Do ISPs Understand The Nature Of Business?

I saw this interesting analysis of US data caps and whether they make sense to ISPs…

Of the 75 million broadband subscribers in the US around 42 million, or 56%, have some form of data cap in place from their internet service provider ISP according to data from Leichtman Research Group. However, despite all the negative publicity data caps affect less than 2% of customers of those using providers who enforce data caps. This begs the question: why would internet providers pursue a policy that is such a PR disaster? Which ISPs cap data, what are the caps, and what happens if you exceed the cap?

via Do Data Caps Make Good Business Sense for ISPs? | DSLReports.com, ISP Information.

I see nothing wrong with data caps as such (except when they are too low considering what is being paid – 2GB is criminal today) as a way of budgeting the cost of providing Internet service to heavy users but I do see everything wrong in the majority way that ISPs deal with the user when they go over the limit. Most ISPs I am aware of limit the Internet connectivity when you exceed the data cap. I don’t understand this and it shows a complete lack of business sense in the ISP. What is wrong with hitting the heavy user with a charge (again not too excessive please) for additional data that is commensurate with the original charge for the service? This makes business sense. When was the last time you heard a supermarket say no to you buying more beer? All ISPs should be using this as a business opportunity.

However the key phrase though is ‘not too excessive’. Charging £20 a month for 60GB and then £10 for each additional 5GB is not commensurate, that is punitive and it turning your customer away. It should be charge £20 for another 60GB. In addition this should be applied for both fixed and wireless broadband – I see no difference. This becomes particularly important as our usage increases through our access to online video services and I would like to see more ISPs get with the business thing.

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Memories of IBC2011

It has been over two weeks since my heady five days at the RAI in Amsterdam, the first without construction work for the first time in quite a few years. As always there was an awful lot of catching up with friends and ex-colleagues, but there was a serious amount of tech fun to see particularly around Halls 1, 2, 3, 4, 5, 6 and 13. If I was to sum it up in one sentence, I would say second screen and titchy high end STBs.

2011-09-12 11.50.582nd Screen was everywhere, with quite a bit being shown about how you can content from anywhere to anywhere which is certainly showing promise, with some of the demos even actually make use of content protection that content owners will accept. However more efforts are needed there to make this really mainstream, mostly from real world experience being fed back from those early deployments that are creeping out. I certainly am very optimistic that 2nd screen can make the jump from small operator to big during 2012.

It seemed like every STB maker was pushing new higher powered boxes, which are definitely needed to cope with the early signs of new UIs as people try to compete with the swooshing UI that is NDS’s Snowflake (shown in its V12 form this year). There was definitely much effort to try and move away from the simple Grid Guide, however it is still yet to proven that there is customer acceptance of these new approaches. Intel were also there with more examples of the use of their Atom derived chipsets certainly pushing the envelope in raw power to meet those demands, although there were definitely some awards to be given to some companies who were really making the best of the older chipsets.

There was also quite a bit of ‘Do you want to see our Android based box’, however I did not really see anything new in this respect as to be honest this is just another flavour of Linux with a Java based middleware on top with a UI that is generally not suited for being driven by a remote control. Some work to do with those between now and next September and STB makers need to be reminded that just because you can, does not mean you should.

2011-09-12 11.26.32There was one glaring fact though that was obvious to all, and reported in several places since then – the almost complete absence in the STB halls of 3D. Is this a clear sign of the sentiment that is coming through.. that 3D is not the draw for viewer eyeballs? Second screen has certainly blotted out the interest in 3D, and that is definitely a whole lot more desired by the customer, definitely more mainstream. There was a lot of 3D though in the Production halls but is that a sign that the ‘meh’ness of 3D just has not passed back up the content pipeline yet? 3D to me is the new Teletext – in every TV but used by a small minority of diehard viewers.

