Videonet’s recent report – The Hybrid Platform Operator – highlights the market implications of the hybrid platform operator and explores the challenges in creating a unified service through multiple networks and devices.

Our last posting highlighted a Q&A with John Moulding, the author of the report, to discuss his perception of the pay-TV landscape. This posting recaps a conversation with Steve Christian, VP of Marketing at Verimatrix—one of our close technology partners—to get his perspective on this timely topic. Following is a transcript of the conversation.

Why do you think this report has been so well received?

SC: Pay-TV operators around the globe are rapidly deploying multi-network services to meet subscriber consumption patterns and enable lucrative new business models, presenting operators with many opportunities. However, creating and operating a multiscreen video service across different managed and unmanaged networks and devices is no easy task — even for the most innovative operator. Videonet’s report explores what a successful user experience looks like and offers operators practical guidance on how to best leverage hybrid networks — all very useful information for competitive pay-TV operators today.

What kinds of “hybrid” configurations are you seeing in the marketplace?
What are the challenges associated with deploying these types of networks?

SC: We are primarily seeing two types of hybrid network configurations:

• DVB-Hybrid – building on a largely unconnected client device base
• IP-Hybrid – based on a largely or fully connected client device base

Each configuration has its own challenges, ranging from mitigating risk to ensuring a consistent, high-quality user experience (UE) across all devices. These challenges are balanced, however, by the revenue opportunities and competitive advantages presented by the offer of compelling multiscreen services, which are inexorably becoming the new frontier in pay-TV competition.

Why is it important to have a harmonized security rights strategy across multiple networks and devices?

SC: Exploiting the benefits of a hybrid delivery system does not mean that operators forego the compelling advantages of an integrated consumer experience. And, because rights management can so easily corrode that service experience, having a robust multiscreen strategy is becoming increasingly important. It can be a critical competitive differentiator, especially in emerging markets.

Many operators are choosing to deploy cardless security solutions. Why is that and what are the benefits of such an approach?

SC: Cardless security solutions offers operators a range of cost and logistical benefits, including the ability to proactively upgrade client features and security on a routine basis using the network itself. The operator perspective on cardless security is well covered in our two recent white papers, Future of Cardless Broadcast Security and Cardless Content Security: The Smarter choice for Hybrid Networks.

We also consider that operators benefit in a transition to a cardless security solution by positioning themselves more directly to expand or upgrade for multi-network delivery. Deploying a unified cardless security solution to secure both live and interactive content delivery via single security headend will help reduce OPEX and CAPEX as operators expand their services.

What does the future of pay-TV look like to Verimatrix?

SC: The pay-TV landscape will continue to encompass an increasing number of device types and an evolving world of network configurations and delivery protocols. Taking a unified approach to managing and integration security will enhance operators’ ability to manage across these changes while also enhancing quality of experience QoE for its customers and accelerating the growth of new revenue streams based on this paradigm. Leveraging such an approach will help operators prepare for the future by extending the reach of their existing service offerings for increased revenue security.

Last month, Videonet released its report on The Hybrid Platform Operator, which looks at the market implications of the hybrid platform operator and considers the challenges in creating what should be a unified service through multiple networks and devices. Issues addressed include matching broadcast quality of experience (QoE) on streaming services, the user experience, integrating over-the-top (OTT) video into the set-top box (STB) offering, the role of adaptive bitrate STBs, and streaming versus broadcast.

Our partner, Verimatrix, had the pleasure of sitting down with John Moulding, the editor of the Videonet report, to discuss the evolution of hybrid network offerings, and the challenges facing hybrid operators today. Following is a transcript of the conversation.

VMX: How has the definition of a “hybrid network” evolved over the last couple of years? How would you define a hybrid network today?

JM: The most important change is that we have to account for OTT video services — including managed broadband delivery — now. When the industry started talking about “hybrid” it meant a DVB broadcast mechanism plus classic IPTV. An example of this is an IPTV service using their DSL network for video on demand (VOD), but the local DTT bouquet as the linear channel offering.

