Componentised TV Services

A little under a month ago I started (but didn’t finish) a blog post about how the launch of Netflix in the UK (and the ready availability already of Lovefilm) created a special situation for the UK, caused by the quality of the Freeview/FreeSat platform. This situation was that it was perfectly possible to hand craft a decent linear, PVR and Premium content service without going anywhere near a Pay TV provider like BSkyB or Virgin. The threat of these component services towards BSkyB was palpable, with BSkyB’s advantage only being the availability of Premium Sports content and a limited number of channels only available on that platform like Sky One.

Various people have complained about the lack of content on Netflix and even Lovefilm but the content available compares fairly well to what is on Sky Movies and for the really premium content you could end up buying a DVD copy of the movie you want for almost the same price as the VoD version.

To me, I could get a very decent TV and Premium package for £250 (for the HD Freeview+ box with iPlayer) and £10 per month (if I took Netflix and Lovefilm at the same time via my ‘Connected TV’). This is the future, componentised TV services where you find and add the components to your package.

We can now see BSkyB’s response to that through the combined announcement of allowing non-Sky Broadband customers access to Sky Active+ and the announcement of the launch of an OTT service targeted at those customers who do not have a Sky TV Satellite subscription. This is initially a defensive measure but very clearly it moves to being an offensive measure to acquire more customers than they can reach via dishes (because so many people either do not want or cannot have the dish), and also a setup for Sky TV not caring about the delivery mechanism for its TV and dropping the association with Satellites. All they would need to do now is allow access to this OTT service from a Freeview STB (Picnic anyone?).

This is the key issue that should be taken away from all of this, the important thing for customers is content, not the way it is received. Sky are taking action here to ensure that all the obstacles to people paying for their (Sky’s) content are removed.

As for Youview, when and if it launches, this very clearly puts them at the back of the pack with very little to distinguish them in this setup.

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Google TV and 3D TV

The pre-CES announcements are coming thick and fast, and particularly interesting are the announcements around Google TV. Google are announcing that they have engaged with multiple parties in the delivery of Google TV integrated into TV sets, particularly LG and Samsung. Samsung was understood to be getting involved already last year, so they are not a surprise to now be involved.

Now cast your mind back to Le Web in December, and the following;

“By the summer of 2012, the majority of the televisions that you see in stores will have Google TV embedded in them,” Schmidt said.

And now you can see the root of his comment, that they have done the deals to get Google TV embedded with products from way over 50% of the TV market.

However that does not mean that customers will be buying TVs that contain Google TV – its usefulness is not proven even amongst the tech community, without going anywhere near ordinary consumers. Its biggest issue is still the same, what content can you access? where are the content deals? where is the content security support? Until they solve those issues then Google TV will, in my view, stay a novelty. It shares its problems with Connected TV sets overall to be honest, but those are somewhat further down the line to securing deals to have content from Netflix, Acetrax and Lovefilm on them generally. I look forward to the coming months to see how this will shape out.

And in keeping with its importance, we come to 3D TV… a postscript to real news. As we saw at the last IBC, 3D is notable by its huge absence, 3D is largely absent from CES. There is a lot to be said about it but in my view it comes down to this… 3D does not give a sufficient advantage to viewing content which people wish to view as it did not for cinema in the 1950s. Anyway, roll on the full CES next week and let us see what else comes out.

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Carrier IQ and STBs

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The furore around Carrier IQ’s diagnostic and usage logging on mobile phones is a salutory lesson for the TV operator industry about logging too much information and not informing the viewer sufficiently. What! I hear you say, usage is tracked on my STB? Of course it is tracked particularly on IPTV and OTT services, as you would see if you read the contract or AUP that you signed up for when you got the service. This is a very useful part of the service for the operator, that allows it to generate business intelligence about its service, the UI, the channels that are watched, the usage of trickplay etc, which as is my view of Carrier IQ, is not inherently bad in itself.

So where are the lessons? The first is making it more transparent and allowing it to be turned off…. If you don’t offer an Opt-Out then you surely are tempting the ire of your viewers. Operators should offer this option but rarely do.

The second is in the implementation, where many solutions track everything on the box right down to individual keypresses and UI state (yes, logging whether you are watching X-Factor or something less salubrious), and then post the whole thing up to the backend over unencrypted or poorly secured connectivity along with personally identifiable information. The backend solution is then responsible for anonymising the data. Solution providers for these solutions should offer the anonymisation and filtering down to the target data BEFORE it leaves the STB but many, if not most, do not.

Don’t get me wrong, these service providers almost certainly comply with the laws of their lands but once awareness of just how much information is tracked leaks out then they may experience their ‘Carrier IQ’ moment. So before TV services experience this, usage analysis and tracking solution providers and operators should clean up their acts before legislators and customers get involved, and way before operators deploy data centric services such as recommendations and personalisation.

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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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Content Protection in an Unmanaged World

Sometimes I see an article that has so spot on a set of messages, that you just have to draw attention to it…

Andrew Glasspool, Founder and Managing Partner at the business and technology consultancy firm Farncombe. “There is the potential for a train smash when Connected TV has become mass-market and you try to put really high value premium content on devices that are 2-3 years old,”

via Videonet – News and Analysis – Connected TV protection: heading for a train smash.

This is more than Connected TV in my view, as the article does say, this is about making available high value video and other content on any CE device, from Connected TV down to the simplest mobile phone. How do you keep it going? I believe device blacklisting is going to become much more prevalent, and very noticeable to the general public. Not just a train smash, more someone taking the line and bridge away under the train.

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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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Connected TV User Experience

One of the hidden features of Cable and Satellite TV networks and STBs has been the managed process of software upgrade that operators practice to give new features and fix bugs with the product. Certainly in Europe, the first time you know about the upgrade would be some sort of change in behaviour of the box with possibly some level of customer communications telling you about the new features. You may even note that the box has been rebooted.

The operator really makes use of this very heavily, and tries to ensure that they can provide new features and bug fixes on the STB hardware for three, five, or in the most extreme instance I have seen – ten years.

Connected TV suffers in this, Samsung being famous for the lack of software upgrades beyond 12 months even (specifically when they release 2007/2008/2009/2010 and now 2011 models of Connected TV, all of which are incompatible to greater or lesser extents). This is a key issue that Connected TV needs to deal with, primarily because customers are looking towards having their very expensive TV for 3, 5 or even 10 years, and customers want features to be added.

However, I did today think about another chink in their armour – the lack of OTA (Over The Air) or network based upgrades. This came up because of a Tweet from @samsungtweets:

Here’s how to update the firmware on your #Samsung TV easily and effectively:http://smsn.us/6011RyP9 #SamsungTips

When you dig through the multiple pages you find that the way to upgrade your fancy Samsung Connected TV is to download a file and put it on a memory stick and plug it into the TV with lots of arcane rituals to get the TV to upgrade.

That is an appalling user experience. If Connected TV is to take off, they need to take a page out of the MSO book with regard to feature and bug fix upgrades – it has to happen and it has to happen automatically without customer involvement.

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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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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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