There was also a very positive sentiment with regard to business at IBC considering the economic situation, although to be honest IBC2008 was like that and just a few short weeks after that IBC the market dropped quite a bit for some months as the banks sorted themselves out and companies paused or dropped new projects until Q2 2009 came along. I hope that this does not happen this time and that between now and IBC2012, projects will continue to deliver new innovation into the viewers living room.

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Blackarrow Consulting at IBC2011

IBC has rolled round again and we will be enjoying the delights of the RAI – hot dogs and Coke Lite that are almost as expensive as Inkjet Printer Ink (that is the most expensive thing by volume on the planet I understand) – for the 14th year in a row, over the coming days starting today – 9th September and going through to the end. As for many it will be a hard work expo with quite a bit of networking with the aim of not expiring under the green bottles, and hitting those 9am and 10am meetings feeling refreshed (and not damp under rain). The weather forecast is mixed from warm days to rainy days… Amsterdam is always a little different.

The word on the street is that we will see ‘Cloud’ everywhere, whether it is content delivery or production, and quite a number of hybrid broadcast/IPTV and OTT solutions. We shall see really what that brings, and whether there is good business, poor business or pure hype.

If you want to meet up at all then feel free to tweet me at @iannock, and follow me there as I tweet the occasional on-the-spot experience from the show.

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Sony doubts Youview?

A very interesting post appeared on reghardware today

Sony will not support the UK’s would-be IPTV standard, YouView, the company’s UK chief has revealed.

via Sony says no to YouView • reghardware.

There are two points to this news. Firstly that ‘yet another CE vendor’ has made public pronouncements about their lack of faith in the old Canvas/now Youview project to deliver devices and software to provide OTT delivered services in the UK. Secondly, when did Sony actually make any supporting announcements about Youview? This news report is both interesting and not interesting because of this in ‘my view’.

This gives pause though to a few thoughts about Youview from the CE vendor perspective. The key thought is that Youview is a very parochial solution, very much more targeted to the UK than the standards promoted by DTG for Digital television in the UK in that, at least with some minor modification, you could deliver the UK specific features as a ‘bolt on’ to regionally or worldwide delivered TVs. Youview is an entire stack that is wholly different from Europe-wide/other region wide OTT/IPTV solutions, which would make it unpopular with all of the TV makers who want to make once, deliver in as many places as possible. CE vendors are more aligning themselves with approaches such as HbbTV, or the straightforward OTT solutions that are provided via Connected TVs, which work across whole regions and not just in one small island off the north coast of France.

So is it really any surprise that Sony have made this statement?

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Does the pipe really matter?

digitaltvEvery day and every week, people in the TV technology industry talk about Pay TV, Cable, Satellite, IPTV, OTT, Internet TV, Connected TV and all sorts of technical delivery platforms for content. We go to conferences about it where there is much discussion about how one is better than the other because of the special nuances of the particular delivery mechanism. It turns into a war between OTT and PayTV, between OTT and IPTV, between IPTV and Cable TV etc.

However the consumer point is being missed. They don’t actually care about the tech. They care about whether it has the content they want, whether it is cheap or expensive, how easy it is to use, whether they can have the content the way they want it, and all other sorts of usage related characteristics. They don’t care if it is IP packets, ATM packets, or MPEG2 packets. BSkyB is successful in the UK because it gets content to the customer in way that is not too uncomfortable, and not because of their Middleware solution or their return path tech, or their forward path capability or lack thereof. Without the content, then Sky would lose customers even with the best tech solution in the world.

Content solutions need to be the focus – we need to concentrate on that and not the tech. The tech is a means to an end for the majority of viewers and consumers out there, and we have forgotten that in the rush to new technology. It also helps that all those tech methods are now taking on very similar if not identical characteristics through hybridisation.

Is this the Emperor’s New Clothes moment?

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Bad puns and Seesaw

It is always sad to see a service that so many people I know have contributed to and created fail, even sadder when that failure could be seen from the very beginning (even before that). However, the failure of Seesaw now has many commentators talking about how it could have been a success.

The announcement that VOD service SeeSaw is set to close is something of a blow for on-demand television but one that could have been stopped if the service had been more open.

via SeeSaws walled garden approach was its failure, says Blinkx | News | TechRadar UK.

