In this post you get access to all seven white papers from this Q&A series on Entertainment Challenges in Today’s Digital Society. You also get one-click access to each original post. Enjoy!
• Synopsis
• Understanding the entertainment market from ten thousand meters helps industry executives make strategic decisions. This leads to tactical initiatives that drive innovation, new services, and revenue growth. This Q&A series takes a top level view of today’s digital landscape and helps decision makers navigate through the latest technologies and trends in digital video. Gabriel Dusil, Chief Marketing & Corporate Strategy Officer from Visual Unity, discusses the ongoing developments in Over the Top (OTT) services, how these platforms are helping to shape today’s digital society, and addresses the evolving changes in consumer behavior. Topics include 2nd Screen, 4K Ultra High Definition video, H.265 HEVC, global challenges surrounding content distribution, and the future of OTT.
• Entertainment Challenges in Today’s Digital Society – Q&A Series
1. Is 2nd Screen a threat to broadcasters? What are the challenges for OTT moving forward?
• 2nd Screen, 4K, Broadcast, Connected TV, Digital Rights, Digital Video, DRM, Entertainment, Gabriel Dusil, H.264, H.265, HEVC, Internet Video, Linear Broadcast, Linear TV, Multi screen, Multiscreen, New Media, Online Video, Online Video Platform, OTT, Over the Top Content, OVP, Recommendation Engine, Search Discovery, second screen, Smart TV, Social TV, TV Everywhere, Television, UHD, Ultra HD, Ultra High Definition, Video Streaming, Visual Unity Global
7. What improvements can OTT offer to Online Entertainment Services?
With regards to improving OTT, there are four main features that will significantly improve the quality of online digital video services:
Content Accessibility
Content Upgradability
Content Portability
Subscriber Personalization
a. Entertainment Needs to be Accessible
Today’s digital society is migrating from an entertainment ownership paradigm to a licensing model. Past consumers typically bought hard copies of music and movies. Then they evolved to using the cloud for storage[i]. The main issue with ownership is that it is inherently inefficient from a global content management perspective. Millions of users own duplicate copies of their entertainment, which in turn amounts to millions of duplicate copies of the same song, movie, or TV program. For the environmentally sensitive, this needlessly adds to the amount of polymer, paper, and other harmful chemicals required to manufacture said copies, not to mention the wasted shelf space they take up in the home.
Extrapolating the idea that content in the future will mainly come in licensed form, it’s conceivable that once content resides in the cloud, those millions of duplicate copies will be rendered unnecessary. Imagine an OTT provider telling their subscribers:
“You no longer need to keep all of those files in the cloud. We will delete your library and give you the best resolution and quality available for your purchased content. We will even allocate a license to members of your family. Furthermore, you can stream that content onto any device you own. We will format and deliver that content in the best quality possible, depending on the location, device, or network you happen to be using.”
That statement may not yet be feasible, but it offers a realistic vision of the future for OTT services. The licensing model will flip the entertainment industry’s current paradigm on its head. Rather than having millions of users accessing millions of duplicate versions of their entertainment, subscribers will simply license a single instance of that content, whenever and wherever they want. This is the essence of OTT.
OTT services ultimately facilitate a single instance paradigmfor content. This approach has already begun. Consider Apple’s iTunes Match Service[iii] where users can upload their music library to the cloud. In fact, there is no need to upload music at all because the software recognizes that the subscriber has an instance of a song on their computer and grants them access to that song in the cloud. This same principle is possible for movies, TV shows, and any other type of entertainment content.
Practically speaking, one instance of a movie won’t happen in its purest form due to global delivery and caching requirements, archiving, competing services with the same title, etc. But theoretically it is possible have a single 4K or UHD[iv] master of a movie sitting in the cloud (Figure i). If a subscriber wants to access a movie, their content rights license is approved and granted for different devices or users. The movie would then be transcoded on the fly to suit the screen size, processor limitations, and networking capabilities. There are critical factors necessary to make this work, including: chipsets that can transcode 4K content on the fly, ubiquitous Internet access, bandwidth speeds that address quality of service, and seamless yet powerful DRM, to name just a few.
