LatAm Market Briefing 2013 - Page 19

pace_pace 12/07/2013 17:56 Page 2 COMPANY CONTRIBUTION DVB-S3, T2), coding (e.g. HEVC) and quality of experience (e.g. UHD) technologies evolve on a longer cycle and are interdependent. The STB tames the technology into concrete service propositions for operators – will and can Smart TVs do the same or do they find themselves quickly out of date with their replacement out of the operators control? consumer’s attention - it’s a war of ecosystems out there! Apple, Google and Microsoft are all providing platforms, devices and experiences (e.g. apps and app-stores) that aim to keep the consumer within their and will instead opt for best of breed for each separate service. Pace’s Perspective. Our insight above comes from working with many of the world’s leading operators and 30 years’ constant attention from hackers to undermine their security. The Mythical Cloud. Are Satellite and Terrestrial Broadcasters at risk from Cloud OTT providers and Internet TV ? Not really. Hybrid solutions give DTH and DTT operators the best of both worlds – high capacity linear delivery coupled with VOD, catch-up, start-over and OTT services. A key issue for Cloud delivery is who pays for the cost of carry for the large amounts of TV and video content ? Video over the Internet needs dedicated and specialised techniques (e.g. adaptive bitrate streaming, multicast via unicast) and infrastructure (e.g., CDN and edge-caching) to guarantee a high quality experience and service – who pays for this ? Currently the Telco is picking up the majority of the bill, but are actively looking for Pay-TV operators to dip into the pockets and support. Apps. Pay-TV operators are looking to keep their audiences engaged by extending where and how their subscribers consume TV – social platforms, search and recommendations help TV evolve from being one-time, linear broadcast to a continual conversation about favourite shows, actors etc. Compelling content with enriching metadata all wrapped into a self-contained interactive TV application keeps the subscriber in the operator’s portal vs. losing them to another application, or service. Most importantly, by adopting a traditional app-store UI a pay-TV operator concedes their homescreen and front door to their services to the CE vendor – losing control of the end user in the process. Technology Evolution. Moore’s Law drives Internet and Mobile CE device evolution - twoyear replacement cycles are typical, driven by operator service contracts and the consumers desire to have the latest technology. Contrastingly the broadcast industry’s delivery (e.g. Who owns the customer? It’s not just the CE vendors looking for their share of respective ‘gardens’. Apple TV, Google TV, Microsoft’s X-Box ONE and Sony’s PS4 are in parallel all staking their claims for ownership of the living room. The pay-TV operator is currently in pole position on the settee; however, it’s going to be an interesting next three-to-five years as the battle for the living room gets embroiled in the war of the connected home and larger ecosystem. Triple, Quad and Quint-plays are in a good start position to exploit a single bundled subscription to multiple services ?]XX??\??X?H?YY????\?H??\[[??\?\?^\?Y[??H?]Y?]X[]H[]?\?H???[Y\??]?H???^H]?H]H]Y[??H[??\?[??HY?????^\?Y[??H??]?]?\?^KU?[?H???X?Y?YK??]?X?[?[?[\?\????[??]??Y]?[??\? IH? L H?H?[?Y]?[??[?Y][?[?[?X\?? ?\??\??[??X?[\?][?N???\?\?[??H?[?\?X???[?]H???\?]???^[?Z\??\??[??\??X?H?XX?[?]?X?]?[?\???Z\??X???X?\????Y?Z\?^\?[??????]]?^K?\?H\?H?\??[?H??X[?H?\?XX?\? X?????H[???[Y\??X[ H??HXZ??]H??\?]????[[?HH?????HH[]?\?H\]X][?[?[]?\????[?\?X???X\???H?[YKXY\????X\????HX?X[H?YY[X???Y[??[??X\?\???\???X?x?&\?XY\??\??][?[?H^KU?[?\??H\??Z[\??\???[?X?[]H?[YH?]?X?????Y\?[??\YH\??[H[??Y?]X[]H??X??X?H\?H?[YH??][???Y\??X[?H?H?Y?[??&\?XY[???\?]?? K??\?X?????X?U?\?[??U ? ?K?]????H??^?[8?)?H?\?H?\???XY[??\??\?K[[Y[?????\?H]??H[?P???\??X?HX[?Y?[Y[??\?[HYX[???H?[?[]?\??KZ[?Y?]Y ^KU???][??]?][H??X\??]?\? ?]???\??[??[][H?[??????\??\ ???[? L?]P?H?H?[?H[[???][??H?YH?[??H???X??[???][??8?$??]?X\??][??H???[??\?]?\?YY???][?[??\???Z?YK][K\??Y[?]??K?X????[?\?H??X???x?&[?H???[???\?[[Y[?????\?H]??H[?X?[??[[Y[??[???[?[?[][H]?X?H???\?H??\???] ]? X??[??]]?^H?\??X?\??\?X?]?[N?][?][x?&\?[?Y?YY?Y???X[?Y?[Y[???X?[???\?]????[?[??]?[?YN???[8?&\??\??X?H[]?\?H]??H[?X?\?H[]?\?H????\??Y???Y?\?[????\??X?\???Y?[??&\?\?\?[?\??X?H??[Y]???[??\?\?]H???\?[?^\?Y[??H?[??H[]?\?Y?[?H??Y[???[?[H?x?&[?H???[????X?x?&\?P???\??X?HX[?Y?[Y[??[\Y?Y\?[]?\?KX[?Y?[Y[? [??\??[?HT???X?Y]?X?K????H????\??\?B???]\?[?X?H8?$??????H?????]\???H?Y????\?H?[???\[Y[?[?[????\??\?x?&\???\??[?[?X[??^KU?[????Y?[??\?]???\?[[Y[??]??H[?P????][?\????\?H???^x?&\?[?[ZX??[?YYXH?? H?[?[?[\??^X?H H?][???\?]????YH???HH??\^[?H???Y]\?H H?]?[??[H?????\?Z\??\??X?\?[?Z\??X???X?\??&\?^\?Y[??K?\?\?[??[???^[?H????USH??YY?[?? NB??