Category: Digital Video

OTT & Multiscreen • Web Seminar • 2 • Origins of Over the Top Video Services

14.May.27 - Visual Unity Global (training, title)

• Origins of Over the Top Video Services

• This is the second presentation from our 2014 seminar series.

• To better understand where we are going, it helps to know where we came from.  This presentation investigates when OTT video services began to emerge, and the market landscape that made it happen.  We also look at how different regions around the world will be implementing OTT, based on their infrastructure capabilities, and where they reside in the OTT adoption curve.

• Video Presentation

• 22 minutes 10 seconds

• Download the Original PowerPoint Slides

Management – Gabriel Dusil (training, #2, Origins of Over the Top Video Services).pptx

• View the PDF version on slideshare.net

[slideshare id=36166867&doc=management-gabrieldusiltraining2originsofoverthetopvideoservices-140622135330-phpapp02]

• Tags

2nd Screen, Broadcast, BroadcastLinear, Connected TV, Digital Video, Dusil, dusil.com, Gabriel Dusil, Granularity of Choice, Linear Broadcast, Linear Television, Linear TV, linear tv + market, linear tv consumption vs ott, linear tv definition, linear tv rights, linear tv transmission rights, linear tv wiki, MSSMulti-screen, Multiscreen, Multiscreen System Integrator, Online Video Platform, OTT, Over the Top Content, OVP, OVPRecommendation, Search + Discovery, Smart TV, Social TV, TV Anywhere, TV Everywhere, Visual Unity, Visual Unity Global, vuClient, vuContent, vuEasy, vuIngest, vuMedia, vuMobile, vuMultiscreen, vuProtect, vuStats

OTT & Multiscreen • Web Seminar • 1 • Setting the Stage for Over the Top Video Services

14.May.27 - Visual Unity Global (training, title)

• Setting the Stage for Over the Top Video Services

• This is the first presentation from a series of seminars we recorded throughout 2014.

• This presentation sets the ground work for the terminology surrounding OTT & Multiscreen services, and sets the stage for future presentations that will explore the digital video landscape and corporate portfolio of Visual Unity Global.

• Video Presentation

• 12 minutes 29 seconds

• Download the Original PowerPoint Slides

Management – Gabriel Dusil (Setting the OTT Stage, v3.9}.pptx

• View the PDF version on slideshare.net

[slideshare id=35827018&sc=no]

• Tags

2nd Screen, Broadcast, BroadcastLinear, Connected TV, Digital Video, Dusil, dusil.com, Gabriel Dusil, Granularity of Choice, Linear Broadcast, Linear Television, Linear TV, linear tv + market, linear tv consumption vs ott, linear tv definition, linear tv rights, linear tv transmission rights, linear tv wiki, MSSMulti-screen, Multiscreen, Multiscreen System Integrator, Online Video Platform, OTT, Over the Top Content, OVP, OVPRecommendation, Search + Discovery, Smart TV, Social TV, TV Anywhere, TV Everywhere, Visual Unity, Visual Unity Global, vuClient, vuContent, vuEasy, vuIngest, vuMedia, vuMobile, vuMultiscreen, vuProtect, vuStats

Visual Unity • Discovering the New Digital Video Ecosystem at NAB’14

14.Apr.5 - NAB '14, Las Vegas (Video, pro presenter, v4.7).mp4_snapshot_04.48_[2014.04.22_11.18.11]

• Differentiate & Engage with vuMedia™ OTT

• This is our second video created by Visual Unity Global, for NAB’14.  Our marketing strategy was to communicate the strong end-to-end capabilities of our vuMedia™ OTT platform.  The video was produced in collaboration with Striker Pictures – an amazing young start-up, based out of the Czech Republic.  In just four short weeks we developed the messaging strategy, storyboard, narrative, and final animation. Striker Pictures delivered an amazing and beautiful product within a very aggressive timescale! Thanks again, guys 🙂

Also, great job to our marketing team in putting this together, and for our stellar exhibition presence.  We even managed to exceeded our marketing goals by 96%!

We hope you enjoy it.

