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OTT & Multiscreen • Digital Video Series • 3 • Benchmarking the H.265 Video Experience

2013 April 22 / Gabriel Dusil / 15 Comments

Graphic - Benchmarking the H.265 Video Experience (title)

Creating a compelling and engaging video experience has been an ongoing mission for content owners and distributors; Whether it was the introduction of CinemaScope[1] in 1953 to stifle the onslaught of color TV[2], or the introduction of 3D films[3] in the 50’s, the 80’s, and its subsequent re-introduction in 2009 with the launch of Avatar[4], to 4K Ultra high definition (UHD[5]) TV, and retina[6] quality video. In every way, gauging video quality has been a subjective exercise for consumers and experts alike.

Figure i – Visual Representation of calculating Qf

Beyond the signal to noise ratio (SNR[7]) measurement used to compare different compression ratios or codecs, in many cases only a trained eye would notice errors such as compression artifacts[8], screen tearing[9], or telecine judder[10] – unless they were persistent.

A modest metric to assess a video file’s compression density is the Quality factor (Qf[11]). In fact, the name is misleading since it is not actually a measure of quality, but an indication of video compression using three parameters: bitrate, the number of pixels in the frame, and the overall frame-rate of the video. Qf is essentially a measure of, “the amount of data allocated to each pixel in the video” [12]. This metric doesn’t take into account the type of compression profile used, the number of passes originally utilized in the encoding process[13], or any tweaks implemented by the encoding engineer to optimize the video quality. So Qf, or compression density, is just a baseline guide for an administrator that is responsible for transcoding or managing large video libraries.

The accompanying table shows a comparison of Qf using nominal figures for DVD, Blu-Ray and the recently ratified H.265 codec (aka. High Efficiency Video Coding, HEVC[14]). As the compression standard used for encoding the video improves, this corresponds to a reduced Qf.

Although Qf may be considered an inaccurate measure of video compression quality, where it becomes valuable is during the video encoding[15] or transcoding[16] stage – especially when multiple videos are required for processing, and an administrator has the option to choose consistency in the profile used and all related sub-parameters. Choosing a single Qf in this case will ensure global uniformity of compression density across the entire library. There are several internet forum discussions on the optimum quality that should be used for encoding (or an ideal Qf). Realistically, every video has its own unique and optimum settings. Finding this balance for each individual video would be impractical. For this reason, grouping video libraries by genre, or content type, then using a Qf for each group is a more reasonable compromise. For instance, corporate presentations, news casts, medical procedures – basically any type of recording with a lot of static images – could be compressed with the same Qf. The corresponding file for these videos could be as small as ¹/₂₀^th the size of a typical Blu-Ray movie, with no perceivable loss in video quality.

Table I – Comparing Qf for MPEG2, H.264 & H.265[17]

As shown in the table, the Qf metric is useful in showing that a 1080p movie using the MPEG2 codec (aka. H.262 under the ITU definition) at 16.7GB (Gigabytes[18]) of storage (with a Qf = 0.33), compares equally to 10GB using H.264 (Qf = 0.20). Or in the case of H.265 a file size of 6GB (Qf = .6) again maintains the same quality. This is because each of these codecs significantly improves the efficiency on the previous one, while maintaining the same level of perceived video quality.

Figure ii – Visual representation of Video Compression standards & relative bandwidth requirements[19]

Ascertaining a video’s compression density can be achieved using MediaInfo[20], an open-source software package. This utility is an excellent resource in determining the formatting and structure of a given video file. MediaInfo displays a plethora of metadata and related details of the media content in a well laid-out overview. This includes granular structure of the audio, video, and subtitles of a movie. The layout of the data can even be customized using HTML and entire directories can be exported as part of a media library workflow. It’s an indispensable resource for content owners and subscribers that are managing large multimedia databases.

Figure iii – Snapshot of MediaInfo showing a video’s Structural Metadata

The H.264 codec (MPEG 4 AVC[21], or Microsoft’s own VC1[22]) improved on the efficiency of MPEG2[23] codec, developed in 1995, by around 40% to 50%. Although H.264 was created in 1998 it didn’t reach mainstream until Blu-Ray was officially launched in 2006. The H.265 standard, currently promises a similar 35% to 50% improvement in efficiency[24]. So when MPEG2 needs 10Mbps to transmit a video, an H.264 codec could send the same file, in the same quality at 6Mbps. H.265 can achieve the same at 3.6Mbps. The trade-off in using H.265 is two to ten times higher computational power over H.264 for encoding. So expect video encoding to take up to ten times longer to encode when using today’s processor. Thankfully devices will need only a two to three times increase in CPU strength to decode the video.

The new H.265 standard ushers in multiple levels of cost savings. At a storage level, costs saving of 40% would be significant for video libraries hosted in any cloud. Content hosting facilities or CDNs (content delivery networks[25]) are costly endeavor at the moment, for many clients. It may be argued that storage costs are a commodity, but when media libraries are measured in Petabytes[26] then these capital cost savings help the bottom line by using newer and more efficient codecs. Also, bandwidth costs will play an important role in further savings. Many online video platforms charge subscribers for the number of gigabytes leaving their facilities. Halving those costs by using H.265 would have a significant impact on monthly operational costs. On the flip side, video processing costs will increase in the short term, due to stronger and more expensive CPU power needed at both the encoding and decoding stages. Existing hardware will likely be used to encode H.265 in the short term, at the expense of time. But dedicated hardware will be needed for any extensive transcoding exercises, or real-time transcoding services.

Subscription-based internet services significantly compress their video content compared to their Blu-Ray counterparts. It’s a practical trade-off between video quality and bandwidth savings. But the quality of video only becomes a factor on certain consumer devices which can show the deficiencies of a highly compressed video. For example, a 60” (inches diagonal) plasma screen has the resolution to reveal a codec’s compression artifacts, but for a TV less than 40”, these artifacts would be hardly noticeable to the average consumer. For the most part, a 1080p title is barely distinguishable in quality to 720p on even a medium-sized television. Likewise, for many views watching on a majority of mobile device, high resolution content is both overkill and costly.

For those with bandwidth caps, subscribers are charged for all streaming data reaching their smartphone, whether they experience the highest quality video or not. Any video data sent exceeding the capability of a consumer device is a waste of money

At the moment video playback on mobile devices still poses a challenge for high definition. Thanks to multi-core processing on smartphones consumers are on the brink of having enough power to play full HD video, and can even run other processor intensive tasks in the background. Although quad-core[28] processors such as the Cortex A15 from ARM[29] and nVidia’s Tegra 4[30] (also based on the ARM architecture) have the ability to play some 1080p video, they will still struggle to play a wide library of full HD content without requiring some level of transcoding to lower profiles. 2013 is ushering in a wide range of handsets claiming 1080p support from HTC, Huawei, Sony, Samsung, and ZTE[31]. Multicore GPU and CPU running at ultra-low power requirements are asserting mobile devices as a viable platform for 1080p.

In the meantime, the resilience of H.264 and H.265 is in their use of encoding profiles (eg. baseline, main, or high and all associated sub-levels). The use of different profiles ensures that the best quality video experience is delivered within the limitations of the device playing the video. Low profile’s such as baseline require minimal processing power but do not efficiently compress the video. High profile modes are highly efficient and squeeze video file size as small as possible. Thus bandwidth is used efficiently, but requires higher processing power of the end-device to decode the video. Although the latest Apple iOS[32] devices support high profile, most smartphones still use lower profiles to ensure wider device compatibility. In the interim, internet video providers continue to encode titles into multiple profiles to suit a wide range of subscriber devices, accommodate their limitations in decoding capabilities, and maximize each individual viewing experience.

Higher profiles in H.265 will also have an effect on consumer electronics (CE[33]) equipment. Current iterations of these appliances are not equipped to handle the required processing demands of H.265. The next generation Home Theater PC (HTPC[34]), Set Top Box (STB[35]), or Media Player[36], will require upgrades their processing engines to accommodate these next generation codecs. Lab testing is still required to showcase that next generation computer processors will have the ability to decode H.265 at higher bit depth (eg. 10 bit), and resolutions as high as 4K resolutions. Some estimates state that 4K using H.265 will require 80 time more horsepower compared to HD using H.264[45].

