and broadcasters will be essential in driving the business case for full IP broadcasting , a point Simon Fell , director of technology and innovation at the EBU , is keen to pick up on .
He told APB : “ What we are seeing today is the choice faced by TV stations . Do I design facilities with the standards I understand ? Or do I go all out for IP ?
“ Some TV stations are looking to build an all IP-based facility , others may be taking a more traditional approach .”
Fell acknowledged that where IP is concerned , there is no one standard to be used as a benchmark at the moment , although the industry is “ slowly getting there ”.
He continued : “ Initially , IP is about an island-based approach but I think gradually we will see manufacturers bring products to markets , which will enable the capabilities of an IP future , by giving us the flexibility to use IP-based signalling , and in such a way that this process can be manipulated through software-based tools .”
Fell also enforced the EBU ’ s commitment to work with sister organisations such as the Asia-Pacific Broadcasting Union ( ABU ) to share the experiences of initiatives such as the LiveIP Project . “ We are happy to work with the ABU and any other forward-looking broadcasters in
Participants at a LiveIP Project event last month in Brussels were told that collaboration is the key driver for full IP broadcasting to be a reality .
Asia-Pacific who are planning any new facilities .
“ We want to share the standards work we are undertaking and let ’ s make sure Asia and Europe continue to collaborate widely because there are different phases of developments where technology is concerned in our regions .”