Gabriel Dusil • Social Networking • Announcing the launch of gabrieldusil.com!

• Many of you have suggested that I split my professional content from the personal stuff, so I finally got around to it. I’m happy to announce the launch of my new personal blog, gabrieldusil.com.

Home - Social Networking, header (gabrieldusil.com signature)

My personal blog will focus on tags related to:

  • Family Legacy • Mamička • Taci • Googičko • Gabičko
  • Photo Restoration • Digital Restoration • Photo Repair • Historical Photography
  • Martial Arts • MMA • Mixed Martial Arts • Kick boxing • Karate • Self Defense
  • Fitness • Strength & Conditioning • Circuit Training • Aerobic • Anaerobic

Here are links to recent posts in my personal blog:

Home - Social Networking, header(Google+ header)

The professional blog, dusil.com, will continue to focus on the following tags:

  • OTT • Over the Top Content • OVP • Online Video Platform • VoD • On Demand
  • Broadcast • Television • Multiscreen • Smart TV • Social TV • 4K • UHD • UltraHD
  • Connected TV • TV Everywhere • TV Anywhere • Digital Video • Streaming

Here are links to recent posts in my professional blog:

Enjoy!

Home - Signature, Gabriel Dusil ('12, shadow, teal, Gab)

OTT & Multiscreen • Web Seminar • 8 • Entertainment Streaming Challenges

Graphic - Dusil.com, web seminar, title

• Entertainment Streaming Challenges

• Welcome to our eighth web seminar.  This presentation is also the first part of our “Entertainment Streaming Services – Challenges, Opportunities, Behaviors and Strategies” series.  In this installment we focus on the Challenges of delivering OTT Services. 14.Jun.10 - Visual Unity Global (training, #8, Entertainment Streaming Challenges)

• Synopsis

• ŸCheck out other white papers, video presentations, and opinion pieces from my blog “Digital Video for a Digital Generation”: www.dusil.com • Building a new Video Streaming service starts from understanding the market landscape. We’re all familiar with the SWOT analysis: Strengths, Weaknesses, Opportunities & Threats. But dissecting the challenges in the Video streaming industry is about understanding problems, before a solution can be formulated. Creating a gap-analysis is the next step in recognizing opportunities in this rapidly changing market space. Then, examining subscriber behavior ensures that we look through the lens of the consumer. Once those steps are completed, we can formulate a strategy to build an innovative and competitive video streaming service. This presentation takes a modern market approach for video streaming through an assessment of Challenges, Opportunities, Behaviors, & Strategies (or COBS). 14.Jun.10 - Visual Unity Global (training, #8, Entertainment Streaming Challenges, title)

• Video Presentation

• 9 minutes 6 seconds

• Download the Native PowerPoint Slides

14.Jun.10 – Visual Unity Global (training, #8, Entertainment Streaming Challenges).pptx

• View the PDF version on slideshare.net

• Tags

2nd Screen, Broadcast, COBS, Connected TV, Digital Rights, Digital Video, DRM, dusil.com, Entertainment Streaming Behaviors, Entertainment Streaming Challenges, Entertainment Streaming Opportunities, Entertainment Streaming Strategies, Gabriel Dusil, Internet Video, Linear TV, Multi-screen, Multiscreen, Online Video Platform, OTT, Over the Top Content, OVP, Recommendation Engine, Return On Investment, ROI, Search & Discovery, second screen, Smart TV, TCO, Television, total cost of ownership, TV Anywhere, TV Everywhere, Video Streaming


14.Jun.10 - Visual Unity Global (training, #8, Entertainment Streaming Challenges, Premiere Pro)

Gabriel Dusil • Social Networking • WordPress.com 2014 Annual Report

• WordPress.com prepared this 2014 Annual Report for dusil.com. Click here to see the complete report.

• Here are three recent articles:

• Here are three recent web seminars:

• I wanted to take this opportunity to thank all of you for reading my articles, and watching my videos. I love the creative process, presenting new ideas, and trying to look at the market in a unique light. Please stay tuned in 2015, as I have a lot of content planned for release, throughout the year. Here’s an excerpt:

Portfolio - WordPress, Annual Report '14, Title, Annual Report (15.Jan.6)

Portfolio – WordPress, Annual Report ’14, Title, Annual Report (15.Jan.6)

Digital Trends Video Opinions • Why Does My 4K Video Suck?

Graphic - Digital Trends Video Opinions (header #2, web)

I have a confession to make – I’m a high definition snob. I only watch movies in 1080p[1].  I could care less if a movie is available – shudder – in standard definition (SD). As far as I’m concerned, the movie doesn’t exist, until it’s in 1080p (excluding cinema releases, of course). Many friends think that I’m a hopeless geek to impose such ridiculous restrictions on a movie experience. For some colleagues it’s more important to watch the release as quickly as possible, then to worry about quality. Am I narrow minded? Is my quest to have a cinema experience overrated? Who even notices those compression artifacts[2], mosquito noise[3], or frame tearing[4], anyway?