To further compensate for the vast differences in mobile coverage, and best-effort internet communications, Over the Top (OTT)[37] providers, and Online Video Providers (OVP)[38] are offering advanced video optimization features such as Adaptive Bitrate Streaming (ABS)[39]. This is a solution to optimize video quality sent in real-time. Protocols such as Apple’s HLS[40], and more recently MPEG-DASH[41] have been developed to provide a universal approach to implementing adaptive bitrates.

The need for Adaptive Bitrate Streaming and related techniques is just a stop-gap requirement. As quality of service improves and bandwidth speeds increase, the need for optimization techniques will diminish. In some regions these techniques may completely disappear. Certainly, during the days of the analog modem, bandwidth was at a premium, so compression techniques and sophisticated error correction methods were used to maximize data throughput while also saving costs for the last-mile[42]. As bandwidth increased, these line adaption features were no longer deemed necessary. Similarly, the need for bandwidth optimization techniques will be diluted in regions where mobile 4G LTE[43] (Long-Term Evolution) will become ubiquitous. Speeds will become so reliable that even the internet’s best-effort[44] will be sufficient to deliver multiple 4K videos, in real time, to any device.

Read Additional Articles in this Series

I. Consumption is Personal
- https://mykoddi.com/dusilcom/2013/02/28/consumption-is-personal/
In the days of linear television, broadcasters had a difficult task in understanding their audience. Without a direct broadcasting and feedback mechanism like the Internet, gauging subscriber behavior was slow. Today, online video providers have the ability to conduct a one-to-one conversation with their audience. Viewing habits of consumers will continue to rapidly change in the next ten years. This will require changes in advertising expenditure and tactics.

II. Granularity of Choice
- https://mykoddi.com/dusilcom/2013/04/01/granularity-of-choice/
The evolution from traditional TV viewing to online video has been swift. This has significantly disrupted disc sales such as DVD and Blu-Ray, as well as cable and satellite TV subscriptions. With the newfound ability to consume content anytime, anywhere, and on any device, consumers are re-evaluating their spending habits. In this paper we will discuss these changes in buying behavior, and identify the turning point of these changes.

III. Benchmarking the H.265 Video Experience
- https://mykoddi.com/dusilcom/2013/04/22/benchmarking-the-video-experience/
Transcoding large video libraries is a time consuming and expensive process. Maintaining consistency in video quality helps to ensure that storage costs and bandwidth are used efficiently. It is also important for video administrators to understand the types of devices receiving the video so that subscribers can enjoy an optimal viewing experience. This paper discusses the differences in quality in popular video codecs, including the recently ratified H.265 specification.

IV. Search & Discovery Is a Journey, not a Destination
- https://mykoddi.com/dusilcom/2013/05/13/Search-and-Discovery-Is-a-Journey-not-a-Destination/
Television subscribers have come a long way from the days of channel hopping. The arduous days of struggling to find something entertaining to watch are now behind us. As consumers look to the future, the ability to search for related interests and discover new interests is now established as common practice. This paper discusses the challenges that search and discovery engines face in refining their services in order to serve a truly global audience.

V. Multiscreen Solutions for the Digital Generation
- https://mykoddi.com/dusilcom/2013/06/24/multiscreen-solutions-for-the-digital-generation/
Broadcasting, as a whole, is becoming less about big powerful hardware and more about software and services. As these players move to online video services, subscribers will benefit from the breadth of content they will provide to subscribers. As the world’s video content moves online, solution providers will contribute to the success of Internet video deployments. Support for future technologies such as 4K video, advancements in behavioral analytics, and accompanying processing and networking demands will follow. Migration to a multiscreen world requires thought leadership and forward-thinking partnerships to help clients keep pace with the rapid march of technology. This paper explores the challenges that solution providers will face in assisting curators of content to address their subscriber’s needs and changing market demands.

VI. Building a Case for 4K, Ultra High Definition Video
- https://mykoddi.com/dusilcom/2013/07/15/building-a-case-for-4K-ultra-high-definition-video/
Ultra High Definition technology (UHD), or 4K, is the latest focus in the ecosystem of video consumption. For most consumers this advanced technology is considered out of their reach, if at all necessary. In actual fact, 4K is right around the corner and will be on consumer wish lists by the end of this decade. From movies filmed in 4K, to archive titles scanned in UHD, there is a tremendous library of content waiting to be released. Furthermore, today’s infrastructure is evolving and converging to meet the demands of 4K, including Internet bandwidth speeds, processing power, connectivity standards, and screen resolutions. This paper explores the next generation in video consumption and how 4K will stimulate the entertainment industry.

VII. Are You Ready For Social TV?
- https://mykoddi.com/dusilcom/2013/08/12/are-you-ready-for-social-tv/
Social TV brings viewers to content via effective brand management and social networking. Users recommend content as they consume it, consumers actively follow what others are watching, and trends drive viewers to subject matters of related interests. The integration of Facebook, Twitter, Tumblr and other social networks has become a natural part of program creation and the engagement of the viewing community. Social networks create an environment where broadcasters have unlimited power to work with niche groups without geographic limits. The only limitations are those dictated by content owners and their associated content rights, as well as those entrenched in corporate culture who are preventing broadcasters from evolving into a New Media world.

VIII. Turning Piratez into Consumers

IX. Turning Piratez into Consumers, I
- https://mykoddi.com/dusilcom/2013/10/25/turning-piratez-into-consumers-i/
IX. Turning Piratez into Consumers, II
- https://mykoddi.com/dusilcom/2014/07/15/turning-piratez-into-consumers-ii/
X. Turning Piratez into Consumers, III
- https://mykoddi.com/dusilcom/2015/05/12/ott-multiscreen-digital-video-series-10-turning-piratez-into-consumers-iii/
XI. Turning Piratez into Consumers, IV
- https://mykoddi.com/dusilcom/2015/05/26/ott-multiscreen-digital-video-series-11-turning-piratez-into-consumers-iv/
XII. Turning Piratez into Consumers, V
- https://mykoddi.com/dusilcom/2015/09/22/ott-multiscreen-digital-video-series-12-turning-piratez-into-consumers-v/

Content Protection is a risk-to-cost balance. At the moment, the cost of piracy is low and the risk is low. There are no silver bullets to solving piracy, but steps can be taken to reduce levels to something more acceptable. It is untrue that everyone who pirates would be unwilling to buy the product legally. It is equally evident that every pirated copy does not represent a lost sale. If the risk is too high and the cost is set correctly, then fewer people will steal content. This paper explores how piracy has evolved over the past decades, and investigates issues surrounding copyright infringement in the entertainment industry.

About the Author

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).

All Rights Reserved

©2013, All information in this document is the sole ownership of the author. This document and any of its parts should not be copied, stored in the document system or transferred in any way including, but not limited to electronic, mechanical, photographs, or any other record, or otherwise published or provided to the third party without previous express written consent of the author. Certain terms used in this document could be registered trademarks or business trademarks, which are in sole ownership of its owners.

References

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

[2] Color television, Wikipedia, http://en.wikipedia.org/wiki/Color_TV

[3] 3D Film, Wikipedia, http://en.wikipedia.org/wiki/3D_film

[4] Avatar, Wikipedia, http://en.wikipedia.org/wiki/Avatar_(2009_film)

[5] Ultra high definition television, Wikipedia, http://en.wikipedia.org/wiki/Ultra_High_Definition_Television

[6] Retina display, Wikipedia, http://en.wikipedia.org/wiki/Retina_display

[7] Video quality, Wikipedia, http://en.wikipedia.org/wiki/Video_quality

[8] Compression artifact, Wikipedia, http://en.wikipedia.org/wiki/Compression_artifact

[9] Screen tearing, Wikipedia, http://en.wikipedia.org/wiki/Video_tearing

[10] Telecine judder, Wikipedia, http://en.wikipedia.org/wiki/Judder#Telecine_judder

[11] Originally used in Gordian Knot, http://sourceforge.net/projects/gordianknot/, an open source project for encoding videos into DivX and XviD formats. This software is no long being developed.