You can also found our first video posted here:

• Narration

  • Intro • As an Over-the-top solution provider, Visual Unity offers a complete, end-to-end OTT platform which manages your multimedia assets in a three tier modular architecture – from creation through to displaying video in the best quality possible – at each and every subscriber.
  • 1 • Create • No matter where your content comes from, Visual Unity is able to help reach new audiences, and enable new revenue streams. With over 15 years in Digital Video and over two decades of experience in Broadcast Services.
  • 2 • Contribute • Different content needs to be processed differently to ensure it is managed effectively. Be it live broadcasts or video on demand, Visual Unity understands the important roles that metadata and transcoding play in video management.
  • 3 • Manage • Once content is within the vuMedia platform, video can be packaged in as many ways necessary, to suit your strategy. Not only can you select where content will be available around the globe, but you can also package your assets to meet the varying needs of your international subscribers. Our dashboard enables you to see how successful your library is being monetizing. At a glance you can see what works and what doesn’t.
  • 4 • Deliver • Our proprietary content delivery network, provides the security, quality, and reliability to service subscribers across the globe. Visual Unity also partners with third party CDN providers when requested by our clients.
  • 5 • Consume: In order to engage subscriber’s in today’s digital society, a compelling user interface and user experience is vital to deploying a successful OTT service. Device detection along with fully customizable players and social integration give subscribers the ability to enjoy content to its fullest.
  • End • Visual Unity offers a true one-stop-shop for OTT and Multiscreen solutions. Our end-to-end workflow – from creation to consumption – is your critical success path to your OTT and multiscreen vision.

• Delivering the Future of Entertainment to Subscribers

I also wanted to take this opportunity to showcase some of the excellent desk top publishing skills out of our marketing department.  Below you will find our invitation and follow-up emails from NAB’14, this year.

NAB '14, Las Vegas (Invitation, v1.7)

NAB ’14, Las Vegas (Invitation, v1.7)

NAB '14, Las Vegas (thank you email, v1.7)

NAB ’14, Las Vegas (thank you email, v1.7)

About Visual Unity Global

Logo - Visual Unity

Visual Unity Global is a global provider of video and digital media solutions, enabling our clients to deliver premium quality video content over the internet. Our clients can measure, analyze and optimize their libraries over time and achieve optimal business success. Our platform capabilities inspire our clients to deploy their assets across multiple devices, screens, and media formats. Visual Unity helps clients manage, deliver and monetize their digital content.

Visual Unity is a Multiscreen Solution Provider, bridging the gap between linear broadcast, IT and IPTV to help clients reach and engage audiences on any screen. Since 1991, the team has been designing and delivering turnkey broadcast and complex multiscreen solutions worldwide – from HD outside Broadcast (OB) vehicles and major playout facilities to live internet streaming and Video on Demand services. Visual Unity’s award-winning vuMedia™ platform helps broadcasters and content owners control how their brand and assets are managed and monetized in the multiscreen environment. vuMedia™ is a highly scalable and a modular architecture, delivering a cutting-edge live viewing experience on the web or any mobile or connected device – all of which can be deployed into existing workflows and business processes.

For further information, please visit: www.visualunity.com, or contact us at: info@visualunity.com

Introducing Striker Pictures

Striker PicturesLogo - striker Pictures is a VFX and image production studio. Our mission is to create original imagery that is capable of entirely captivating its audience. From storyboard to the final polished frame, we offer an innovative and creative environment for our clients, accommodating a variety of production and execution methods. With a team comprising of 3D artists, producers and directors, we aim to create remarkable visuals for the entertainment, advertising, and enterprise industries.

Gabriel Dusil • Q&A on Startups with the University of Economics, in Prague

 

Graphic - Interviews with Gabriel Dusil (dusil.com)

• Video

• 32 minutes 14 seconds

• Q&A with the University of Economics

• This interview by arranged by Cole Castellarin and recorded at the Visual Unity Global office in Prague, on the 6th of May 2014.