When Blu-Ray first came out I recall friends telling me how they were disappointed by HD video. They couldn’t tell the difference from the DVD version. I anticipate the same response as we transition to Ultra HD[5] (UHD). History is destined to repeat itself as we venture into more pixels and bigger TVs.

Consumers face a perception verses reality battle regarding image quality. It’s all about how we perceive new technology. In other words, the eyes may see better quality, but the brain is not recognizing the higher resolution. I attribute this to any combination of factors. Anything along this supply chain from creation to consumption can adversely affect video quality:

Figure i – The 4K Video Supply Chain

Figure i – The 4K Video Supply Chain

  1. Creation • The cameras used in production may not have been the analogue equivalent of HD.  Possibly the lenses were poor quality or old film stock was used. Ÿ Maybe the content was filmed with digital cameras that did not have HD sensors.
  2. Source Ÿ• Maybe the source material wasn’t HD. Even if the content was broadcast on an HD channel, the content itself may have been SD and was unconverted[6] (i.e. up-scaled) to HD.
  3. Digitization • This is where film or video tapes are converted to a digital format. Possibly the source content was not digitized properly from the master film reels. For example, Super 16mm film has the grain resolution to achieve a 1080p analog to digital conversion[7].  A digital conversion service may have used SD (576p PAL or 480p NTSC) conversion on the film stock. •  Maybe a copy was digitized and the master (aka. mezzanine file[8]) wasn’t used at all.  Once the film is digitized then software is used to correct color, exposure, and audio/video synchronization. In addition, scratches, dust and film damage is digitally removed from each frame. For some Hollywood movies this takes months of effort. Some early Blu-Ray releases received bad reviews because the digital cleaning process resulted in complete removal of film grain – an aspect of movies that gives that venerable cinema feel. The digitization process has since improved to maintain the visual experience intended by the director.
  4. Encoding Ÿ• The source content may not have been encoded properly, resulting in a substandard video transfer. Typically the analog (film) to digital (file) conversion is uncompressed.Each HD frame scanned to a file would typically occupy  6.2MBytes[9]. Taking these frames and streaming them uncompressed at 23.976 fps (frames per second, typical for a Hollywood movie) would stream at 1.2 Gbps (gigabits per second). This is much too large for consumer devices, so the file needs to be compressed down to a reasonable file size. That’s where H.264[10] and the newer H.265[11] video compression standards come in. These codecs compress an HD movie down to a 4-6Mbps[12] when used in an internet streaming service.  That’s a reduction of 200:1!
  5. Transcoding • Once a video has been encoded, then it can be transcoded into other formats or bitrates. If a good quality master wasn’t used in this process, then the result is GIGO (garbage in garbage out). If the video was transcoded several times before it reaches the viewer, then image quality would have degraded at each transcoding step. In the early days of H.264 encoding, engineers were not versed in all the encoding intricacies, which resulted in a sub-optimal video outputs. This same learning curve is beginning again with H.265.
  6. ‘Supply • There are many intermediaries taking content from one provider and handing it over to another. This applies to both broadcast television as well as internet delivery. Hardware, software, and interconnections anywhere along this ‘supply chain’ can compromise the quality of the signal. Over the internet this involves any combination of routers, switches, firewalls, cabling, streaming or caching servers.
  7. ’Delivery • The delivery mechanism of the Internet, Over the Air[13] (OTA) broadcast, Cable, or Satellite, may have deteriorated the signal due to congestion, latency, dropped packets, interference, or lack of quality of service (QoS) contingencies. Don’t expect the same qualify from a streaming service, compared to Blu-Ray.  Streaming services use much lower bitrates when transferring HD quality (typically up to 4Mbps for 720p or 6Mbps for 1080p), whereas Blu-Ray will use well over 16Mbps.
  8. “Screen Ÿ• The consumer may not have a TV that is good enough to see the improved resolution of HD or 4K. TV’s with less than 30” diagonal were too small to showcase HD. Cathode ray tubes (CRTs) were a complete waste of time when showcasing HD. Likewise, it will be hard to see the advantages of 4K video when viewed on screens smaller than 42”, unless the viewer is sitting right in front of the screen. The distance of the viewer from the screen has an effect on video quality. The 2 foot computer experience can afford smaller pixels and screen, compared to TV’s 10 foot TV viewing. As the person sits farther from the screen then pixels begin to blend together, and the advantage of higher pixel densities are lost.
  9. ”Viewer • Maybe the audience member doesn’t have 20/20 vision?
  10. •Bias Ÿ• This is often overlooked when evaluating something new. There is an inherent bias of each viewer when experiencing something that they have never seen before. Did the person hope for the video to be better, before they saw it for the first time? Were they indifferent? Maybe they were part of a grumpy generation that could care less? Pre-established bias plays a role in how we react to new technology. Understanding these biases in advance helps to filter the opinion of others.