[12] “The Secret to Encoding High Quality Web Video: Tutorial”, by Jan Ozer, ReelSEO.com, http://www.reelseo.com/secret-encoding-web-video/

[13] With multi-pass encoding, the encoder becomes aware that some static parts of the video can be encoded with lower bitrates compared to complex scenes requiring higher bitrates. This knowledge encodes the video more efficiently, but requires higher processing resources and time to complete the task.

[14] High Efficiency Video Coding, Wikipedia, http://en.wikipedia.org/wiki/H.265

[15] Data compression – Video, Wikipedia, http://en.wikipedia.org/wiki/Video_encoding#Video

[16] Transcoding, Wikipedia, http://en.wikipedia.org/wiki/Transcoding

[17] This table shows the typical frame size for MPEG2, H.264 and H.265. For consistency and for the sake of comparison, a frame aspect ratio of 16:9 is shown. The Cinemascope[17] frame size of 2.39:1 or 2.35:1 would further alter the figures. The table also does not take into account the audio channel, which roughly amounts to a 10% increase in bitrate and file size (when a similar quality codex are used in each instance). Also not under consideration is a pixel bit depth higher than 8, such as in professional video recording, and common frame rates of 25, 29.97, 30 or 50fps are not considered.

[18] Gigabyte, Wikipedia, http://en.wikipedia.org/wiki/Gigabyte

[19] In the context of this article, ½HD is referred to as 1280×720 resolution.

[20] MediaInfo, http://mediainfo.sourceforge.net/en

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

[22] VC-1, Wikipedia, http://en.wikipedia.org/wiki/VC-1

[23] MPEG-2, Wikipedia, http://en.wikipedia.org/wiki/MPEG-2

[24] Studies have shown a 39-44% improvement in efficiency over H.264. Joint Collaborative Team on Video Coding (JCT-VC), “Comparison of Compression Performance of HEVC Working Draft 4 with AVC High Profile”

[25] Content Delivery Network, Wikipedia, http://en.wikipedia.org/wiki/Content_Delivery_Network

[26] Petabyte, Wikipedia, http://en.wikipedia.org/wiki/Petabytes

[27] “If H.265 lives up to its hype, then it is destined to be the de facto encoding standard for digital video.”

[28] Multi-core processor, Wikipedia, http://en.wikipedia.org/wiki/Multi-core_processor

[29] ARM Cortex-A15 Processor, http://www.arm.com/products/processors/cortex-a/cortex-a15.php

[30] nVidia Tegra, http://www.nvidia.com/object/tegra.html

[31] “Top 5 smartphones with 1080p displays”, by Jacqueline Seng, cnet, http://asia.cnet.com/top-5-smartphones-with-1080p-displays-62220194.htm

[32] iOS, Wikipedia, http://en.wikipedia.org/wiki/Apple_iOS

[33] Consumer electronics, Wikipedia, http://en.wikipedia.org/wiki/Consumer_electronics

[34] Home theater PC, Wikipedia, http://en.wikipedia.org/wiki/HTPC

[35] Set-top box, Wikipedia, http://en.wikipedia.org/wiki/Set-top_box

[36] HD media player, Wikipedia, http://en.wikipedia.org/wiki/HD_media_player

[37] Over the Top content, Wikipedia, http://en.wikipedia.org/wiki/Over-the-top_content

[38] VidCompare, http://www.vidcompare.com/

[39] Adaptive bitrate streaming, Wikipedia, http://en.wikipedia.org/wiki/Adaptive_bitrate_streaming

[40] HTTP Live Streaming, Wikipedia, http://en.wikipedia.org/wiki/HTTP_Live_Streaming

[41] Dynamic Adaptive Streaming over HTTP, Wikipedia, http://en.wikipedia.org/wiki/Dynamic_Adaptive_Streaming_over_HTTP

[42] Last mile, Wikipedia, http://en.wikipedia.org/wiki/Last_mile

[43] LTE, Wikipedia, http://en.wikipedia.org/wiki/LTE_(telecommunication)

[44] Best-effort delivery, Wikipedia, http://en.wikipedia.org/wiki/Best-effort

[45] “HEVC Update, Beyond the Main Profile”, Matthew Goldman, Ericsson Television, 26^th February, 2013

OTT & Multiscreen • Evolution of Online Media

2013 April 8 / Gabriel Dusil / 0 Comments

Synopsis

Various industry players are working feverishly to engage customers through online video so that content is available anywhere, anytime, and on any device. Migration to multiscreen video consumption requires thought leadership and forward-thinking partnerships, to help clients keep pace with the rapid march of technology. vuEasy™ is a new solution that opens doors to a wide range of companies waiting for an ideal Cloud-based service to monetize their past, present and future content. Monetization is not just about selling content – it is about building business awareness and a communication strategy around a brand. With vuEasy™, Visual Unity enables an eMarketplace so that businesses can converge in a single cloud service and convert their multimedia assets into revenue.

Watch a video of the Presentation here:

Download the Original Presentation here:

Management – Visual Unity (Master, v3.4, vuEasy).pptx

View the PDF version here:

[slideshare id=17672858&w=476&h=400&sc=no]

OTT & Multiscreen • Digital Video Series • 2 • Granularity of Choice

2013 April 1 / Gabriel Dusil / 28 Comments

In the days when there were only a handful of channels, the ratio between useful and useless didn’t seem to matter – Especially when it was free and over the air (OTA[1]) content. But as Pay TV[2] came to market in the 90’s, consumers were presented with hundreds of channels and monthly fees. The gap between relevant and irrelevant widened significantly. Throughout this transition subscribers became used to the notion that, “buying the entire book store”, was necessary just to get a few books. It was a necessary evil for users to purchase more than they actually wanted to consume. There was no other way to get access to the handful of channels that we really wanted to watch.

But in today’s internet world, consumers no longer need to buy the entire bookstore to get a few books. Consuming content is analogous to going to the library and only borrowing (i.e. viewing) what we want – then giving it back when we’re done. Accessibility to online content has removed the need to subscribe to more than we need to consume. Whether it’s head-end or long-tail[3] content, consumers only need to purchase and consume what they want, without any excess baggage and expense.

Figure i – The Long Tail of Internet Video Consumption

The frustration of having too many channels didn’t matter, as long as we could watch what we wanted. But the challenge for broadcasters was introducing their subscribers to mid-tail to long-tail content otherwise unnoticed by the casual viewer. Cable and satellite providers addressed these market challenges through the introduction of EPG (electronic programming guides), and DVR (digital video recorders or PVR, personal video recorders[4]). With these new set-top boxes (STB[5]), subscribers became untethered from the limitations of linear broadcast. Finally consumers could watch their programming whenever they wanted, the freedom to pause or rewind if they wanted…or, dare we mention – fast-forward through commercials – to the irritation of advertisers. Nevertheless, there was still a string tying the subscriber to linear TV since the digital video recorder needed to wait for the program to broadcast before it could be captured onto a set top box. A limitation that will always apply to live broadcast for that matter.

With Over the Top content (OTT)[7], services such as Netflix[8] and Hulu[9], subscribers could finally disconnect themselves completely from linear television, and just download what they wanted (i.e. any content), when they wanted (i.e. any time). With Apple’s introduction of the iPhone in 2007[10] and iPad in 2010[11], consumers became untethered from their living rooms and could watch videos on any device and ‘anywhere’.

With the growth of online video, a trend has also begun with subscriber’s cutting-the-cord[13]. This is a fairly recent phenomenon where consumers cancel their cable or satellite TV contracts, and exclusively use the internet for their viewing experience. This may include a combination of OTT services, cloud-based subscription services, or any number of websites which serve internet video. The accompanying chart shows that around 7% of global Pay TV subscribers have cut the cord, with another 8% proactively reducing their costs. From this group, 56% that made the change were motivated by saving money, and another 42% weren’t watching enough television to justify the subscription cost. Overall this decline may not seem alarming, but for cable and satellite providers with millions of subscriber, this amounts to sizable losses in annuity revenue streams. In the U.S. alone, over a two year period from the beginning of 2010 till the end of 2011, the cable TV industry lost 2.3 million subscribers[14], and this downward trend is continuing unabated. With an ARPU[15] (Average Revenue Per User) of $53 US per month[16], this amounts to a loss of over $1.4 billion US per year. This decline doesn’t appear to be slowing any time soon.