• As part of the course, Managing Small to Medium Sized Enterprises (SMEs) in Turbulent Times, students were asked to conduct an interview with a local start-up company. The objective of the assignment was to gain an in-depth understanding of how these companies operate and grow within the business environment. Students were encouraged to seek out the obstacles and challenges that start-ups face, relative to their large multinational competitors.  Also to determine which sort of advantages that can leveraged, to compete with established firms into the future. Conducting an in-person interview with the management team of a start-up allowed the students to obtain first hand, practical knowledge on the topic of start-up companies – specifically within the hi-tech industry.

• Vysoká škola ekonomická, Prague (VŠE)

Logo - University of Economics, VŠE, Prague

• The University of Economics, Prague (VŠE) is currently the largest public university of economics in the Czech Republic. VŠE offers its students the ability to learn in many different fields, having six different faculties including: Finance and Accounting, International Relations, Business Administration, Informatics and Statistics, and Economics. VŠE offers not only a Bachelor’s programs, but also Master’s and Doctoral programs. Through the schools accreditation with the European Credit Transfer and Accumulation System (ECTS), VŠE has been able to establish a strong international presence, partnering with over 200 other schools across the globe, and sending over 700 students on exchange programs on an annual basis.

• Tags

2nd Screen, Broadcast, Cole Castellarin, Connected TV, Digital Video, Gabriel Dusil, 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, Streaming Video, Television, TV, TV Anywhere, TV Everywhere, University of Economics, Visual Unity, Visual Unity Global, Vysoká škola ekonomická, VŠE

OTT & Multiscreen • Entertainment Challenges in Today’s Digital Society • 6 • Transcoding Challenges with H.265 HEVC & 4K UHD.

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

• Video

• 2 minutes 46 seconds

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

• The video quality of entertainment is constantly improving, while viewing behavior is changing rapidly as well. H.265 (otherwise known as High Efficiency Video Coding, or HEVC) promises double the amount of video with the same bandwidth compared to H.264. Or viewed from a different perspective, video will be transmitted at half the bandwidth compared to H.264.

H.265 is becoming synonymous with 4K (4096×2160) and UHD (3840×2160). And true 4K from a broadcast perspective is becoming synonymous with HDMI 2.0. These three technologies need to converge to bring consumers to the next level in digital video.

The foundations of the H.265 standard were finalized over different stages throughout 2013, but it will still take time before consumers see this codec supported in consumer electronics. In addition, the industry still has to learn how to optimize the quality of compressed content so that it is bandwidth efficient, while still maintaining consistent high quality. Even though H.265 promises 50% efficiency, we’re not there yet as early tests reveal compression efficiencies to be between 15% and 35%. Bandwidth efficiency also translates to lower storage requirements which will be a welcome improvement for cloud service providers.

Figure i - H.264 vs. H.265 - Encoding Time

Figure i – H.264 vs. H.265 – Encoding Time

At the moment, encoding in H.265 is expected to take ten times longer than H.264 at the same frame size, so this will initially be a burden to encoding and transcoding services at the ingest stage. But this metric doesn’t tell the whole story.  H.265 encoding should also be understood from the context of 4K encoding and higher color bit depth.  Figure i attempts to show the encoding burden against time, represented along the horizontal axis[1].

When 4K becomes mainstream, and with 4K frames at four times the size of HD frames, it is estimated that encoding will take 40x longer than today’s HD @ H.264. That’s assuming we’ll be happy with 8-bit encoding (typically found in Blu-Ray and DVD movies). Time will tell whether the industry will accept 8-bit at 4K. It’s also possible that 10-bit will be synonymous with 4K, or maybe even 12-bit as the technology matures.

Time will tell…

 


[1] These are just estimates, and have not yet been lab tested.

• Entertainment Challenges in Today’s Digital Society

•?  Check out additional thought leadership answers to the entertainment challenges in today’s digital society:

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

https://mykoddi.com/dusilcom/2013/12/24/entertainment-challenges-in-todays-digital-society-i-of-vii/

2. How will 4K be adopted by consumers?

https://mykoddi.com/dusilcom/2014/01/13/entertainment-challenges-in-todays-digital-society-ii-of-vii/

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

https://mykoddi.com/dusilcom/2014/02/10/entertainment-challenges-in-todays-digital-society-iii-of-vii/

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

https://mykoddi.com/dusilcom/2014/02/26/entertainment-challenges-in-todays-digital-society-iv-of-vii/

5. How is digital video affecting global communications?

https://mykoddi.com/dusilcom/2014/03/27/entertainment-challenges-in-todays-digital-society-v-of-vii/

• 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.