Figure i – Future of Content Delivery
b. Entertainment Needs to be Upgradable
Once content resides in the cloud, such as in an OTT service, then the idea of an upgrade path is viable. Consumers today don’t upgrade their movies and music in the same manner as they upgrade software. Why not? If a user has a Blu-Ray version of a movie and buys a new 4K television, then why shouldn’t there be the possibility to upgrade to a better version? Consumers don’t want to buy content over and over again every time technology improves.
Likewise, when a new family member wants to access the family OTT service, there should be a content rights provision to accommodate that desire. When an extended or recut version is available, or a new featurette[v] is available, subscribers should have the option to pay an incremental fee for that content as well.
Simply put, entertainment should be upgradeable. With content residing in the cloud, OTT services can allow for this level of granularity. A cloud-based licensing model, therefore, provides the platform for upgradability in a manageable and scalable service.
c. Entertainment Needs to be Portable
Content needs to be protected in order to maintain a level of control over portability. Ultraviolet DRM is a solution that seeks to address this need, but true portability is still in its infancy. DRM and the broader scope of content protection is a delicate balance between control and freedom. The digital locker offered by Ultraviolet seeks to provide a level of freedom for consumers, but can nevertheless feel like a digital prison sometimes.
Portability in the entertainment industry has been extended with the advent of multiple screens (TV, PC, and mobiles), but there are still improvements to be made. Content purchased on one platform (iOS, Android or Windows) should be available on other platforms. Content bought on disc should port to any digital screen owned by the purchaser. Content bought in one geographic region should be accessible internationally. Even movies enjoyed in the cinema could have agreements with OTT providers to find creative ways to offer theater releases in sync with online subscribers.
d. Entertainment Needs a Stellar User Experience
Subscribers want to have fun before, during, and after a movie. The more they have fun, the longer they will stay and play. The longer they stay, the more money they will spend.
This virtual playground is called the User Interface and User Experience (UI/UX) in OTT. It centers on social media, recommendation engines, trivia, games, and statistics, as well as many other features. It’s all about a bi-directional dialog and relationship with subscribers. The consumer is no longer an anonymous viewer to entertainment. Instead, the OTT service provider can facilitate a personal and engaging dialogue with each and every subscriber.
Word-of-mouth and advertising serves to promote head-end content, but does little to promote long-tail titles. With the massive libraries of some OTT services numbering in tens of thousands of titles, it’s quite likely subscribers are not taking advantage of all the content available to them as these libraries are simply too large to navigate. According to Netflix, their recommendation engine accounts for at least 75% of what is being viewed[vi]. A related study found that 14 percent more subscribers enjoy videos following a recommendation versus browsing[vii]. Using different metrics surrounding recommendation engines[viii],therefore,subscribers can migrate to undiscovered titles that are already residing in the service they paid for.
The UI/UX provides the interface to discover new content and allows content distributors to monetize long-tail material that sits dormant in libraries for most of its useful lifespan.
Finally, the value of social media in entertainment should not be underestimated. According to Ooyala, “Personal testimonials are one of the most powerful influences on all types of consumer action… By learning what their trusted friends have enjoyed, and by comparing that to their perception of how much they have in common with the recommender, viewers get a very personalized and motivating impression of what to check out.”[ix]
Clearly, recommendation engines help consumers reach the heretofore uncharted depths of large entertainment libraries.
[viii] For example: rating systems, social networking, “Likes”, shares, and chat statistics, viewing guides, promotion through syndication, past behavior, demographics ofusers with common interests
• 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
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).
• 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, second screen, Smart TV, Social TV, TV Anywhere, TV Everywhere, UHD, Ultra HD, Ultra High Definition, Visual Unity
• Welcome to our seventh web seminar from our ’14 series. This presentation is also the third part of our “Getting your ROI from Video Streaming series” web seminar, that we held at the end of July 2014.