This kind of hybrid service is not that common but it is becoming more commonplace to see a broadcast service combined with OTT/broadband. An example of this is a satellite operator using their satellite DVB-S/S2 signals for linear TV and broadband to deliver VOD into IP-connected DVRs.

The really big change, now underway, is that even platform operators who already have a two-way network (like cable) are adding broadband/OTT delivery into their STBs to further enrich the service. Virgin Media in the UK is an example: they offer classic cable VOD, but they are also dedicating DOCSIS bandwidth to broadband video that is delivered into their TiVo DVRs. The broadband is used for catch-up TV, YouTube and for streaming video that is accessible via channel partner apps, among other things. So OTT is not just a way to enable two-way services, it is a way to enrich existing two-way services.

It is probably worth drawing a distinction between a hybrid service (what we would call a hybrid platform operator) and a hybrid network. There are some hybrid networks where an operator uses both cable and IPTV footprint to reach homes, but as a customer you only sit on one footprint or the other. To be defined (by us) as a hybrid service/operator, there needs to be more than one network input into the customer premise equipment.

VMX: What are the biggest challenges facing hybrid platform operators?

JM: If we are talking about OTT/broadband delivery as the second part of the “hybrid” (by far the most interesting version of hybrid today), a key challenge is to ensure that the services you offer via this “pipe” meet the high expectations that TV viewers have when turning on a STB. We are all used to television just working, for pictures to look great (especially if you get HDTV) and for them to remain consistent.

You need to ensure that the service blends easily into the overall television package, so that people can access streaming video (including catch-up TV) easily. This user experience is where platform operators can differentiate themselves from pure-play OTT services and smart TV vendors, so it should be (and is) a major focus area. And depending on what content you want to deliver via broadband, the content protection must be up to the job.

VMX: How can operators overcome these challenges and position their company for success?

JM: While operators might not be able to offer the same quality of experience (QoE) as classic TV today when using OTT, they must make that an ambition. Guaranteeing the bitrates for the OTT services is a good start and clearly the quality of the content delivery network (CDN) arrangements and video compression are going to impact what is possible within the bandwidth that is available.

The new generation of pay-TV platforms (e.g. Virgin Media TiVo) and indeed the next-generation free-to-air platforms (like YouView and Freesat’s in the UK) are all addressing the user experience (UEX) challenge. They are using backwards-facing electronic program guides (EPGs), Now/Next, Search and apps, etc. to help people find streamed on-demand content easily. There is a distinct feeling that all the content is in one place — and the source of the content is hidden.

When it comes to content protection, you need studio confidence in the quality of the digital rights management (DRM) implementations on broadband, and the best solutions seem to manage conditional access (CA) and DRM in one place and translate business rules into entitlements for multiple DRMs while removing most of the complexity from the platform operator. Unified content protection management becomes even more important once you start throwing in multiscreen services, which also use OTT and could well use the same video streaming that is delivered to a STB.

VMX: How can operators differentiate their pay-TV offerings from those of their competitors?

JM: When it comes to the broadcast/OTT hybrid, the most obvious way to differentiate is the addition of VOD and catch-up TV if you are currently relying on a one-way broadcast network, like satellite. This is a potential game-changer if you are in competition with two-way providers like cable and IPTV.

If there is a level playing field, in the sense that all providers now offer VOD (including any broadband delivered content) then you can differentiate by the volume and quality of the content available via OTT, whether that is the number of catch-up TV channels or the number of compelling content-rich apps.

The more important the OTT delivered content becomes to consumers (and catch-up TV, if nothing else, will ensure we do start to rely on it more) the more important QoE becomes. This can be a differentiator, assuming competitors neglect it, although there is clearly a point where ‘good enough is good enough’ and a triple-play consumer is not going to churn in order to get a 10% improvement in their catch-up picture quality. But if only one provider in a market can give you a reliable catch-up TV service on a 32-inch screen and everywhere else it pixelates, then this could be a competitive weapon.

VMX: What was the most surprising discovery when talking with industry experts for The Hybrid Platform Operator report?