• About Gabriel Dusil

Home - Signature, Gabriel Dusil ('12, shadow, orange)

• Gabriel Dusil is the Chief Marketing and 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, the Middle East, and Africa (EMEA). Previously, Gabriel worked at VeriSign and Motorola in a combination of senior marketing and 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 and Access Management (IAM), and Managed Security Services (MSS).

• Tags

• 2nd Screen, 4K, Broadcast, Connected TV, Digital Rights, 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, Recommendation Engine, Search & Discovery, Search and Discovery, second screen, Smart TV, Social TV, TV Everywhere, UHD, Ultra HD, Ultra High Definition, Visual Unity

Visual Unity • Showcases Their End-to-end OTT platform at NAB’14

14.Apr.5 - NAB '14, Las Vegas (Video, pro presenter, v4.7).mp4_snapshot_04.48_[2014.04.22_11.18.11]

Below please find one of our videos we presented at NAB’14 this year.  Our approach was to take the top seven pressing questions of our target audience, and provide a few touch points in how Visual Unity Global addresses these challenges. I am proud of our marketing department for the stellar preparation of these materials, and our overall presence at NAB’14.

We hope you also find this informative.

Press Release

Las Vegas, NV, USA:  Leading OTT platform and multiscreen solution provider, Visual Unity Global will showcase the latest versions of its award-winning vuMedia™ and vuMobile™ platforms at NAB 2014 (South Upper Hall, Stand SU5514).

Winner of the ConnectedWorld.TV award in 2012, and ConnectedWorld.TV bronze in 2013, for the Best Use of Online Video by a Non-Broadcaster, Visual Unity’s vuMedia™ is an end-to-end OTT platform that allows broadcasters and content owners to control how their brand and assets are managed, delivered and monetized in the multiscreen environment. Highly scalable and modular, vuMedia™ delivers a cutting-edge live viewing experience on the web or any mobile or connected device. vuMedia™ also enables comprehensive Video on Demand services, social network integration and secures the distribution of content – all of which can be deployed into existing workflows and business processes.

The vuMobile™ is a cloud-based mobile web publishing and mobile marketing platform. With vuMobile™ clients can to build their own mCommerce (mobile commerce) store presence within 5 minutes. Through a modern responsive design, clients are able to categorize different types of products (for example consumer electronics or e-products) and choose from more than 40 payment systems. vuMobile™ incorporates capabilities that are designed to rapidly mobilize businesses and empower partners and resellers.

The latest improvements to vuMediaand vuMobile™ included a more streamlined user experience, enhanced payment and advertising capabilities, additional content monetization options, improved statistics, and much more.

Visual Unity will also be showcasing their new vuDiscovery™ service. This option is a robust recommendation engine integrated within vuMedia™, helping content owners and distributors to enhance their revenue streams through search & discovery.  This modern recommendation engine combines viewing and purchasing habits, demographics, a collaborative engine, and other metrics, to provide suggestions that fuel viewing into the long tail.

“Visual Unity’s unique blend of broadcast and online video skills, coupled with proven experience in web and mobile delivery, is a crucial advantage to providing robust end-to-end digital video solutions,” says Tomas Petru, CEO of Visual Unity. “Visual Unity streamlines the integration of new multiscreen workflows into existing linear processes so that content can be efficiently delivered over the Internet or to any combination of mobile, tablets, laptops, or Smart TVs.”

Gabriel Dusil, Chief Marketing and Corporate Strategy Officer, adds:  “vuMedia™ and vuMobile™ opens doors to a wide range of companies that have been waiting for an ideal cloud based service to monetize their past, present, and future content. Monetizing content is not just about selling content, it’s about building a business, awareness, and communication strategy around your brand.  Furthermore, vuDiscovery™ further increases the average revenue per user [ARPU], since subscribers that stay longer within an OTT application, will inevitably spend more money”.