It’s as though all planets need to align before we can enjoy 4K video. This is certainly the case with many technological breakthroughs. Equipment, technologies and processes along the entire supply change needs to be upgraded to ensure an optimal viewing experience.

In the case of 4K, some people will simply not perceive the higher resolution – at least not initially. Even if the technology from source to viewer has the ability to showcase 4K, some won’t immediately see an improvement in quality. When I displayed Blu-ray content for the first time on my monitor, I couldn’t immediately see the benefits. My personal bias was to rant about how amazing the video was to my friends, because I wanted it to be better – but deep inside I was underwhelmed. It took me a few weeks of consistently watching HD before I acclimate to the resolution. As my brain started to adjust to the additional pixels, and sharper picture, it wasn’t until I looked back at standard definition that I realized how my perception had changed.

My 4K video doesn’t actually suck – mainly because I don’t have a 4K TV yet.  But I loved what I saw when 4K and UHD was showcased at a number of Media and Entertainment exhibitions these past two years[14]. That may have been my internal bias talking, of course.

Each generation has incrementally higher expectations on new technology. It’s funny to think that maybe my kids will one day say, “Dad, this 4K video sucks. Don’t you have the movie in 8K?”. The grumpy generation would be quick to react, “When I was your age…”.  In the meantime, I can’t wait to be a 2160p[15] snob.

• Synopsis

Is perception also reality for 4K video? Will you recognize 4K quality when you see it for the first time? What ultimately effects video quality, and how do we perceive these incremental improvements? This article explores the challenges that the industry faces in delivering 4K UHD video to the masses, and biases that consumers face when experiencing new technology.

• About Gabriel Dusil

Home - Signature, Gabriel Dusil ('12, shadow, teal)Gabriel Dusil was recently the Chief Marketing & Corporate Strategy Officer at Visual Unity with a mandate to advance the company’s portfolio into next generation solutions and expand the company’s global presence. Before joining Visual Unity, Gabriel was the VP of Sales & Marketing at Cognitive Security, and Director of Alliances at SecureWorks, responsible for partners in Europe, Middle East, and Africa (EMEA). Previously, Gabriel worked at VeriSign & Motorola in a combination of senior marketing & sales roles. Gabriel obtained a degree in Engineering Physics from McMaster University in Canada and has advanced knowledge in Online Video Solutions, Cloud Computing, Security as a Service (SaaS), Identity & Access Management (IAM), and Managed Security Services (MSS).

• Tags

Ÿ4K, Broadcast, Connected TV, Digital Video, DRM, Gabriel Dusil, H.264, H.265, HEVC, Internet Video, Linear Broadcast, Linear TV, Multi + screen, Multiscreen, New Media, Online Video, Online Video Platform, OTT, Over the Top Content, OVP, second screen, Smart TV, Social TV, TV Everywhere, Ultra HD, Ultra High Definition, Digital Trends Video Opinions

• Resources

[1] 1080p, Wikipedia, http://en.wikipedia.org/wiki/1080p

[2] Compression artifacts, Wikipedia, http://en.wikipedia.org/wiki/Compression_artifact

[3] Mosquito Noise, pcmag.com, http://www.pcmag.com/encyclopedia/term/55914/mosquito-noise

[4] Screen Tearing, Wikipedia, http://en.wikipedia.org/wiki/Screen_tearing

[5] Ultra HD, Wikipedia, http://en.wikipedia.org/wiki/Ultra-high-definition_television

[6] Video scaler, Wikipedia, http://en.wikipedia.org/wiki/Video_scaler

[7] Resolution of Super 16mm film, cinematechnic.com, http://www.cinematechnic.com/super_16mm/resolution_of_super_16mm.html

[8] What is Encoding and Transcoding?, By Jan Ozer, 20 April 2011, streamingmedia.com, http://www.streamingmedia.com/Articles/Editorial/What-Is-…/What-is-Encoding-and-Transcoding-75025.aspx

[9] (1920×1080 pixels x 24 bits of color per pixel)/8bits per byte = 6.2MB (mega bytes)

[10] H.264, Wikipedia, http://en.wikipedia.org/wiki/H.264/MPEG-4_AVC

[11] H.265, http://en.wikipedia.org/wiki/High_Efficiency_Video_Coding

[12] Mbps, Mega bits per second.