JM: We have been excited about ‘Pay-TV Lite’ services since they started to appear. These are OTT bouquets offered by existing pay-TV operators and targeted at new homes, rather than existing subscribers. NOW TV from Sky in the UK is a great example, offering movies and sports on a per-month (and even per-day for sports) subscription basis.

One surprising insight was that in the U.S. a cable operator is looking to offer an OTT subset of its normal bouquet to persuade cord cutters to come back to them in some form, with the eventual aim of upselling them back to the full ‘traditional’ package. That means they will only use the Pay TV Lite service within their current footprint (because that is the only place you can offer the full package), even though you can, in theory, go off-net with OTT.

I was also surprised at how forthright Guy Bisson, Research Director for Television at IHS Screen Digest, was when he told us that Pay TV Lite platforms like NOW TV are a marker in the sand for pay-TV operators who are hedging their bets in case the world becomes increasingly OTT. We always thought these services were more than just a Netflix-busting movie service, but did not look upon them as a parallel platform that could accommodate an OTT migration.

I was also surprised by the amount of interest there apparently is in using IP/ABR-only (adaptive bit rate) STBs as the primary receive device in pay-TV homes. We were told about one cable operator that is looking to provide a replica cable TV offering via an ABR STB. Ironically this would take us beyond “hybrid” and back to a single delivery system into the customer premise equipment, only this time that single stream is going to be OTT/ABR rather than DVB-C, for example.

To view Videonet’s full report on The Hybrid Platform Operator, sponsored by Verimatrix and RGB Networks, please click here.

If you’ve been following us lately, you’ve probably already guessed that our big focus for this year’s NAB show is ‘Multiscreen 2.0’ and the array of solutions that we offer under this umbrella to help video service providers streamline and monetize their TV Everywhere and OTT offerings.

If you’re going to be in Las Vegas this week, stop by booth #SU5924 for demos of all of our latest and greatest solutions. Here’s a quick list of what you’ll see and you can read more details in this press release.

• High-Density Transcoding without Compromise: RGB’s new, carrier-class VMG Gen 2 performs the industry’s highest capacity real-time transcoding. Tightly integrated with RGB’s TransAct Packager for delivering live video services to any device, this unique pair can scale easily to meet growing demand for multiscreen services. Come see the pristine video quality achieved by the new platform, without compromise.
• nDVR and VOD for Multiscreen: Complementing our powerful live delivery solution, RGB offers a flexible set of options to meet a wide range of on-demand and time-shifting delivery needs. A demonstration will illustrate how RGB’s TransAct Packager and TransAct Encoder/Transcoder support a variety of VOD and nDVR applications.
• Multiscreen Monetization: RGB’s Ad Insertion for Multiscreen (AIM) solution enables VSPs to migrate to a proven model for monetizing video services to the multiscreen environment. RGB will demonstrate the VMG and TransAct Packager delivering three different targeted ads to three separate iPads inserted within the same linear feed.
• Adobe Primetime: As a key Adobe Primetime ecosystem partner, RGB will highlight its TransAct Packager performing Adobe HDS encapsulation. It also supports Adobe Primetime DRM encryption (formerly known as Adobe Access) for secure content delivery.
• Surround Sound for Multiscreen Ad Insertion: This audio demonstration will show the integration of Dolby® Digital Plus with RGB’s AIM ad insertion solution, performing seamless audio bitrate switching across network and ad content, allowing VSPs to deliver surround sound via various adaptive streaming protocols to any device.
• Audio Loudness Correction with DTS Technology: This demonstration will highlight how the DTS/RGB solution takes loudness correction to the next level, ensuring a premium audio experience across all IP devices—both large and small screen. Download this white paper for more information now >>
• OTT Swipe from Siemens: RGB will highlight an exciting new technology – OTT Swipe – developed by Siemens Convergence Creators. This web-based “swipe” technology allows users to quickly and easily move video content from a mobile device to a TV and back again with the swipe of a hand. Together with RGB’s multiscreen transcoding, packaging and ad insertion, VSPs can deliver an exceptional user experience to their subscribers. Come use the swipe technology yourself and learn about end-to-end multiscreen solutions, brought to you by Siemens.