Figure ii – Global Subscription Changes & Reasons for Reduced Spending

In a world where Netflix offers an extensive movie library and Hulu offers the same for TV serials, then what is left for broadcaster’s to differentiate their offering? Currently this includes live sports and news events. These may be the traditional broadcaster’s last remaining holy grail – but for how long? Protecting their revenue streams has created a sense of urgency, more so than embracing new online revenue opportunities. It’s no mistake that most of the 2012 Olympics in London were only available via selected broadcasters world-wide[17].

Figure iii – Decline in U.S. Cable TV Subscribers

The Internet has significantly disrupted the traditional TV subscription model. Even if consumers still watch their television for live news and sports, for some it has become a medium for background noise within the confines of their living room. It’s a relaxing release from having to make a choice of what to watch. For others the autonomy to make content choices has widened, and the ability to granularity access that content also has.

The need to own content is also being diluted by accessibility. As service providers continue to consolidate libraries, extended their content rights, and provide multiple ways to consume content, the need for ownership is slipping from the minds of consumers. This may be partially the reason behind the dip in disc sales over the past few years. According to Rentrak[18] and DEG[19], the decline in Blu-Ray and DVD disc sales is currently around 16% per year. Despite the growth in Blu-Ray disc revenue, this hasn’t offset the decline in DVD sales[20].

According to Rentrak, video sales continued to steadily rise until 2005, fueled in part through a combination of rental and sell-through revenue. The turning point of the video industry appears to be around 2006. This was the year when Blu-Ray was introduced. Around this time Internet speeds had finally caught up to the ability to deliver video in real time. Albeit, first in standard definition (SD). In the middle of the decade video streaming technologies such as Real Time Streaming Protocol (RTSP)[22] took hold. 2006 was also the year when Google[27] purchased YouTube for 1.65 billion US$ – less than 18 months after it was founded. On the 29^th of June 2007 Apple begins shipping the first iPhone[25], which was instrumental in fueling the popularity of mobile video. Steve Jobs[26] certainly recognized that he could create unique products that where a culmination of multiple technological innovations. Another critical milestone was the launch of FairPlay[28] DRM (Digital Rights Management) by Apple, and PlayReady[29] DRM from Microsoft in February 2007. This brought some comfort to movie studios that their titles will be secured when distributed online. During this time, the defining changes in consumer behaviour could be attributed to both an improvement in video quality, the introduction of 1080p televisions, and the growth of OTT services bringing low-cost or no cost video to the end-user.

Figure iv – Consumer Entertainment Spending in U.S. Homes

The need for ownership is now outweighed by our ability to easily access online content. For instance, YouTube[33] is already seen as the most popular method of watching and listening to music videos[34]. Why purchase a CD when a high quality audio and video track of the artist is readily accessible online? And it’s free! This has caused Generation X consumers to sit back and wonder how they managed to spend thousands of dollars in building massive disc collections. Especially when, in the case of a DVD – the movie is only watched once. The same applies to music CD’s that been played a handful of times. The concept of physical disc ownership is beginning to be an archaic concept. CD, DVD, and Blu-Ray sales will continue to struggle amongst the rapid rise of internet-based video and music distribution[35].

Even though VoD (Video On Demand)[30], has slightly offset the decline in entertainment sales alone, overall the video disc rental industry is in a steady 2% decline per year. It has yet to be determined whether the global accessibility of legitimate internet video services, the international expansion for content rights, and 4K UHD (Ultra High Definition)[31] will be able to reverse this trend. Certainly the revival of 3D[32] hasn’t managed to save the industry in these past few years. In the meantime, it appears that this downward trend won’t be recovering any time soon.

Figure v – 2006: The Turning Point for Digital Video

Furthermore, physical collections are made obsolete through the re-release of titles at better qualities. This cycle has been repeated as far back as the VHS transition to DVD, and again when DVD’s transitioned to Blu-Ray. The consumer frustration of replacing collections is apparent at every juncture. Blu-Ray disc may certainly be the final physical medium for content distribution[36] but does not eliminate this cycle from repeating itself when 4K content is released. The technological innovations in bandwidth, processing power, and screen resolutions are certainly enabling video to be delivered with pristine quality video via the internet, without the need for disc storage.

As a final note, it’s worth mentioning that the current high definition broadcasts are usually limited to 720p[38]. This is mainly due to preserving precious bandwidth, and also helps reduce transcoding time and storage costs in the back-end. 1080p[39] video double these resource requirements in all directions . High compression ratios also help to squeeze as much video as possible in today’s precious bandwidth. For the moment this ensures that Blu-Ray continues to maintain a significant lead at the high-end, maintaining stellar video quality at 1080p. In some cases Blu-Ray contains over ten times the video information of its downloadable or streaming counterpart. Blu-Ray’s bandwidth requirements of 25 to 50Mbps are simply not feasible for today’s average internet subscriber. So the lucrative 1080p market remains safely in the hands of Blu-Ray, for the time being.

Internet speeds are increasing, both for wireless and wireline, and online video providers are creeping into this market with their own 1080p offerings. By the time 4K disrupts the market within this decade, it is likely that technological innovation will converge to stream ultra-high resolutions in real-time – leading perhaps to the demise of disc sales.

Read Additional Articles in this Series

I. Consumption is Personal
- https://mykoddi.com/dusilcom/2013/02/28/consumption-is-personal/
In the days of linear television, broadcasters had a difficult task in understanding their audience. Without a direct broadcasting and feedback mechanism like the Internet, gauging subscriber behavior was slow. Today, online video providers have the ability to conduct a one-to-one conversation with their audience. Viewing habits of consumers will continue to rapidly change in the next ten years. This will require changes in advertising expenditure and tactics.

II. Granularity of Choice
- https://mykoddi.com/dusilcom/2013/04/01/granularity-of-choice/
The evolution from traditional TV viewing to online video has been swift. This has significantly disrupted disc sales such as DVD and Blu-Ray, as well as cable and satellite TV subscriptions. With the newfound ability to consume content anytime, anywhere, and on any device, consumers are re-evaluating their spending habits. In this paper we will discuss these changes in buying behavior, and identify the turning point of these changes.

III. Benchmarking the H.265 Video Experience
- https://mykoddi.com/dusilcom/2013/04/22/benchmarking-the-video-experience/
Transcoding large video libraries is a time consuming and expensive process. Maintaining consistency in video quality helps to ensure that storage costs and bandwidth are used efficiently. It is also important for video administrators to understand the types of devices receiving the video so that subscribers can enjoy an optimal viewing experience. This paper discusses the differences in quality in popular video codecs, including the recently ratified H.265 specification.

IV. Search & Discovery Is a Journey, not a Destination
- https://mykoddi.com/dusilcom/2013/05/13/Search-and-Discovery-Is-a-Journey-not-a-Destination/
Television subscribers have come a long way from the days of channel hopping. The arduous days of struggling to find something entertaining to watch are now behind us. As consumers look to the future, the ability to search for related interests and discover new interests is now established as common practice. This paper discusses the challenges that search and discovery engines face in refining their services in order to serve a truly global audience.

V. Multiscreen Solutions for the Digital Generation
- https://mykoddi.com/dusilcom/2013/06/24/multiscreen-solutions-for-the-digital-generation/
Broadcasting, as a whole, is becoming less about big powerful hardware and more about software and services. As these players move to online video services, subscribers will benefit from the breadth of content they will provide to subscribers. As the world’s video content moves online, solution providers will contribute to the success of Internet video deployments. Support for future technologies such as 4K video, advancements in behavioral analytics, and accompanying processing and networking demands will follow. Migration to a multiscreen world requires thought leadership and forward-thinking partnerships to help clients keep pace with the rapid march of technology. This paper explores the challenges that solution providers will face in assisting curators of content to address their subscriber’s needs and changing market demands.