[13] Over the Air, http://en.wikipedia.org/wiki/Over-the-air_programming

[14] NAB ’14, http://www.nabshow.com/, IBC ’14, http://www.ibc.org/

[15] 2160p, Wikipedia, http://en.wikipedia.org/wiki/2160p

Gabriel Dusil • Social Networking • dusil.com passes 10,000 views!

In the big scheme of things 10,000 blog views isn’t that much. But it is still a milestone I am happy to achieve nonetheless, since starting my blog 18 month ago.  I wanted to take this opportunity to provide a snapshot of how this social networking initiative is going.  Thanks for reading my blog. It’s my creative outlet, digital resume, and portfolio – all wrapped in one. So here are some screen captures of my various social networking dashboards. Enjoy!

WordPress.com

Portfolio - Social Networking Dashboard (WordPress, 14.Nov.10)

Portfolio – Social Networking Dashboard (WordPress, 14.Nov.10)

 

LinkedIn.com

Portfolio - Social Networking Dashboard (LinkedIn, 14.Nov.10)

Portfolio – Social Networking Dashboard (LinkedIn, 14.Nov.10)

 

Slideshare.net

Portfolio - Social Networking Dashboard (slideshare, 14.Nov.10)

Portfolio – Social Networking Dashboard (slideshare, 14.Nov.10)

 


Portfolio - Microsoft Windows 7, icons (14.Nov.10)

Portfolio - Google Chrome, icons (14.Nov.10)

OTT & Multiscreen • Developing OTT for the Emerging Markets, II

Graphic - Digital Trends Video Opinions (header #2, web)

The observations in Part I of this article, “Developing OTT for the Emerging Markets“, outline specific challenges to entertainment providers in developing markets. But the weakness in capital in the emerging markets is somewhat offset by the strength in being able to peer into the future, by observing what the USA is doing today. This helps local players to assess what will come to their market several years from now and essentially creates a leap-frog effect for ambitious companies wanting to adopt the latest OTT solutions. Rather than wait 4+ years to adopt the latest OTT solutions, they can implement a service today, in parallel to their American counterparts.

Figure iii – Average Bandwidth Forecast by Region

Figure iii – Average Bandwidth Forecast by Region

Much of the adoption curve across the globe is driven by the behavior of local subscribers, as well as the adoption curve of new technologies in these regions. Here are a few areas where emerging markets differ from developed markets:

  • In the west, consumers are enticed by the introduction of 4K Ultra High Definition TV. But in developing markets, service providers just want to ensure that their standard definition content (SD @ 528 lines) is served to their consumers in the best quality possible. In some cases, an even lower resolution is offered, such as 288 lines or even 144 lines, requiring limited bandwidth transmissions and mobile devices (Figure iii).
  • 2nd screen and TV everywhere continues to be a hot topic in the west. In many emerging markets the second screen is, in fact, their primary screen. Mobile devices in emerging markets are used as a primary screen for voice, messaging, video, music, content, news, and even banking.
  • In some emerging markets the penetration of smartphone devices is relatively low. A device such as the iPhone is considered a luxury item. With some markets lacking a well-established middle class, the iPhone becomes the Prada of the mobile market, left to the top percentile of society. In the west, the iPhone is another high-end smartphone, but in developing markets the iPhone helps define one’s identity. This has allowed some of the lower cost Android manufacturers to gain market share.
  • HTML5[ix] and responsive design[x] may be at the top of the agenda in web design, but the emerging markets’ focus on serving video content to a much wider range of feature phones does not support advanced web features. There are thousands of feature phones that have limited video capabilities. Smartphone penetration is low, although gaining market share rapidly, but there is a concerted effort to support video to a wider range of legacy devices.
  • In the west, pay TV providers concern themselves with a growing number of cord cutters and cord shavers. In fact, some emerging markets have a large population of cord-nevers, where the market penetration of pay-TV is much lower (Figure iv). For example, the sub-Saharan region has less than 8% market penetration in pay-TV. Even though this market is expected to double by 2020, their market penetration still won’t come close to many developed countries[xi]. It is also possible that if a country misses the adoption curve of pay-TV, then they may prefer to use the Internet as their primary source of entertainment[xii]. This will further limit the penetration of pay-TV subscribers.
  • The west obsesses about BIG data. Many clients in the west have several years of experience in OTT services, so their focus changes from “We need to make sure the service works”, to “How do we increase our average revenue per user (ARPU)?” Reaching this goal results in focusing on collecting, correlating and analyzing more and more data. Emerging markets, on the other hand, don’t yet have a BIG data frenzy. It’s about basic reporting on what the service provider is selling, who is consuming their content, and which devices are displaying their video. Reporting is seen as providing the basic data needed to measure the success of an OTT service. It’s not yet treated as a complex analytics engine that will generate a higher ARPU[xiii]. Emerging markets are still building their first OTT service, or just investigating its commercial viability. OTT v2.0 features like complex analytics and recommendation engines will come in due course.
Figure iv – Pay-TV Average Revenue Per User (Bubble size represents the relative number of household with PayTV)

