TV Everywhere International - Volume 13 No 2 TV EVERYWHERE_Vol 13 No 2 | Page 4

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News

Analyst: Unprecedented TV disruption under way

The new edition of A. T. Kearney’ s NextGen study assesses the disruption and sheds light on new business models of the global TV market. The expectation is for major disruption in the next five years, across all markets although at different speeds. In markets such as Northern Europe, North America, and developed Asia, disruption is already well under way. Based on interviews with C-level executives from pay TV providers, telcos, cable companies, broadcasters, and online video providers, 64 % of respondents expect broadcasters to market their own OTT platform and estimate that 75 % of consumer-paid revenues in OTT will be from subscription vs. 25 % from pay per use. As content and distribution converge and all players pursue direct-to-customer models, there is a massive increase in content and platform options for consumers. These developments lead to an oversupply of video services for consumers to choose from. The study indicates executives expect households to pay for only two or three video subscriptions. With most content owners and new service operators lacking capabilities, resources, and experience to provide direct-to-consumer offerings, market fragmentation will create opportunities for companies to collect and deliver this overflow of content in a compelling and structured way.“ Our study indicates a strong latent demand for what we call content navigators. To thrive in this new environment, having the right content is no longer enough. The user experience and branding are also central elements of the value proposition,” says A. T. Kearney partner Jan- Piet Nelissen, co-author of the report.“ Many companies in the TV ecosystem can pursue a content navigator role, but given our consumer insights, there will not be a place for everyone. Speed and scale will be critical.” Industry executives expect production houses and( diversified) Internet companies providing OTT video to be major winners going forward. Respondents mention Netflix( 32 %), Google( 26 %), and Amazon( 17 %) to be the biggest threats to their business. On the other hand, Pay TV operators and broadcasters are the most at risk mainly due to the lack of experience in digital experience building. Although the trends in TV markets around the world are similar, the environment and pace of disruption varies. The A. T. Kearney Global TV Disruption Index assesses how much disruption each country can expect over the next five years. In that Index, disruption is defined as a shift in video consumption from linear broadcast to OTT platforms, i. e., from serving homes to serving individuals.“ Markets experiencing disruption are expected to follow a similar curve,” notes Christophe Firth, A. T. Kearney principal and co-author of the report.“ There is therefore much to learn from both markets that are at the same stage and those that are further along the curve. Although some markets appear to be safe from short-term disruption, the landscape can

change quickly, particularly through supplyside innovation and changes in connectivity, such as national fibre rollouts, the launch of 5G, or mobile data price wars.”
Top 20 countries in A. T. Kearney TV Disruption Index The index assesses how much disruption each country can expect over the next five years. It is comprised of 17 metrics that are driving disruption in three weighted categories. Disruption is defined as a shift in video consumption from linear broadcast to OTT platforms.
NAGRA supports StarHub IP transition
Content protection and multiscreen television solutions provider NAGRA has completed the end-toend integration of Singapore operator StarHub’ s multinetwork pay-TV services into the operator’ s brand new Hubtricity facility.
As lead system integrator on the project, NAGRA delivered the migration of the operator’ s 280 channels spanning cable, IP and OTT networks into Hubtricity, marking StarHub’ s transition to an IP infrastructure. The move also provides StarHub with the foundation to deliver the next generation of
IP-enabled pay-TV services to its customers.
The new media headend boasts master control facilities and robust IP network systems designed by NAGRA to enable new capabilities for Singapore’ s leading pay-TV service provider while reducing cost of ownership. NAGRA also provided consultancy and project management services in the design and installation of the facility.
“ Hubtricity houses our converged command cockpit which delivers our vision of providing world-class services to our customers. A state-ofthe-art facility, it also serves as the premier hub for emerging technologies and innovation in the region,” said Chong Siew Loong, Chief Technology
Officer, StarHub.“ As a longstanding partner, NAGRA was instrumental in bringing all the pieces together through their deep knowledge of pay- TV networks, their TV-centric system integration skills and vast network of partners.”
“ We applaud StarHub in launching the Hubtricity facility and their commitment to delivering best-of-breed technologies and services to their customers,” said Stéphane Le Dreau, SVP Regional General Manager Asia-Pacific for NAGRA.“ Hubtricity will be a centre of excellence for innovation in the development and deployment of next generation pay-TV services. We are proud to support a project of this magnitude by providing
StarHub with our expertise in headend, broadcast, streaming back-office and IP technologies to bring it to fruition. We look forward to supporting StarHub as they set the foundation for IP-enabled pay-TV services in Singapore.”
Since 2003, NAGRA has provided StarHub with an array of digital TV technologies ranging from content protection to set-top box software and user experience solutions. StarHub selected NAGRA as overall system integrator for Hubtricity in 2015. The project included the management of 20 different vendors providing products and services in satellite reception, baseband, compression, cable and IP distribution.
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