VI. Building a Case for 4K, Ultra High Definition Video
- https://mykoddi.com/dusilcom/2013/07/15/building-a-case-for-4K-ultra-high-definition-video/
Ultra High Definition technology (UHD), or 4K, is the latest focus in the ecosystem of video consumption. For most consumers this advanced technology is considered out of their reach, if at all necessary. In actual fact, 4K is right around the corner and will be on consumer wish lists by the end of this decade. From movies filmed in 4K, to archive titles scanned in UHD, there is a tremendous library of content waiting to be released. Furthermore, today’s infrastructure is evolving and converging to meet the demands of 4K, including Internet bandwidth speeds, processing power, connectivity standards, and screen resolutions. This paper explores the next generation in video consumption and how 4K will stimulate the entertainment industry.

VII. Are You Ready For Social TV?
- https://mykoddi.com/dusilcom/2013/08/12/are-you-ready-for-social-tv/
Social TV brings viewers to content via effective brand management and social networking. Users recommend content as they consume it, consumers actively follow what others are watching, and trends drive viewers to subject matters of related interests. The integration of Facebook, Twitter, Tumblr and other social networks has become a natural part of program creation and the engagement of the viewing community. Social networks create an environment where broadcasters have unlimited power to work with niche groups without geographic limits. The only limitations are those dictated by content owners and their associated content rights, as well as those entrenched in corporate culture who are preventing broadcasters from evolving into a New Media world.

VIII. Turning Piratez into Consumers

IX. Turning Piratez into Consumers, I
- https://mykoddi.com/dusilcom/2013/10/25/turning-piratez-into-consumers-i/
IX. Turning Piratez into Consumers, II
- https://mykoddi.com/dusilcom/2014/07/15/turning-piratez-into-consumers-ii/
X. Turning Piratez into Consumers, III
- https://mykoddi.com/dusilcom/2015/05/12/ott-multiscreen-digital-video-series-10-turning-piratez-into-consumers-iii/
XI. Turning Piratez into Consumers, IV
- https://mykoddi.com/dusilcom/2015/05/26/ott-multiscreen-digital-video-series-11-turning-piratez-into-consumers-iv/
XII. Turning Piratez into Consumers, V
- https://mykoddi.com/dusilcom/2015/09/22/ott-multiscreen-digital-video-series-12-turning-piratez-into-consumers-v/

About the Author

All Rights Reserved

References

[1] Over-the-air programming, Wikipedia, http://en.wikipedia.org/wiki/Over-the-air_programming

[2] Pay TV, Wikipedia, http://en.wikipedia.org/wiki/Pay_TV

[3] Long tail, Wikipedia, http://en.wikipedia.org/wiki/Long_tail

[4] Digital video recorder, Wikipedia, http://en.wikipedia.org/wiki/Digital_video_recorder

[5] STB, Wikipedia, http://en.wikipedia.org/wiki/Set-top_box

[6] “I only watch four channels. Why do I need to pay for over 500?”

[7] Over-the-top content, Wikipedia, http://en.wikipedia.org/wiki/Over-the-top_content

[8] Netflix, Wikipedia, http://en.wikipedia.org/wiki/Netflix

[9] Hulu, Wikipedia, http://en.wikipedia.org/wiki/Hulu

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

[11] iPad, Wikipedia, http://en.wikipedia.org/wiki/IPad

[12] “For subscribers that have Cut-the-cord … broadcast television has become a frustrating experience.”

[13] “Cord Cutting 101: Four Easy Steps to Cut the Cord” by Mike Flacy, Digital Trends, 2^nd Jan. 2013, http://www.digitaltrends.com/home-theater/cord-cutting-four-steps-to-cut-the-cord/

[14] “GOODBYE, CABLE TV: 2.3 Million Americans Have Pulled The Plug Since 2010”, by Jim Edwards, 12^th Feb. 2012, Business Insider, http://www.businessinsider.com/goodbye-cable-tv-23-million-americans-have-pulled-the-plug-since-2010-2012-2

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

[16] “Tapping Buyer Behavior To Capitalize on Next-Generation Video Opportunities”, Cisco, March 2012, http://www.cisco.com/web/about/ac79/docs/clmw/CLMW_Consumer-BB_SHORT.pdf

[17] List of 2012 Summer Olympics broadcasters, Wikipedia, http://en.wikipedia.org/wiki/List_of_2012_Summer_Olympics_broadcasters

[18] Rentrak, http://www.rentrak.com/

[19] Digital Entertainment Group, DEG, http://degonline.org/

[20] “Year-End 2012 Home Entertainment Report”, Digital Entertainment Group

[21] “Today we need to buy the whole store to get a few books. Tomorrow we will just get what we want to consume.”

[22] RTSP, Wikipedia, http://en.wikipedia.org/wiki/Real-time_Streaming_Protocol

[23] Apple iPod, http://en.wikipedia.org/wiki/IPod

[24] Apple iTunes, Wikipedia, http://en.wikipedia.org/wiki/Itunes

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

[26] Steve Jobs, Wikipedia, http://en.wikipedia.org/wiki/Steve_Jobs

[27] Google, Wikipedia, http://en.wikipedia.org/wiki/Google

[28] Apple Fairplay, Wikipedia, http://en.wikipedia.org/wiki/FairPlay

[29] Microsoft PlayReady, Wikipedia, http://en.wikipedia.org/wiki/PlayReady

[30] Video On Demand, Wikipedia, http://en.wikipedia.org/wiki/Video_On_Demand

[31] 4K UHD, Wikipedia, http://en.wikipedia.org/wiki/4K_UHD

[32] 3D television, Wikipedia, http://en.wikipedia.org/wiki/3D_television

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

[34] “’Attention is the new money’: Why artists needs to look beyond YouTube”, By Mike Johns, http://www.iptv-news.com/2012/10/attention-is-the-new-money-why-artists-needs-to-look-beyond-youtube-2/

[35] “U.S. Consumer Home Entertainment Rental & Sell Through Spending”, Rentrak, http://www.rentrak.com

[36] “Video Format War: Blu-ray vs. Streaming”, by John Brandon, PC World, http://www.pcworld.com/article/241215/video_format_war_blu_ray_vs_streaming.html

[37] “The Linear Schedule works because it takes choice away from people. They might be tired after a busy day, and they don’t want to think too hard about what they view. VoD takes a lot of thought processing”, (Complete quote) “Social media on TV? ‘We are still learning’”, by Chris Forrester, IBC Daily, 9^th Sep. 2012, http://www.ibc.org/page.cfm/Action=Library/libID=3/listID=4/libEntryID=609

[38] 720p, Wikipedia, http://en.wikipedia.org/wiki/720p

[39] 1080p, Wikipedia, http://en.wikipedia.org/wiki/1080p

[40] “If the subscription fee is set correctly, consumers’ perception of being able to access any content outweighs the value of ownership”, “TV Anywhere: The Game Starts Now”, Simon Frost, Head of TV Marketing, Ericsson, http://content.yudu.com/A1yak6/IBESept-Oct12/resources/44.htm

Consumption Is Personal, by Gabriel Dusil

OTT & Multiscreen • Digital Video Series • 1 • Consumption Is Personal

2013 February 28 / Gabriel Dusil / 18 Comments

Have you ever wondered how your analog TV ever figured out what you were watching? Was it based on those surveys posted by companies such as Nielsen[i], to be filled out over the course of a week, then extrapolating their findings to the entire country, or was it magic?

Figure i – A Broadcast Audience vs. Online Video Audience

However they did it, it’s clear that the Internet has changed the way in which content owners and marketers observe and measure consumer behavior. The one-to-one link between the online provider and the subscriber has a new sense of intimacy, whether we like it or not. Some consider this direct communication to be a threat to privacy; others believe it is an untapped opportunity. Either way marketers are scrambling to take advantage of this new treasure trove of information, consolidate it, make reasonable sense of it, and then sell it for a lot of money. The better they understand our consumer behavior, at an individual level, the more they can satisfy advertisers and sponsors. This will lead to more personalized advertising, and customized recommendations, which will in turn lead to happier advertisers and more money for better content. It’s a virtuous circle waiting to happen.