Figure iv – Pay-TV Average Revenue Per User
(Bubble size represents the relative number of household with PayTV), Sources: iDate, Ofcom, & Wikipedia

Often conversations around entertainment and the Internet lead to, “trading analog dollars with digital pennies”, an analogy popularized by Jeff Zucker, head of NBC Universal[xv]. In the context of this discussion, however, a far closer truth would be broadcast dollars vs. OTT pennies. But in developing markets there are no dollars to be earned since their Average Revenue per User (ARPU) is a fraction of that in the west (Figure iv)[xvi]. On the other hand, OTT pennies can be generated by high subscriber volume since many developing regions have a sizable consumer market. The selling strategy in these regions is less about increasing ARPU and more about generating a subscriber footprint reflecting orders of magnitude higher than can be achieved in the west.Possibly the most challenging issue for emerging markets is the accessibility of premium western content. 90% of American premium content is owned by nine majors in the USA: Disney, Fox, Time Warner, Comcast/NBC Universal, CBS, Viacom, Discovery, Scripps and AMC. These companies spend over 45 billion US$ on this content per year according to Todd Juengerfrom Bernstein Research[xiv]. Service providers in developing markets simply don’t have the capital to purchase these libraries. At best they can afford a tiny fraction of titles for commercial availability to local subscribers. Plan B is to consolidate content from local studios and producers. This focuses their library of titles on entertainment from regional content owners and delivering culturally diverse content that is much more affordable.

As digital video continues to grow at a phenomenal rate, I’m inclined to believe that western companies are more educated about the cultural, political, and economic dynamics of international expansion. For the entertainment community, it may be the case of realizing that earning 100 pennies is far more practical than trying to generate every single dollar.

• Synopsis

In the digital era of the 21st century, ‘emerging markets’ have evolved into what we now call ‘developing markets’. If companies in the west are considered the adults of the business world, then developing markets are still at the adolescent stage. A developing market at least acknowledges that the emerging markets have entered their next growth phase. As digital video and entertainment proliferates around the world, the tide is not rising for everyone at the same pace. Developing markets still have to overcome obstacles in adopting streaming solutions due to cultural, technological, and financial challenges. This article has taken a look at some of the differences between developed and developing markets in the adoption of Over the Top solutions (OTT) and digital streaming. By examining some of these, we can help them mature into healthy and robust teenagers.

• About Gabriel Dusil

Ÿ• Home - Signature, Gabriel Dusil ('12, shadow, teal)Gabriel Dusil was recently the Chief Marketing & Corporate Strategy Officer at Visual Unity Global, and a member of the core management team that successfully secured 7.2m US$ in series “A” funding for the company in 2014. Before joining Visual Unity, Gabriel was the VP of Sales & Marketing at Cognitive Security, and Director of Alliances at SecureWorks, responsible for partners in Europe, Middle East, and Africa (EMEA). Previously, Gabriel worked at VeriSign & Motorola in a combination of senior marketing & sales roles. Gabriel obtained a degree in Engineering Physics from McMaster University in Canada and has advanced knowledge in Online Video Solutions, Cloud Computing, Security as a Service (SaaS), Identity & Access Management (IAM), and Managed Security Services (MSS).

• Tags

Ÿ4K, Broadcast, Connected TV, Digital Rights, Digital Video, DRM, Gabriel Dusil, H.265, HEVC, Internet Piracy, Internet Video, Linear Broadcast, Linear TV, Multi-screen, Multiscreen, New Media, Online Video, Online Video Platform, OTT, Over the Top Content, OVP, Recommendation Engine, Search & Discovery, Search and Discovery, second screen, Smart TV, Social TV, TV Everywhere, Ultra HD, Ultra High Definition, Visual Unity, emerging markets, developing markets, developed markets, Digital Trends Video Opinions

• References

[i] Internet Traffic, Wikipedia, http://en.wikipedia.org/wiki/Internet_traffic & Cisco’s Visual Networking Index Forecast (’13)

[ii] Cisco, Visual Networking Index (VNI), http://www.cisco.com/c/en/us/solutions/service-provider/visual-networking-index-vni/index.html