About Visual Unity Global

Visual Unity Global is a global provider of video and digital media solutions, enabling our clients to deliver premium quality video content over the internet. Our clients can measure, analyze and optimize their libraries over time and achieve optimal business success. Our platform capabilities inspire our clients to deploy their assets across multiple devices, screens, and media formats. Visual Unity helps clients manage, deliver and monetize their digital content.

Visual Unity is a Multiscreen Solution Provider, bridging the gap between linear broadcast, IT and IPTV to help clients reach and engage audiences on any screen. Since 1991, the team has been designing and delivering turnkey broadcast and complex multiscreen solutions worldwide – from HD outside Broadcast (OB) vehicles and major playout facilities to live internet streaming and Video on Demand services. Visual Unity’s award-winning vuMedia™ platform helps broadcasters and content owners control how their brand and assets are managed and monetized in the multiscreen environment. vuMedia™ is a highly scalable and a modular architecture, delivering a cutting-edge live viewing experience on the web or any mobile or connected device – all of which can be deployed into existing workflows and business processes.

Visual Unity is based in Prague, London, Munich, Nairobi and Los Angeles.

For further information, please visit www.visualunity.com, info@visualunity.com

OTT & Multiscreen • Featured Speaker at the OTT Video Executive Summit

Gabriel Dusil from Visual Unity Global  is Announced as a Featured Speaker at the OTT Video Executive Summit

www.OTTVideoSummit.com

April 14th, 2014. Prague, London, Dubai— Visual Unity Global, a leading OTT platform and multiscreen solution provider,announces Gabriel Dusil, Chief Marketing and Corporate Strategy Officer as a featured speaker at the Over-the-Top Video Executive Summit (www.OTTVideoSummit.com), to be held at Boston’s Lenox Hotel on April 16. Mr. Dusil will speak on topics of “All things content— licensing, transformation, DRM, tracking”, and “Integrating OTT with Social”.

The OTT Video Executive Summit brings together thought leaders to discuss topics crucial to the development of streaming video and evolving Pay TV business models. The conference topics range from content, enabling technologies, to discussions on the evolving viewing behavior of consumers. In addition to experts and executives, the conference includes a panel of everyday people from various demographics. The event is also gamefied, with the leading point-getter being awarded the “OTT Genius” trophy.

“Our audience will benefit greatly from Gabriel Dusil’s experience and perspective on this dynamic industry,” said Brian Mahony, CEO of event producer Trender Research™ Inc. (www.trenderresearch.com). “The industry is going through a period of rapid change, and innovation from companies such as Visual Unity puts it in the driver’s seat.”

In addition to the topics where Mr. Dusil will be speaking, the additional sessions include:

  • “Netflix and net neutrality, who wins?”
  • “Economics of hybrid Pay TV/OTT video services”
  • “Content discovery and navigation— way beyond channel surfing”
  • “What’s a TV channel these days? What’s a brand?”
  • “TV Everywhere: Is it really? What will it take?”
  • “Changing consumer behavior— cord-cutting, multi-screen, interactivity, demographics”
  • “Platform device wars— TVs, consoles, STBs, tablets, mobile”
  • “HD OTA: the dirty little secret”

A focus group of from various demographics will also provide insights on their viewing habits. These include profiles such as “Chatty Tween,” “Working Mom”, “New Vision for Univision”, and “Nana.”

“The OTT Video Executive Summit is an excellent venue to peer into the future trends of video streaming,” said Gabriel Dusil.  “The OTT market has grown at an unprecedented pace, from its birth less than ten years ago.  The thought leadership represented at this event will help industry leaders to make informed and strategic decisions in how they shape their online revenue opportunities.”

The OTT Video Executive Summit is a one day event and is open to executives across the industry. For more information or media inquiries, contact Brian Mahony, bmahony@trenderresearch.com, +1 508-479-7254.