We hope to see you in Las Vegas!

We’ve been touting the virtues of ‘Multiscreen 2.0’ for a while now. If you’re still not sure exactly what it is, please take a look at this video for a great explanation. Diving deeper into this next-generation solution, this posting highlights the first key component of a true next-gen multiscreen solution – high-density, high-capacity, highly scalable live transcoding.

As outlined in a recent report from TDG, live TV Everywhere services are critical in order for pay-TV operators to differentiate themselves from OTT competitors who only offer on-demand video viewing. The report states that approximately 61% of pay-TV subscribers are, to varying degrees, interested in signing up for live linear TV service for an additional $5 per month. While consumers are increasingly turning to their mobile and other connected devices for video services, clearly they aren’t willing to give up their live TV viewing.

Whether it’s sports (have you seen the record-breaking live streaming numbers for March Madness?), news, reality shows or just the latest crime drama that viewers don‘t want to miss while on the go, it’s evident that live multiscreen services are something operators should be focusing on, both to attract and retain subscribers, as well as to monetize services.

However, in order to support the delivery of a growing number of live channels to thousands, or possibly millions of subscribers, VSPs require a robust solution that can scale to meet demand without compromising on video quality. For just this reason, RGB Networks developed the Video Multiprocessing Gateway (VMG), a modular, carrier-class live transcoding platform that uniquely offers the density, capacity, scalability, flexibility and reliability to meet the challenges of delivering video in today’s multiscreen world. And today, we’ve introduced our second generation platform – the VMG Gen 2 – which more than doubles the transcoding density for live streaming applications without compromising on video quality.

If you’re heading to Las Vegas next week for NAB, stop by and see us at booth #SU5924 to see demonstration of the video quality from the VMG Gen2 and to learn how you can integrate the newest generation of IP video technology into your network, resulting in streamlined operations, lower expenditures, new sources of revenue, and most importantly, happy subscribers. And check back soon for more on Multiscreen 2.0.

At last week’s TV Connect show, RGB’s VP of Product Management, Nabil Kanaan, spoke with Digital TV Europe about ‘Multiscreen 2.0’ and how its next-generation innovations can solve challenges for video service providers as they look to deploy, expand, streamline and/or monetize their TV Everywhere or OTT services. Take a look at the video and let us know what you think.

Check back next week for more details on this topic. And if you’re attending the upcoming NAB show in Las Vegas, put us on your “must see” list of exhibitors to learn more about Multiscreen 2.0 straight from the source – you can find us at booth #SU5924.

At this year’s TV Connect (which you might remember as IP&TV World Forum), we’ll be showcasing RGB’s ‘Multiscreen 2.0’ solutions for delivery of advanced IP video services.

What is Multiscreen 2.0? Multiscreen 2.0 solutions enable video service providers to expand initial TV Everywhere capabilities with improved tools for efficient and effective delivery of live and on-demand video, and monetization of all multiscreen services.

The powerful combination of RGB’s VMG, TransAct Packager and TransAct Encoder/Transcoder (with critical SDI capabilities) enables key applications, including nDVR, targeted ad insertion and automatic loudness correction. Download these white papers now for more information:

• Comparing Just-in-Time Packaging with CDN Storage for VoD and nDVR Applications
• Meeting the Challenges of Video Advertising in an IP ABR Environment
• Loudness Correction in Compressed Streams

And don’t miss this new report from Videonet – read how some of the most advanced operators in Europe are deploying hybrid networks for delivering multiscreen/OTT alongside traditional pay-TV services.

To learn more about Multiscreen 2.0, click here to schedule a meeting at the show or just drop by stand #236 for demos and discussion. We look forward to seeing you in London!

And stay connected with us throughout the year – find us on LinkedIn, Twitter, Facebook and/or Google+!