Consider the notion that maybe our frustrations with advertising have been due to the generalized nature of its presentation. We are accustomed to the fact that the majority of advertising we experience on a daily basis we find personally irrelevant. In fact, for internet-based advertising this conventional wisdom is not entirely true. Google’s pay-per-click (PPC)[iii] ads have had tremendous success over the years[iv]. More specifically, advertisers using this service have a direct ability to measure their success – something which is very hard to do in print advertising. The point is that this sea-change in the observation and analysis of consumer behavior is not entirely a threat – which is often our reaction to change – but rather an opportunity for consumers to discover products they would not easily find on their own…or for that matter, even consider looking for it.

How subscribers view advertising in the context of internet video is a solid step in understanding their motivations. A user study by Ericsson[vi] shows the overwhelming value of receiving recommendations from friends and family in suggesting new content. This is followed by suggestions from a recommendation engine which has been correlated with past purchasing and viewing behavior. It’s also worth noting how subscribers also value social media in their purchasing preferences. Surprisingly the study shows that expert recommendations are the least trusted source. What if advertising could be valued in the same light as personal recommendations?

Print ads establish a sense of relevance by placing their ads in physical places where the most eyes will see it, in publications with a specific demographic, and next to articles of related interest[vii]. Ads of this type traditionally measure their success based on total impressions; whether or not they were “seen” by the target audience. But relevancy reaches a new level when implemented online. This happens not only by correlating a web page with the interests of the web surfer, but also mapping the user’s demographics and past behavior to the advertisement itself. For example consider advertisements related to pregnancy: A web site promoting folic acid, may determine that the user is a woman, below the age of 30 years. This may suggest that the user is already pregnant, or not yet, but is in the family planning stage. So a banner ad offering pregnancy related products could be displayed. But what if the user is a man above the age of 60, and searching for folic acid? In this case advertisements related to products which prevent heart disease may be chosen instead. Further refinements in the advertisement could be made if additional demographic and past behavioral information became available.

Mining demographic data against a database of products is complex combination of art and science. At the moment, there is no magic formula. It’s a challenge that marketing organizations are trying to solve, in order to uncover hidden opportunities.

Figure ii – Most Useful Recommendations for Internet Video Services

Ultimately the choice of print vs. online advertisement spending depends largely on the target demographic. If the target audience is an owner of a Rolex[viii], runs their own business, but doesn’t own a computer, then advertising in Forbes[ix] magazine may be more appropriate[x]. Likewise, targeting the 20-something[xi] generation, may require focusing on Twitter, Facebook, and YouTube banner placements.

Figure iii – Productive Online Advertisement Spending

With the global nature of the internet, ensuring that online advertising is relevant requires tracking of several metrics. A web surfer from the Czech Republic browsing CNBC in the US ‘may’ be served advertisements relevant to their location and demographic. The following approach is based on the 3MS Initiative[xii] and comScore[xiii]:

Is the advertisement in view[xiv] on the target device? According to comScore, an average of 37% of ads are not in-view in the European Union[xv] (EU). The location of the ad should be relevant to the target user. For example a banner at the top of a webpage maybe overlooked by a user which is focused on scrolling to the article lower down on the webpage.
Is the ad shown in the correct geography (aka. geo-location)? According to comScore, up to 7% of advertisements are served outside of their target geography. Half of these were served in the wrong language. On an international scale, relevancy is not only required on a geographic level, but also required for cultural and language significance.
Were the ads served with the target brands? comScore reports that 55% of ads in the EU were served against inappropriate brand content. A small fraction of served ads even involve fraud.

Ultimately the main question that needs to be answered is, “Do my ads reach the correct audience?” Optimizing these three metrics ensures maximum return on investment (ROI)[xvi] for advertising spend. Measuring this ROI is essential to justifying future advertising spending.

In the print world the cost of an ad is measured by the cost per thousand impressions (CPM[xvii]). National magazines may charge an average of $6 CPM, whereby TV placements would range between $10 and $35 for a popular sitcom[xviii]. The ultimate success of advertising is measured by subsequent revenue that is generated. But in some cases it is hard to map ROI success of an advertising campaign when other marketing & sales activities are also contributing to the bottom line.

Conversely it is much easier to manage the ROI of Internet advertising since the entire workflow of prospect to client can be closely tracked. All of this activity can even be measured and analyzed in real-time. Online advertising costs are typically cheaper as well, whether it be production costs of a short-form video, or the desk top publishing costs of a small banner ad. Some companies even save costs by repurposing their print ads and broadcast TV commercials for subsequent internet usage.

Is my content any good? Is it engaging my viewers?The success of online advertising can be dynamically improved with appropriate statistics and data analytics. Armed with this information, a brand administrator can pull content which isn’t performing, and explore why others are successful. Relevant questions that should be answered by an online video reporting engine include:

When, where, and what content has been watched?
How is the content being consumed, and on which devices?
Which content is selling the most or the least, and why?

Figure iv – Advertising Expenditure by Medium

The overall health of the global advertising industry has been analyzed by companies like ZenithOptimedia[xix]. From their study Internet based advertising is the only medium showing consistent double digit growth over the past six years (the growth in 2012 was 15%). Internet advertising actually surpasses all other advertising types in overall expenditure, except for television, which continues to grow at a healthy 5% per annum. At these current rates Internet advertising will exceed TV ad spending within the next 10 years. Interestingly, this coincides with a related study showing that consumers will be watching more online content compared to live broadcast within this decade[xx].

Targeting consumer advertising at a personal level will be a great opportunity if it’s done with privacy, ethics, and human decency in mind. At least that is our wish. Privacy issues aside, maybe one day our viewers will be pleased to see advertisements that know them well enough that they offer precise suggestions on related interests – guiding them to new products or services that they would otherwise not have noticed. Minority Report[xxi] may have depicted such a utopian advertising future as over-the-top. But if subtle enough, it may be enjoyable to buy something on the back of a personalized ad. Consumers would certainly find a new appreciation for advertising if it saved them days of researching the purchase themselves. Imagine that users would trust advertising suggestions so well, that they would regard them as highly as recommendations from friends or family. Maybe that’s how advertising is supposed to work?

Figure v – Weekly Viewing Times for Video

Read Additional Articles in this Series

I. Consumption is Personal

https://mykoddi.com/dusilcom/2013/02/28/consumption-is-personal/

In the days of linear television, broadcasters had a difficult task in understanding their audience. Without a direct broadcasting and feedback mechanism like the Internet, gauging subscriber behavior was slow. Today, online video providers have the ability to conduct a one-to-one conversation with their audience. Viewing habits of consumers will continue to rapidly change in the next ten years. This will require changes in advertising expenditure and tactics.

II. Granularity of Choice

https://mykoddi.com/dusilcom/2013/04/01/granularity-of-choice/

The evolution from traditional TV viewing to online video has been swift. This has significantly disrupted disc sales such as DVD and Blu-Ray, as well as cable and satellite TV subscriptions. With the newfound ability to consume content anytime, anywhere, and on any device, consumers are re-evaluating their spending habits. In this paper we will discuss these changes in buying behavior, and identify the turning point of these changes.

III. Benchmarking the H.265 Video Experience

https://mykoddi.com/dusilcom/2013/04/22/benchmarking-the-video-experience/

Transcoding large video libraries is a time consuming and expensive process. Maintaining consistency in video quality helps to ensure that storage costs and bandwidth are used efficiently. It is also important for video administrators to understand the types of devices receiving the video so that subscribers can enjoy an optimal viewing experience. This paper discusses the differences in quality in popular video codecs, including the recently ratified H.265 specification.

IV. Search & Discovery Is a Journey, not a Destination

https://mykoddi.com/dusilcom/2013/05/13/Search-and-Discovery-Is-a-Journey-not-a-Destination/

Television subscribers have come a long way from the days of channel hopping. The arduous days of struggling to find something entertaining to watch are now behind us. As consumers look to the future, the ability to search for related interests and discover new interests is now established as common practice. This paper discusses the challenges that search and discovery engines face in refining their services in order to serve a truly global audience.