About Visual Unity Global

Visual Unity Global is a global provider of video and digital media solutions, enabling our clients to deliver premium quality video content over the internet. Our clients can measure, analyze and optimize their libraries over time and achieve optimal business success. Our platform capabilities inspire our clients to deploy their assets across multiple devices, screens, and media formats. Visual Unity helps clients manage, deliver and monetize their digital content.

Visual Unity is a Multiscreen Solution Provider, bridging the gap between linear broadcast, IT and IPTV to help clients reach and engage audiences on any screen. Since 1991, the team has been designing and delivering turnkey broadcast and complex multiscreen solutions worldwide – from HD outside Broadcast (OB) vehicles and major playout facilities to live internet streaming and Video on Demand services. Visual Unity’s award-winning vuMedia™ platform helps broadcasters and content owners control how their brand and assets are managed and monetized in the multiscreen environment. vuMedia™ is a highly scalable and a modular architecture, delivering a cutting-edge live viewing experience on the web or any mobile or connected device – all of which can be deployed into existing workflows and business processes.

Visual Unity is based in Prague, London, Munich, Nairobi and Los Angeles. For further information, please visit www.visualunity.com, info@visualunity.com

OTT & Multiscreen • Entertainment Challenges in Today’s Digital Society • 5 • How is digital video affecting global communications?

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

• Video

• 6 minutes 15 seconds

5. How is digital video affecting global communications?

In today’s digital video landscape there is a battle between the entertainment, computing and communications industries. The entertainment industry includes content owners and those that license content for distribution. In computing we find companies that provide hosting, storage, and application-based services. Within the communications sphere are telcos, network service providers (NSPs), and Internet service providers (ISPs) that distribute data around the world. P2P networking is a good communications example of a transport protocol riding on top of the Internet.

Figure i – Industry Wars between Entertainment, Communications & Computing

Figure i – Industry Wars between Entertainment, Communications & Computing

For several years, ISP’s have observed an increase in bandwidth of a magnitude higher than they were accustomed to before video streaming became popular. It may be argued that the turning point was around 2005 with the introduction of high definition video at a time when Internet bandwidth was fast enough to stream good quality video. The popularity of Apple’s iPhone, together with the launch of YouTube, accelerated the use of video to the mass market.

This has forced ISPs to upgrade their back-end and last-mile infrastructures in order to meet these higher bandwidth demands and maintain quality of service (QoS). The issue is when we look at service usage in OTT providers like Netflix, Hulu, YouTube and others. With Netflix subscribers exceeding 40 million and Hulu now over 5 million, typical bandwidth usage for these subscribers far exceeds that of a typical user. The average Netflix user watches five TV shows and three movies per week[i]. This can easily generate up to 80GB of traffic per month if we’re talking about high-definition content. Power users can easily exceed 160GB per month when P2P downloads are taken into account (see Figure ii). Compare this to figures released by Sandvine[ii], wherein Europeans average around 13GB per month on their fixed line service. Their USA counterparts are over three times higher, averaging 45GB. So in countries where OTT is relatively mature, bandwidth usage can easily skyrocket.

Figure ii – Internet Usage Comparison – Europe vs. USA

Figure ii – Internet Usage Comparison – Europe vs. USA

The bottom line is that ISPs are not earning the same incremental revenue from OTT because these are existing subscribers that are already paying for their ISP service. But now they are also using the connection to download video from their OTT provider. From an infrastructure perspective, when Netflix doubles their users, they can effectively use those funds to double the capacity of their OTT service. On the flip side, the ISP sees an accelerated increase in bandwidth usage, reaching and exceeding 10 times more than normal with no foreseeable increase in revenue. But they still must upgrade their networking infrastructure in order to meet capacity. Some see this as ISPs getting the short end of the stick (Figure iii).

Figure iii – ISP vs. OTT Revenue Compared to Infrastructure Cost

Figure iii – ISP vs. OTT Revenue Compared to Infrastructure Cost

Certainly bandwidth usage cannot be blamed on OTT providers themselves. Video is also streamed from websites, video is downloaded through P2P networks, and corporate infrastructures are increasingly using video for communications. Regardless, in markets where video streaming services are prevalent, bandwidth usage per subscriber can burden network infrastructures.

