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ca table_ca 25/02/2016 18:43 Page 2 “Targeted advertising is a red herring,” - Adam Davies, Cisco. will see some common metrics emerge but with a lot of these OTT services I’m worried fragmentation will continue to slow us down. Even with cable that’s been around for years we’re often surprised how little feedback loop there is; it is often said they know what people are watching and when – but 90 per cent of the STBs are legacy and don’t have real time data coming back. It is often not a technology issue, it’s an implementation issue,” comments Rosenstein. “The status quo issue is in play,” says Miller-Jones. “The linear TV advertising model is well known and accepted and regulated. To change that to the Internet model is a huge change.” “The industry has been wedded to the spot ad and part of the problem is technology and competition drove multi-screen ahead without advertising being factored in, and the model was set then. We have to recreate the kind of interactive audit trail you’ve got for web advertising for OTT TV,” says Trow. “I think it’s right that to some extent the technology has got ahead of the business model,” agrees Kirby. “We’ve got to go toward the business – i.e. come up with metrics that ad buyers recognise and can work with. Also we shouldn’t overlook the concern in the creative community – if you’ve got to start slicing and dicing ads to meet 400 different demographics, how do you do that, where are the tools? You’ve got to be able to re-purpose that content but in a cost-effective way,” says Davies. “I think we have a lot of metrics that are easily captured and well understood in OTT there just isn’t the read-across to what’s been used and understood in broadcast, but we have the data. Often the question is ‘does the ad inventory exist’ both for different demographics and for international markets,” notes MillerJones. “We have to make the creatives in the ad industry and technologists work together and that’s interesting because they are two different types of people,” asserts ConnanLostanlen. “I’m sure many an agency would be saying ‘hang-on, while we’re talking about Internetdelivered TV, what about ad blocking?’,” says Trow. “People have become used to freely-available content and then you’re trying to introduce advertising, and some platforms are competing to block advertising content - it’s another constraint.” Another challenge for OTT is user choice – each service via its own app is hard to navigate, but even within each service there’s often an overwhelming amount of content. “There is no silver bullet as far as the UI goes,” admits Rosenstein. “Every market and culture is different. The current big trend is to some extent following what Netflix has done where it’s all about carousels and personalising them, providing context to each carousel – that’s important because people want to know why they’re being recommended a piece of content, otherwise it kind of creeps them out. Some providers have fully embraced this and are seeing upticks of four or five times for their VoD, but others have stuck with generic recommendation because of privacy worries and possible user push back.” “I think the carousel approach and recommendations works particularly for tablets where a more hands-on use is natural,” comments Kirby. “I think if you push recommendation too aggressively that backfires,” says Trow, “particularly on the EPG, that does create resistance.” “Actually, I think there are some good implementations on the EPG,” says Davies, “keeping it simple and just flagging what might interest the particular viewer.” “I think ultimately it will be some "To some extent the technology has got ahead of the business model." - James Kirby, Edgeware kind of tablet driving the TV as the remote,” comments Connan-Lostanlen. “We see it’s really important to provide the user with different paths to chose; sometimes you want recommendations, sometimes you’re searching for something specific, sometimes you want to know what everyone else is watching. We think the EPG is going to have to die because it is very restrictive in the way it lets you browse your library,” declares Rosenstein. From a viewer’s perspective it is important that OTT looks no different (i.e. no worse) than broadcast. How will OTT handle UHD? “The main issue is where the content is originating from and what network it is going over. This is where local content and service providers have the advantage over Netflix or Prime over unmanaged networks where they are always at the mercy of the weakest part of “If you push recommendation aggressively, that backfires.” - Ian Trow, Harmonic the network,” says Kirby. “Virtualised cloud provided services change use bandwidth models drastically,” says Connan-Lostanlen. “You only transcode just when you need it, for instance. It will smooth out the peaks and variations much more.” “Changing or reducing the formats for TV delivery will help. Cloud technologies will be very important. With 4K you will need to be closer to the subscriber to guarantee the bit rate and we see on demand services like Netflix having problems with this. We say our Multipipe technology solves this problem,” declare