V. Multiscreen Solutions for the Digital Generation

https://mykoddi.com/dusilcom/2013/06/24/multiscreen-solutions-for-the-digital-generation/

Broadcasting, as a whole, is becoming less about big powerful hardware and more about software and services. As these players move to online video services, subscribers will benefit from the breadth of content they will provide to subscribers. As the world’s video content moves online, solution providers will contribute to the success of Internet video deployments. Support for future technologies such as 4K video, advancements in behavioral analytics, and accompanying processing and networking demands will follow. Migration to a multiscreen world requires thought leadership and forward-thinking partnerships to help clients keep pace with the rapid march of technology. This paper explores the challenges that solution providers will face in assisting curators of content to address their subscriber’s needs and changing market demands.

VI. Building a Case for 4K, Ultra High Definition Video

https://mykoddi.com/dusilcom/2013/07/15/building-a-case-for-4K-ultra-high-definition-video/

Ultra High Definition technology (UHD), or 4K, is the latest focus in the ecosystem of video consumption. For most consumers this advanced technology is considered out of their reach, if at all necessary. In actual fact, 4K is right around the corner and will be on consumer wish lists by the end of this decade. From movies filmed in 4K, to archive titles scanned in UHD, there is a tremendous library of content waiting to be released. Furthermore, today’s infrastructure is evolving and converging to meet the demands of 4K, including Internet bandwidth speeds, processing power, connectivity standards, and screen resolutions. This paper explores the next generation in video consumption and how 4K will stimulate the entertainment industry.

VII. Are You Ready For Social TV?

https://mykoddi.com/dusilcom/2013/08/12/are-you-ready-for-social-tv/

Social TV brings viewers to content via effective brand management and social networking. Users recommend content as they consume it, consumers actively follow what others are watching, and trends drive viewers to subject matters of related interests. The integration of Facebook, Twitter, Tumblr and other social networks has become a natural part of program creation and the engagement of the viewing community. Social networks create an environment where broadcasters have unlimited power to work with niche groups without geographic limits. The only limitations are those dictated by content owners and their associated content rights, as well as those entrenched in corporate culture who are preventing broadcasters from evolving into a New Media world.

VIII. Turning Piratez into Consumers

IX. Turning Piratez into Consumers, I

https://mykoddi.com/dusilcom/2013/10/25/turning-piratez-into-consumers-i/

IX. Turning Piratez into Consumers, II

https://mykoddi.com/dusilcom/2014/07/15/turning-piratez-into-consumers-ii/

About the Author

Copyright 2013, All information in this document is the sole ownership of the author. This document and any of its parts should not be copied, stored in the document system or transferred in any way including, but not limited to electronic, mechanical, photographs, or any other record, or otherwise published or provided to the third party without previous express written consent of the author. Certain terms used in this document could be registered trademarks or business trademarks, which are in sole ownership of its owners.

[i] Nielsen Media Research, Wikipedia, http://en.wikipedia.org/wiki/Nielson_Ratings

[ii] “Broadcasters don’t easily know who’s sitting in their audience. Online Video Providers will have a 1to1
conversation with their audience.”

[iii] Pay per click, Wikipedia, http://en.wikipedia.org/wiki/Pay_per_click

[iv] “The War on ‘Free’ Clicks: Think Nobody Clicks on Google Ads? Think Again!”, by Larry Kim, The WordStream Blog, 17^th July 2012, http://www.wordstream.com/blog/ws/2012/07/17/google-advertising

[v] “The chances of a print advertisement targeting me specifically are slim and far-between”

[vi] “Ericsson Consumer Lab TV & Video Consumer Trends 2011”,Ericson, http://www.ericsson.com/news/1543649

[vii] “Top 5 Age-Old Fundamental Rules Of Successful Google PPC Campaigns”, by James Hollands, TechWyse, http://www.techwyse.com/blog/pay-per-click-marketing/top-5-age-old-fundamental-rules-of-successful-google-ppc-campaigns/

[viii] Rolex, Wikipedia, http://en.wikipedia.org/wiki/Rolex

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

[x] “GfK MRI’s Study of the American Consumer”, Fall 2010

[xi] “Why We Need To Take 20-Somethings Seriously”, by Jenna Goudreau, Forbes, http://www.forbes.com/sites/jennagoudreau/2012/04/24/why-we-need-to-take-20-somethings-seriously/

[xii] “3MS Initiative Releases Five-Part Digital Marketing Measurement Solution”, http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-091911

[xiii] comScore, http://www.comscore.com/

[xiv] Changing How the World Sees Digital Advertising”, by Guido Fambach, 25^th October 2012, comScore, http://www.comscore.com/Insights/Presentations_and_Whitepapers/2012/Changing_How_the_World_Sees_Digital_Advertising_vCE_Charter_Study

[xv] European Union, Wikipedia, http://en.wikipedia.org/wiki/European_Union

[xvi] ROI, Wikipedia, http://en.wikipedia.org/wiki/Return_on_Investment

[xvii] Whereby ‘M’ = thousands in Roman numerals

[xviii] “Which Ad Strategy Works for You?”, by Rosalind Resnick, Entrepreneur, http://www.entrepreneur.com/article/203050

[xix] “Global Web Ad Spend to Rise 33% by ’13”, ZenithOptimedia, http://www.marketingcharts.com/wp/direct/global-web-ad-spend-to-rise-33-by-13-19491/

[xx] The Diffusion Group (TDG), http://tdgresearch.com/

Visual Unity – Corporate Overview

2012 November 1 / Gabriel Dusil / 0 Comments

Visual Unity is a global provider of video and digital media solutions, enabling our clients to deliver premium quality video content. 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 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.

Please visit us at: www.visualunity.com
Na Hrebenech II 1718/8, Prague 4, 147 00, Czech Republic
T: +420 271 742 111 F: +420 271 742 112
info@visualunity.com

Download the Original Presentation here:

Management – Visual Unity (Master, v3.3, Overview).pptx

Or view the PDF version on Slideshare:

[slideshare id=18130106&w=476&h=400&sc=no]

Cognitive Security – Positioning Network Behavior Analysis in the Security Ecosystem

2012 June 30 / Gabriel Dusil / 0 Comments

Cognitive Positioning

Modern Internet security practice has been traditionally formed by building security layers. These layers are analogous to multiple concentric walls, to which more of them serves to providing additional layers of protection. Individually each wall has its limitations, but collectively they create a strong defensive perimeter. The challenge CTOs or CISOs face is in balancing security spending against an acceptable level of protection needed to facilitate corporate objectives. This balance is formed by establishing a corporate strategy, and mapping security spending to protect these goals.

The first layer of defense; Baseline security (as shown in the figure) is considered ubiquitous and necessary for even the smallest of enterprises. Namely, the installation of;

Firewalls to reduce the number of accessible ports, and provide basic packet filtering functionality
Anti-virus solutions to protect desktop and servers from known malware, viruses, and Trojans
Email security to prevent malicious code from infiltrating the perimeter hidden in the communication stream, and
VPN solutions (such as SSL, IPsec, or point-to-point tunnels) to impede man-in-the-middle attacks, and encrypt sensitive traffic.

Until recently these devices have enjoyed an install-and-forget approach, based on the notation that they have the means to protect through technology alone. Through tried and true product updates, Baseline Security devices have been relatively successful in keep up with new malware instances such as worms, Trojans or viruses. But this security layer struggles with its own limitations due to the timeliness of signature updates, the reactiveness of vendors to write them, and the reliance on end-users to immediately deploy software patches.

Figure i – The Security Eco-System

As threats have become more complex, the need for Advanced Security has evolved to meet these growing needs. Devices at this security layer focus on a cross-device, multi-layer, and multi-department view of security.Criminals are well aware of the latency that software vendor face to write a signature. This delay allows perpetrators to maximize the damage that their malware can reap during their window of opportunity. Ultimately this opportunity closes when the end user finally deploys an associated patch. Attack detection is further complicated by viruses that can morph to avert detection – referred to as ‘polymorphic malware’. Signature databases for known viruses are typically not up-to-date with the latest variants. For these reasons it has become increasingly challenging for Baseline Security devices to keep up with criminals that are continually evolving their craft to circumvent detection. Automatic signature updates and patching relies on administrators to deploy them. But patching does not always happen because it may lead to application instability and compatibility issues for mission critical applications. As a result this opens additional opportunities for criminal hackers to breach the perimeter of a company.