With multiscreen TV Everywhere and OTT video services growing in popularity, adaptive streaming is a hot, hot topic. To help you sort out the differences between the various formats, we’ve assembled a list of past postings on the four major adaptive streaming protocols. Take a look and let us know in the comments if you have any questions.

• Mobile Video and Adaptive Streaming
• What is HTTP Live Streaming?
• Microsoft Smooth Streaming: What You Need to Know
• Adobe HTTP Dynamic Streaming (HDS): What You Need to Know
• MPEG DASH: The Newest Adaptive Streaming Protocol for IP Video
• WHITE PAPER: Comparing Adaptive HTTP Streaming Technologies
• VIDEO: Adaptive Streaming Leaders

If you find this information helpful, please share with your friends and colleagues using the social media sharing buttons at the top of this posting.

At this year’s CSTB show in Moscow, a hot topic will be the preparations being made for the distribution of next year’s Winter Olympics being held in Sochi, Russia. Last year’s London Olympics set a new standard for multiscreen distribution of The Games, so the local operators have a high standard to surpass.

One video service provider already well on their way is MegaFon – Russia’s second largest mobile operator. As outlined in yesterday’s press release, MegFon has deployed RGB’s Video Multiprocessing Gateway (VMG) and TransAct Packager to perform the transcoding and packaging for delivery of IP video services to iPhones®, iPads® and IP set-top boxes. They’re taking advantage of the high capacity of RGB’s solution, with an initial rollout of 130 channels, and soon they’ll capitalize of its flexibility by adding support for Android devices.

Further highlighting the activity in the region, MUX4, operated by Digital Broadcasting in the Czech Republic, is deploying both the VMG and RGB’s Broadcast Network Processor to grow their DVB-T MPEG-4 service. Take a look at the press release to learn more.

If you’re attending CSTB this week, come visit one of our reseller partners for more information on the next generation of multiscreen solutions: BCC booth #4.463, CTI booth #4.438, ISPA booth #4.460, Kontur-M booth #4.433 and Netris booth #4.468

Anyone in the video delivery business should be aware of the CALM Act – a US regulation that took effect in December and requires video service providers to take action against the very annoying practice of commercial volume exceeding that of the programming content. With the deadline now behind us, are you in compliance?

Responsibility falls on the video service provider to ensure that the loudness correction takes place. However, as all of us TV-watchers know, loud commercials are still a big problem. The good news for consumers is that they can now report violations to the FCC – and the service provider will face fines. So, if you haven’t done it already, it’s time to get that loudness correction solution in place!

To help with the problem, RGB just announced a joint solution with DTS – a leader in high-definition audio technology – that will not only ensure compliance with the CALM Act (and other similar regulations around the world), it also ensures that the subscriber’s listening experience isn’t degraded with overly aggressive loudness correction tactics. And the kicker is that it extends to the multiscreen environment.

Utilizing DTS Neural Loudness Control (NLC), RGB’s TransAct Encoder/Transcoder can now deliver a superior audio experience across multiple screens, while ensuring CALM Act compliance – a win-win!

For more details, download our white paper now: Loudness Correction in Compressed Streams: Solving loudness problems while maintaining a dynamic audio experience

Please get in touch if you have any questions or need additional information.

Propelled by the availability of low-cost, high-resolution connected devices, consumers have rapidly bypassed the ‘novelty’ phase of TV Everywhere turning acceptance into expectation. With the demand that any media should be available essentially on any device over any network connection, 2013 is going to be an exciting year for multiscreen!

Looking ahead, we here at RGB Networks have compiled the top 10 industry trends we see for 2013:

1. IP Video

Internet-based video consumption will continue to boom, driven by the proliferation and popularity of mobile devices and connected TVs and changing consumer habits. With more than 70 IP video customers worldwide, including three of the top MSOs in North America, our advancements in video processing technology are enabling video service providers (VSPs) to retain the competitive edge for the year ahead.