• ?Check out other white papers, video presentations, and opinion pieces from my blog “Digital Video for a Digital Generation”: www.dusil.com
• ?Investing in video streaming services requires a solid understanding of the Return on Investment (ROI) for such a platform. In this presentation we breakdown the value proposition of Over the Top content (OTT) platforms, used to generate new revenue streams from entertainment assets. Understanding ROI, requires a breakdown of cost savings, new revenue streams, feature enhancements, and other intangible benefits. This web seminar looks into various aspects of content management, delivery and consumption, and how cloud-based services such as OTT not only generates new revenue streams, but also opens new doors to monetize entertainment libraries.
?Fear Uncertainty Doubt, 2nd Screen, Broadcast, Connected TV, Digital Rights, Digital Video, DRM, Gabriel Dusil, Internet Video, Linear Broadcast, Linear TV, Multi + screen, Multiscreen, Online Video Platform, OTT, Over the Top Content, OVP, Recommendation Engine, Search + Discovery, second screen, Smart TV, Social TV, Television, TV Everywhere, Video Streaming, Visual Unity Global, Return On Investment, ROI, Total Cost of Ownership, TCO
• Welcome to the sixth web seminar from our ’14 series. This presentation is the second of three, of our “Getting your ROI from Video Streaming series” web seminar, held at the end of July 2014.
• ?Check out other white papers, video presentations, and opinion pieces from my blog “Digital Video for a Digital Generation”: www.dusil.com
• ?Investing in video streaming services requires a solid understanding of the Return on Investment (ROI) for such a platform. In this presentation we breakdown the value proposition of Over the Top content (OTT) platforms, used to generate new revenue streams from entertainment assets. Understanding ROI, requires a breakdown of cost savings, new revenue streams, feature enhancements, and other intangible benefits. This web seminar looks into various aspects of content management, delivery and consumption, and how cloud-based services such as OTT not only generates new revenue streams, but also opens new doors to monetize entertainment libraries.
?Fear Uncertainty Doubt, 2nd Screen, Broadcast, Connected TV, Digital Rights, Digital Video, DRM, Gabriel Dusil, Internet Video, Linear Broadcast, Linear TV, Multi + screen, Multiscreen, Online Video Platform, OTT, Over the Top Content, OVP, Recommendation Engine, Search + Discovery, second screen, Smart TV, Social TV, Television, TV Everywhere, Video Streaming, Visual Unity Global, Return On Investment, ROI, Total Cost of Ownership, TCO
• We are proud to present to you our fifth web seminar from our ’14 series. This edition to the series is the first of three presentations from our “Getting your ROI from Video Streaming series” web seminar, held at the end of July 2014.
• ?Check out other white papers, video presentations, and opinion pieces from my blog “Digital Video for a Digital Generation”: www.dusil.com
• ?Investing in video streaming services requires a solid understanding of the Return on Investment (ROI) for such a platform. In this presentation we breakdown the value proposition of Over the Top content (OTT) platforms, used to generate new revenue streams from entertainment assets. Understanding ROI, requires a breakdown of cost savings, new revenue streams, feature enhancements, and other intangible benefits. This web seminar looks into various aspects of content management, delivery and consumption, and how cloud-based services such as OTT not only generates new revenue streams, but also opens new doors to monetize entertainment libraries.
?Fear Uncertainty Doubt, 2nd Screen, Broadcast, Connected TV, Digital Rights, Digital Video, DRM, Gabriel Dusil, Internet Video, Linear Broadcast, Linear TV, Multi + screen, Multiscreen, Online Video Platform, OTT, Over the Top Content, OVP, Recommendation Engine, Search + Discovery, second screen, Smart TV, Social TV, Television, TV Everywhere, Video Streaming, Visual Unity Global, Return On Investment, ROI, Total Cost of Ownership, TCO
• 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%!
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 (thank you email, v1.7)
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.
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.
• 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)
• 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.
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
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
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?
• 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
• 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).
• 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
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