An Intrusion Detection and Prevention system (IDS and IPS respectively) greatly enhances the administrator’s visibility into complex threats to their environment, and overcomes some of the detection limitations of Baseline Security devices. For example, an IDS in stealth mode stretches it’s visibility to all traffic on a LAN segment, or spam port, thus increasing its security monitoring capabilities across multiple devices, compared to firewalls that only see what passing through it.
Likewise, Vulnerability Management and Scanning Services (VMS) provide visibility into the exposed ‘holes’ from which criminals could exploit and compromise the enterprise. VMS solutions are initially deployed to detect vulnerabilities of critical web-facing applications such as online banking, and are also very effective in identifying enterprise-wide weaknesses. Once identified these vulnerabilities require prioritization due to human resource constraints and the cost to patch every single vulnerability. As a result, prioritization is required, so that only gaping holes are filled. Most of the remaining vulnerabilities classified as ‘low risk’ are left exposed.
A further layer of defense in this category is the implementation of web security which provides the necessary protection of content filtering. Since many firewalls only have port 80 (http), and 443 (https) open, this has redirected most threats through these ports. Enter Web Security which mitigates some attacks by filtering browser-level communications, as well as significantly reducing spam traffic.
Web Application firewalls on the other hand, provide a different level of protection at the application level, by mitigating attacks undetectable by network security appliances, such as SQL injections or cross site scripting (XXS).
Identity and Access Management (IAM) further diverts focus from the device level over to one of the most vulnerable corporate resources – employees. By extending security to include people, the mantra becomes, “Let the good guys in“, not, “Keep the bad guys out”, and encompasses fairly complex deployments of Authentication, Authorization, & Accounting (AAA) solutions. These solutions have their own challenges in modifying the corporate culture and providing security awareness education.

Figure ii – Modern Threats Require Higher Walls

Implementing some or all of these security layers results in escalating complexity. Advanced Security requires a level of security expertise that does not exist in a typical SME (Small to Medium sized Enterprise). They don’t have the in-house expertise to configure, tune and efficiently operate these platforms and outsourcing options are also considered cost-prohibitive.

Even though Advanced Security devices answer the need to protect against an exponential increase in attack complexity, is it enough? Even Advanced Security devices have their limits since they focus on known attack patterns. Current and future attacks now focus on unknown attack patterns.

Ideally, an operating system (OS) vendor, software company, or device manufacturer, would like to discover their own vulnerabilities, and patch them at their leisure. Currently most patches are available in days, but some patches takes weeks or months to write. Regardless, there are 37% of vulnerabilities which are never patched[1]. At the very least, vendors would prefer to be informed by the internet experts that vulnerability exists in their product before it is made public, and allow them time to create a patch. The hope is that a patch will precede any exploit before the criminal eMarketplace could take advantage of it (Shown in the figure as “Ideal”). Unfortunately, in some cases the criminals win the race, and deploy an exploit before a patch is available, as shown in the figure as a “Threat“. Although, what has become common practice today for modern cyber-threats, are exploits that are deployed before the actual vulnerability is known, thus labeled as a “zero-day” attack. Once the exploit is deployed in cyberspace, the industry is caught unaware of the source vulnerability. In this scenario, since the vulnerability isn’t known, the industry must scramble to reverse engineer the exploit and utilize sophisticated forensics, and reverse engineering techniques to determine what is the source vulnerability. Once a reverse engineer identifies the vulnerability they can create a patch to protect against the attack. To minimize exposure some vendors focus on creating signatures against the actual exploit itself (of which there may be thousands). In other words, they want to be able to detect when a zero day attack is occuring even if they don’t yet know the vulnerability. It’s similar to monitoring a thief entering your home before you have installed a lock on the door – at least you can catch them in the act. The next phase in this reverse engineering process is to replace the exploit signatures with the vulnerability signature. Zero-day exploit criminals enjoying looting of identities, committing fraud, or stealing corporate secrets. They also avert detection by morphing their attack. The company must increase resources to thwart the attack, and defend against each variant. Modern sophisticated attacks require a combination of intelligence, self-learning, and the ability to analyze a longer timeline of data in order to distinguish between normal and anomalous network behavior.

Expert Security evolves defense strategies to the next level, and offers a cost effective approach to solving complex security threats. As mentioned above, zero-day attacks do not have signatures or “blueprints”. This is intentional from the criminal’s perspective because their vulnerability database is a valuable asset in the lucrative acquisition of corporate secrets, leading to a huge pay-cheque. Therefore it’s beneficial for the criminal to keep their portfolio of vulnerabilities a secret, so that they can spend their unhindered timeframe to write their exploits. Enter Network Behavior Analysis and Anomaly Detection (NBA & AD) which uses a series of algorithms and artificial intelligence (A.I.) to learn the normal behavior of a network and segment the bad traffic from the good. NBA & AD identifies attacks that have no known signature or patterns, and provide the necessary protection against any state-of-the-art attack. This approach effectively builds a higher wall for cyber criminals, making it even more difficult for them to compromise valuable client resources. Ideally the goal is to create a scenario where it is financially impractical for the criminal to deploy their attack, and to conclude that there is a poor return on investment (ROI) in their efforts. NBA increases the operational costs for a criminal, deterring their interest in the corporate asset.

Figure iii – Vulnerability vs. Exploit vs. Patch

Although some enterprises view Security as a Service as costly alternative in their security spending – and have perceived concerns of losing control of their critical assets to the cloud – this solution is often a necessary evil to keep-up with the battle being fought in cyberspace.Expert Security addresses the need to implement more robust and cost effective levels of expertise, and also helps to bridge the gap to higher, and more expensive enterprise security solutions, such as Security as a Service. As companies grow, their need for additional layers of protection is paramount to ensure asset protection. Network Behavior Analysis and Anomaly detection are the building blocks of Expert Security. Security as a Service supplied by Managed Security Service Provides (MSSP) is currently the definitive layer in the security eco-system. This layer adds assets such as people, process and expertise, to provide 24×7 security monitoring, and addressing the need to protect companies during off-hours – A time when employees are asleep but the criminals are not. Expert Security helps to ease the transition for companies considering Security as a Service, and provides a cost effective approach in such a transition. Network Behavior Analysis solutions utilizes a sophisticated product based approach which assists in the diagnosis of modern attack vectors, and provides a new level of viaibility in MSSP diagnostics.

Synopsis

Corporate leaders face complex challenges in balancing security spending against the evolving risks that internet commerce presents. This has resulted in new and advanced levels of protection. Expert Security addresses the need to implement more robust and cost effective levels of expertise and helps to bridge the gap to higher – culturally adverse – outsourced solutions. As companies expand, their need for additional layers of protection it is paramount to ensure asset protection. Network Behavior Analysis are the building blocks of Expert Security, and offers a viable solution to modern sophisticated cyber-attacks.

About Cognitive Security

Cognitive Security specializes in Network Behavior Analysis, allowing businesses to identify and protect themselves against sophisticated network attacks.

Cognitive Security offers solutions designed to fill the security gaps left by the current generation of network security tools. Our expertise in Network Behavior Analysis allows us the ability to accurately expose both known and unknown attacks. Our solution is ideally suited for the detection, prioritization and handling of modern-day attack patterns that would typically evade a client’s defenses.

Please contact us at www.Cognitive-Security.com, or info@cognitive-security.com for more details.

About the Author

Gabriel Dusil oversees the global sales & marketing strategies of Cognitive Security, with a mandate to expand the company’s presence across Europe, the USA, and beyond.

Before joining Cognitive Security, Gabriel was the Director of Alliances at SecureWorks, responsible for partnerships across Europe, Middle East, and Africa (EMEA). Previous to SecureWorks, Gabriel worked at VeriSign and Motorola in a combination of senior marketing and sales roles.

Over nearly two decades, Gabriel’s experience has encompassed the development and management of international partner programs, EMEA marketing & sales, and business development. Gabriel has also lectured in security, authentication, and data communications, as well as speaking in several prominent IT symposiums.

Gabriel obtained a Degree in Engineering Physics from the University of McMaster, in Canada and has advanced knowledge in Cloud Computing, SaaS (Security as a Service), Managed Security Services (MSS), Identity and Access Management (IAM), and Security Best Practices.