ISPs may feel they are losing power over their subscribers. As a counter-offensive, we’re seeing examples where ISPs are vying to bring control back to their camp. One way is through bandwidth caps on fixed line services (similar to bandwidth caps on mobile services). ISPs are looking to regain control of the subscriber through what could be viewed as a form of Internet governance: charging extra fees based on the type of traffic traversing their network, or traffic shaping, whereby certain traffic such as P2P or OTT video is set to low priority or blocked all together, with traffic being prioritized in a way that is preferred by the ISP. This serves to stifle the use of high bandwidth applications such as OTT and may result in higher fees for heavy Internet users. Essentially this is a way for ISPs to level the playing field.

Increased bandwidth usage due to digital video brings new challenges to an infrastructure provider. But this isn’t necessarily a bad thing for all those involved as threats can also be turned into opportunities. Some Internet providers (eg. cable companies and satellite companies) are working towards regaining control of their market space by investing in OTT – essentially adding OTT as an extension to their communications portfolio.  Triple play[iii] (Internet, telephone, and television) and quadruple play[iv] providers (who include mobile services) are already heading in the right direction. ISPs that are already responsible for transmitting video envision hosting and managing entertainment assets as a strategic expansion of their communications portfolio. This speaks to the convergence of communications, computing and entertainment industries through a conduit that converges onto OTT.

It’s not just ISPs that have seemingly lost control and are being relegated to utility providers. Mobile providers have also been bumped from the pedestal of supremacy. The three applications they owned – voice, contacts, and text messaging (SMS[v]) – have now been over-shadowed by the millions of applications accessible through the Internet. Mobile providers no longer control the handset, applications, or content.  And for that reason they are under threat of becoming a utility, an infrastructure of interconnections, where their borders are wireless base stations, not end-users. To regain relevance in their market telcos need to reach consumers once again. From an entertainment perspective, telcos have an opportunity to extend their participation in the content value chain – creating, uploading, managing, delivering and consuming content by investing in OTT services. This investment solidifies their value in the virtual supply chain of digital video.


[i] “Average Netflix User Watches 5 TV Shows, 3 Movies Per Week via the Service”, Business Wire, 6th Sep 2012, http://www.businesswire.com/news/home/20120906006400/en/Average-Netflix-User-Watches-5-TV-Shows#.UtAD9_RDtUA

[ii] Sandvine – Global Internet Phenomena Report (12.2H)

[iii] Triple Play, Wikipedia, http://en.wikipedia.org/wiki/Triple_play_(telecommunications)

[iv] Quadruple Play, Wikipedia, http://en.wikipedia.org/wiki/Quadruple_play

[v] Short Message Service, Wikipedia, http://en.wikipedia.org/wiki/Short_Message_Service

• Entertainment Challenges in Today’s Digital Society

•?  Check out additional thought leadership answers to the entertainment challenges in today’s digital society:

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

https://mykoddi.com/dusilcom/2013/12/24/entertainment-challenges-in-todays-digital-society-i-of-vii/

2. How will 4K be adopted by consumers?

https://mykoddi.com/dusilcom/2014/01/13/entertainment-challenges-in-todays-digital-society-ii-of-vii/

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

https://mykoddi.com/dusilcom/2014/02/10/entertainment-challenges-in-todays-digital-society-iii-of-vii/

• 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.

• About Gabriel Dusil

Home - Signature, Gabriel Dusil ('12, shadow, orange)

Gabriel Dusil is the Chief Marketing and 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, the Middle East, and Africa (EMEA). Previously, Gabriel worked at VeriSign and Motorola in a combination of senior marketing and 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 and Access Management (IAM), and Managed Security Services (MSS).

• Tags

• 2nd Screen, 4K, Broadcast, Connected TV, Digital Rights, 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, Recommendation Engine, Search & Discovery, Search and Discovery, second screen, Smart TV, Social TV, TV Everywhere, UHD, Ultra HD, Ultra High Definition, Visual Unity