However what is more noticeable (as you can see towards the end of the article in the link), are the number of bad puns around the name… Even my own ‘It goes up and then down’.

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Connected TV World Summit and Awards

Ian NockIn the middle of next week (18/19 May 2011) I will be off to attend the Connected TV World Summit taking place at RIBA in London (http://connectedtvsummit.com/), along with two excellent breakfast briefings. This is a must-see event with the added bonus of the Connected TV Awards (http://connectedtvsummit.com/ctv-awards.html) on the evening of the 18th which is open even to those who are not paid up attendees at the summit, well worth it, and I have to say so myself because I have contributed to these awards which are recognising innovation and achievement in this rapidly growing segment of the TV business. That is an important point – this is about TV and its future, as the industry strips away the walls of the walled garden. Be there or…

… not be square. For those who are not attending this summit there is online streaming of the event which you just need to register for via the website.

If you specifically want to meet up, then drop me a line. Otherwise look out for me on the day.

UPDATED

Online streaming of the event is available for a reasonable fee.

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Digital Dividend… Analogue Waste

I saw the news cross my desk today about how Germany’s largest cable operators will not be turning off analogue any time soon.

Germanys largest cable operators want to continue offering their customers analogue television in the long run.

via German cable operators to retain analogue TV | News | Rapid TV News.

Now I know that they have political and marketing reasons for saying this, but personally I do think less of a company that continues with an inferior service. In fact they are ripe for competition to jump in with comparing them to being LP sellers in the world of CD, and also to sell to customers the obvious advantages of a digital product that is largely compatible with customers equipment now, or can be made compatible with the addition of low cost STBs or CI+ devices – the cost of which can largely be hidden from the end customer, and can be financed by upsell into pay packages. Analogue should not be kept alive… the movement to Digital should be sped up. It is a waste to keep Analogue running. However I will say that this works only as long as European operators refuse to do what they have done in the US – compress the hell out of the services so that Analogue is better quality.

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Google TV Updates

logitechrevueGoogle has gotten around to providing a much needed software update in the last couple of days, primarily focused on updating the Netflix app to something more akin to what every other box has. It also provides the remote control app and a few other fixes, but to be honest nothing groundshaking.

The area where they need something big is in the realm of content – they need to stop being blocked, and that is something that people are very silent on. At worst, they are frozen and do not know what to do and at best they are in the process of negotiation and simply have not arrived at a solution quickly. I believe and hope that it is the last option, and that this will all be solved prior to the proper launch into Europe. I am concerned that the launch into Europe will be done without the backing of content owners here, and will result in exactly the same treatment. I hope that Google have learned that it is all about content and not technology.

We shall see.

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Google TV–a lost opportunity

logitechrevueThe recent launch of Google TV via Sony TVs and Logitech Revue held much promise. A high performance product that would change the way TV is watched, particularly the fusion of OTT and standard TV services.

However the big missed opportunity is the level at which the product is being focused… at a high price (>$250) with expensive peripherals (keyboards costing >$130). Alternative products without the integration between broadcast TV and OTT come in at a much lower price point (between $70 and $100), so is the integration really worth $150? As long as we have both broadcast and OTT content there is a case but I myself do not value it that much even today. Once we have a blurring of content supply with OTT services taking off, with the possibility that 50% or more of content could be coming through OTT, with subscription TV services moving to a la carte content download and the cutting of the cord, then there is no justification for the price difference regardless of how much it actually costs to put such a product together. Ordinary people in the street just cannot justify the cost in my view.

Personally I believe people will be looking towards the Digital Media Players such as the Apple TV, the Roku and many of the others to give them the TV experience they want. I however will be looking at something with a lot more cost effectiveness, albeit with the need to be a home media network geek, with the use of mini PC screwed to the back of the TV for around $250 and with the capability to run a variety of UI options from Windows Media Center through to Boxee… and this gives me much more.

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