2. TV Everywhere Expansion

Significant broadcast events like the London 2012 Olympic Games have hammered home how imperative it is for providers to establish an all-encompassing TV Everywhere strategy that can deliver premium quality video content to a myriad of viewing devices. With many TV Everywhere rights deals negotiated in 2012, and certainly more to come, many hurdles to the deployment and expansion of TV Everywhere services have been removed. Over the next year, operators will therefore need intelligent, high-capacity and scalable solutions to begin or grow their delivery of content to a multitude of devices, which can equally address all related infrastructure and network issues while still keeping the balance sheet in check.

3. Streamlining and Cost Reduction

The need for streamlining operations and cuttings costs will be imperative in 2013 and as a result, integrated, scalable, future-proof solutions will be the focus of attention. In the quest to deliver content to any connected device, innovative adaptive streaming technologies like RGB’s just-in-time packaging – which can alleviate the challenges intrinsic to growing TV Everywhere services such as storage, bandwidth and other headaches – will be in high demand.

4. nDVR Services

Operators’ enthusiasm for nDVR will see significant growth over 2013, driven by the fact that it is a “sticky” service that can reduce subscriber churn, while also generating revenue from subscribers who might not otherwise pay for multiscreen services. With the development of integrated solutions to deliver on-demand services alongside live multiscreen video, operators will be able to meet subscriber demands and reap the benefits of IP video’s rapid evolution better than ever before.

5. Monetization

Content monetization through techniques such as targeted ad insertion will be a critical piece of the multiscreen puzzle in 2013. As the video delivery industry is busy keeping pace amid a landslide of changing consumer tastes and competitive positioning against pure OTT services, difficult questions concerning business cases and financial justification of multiscreen investments have come to the forefront. Coupling ad insertion with other revenue-generators such as nDVR services, as well as with cost reductions, VSPs will be looking for profitability in multiscreen this year.

6. Securing Content

As consumption of mobile video continues to grow, VSPs will increasingly require an access and rights management system that unifies revenue security for video services and prevents piracy of high-value video content delivered using adaptive HTTP streaming. Selecting the right streaming and security combination will enable providers to offer a richer consumer experience with more personalized choices in regards to content, time and place.

7.Multiscreen Ecosystem Partnering

As the multiscreen ecosystem expands to offer new services, strategic partnerships enabling integration with various market players such as ad decision systems, DRM and CDNs will be essential in adapting and thriving in a changed economic climate. We will see many multiscreen solution providers building sustainable and strategic partnerships over the next year to ease pressure on existing business models, further enhance technological offerings and help guarantee longevity of service.

8. Rise of the Second Screen

Social TV or second screen companion viewing is currently not only redefining how viewers engage with content, but also how they source and discover it. Presenting providers and advertisers with an unprecedented opportunity to engage and interact with their audiences, personalization of content and targeted ad insertion become two sides of the same coin for operators when endeavoring to capitalize on this trend for 2013.

9. Audio Regains Importance

High caliber audio is a cardinal ingredient in the consumer TV viewing experience. However, in recent years audio has taken a backseat to video as VSPs pushed to get basic multiscreen service offerings up and running. With 2013 being dubbed by many as a year of the “second wave” of adaptive bitrate delivery, audio has begun to enter the discussion again, primarily spurred by the CALM Act legislation in the US and other pending regulation around the world. In 2013 savvy VSPs will be turning their attention to implementing solutions capable of not only manipulating compressed streams in order to facilitate audio consistency and maintain industry compliance, but also to deliver a premium overall audio/video experience.

10. The Sum of it All: Multiscreen 2.0

Multiscreen 2.0 represents the next generation of TV Everywhere, consisting of a combination of solutions that enable operators to reduce costs and streamline operations in live, on-demand and time-shifted environments. This advancement of multiscreen technologies will facilitate the monetization of services across screens with hyper-targeted adaptive bitrate ad insertion, ensure the seamless delivery of premium audio across IP devices, and boost the multiscreen business case and return on investment.

Let us know in the comments below what trends you’re keeping your eye on for 2013. We look forward to sharing more on these topics in the weeks and months to come. Check back often, follow us through social media, and come see us at an upcoming trade show. Happy New Year!