[iii] YouTube, Wikipedia, http://en.wikipedia.org/wiki/Youtube

[iv] Skype, Wikipedia, http://en.wikipedia.org/wiki/Skype

[v] 50 million concurrent users online!, by Jean Mercier, http://skypenumerology.blogspot.cz/2013/01/50-million-concurrent-users-online.html

[vi] Blu-Ray, Wikipedia, http://en.wikipedia.org/wiki/Blu-ray

[vii] Apple iPhone, Wikipedia, http://en.wikipedia.org/wiki/IPhone

[viii] Sandvine – Global Internet Phenomena Report (1H ‘13)

[ix] HTML5, Wikipedia, http://en.wikipedia.org/wiki/HTML5

[x] Responsive Web Design, Wikipedia, http://en.wikipedia.org/wiki/Responsive_web_design

[xi] “Sub-Saharan Africa pay-TV numbers to double by 2020”, by Jim O’Neill, Ooyala VideoMind, http://videomind.ooyala.com/blog/sub-saharan-africa-pay-tv-numbers-double-2020

[xii] A similar trend occurred in the payment industry over the years. Markets that introduced a check-based payment system in the 80’s migrated to credit cards in the 90’s and then to debit cards in the 00’s. In the USA, where checks were introduced, that method of payment is still used to this day. But markets in Europe that missed the boat with checks flourished with credit cards. Emerging markets, on the other hand, missed the boat with credit cards and went straight to debit cards. Furthermore, many of the smaller emerging markets still remain a cash-based purchasing society.

[xiii] Average revenue per user, Wikipedia, http://en.wikipedia.org/wiki/Average_revenue_per_user

[xiv] “Pay-TV Prices Are at the Breaking Point — And They’re Only Going to Get Worse”, by Todd Spangler, Variety.com, http://variety.com/2013/biz/news/pay-tv-prices-are-at-the-breaking-point-and-theyre-only-going-to-get-worse-1200886691/

[xv] Trading Analog Dollars For Digital Pennies, by Zemanta, http://avc.com/2008/11/trading-analog/

[xvi] Consolidated figures for Wikipedia, http://en.wikipedia.org/wiki/List_of_countries_by_number_of_households, Ofcom, and iDate, http://stakeholders.ofcom.org.uk/market-data-research/market-data/communications-market-reports/cmr13/international/icmr-3.23

OTT & Multiscreen • Developing OTT for the Emerging Markets, I

Graphic - Digital Trends Video Opinions (header #2, web)

 

Back in 1998, when I worked for Motorola, the company invited staff to join a corporate briefing on the status and future of the company. I was based in Prague at the time, and this was the first call of its type that I had the privilege of attending. There were literally thousands of people on this call, representing countries from around the world. After listening to our corporate executives talk about their vision of the future, one of the senior executives said something that caught my attention. He said (I’m paraphrasing as it’s been a while), “We plan to give special attention to emerging markets. We see a lot of opportunities in these regions and want to capitalize on their rapid growth potential. Specifically, we see states such as Idaho as an emerging market and we want to focus some of our efforts there…”

What? Idaho, an emerging market? Suddenly the reality of my role, working out of the humble Prague office located on the other side of the world, slapped me in the face. Even though I was responsible for marketing across over 25 countries in Central & Eastern Europe, it seemed that we weren’t even on HQ’s geographic radar.

I would like to provide some perspective on what are the true emerging markets in the entertainment industry – specifically in regards to video streaming. Fifteen years have passed since that call, and much of my time has been spent with one leg in western markets and the other in emerging markets. Holding dual citizenship as a Canadian and Slovak, I always felt I had solid footing in both cultures.

Figure i – Global Internet Traffic vs. Digital Video Milestones

Figure i – Global Internet Traffic vs. Digital Video Milestones, Sources: Cisco & Wikipedia

Digital video has arrived in a big way and is maturing rapidly across the globe[i]. Figure i shows the accelerated growth of internet traffic, of which approximately 70% will be video by 2016 according to Cisco’s VNI[ii] report. For nearly a decade consumers have enjoyed video streaming on their computers and more recently on their mobile devices. Even though this change occurred quickly, it has also been taken for granted. We expect high quality video streaming; that our Skype calls will work; we even assume that video will be served to our mobile devices. So, here is a quick reminder of what we didn’t have ten years ago:

  • We didn’t have YouTube, which launched in February 2005[iii].
  • Consumers were still calling long distance – Skype launched on the 29th of August 2003[iv] and reached its first 10 million concurrent users in 2007[v]
  • Blu-Ray discs had yet to be introduced, with the first titles being released on the 20th of June 2006[vi]
  • Even the iPhone began shipping as early as six years ago, on the 29th of June 2007[vii]

These products and services have become so essential to our lives it’s as if we’ve had them forever. But not everyone around the world has been enjoying entertainment at an even pace.

