BROADCAST TECHNOLOGY
2016 all about embracing change
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T he rate of c han g e in our in dustry has f urther ac c el erated in 2 0 1 6 . W e ’ v e ex p erien c ed rap idl y c han g in g v iew in g hab its , the rise an d rise of ov er- the- top ( O T T ) , n ew tec hn ol og y an d interoperability challenges , questions over 4K / Ultra HD ( UHD ), the continuing rise of virtual reality / augmented reality ( VR / AR ) and changing business models ; if you blinked , you probably missed something momentous� B Y ST AN M O O T E AND PET ER B R U C E
M AR K ET C HANG ES Broadcast and media technology customers are going through a period of unprecedented change as content becomes available on multiple platforms . IABM research shows that technology suppliers ’ revenues are under pressure as customers ’ technology budgets shift to developing effective new media offerings to meet changing v iew in g hab its .
The IABM IBC 2016 End-User Survey sup p orts this tren d w ith multi-platform content delivery continuing to be the main priority for end-users . In Asia-Pacific , many TV stations are prioritising the addition of OTT services above the jump to higher resolutions . However , many are struggling with the business model . With revenue from traditional ad insertion on linear TV reducing , broadcasters are finding it difficult to cover these losses with increased OTT revenues ; digital offerings have thinner margins compared to traditional broadcasting , and their monetisation remains a challenge .
Developing agile technology to help media organisations address this issue is key for suppliers to grow revenues in this fastchanging marketplace .
APAC telcos are taking advantage of the situation , welcoming their customers ’ moves to upgrade their mobile device plans to higher bandwidths so they can view the rapidly increasing amount of media that is now available wherever they are ; the Asia-Pacific region is set up for dynamic change over the coming years .
INT ER O PER AB ILIT Y IS K EY IABM surveys this year show that most end-users prefer systems put together using ‘ best-of-breed ’ products from a number of suppliers , rather than a complete system from a single source .
They also rate interoperability as being highly important — in fact , behind only saving / making money , cost of ownership and
Thinking about your broadcast and media technology purchasing strategy , please rank your top priorities - Index
0 % 10 % 20 % 30 % 40 % 50 % 60 %
Multi-platform content delivery ( mobile , web ,... 4K / UHD production / delivery
File-based workflows IP Infrastructure
Cloud computing / cloud-based services Media Asset Management
Upgrading operations to HDTV Socia TV
Virtual Reality production / delivery Back Office Systems ( scheduling , billing , etc .)
Programmatic Advertising News Operations Analog Swith-Off support in their purchasing priorities . IP is a key enabler to all these priorities , and there has been a hold-up in agreeing common standards that many cite as a major reason for hold-backs in enduser technology investment .
This year , in-facility IP interoperability became a reality — thanks mainly to organisations such as AIMS , AMWA , AES , VSF , EBU and SMPTE . Seeing so many manufacturers ’ systems working together successfully in the IABM- and AIMS-sponsored Interoperability �one at IBC 2016 sent a clear signal to the whole industry that end-users can now transition to IP infrastructures with confidence .
WHAT IS T HE F U T U R E F O R T R AD IT IO NAL B R O AD C AST ING ? Cord-cutting has been discussed for the past few years ; operators have been fighting back with skinny bundles but appear to be having little success . However , linear TV is far from dead , albeit numbers are declining due to personal video recording and ondemand .
So , are we seeing a move towards 100 % OTT only ? Certainly not yet . What is more likely is a move away from traditional cable and satellite models towards viewers taking advantage of hybrid approaches . In Asia-Pacific , vastly improved connectivity in many countries is set to drive up the number of pay-TV subscribers over the coming years .
We need to stop thinking that broadcasting is only over-the-air ( OTA ); OTT is now a solid delivery mechanism in many parts of the world — with more to come . For example , viewership data from the 2016 Olympic Games showed linear TV viewing falling , with audiences — particularly younger viewers — flocking to digital platforms . NBC reported more than a billion minutes of live streaming had been clocked up by the fifth day of the Games , by which time it had already overtaken the entire amount of streaming for the London Games just four years before .
Traditional broadcasters are not taking the OTT invasion lying down — as the recent announcement of the proposed acquisition of Time Warner by AT�T for US�85 billion demonstrates .
PIX ELS C O U NT Despite 4K / UHD TV sets being commonplace , the format has yet to take hold as a mainstream delivery format in many territories . Why is this so ? 4K / UHD sets cost no more today , relatively speaking , than HD sets did a few years ago . However , the infrastructure required to deliver 4K / UHD to consumers en masse would require a major investment from broadcasters , and the evidence is that most consumers are to date unwilling to pay a premium for 4K / UHD .
Japan and South Korea are the exceptions , with several South Korean broadcasters committed to being on-air with ATSC 3.0 in February 2017 . Because of the short timescale though , infrastructure will initially be 12Gbps , mimicking traditional SDI workflows . Meanwhile , many other Asian countries are not even thinking of 4K / UHD — they are still struggling to achieve analogue switch-off .
In the end , though , while the idea of more pixels is attractive , it is better pixels that will sell — and by better pixels , we mean high dynamic range ( HDR ). It is the bits and nits that make 4K / UHD compelling for consumers ; the massively enhanced viewing experience delivered by HDR will break the impasse — but we must wait some years for most OTA broadcasters to deliver it . In the meantime , OTT will increasingly be bringing 4K / UHD to consumers willing to pay a premium .