Information Communication Technology (ICT) maturity varies greatly outside of the developed market. The availability and quality of video streaming, communications, and mobility fluctuates depending on a given developing region. For example, the past decade has shown that the USA leads in the adoption of streaming video solutions, including its offspring Over the Top Content (OTT). Several of the first movers in OTT services who entered the market include Brightcove (est. 2004), Ooyala (est. 2007), and Kaltura (est. 2006). In addition, western subscribers consume more digital video than any other region around the work – in excess of 45GB of traffic per month. In fact, according to the latest report from Sandvine[viii], 32% of downstream traffic in the USA in 2013 can be attributed to Netflix alone. But in Europe, Canada and parts of Asia, these second-tier regions trail several years behind the USA in the adoption of OTT and video streaming services (Figure ii). European consumers, for example, consume a third of traffic compared to their American counterparts: 13GB per month. This is partially attributed to the limited supply of OTT services outside the United States.

Figure ii - OTT Evolution - Geographic Distribution

Figure ii – OTT Evolution – Geographic Distribution

The third tier in this assessment is that of emerging markets. These regions are at least four years behind the USA. This lag is significant on several fronts. First of all, from a competitive perspective, as the Internet is borderless, western companies are entering emerging markets before the local players have the knowledge, time or capital to build a service themselves. Secondly, early adopters from the west have first-move advantage to create an early footprint of global subscribers since they already have a platform and seed capital to expand to international markets. Western competitors wanting to establish a larger subscriber footprint in the east secure additional capital to buy expensive premium content. This footprint is easier to extend over the Internet where borders can be easily crossed. In contrast, broadcasters are typically restricted by geography due to regulation and the limitations of their physical infrastructure.

Stay Tuned for Part II

In the second part of this article we will look into several areas where OTT deployments in the emerging markets differ from developed markets.

• Synopsis

In the digital era of the 21st century, ‘emerging markets’ have evolved into what we now call ‘developing markets’. If companies in the west are considered the adults of the business world, then developing markets are still at the adolescent stage. A developing market at least acknowledges that the emerging markets have entered their next growth phase. As digital video and entertainment proliferates around the world, the tide is not rising for everyone at the same pace. Developing markets still have to overcome obstacles in adopting streaming solutions due to cultural, technological, and financial challenges. This article has taken a look at some of the differences between developed and developing markets in the adoption of Over the Top solutions (OTT) and digital streaming. By examining some of these, we can help them mature into healthy and robust teenagers.

• About Gabriel Dusil

Ÿ• Home - Signature, Gabriel Dusil ('12, shadow, teal)Gabriel Dusil was recently the Chief Marketing & Corporate Strategy Officer at Visual Unity Global, and a member of the core management team that secured 7.2m US$ in series “A” funding for the company in 2014. Before joining Visual Unity, Gabriel was the VP of Sales & Marketing at Cognitive Security, and Director of Alliances at SecureWorks, responsible for partners in Europe, Middle East, and Africa (EMEA). Previously, Gabriel worked at VeriSign & Motorola in a combination of senior marketing & sales roles. Gabriel obtained a degree in Engineering Physics from McMaster University in Canada and has advanced knowledge in Online Video Solutions, Cloud Computing, Security as a Service (SaaS), Identity & Access Management (IAM), and Managed Security Services (MSS).

• Tags

Ÿ4K, Broadcast, Connected TV, Digital Rights, Digital Video, DRM, Gabriel Dusil, H.265, HEVC, Internet Piracy, Internet Video, Linear Broadcast, Linear TV, Multi-screen, Multiscreen, New Media, Online Video, Online Video Platform, OTT, Over the Top Content, OVP, Recommendation Engine, Search & Discovery, Search and Discovery, second screen, Smart TV, Social TV, TV Everywhere, Ultra HD, Ultra High Definition, Visual Unity, emerging markets, developing markets, developed markets, Digital Trends Video Opinions

• References

[i] Internet Traffic, Wikipedia, http://en.wikipedia.org/wiki/Internet_traffic & Cisco’s Visual Networking Index Forecast (’13)

[ii] Cisco, Visual Networking Index (VNI), http://www.cisco.com/c/en/us/solutions/service-provider/visual-networking-index-vni/index.html

[iii] YouTube, Wikipedia, http://en.wikipedia.org/wiki/Youtube

[iv] Skype, Wikipedia, http://en.wikipedia.org/wiki/Skype

[v] 50 million concurrent users online!, by Jean Mercier, http://skypenumerology.blogspot.cz/2013/01/50-million-concurrent-users-online.html

[vi] Blu-Ray, Wikipedia, http://en.wikipedia.org/wiki/Blu-ray

[vii] Apple iPhone, Wikipedia, http://en.wikipedia.org/wiki/IPhone

[viii] Sandvine – Global Internet Phenomena Report (1H ‘13)

[ix] HTML5, Wikipedia, http://en.wikipedia.org/wiki/HTML5

[x] Responsive Web Design, Wikipedia, http://en.wikipedia.org/wiki/Responsive_web_design

[xi] “Sub-Saharan Africa pay-TV numbers to double by 2020”, by Jim O’Neill, Ooyala VideoMind, http://videomind.ooyala.com/blog/sub-saharan-africa-pay-tv-numbers-double-2020

[xii] A similar trend occurred in the payment industry over the years. Markets that introduced a check-based payment system in the 80’s migrated to credit cards in the 90’s and then to debit cards in the 00’s. In the USA, where checks were introduced, that method of payment is still used to this day. But markets in Europe that missed the boat with checks flourished with credit cards. Emerging markets, on the other hand, missed the boat with credit cards and went straight to debit cards. Furthermore, many of the smaller emerging markets still remain a cash-based purchasing society.

[xiii] Average revenue per user, Wikipedia, http://en.wikipedia.org/wiki/Average_revenue_per_user

[xiv] “Pay-TV Prices Are at the Breaking Point — And They’re Only Going to Get Worse”, by Todd Spangler, Variety.com, http://variety.com/2013/biz/news/pay-tv-prices-are-at-the-breaking-point-and-theyre-only-going-to-get-worse-1200886691/

[xv] Trading Analog Dollars For Digital Pennies, by Zemanta, http://avc.com/2008/11/trading-analog/

[xvi] Consolidated figures for Wikipedia, http://en.wikipedia.org/wiki/List_of_countries_by_number_of_households, Ofcom, and iDate, http://stakeholders.ofcom.org.uk/market-data-research/market-data/communications-market-reports/cmr13/international/icmr-3.23

OTT & Multiscreen • Entertainment Challenges in Today’s Digital Society • 1-7 • Complete Series

13.Nov.20 - Entertainment Challenges in Today’s Digital Society (title)

In this post you get access to all seven white papers from this Q&A series on Entertainment Challenges in Today’s Digital Society. You also get one-click access to each original post. Enjoy!

• Synopsis

•  Understanding the entertainment market from ten thousand meters helps industry executives make strategic decisions. This leads to tactical initiatives that drive innovation, new services, and revenue growth. This Q&A series takes a top level view of today’s digital landscape and helps decision makers navigate through the latest technologies and trends in digital video. Gabriel Dusil, Chief Marketing & Corporate Strategy Officer from Visual Unity, discusses the ongoing developments in Over the Top (OTT) services, how these platforms are helping to shape today’s digital society, and addresses the evolving changes in consumer behavior. Topics include 2nd Screen, 4K Ultra High Definition video, H.265 HEVC, global challenges surrounding content distribution, and the future of OTT.

• Entertainment Challenges in Today’s Digital Society – Q&A Series

1. Is 2nd Screen a threat to broadcasters? What are the challenges for OTT moving forward?

13.Nov.20 - Entertainment Challenges in Today’s Digital Society (part i, thumbnail)

 

2. How will 4K be adopted by consumers?

13.Nov.20 - Entertainment Challenges in Today’s Digital Society (part ii, thumbnail)

 

3. Is there a future for 4K video in broadcast?

13.Nov.20 - Entertainment Challenges in Today’s Digital Society (part iii, thumbnail)

 

4. How is OTT evolving, and what’s in store for subscribers?

13.Nov.20 - Entertainment Challenges in Today’s Digital Society (part iv, thumbnail)

 

5. How is digital video affecting global communications?

13.Nov.20 - Entertainment Challenges in Today’s Digital Society (part v, thumbnail)

 

6. Transcoding Challenges with H.265 HEVC & 4K UHD.

13.Nov.20 - Entertainment Challenges in Today’s Digital Society (part vi, thumbnail)

7. What are some improvements that OTT can offer to Online Entertainment Services?

13.Nov.20 - Entertainment Challenges in Today’s Digital Society (part vii, thumbnail)

• Tags

• 2nd Screen, 4K, Broadcast, Connected TV, Digital Rights, Digital Video, DRM, Entertainment, Gabriel Dusil, H.264, H.265, HEVC, Internet Video, Linear Broadcast, Linear TV, Multi screen, Multiscreen, New Media, Online Video, Online Video Platform, OTT, Over the Top Content, OVP, Recommendation Engine, Search Discovery, second screen, Smart TV, Social TV, TV Everywhere, Television, UHD, Ultra HD, Ultra High Definition, Video Streaming, Visual Unity Global
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