Following our previous IBC Special blog post on whether the set-top box industry is heading towards its expiration date, we aptly move on to address another market trend that has long been at the center of a “will it, won’t it” debate – 3DTV.

At last year’s IBC, 3DTV was absolutely everywhere. The show floor was awash with 3D television sets, 3D demos and people wearing those crazy glasses to view content. A year on, 3DTV is an official IBC 2011 “hot topic” and has continued to dominate industry headlines, with businesses across all aspects of the industry still racing to get their 3D products to market. 3D content is still being released in abundance, from gaming to live television shows to big screen films.

However, despite all the hype surrounding 3D, there are still doubts as to whether a 3DTV business model is viable. The challenges associated with deploying bandwidth-hungry 3D services, including the cost and impact on the network infrastructure, can present one hurdle too many for providers in their endeavor to reconcile the consumer demand for low-cost and user-friendly content with their ability to supply a cost-efficient 3D service.

Indeed, there’s a distinct lack of evidence to support real-world success of 3DTV, and in the past two weeks alone, significant news stories seem to confirm that the expectations placed on 3D’s market potential are far from being realized. After only a year, AT&T recently dropped its flagship 3D sport channel – ESPN – citing cost of the service and low consumer demand. Two recent films relying on their 3D appeal to draw in audiences became the latest examples of how this selling-point may not be the savior of big screen revenues as had been touted. A study by Ofcom further demonstrates that 3DTV sales have barely taken off, with nearly ten times as many sales of connected TV sets for every 3DTV set sold in the UK over 2010.

Interestingly, along with 3DTV, connected TVs were also ubiquitous at last year’s IBC, making the multiscreen experience a key theme of 2010’s show. However, whereas multiscreen video services have seen significant uptake over the past year and are only continuing to grow – with connected device sales expected to rise 50% in 2012 – the build-up around 3DTV has only led to minimal returns for businesses.

It seems clear that the future lies in multiscreen services – but what do you think? Let us know!

Andy Salo, RGB’s new Director of Product Marketing, responsible for the TransAct product line acquired from RipCode, offers his perspective on last week’s IBC show.

From the perspective of a new kid on the block at RGB Networks, this year’s IBC was an outstanding event. So much is going on in the industry right now it’s hard to catch your breath. The official attendance topped out at over 48,000 people – the second highest ever. If you missed the show, here are some quick highlights:

1) 3D was everywhere. Clearly there is a lot of interest in 3D content development and delivery. RGB Networks did our part to show our wares with an amazing 3D video transcoding demo. We even managed not to lose our two pairs of expensive 3D glasses, which the accounting department is happy about.

2) We won a top award. Our VMG transcoding product was bestowed the ‘Best Digital Video Processing Technology’ award at the CSI Awards 2010. The runner’s up included Harmonic and Cisco. Not bad company to keep, much less beat. Marketing tells me this is actually the fourth first place award in a row for the VMG, so our customers must be on to something.

3) Over The Top (OTT) is buzzing. Everywhere you turned, there was new product, service, client player, set-top box, DRM provider, or partner integration that made delivering OTT and IPTV solutions easier. To that end, we had a lot of interest in our three screen delivery to mobile devices, where we demonstrated real-time video transcoding and adaptive streaming to iPads, iPhones, laptops and more. It was great to hear all of the questions and positive comments from customers.

What became clear among the big boys, and will be very interesting to watch over the next twelve months, is what is happening in the adaptive streaming space. Between Apple, Microsoft, and Adobe adaptive HTTP streaming protocols, it’s going to be a battle for mindshare and market share. Ease of DRM integration will likely play a huge role in who dominates. Microsoft appears to believe that. At IBC Microsoft demonstrated their PlayReady integration with IIS Media Server, which will be shipping soon and offered free of charge.

I’ll cover adaptive streaming more in later posts as there is a lot going on with that part of the industry.

No newcomer to the video industry, RGB’s VP of Product Marketing and Business Development, Ramin Farassat, has taken part in many developments over the years, but today’s market is seeing an exceptional number of transformations, each with its own challenges:

“Big changes are taking place in the way video is delivered by operators and how it is received by consumers—services have expanded beyond the television to desktop and mobile devices, and are increasingly being delivered over IP infrastructure. RGB is developing and delivering solutions that address the challenges presented by these changes, without requiring massive overhauls to existing infrastructure. We look forward to sharing our latest innovations for cost-effective video delivery to all devices at this year’s IBC.”

At IBC stand 4.B91 RGB Networks will be demonstrating multiple applications on its award-winning Video Multiprocessing Gateway (VMG), the industry’s most advanced video processing platform. The multi-function VMG enables video service providers to cost-effectively deliver services to their subscribers on any video-enabled device, and is the industry’s only platform capable of supporting ad insertion across all three screens using a proven ad ecosystem.

RGB’s stand will feature a live multi-screen solution, demonstrating how service providers can deliver content in MPEG-2 and MPEG-4/H.624 formats simultaneously to the TV, PC and mobile devices, including the iPhone and iPad. Attendees can learn the unique operational benefits of delivering three screen services utilizing the VMG’s high-performance, high-capacity and highly scalable platform. The demonstration will also highlight the VMG’s unique ad insertion capabilities, showing how providers can seamlessly extend their advertising strategies across all three screens.

Also at IBC, RGB Networks will demonstrate its 3D processing capabilities, showing how video service providers can deliver 3D content to the home in a bandwidth-efficient manner without compromising picture quality. Utilizing RGB’s VMG for transcoding 3D streams between MPEG-2 and H.264, Broadcast Network Processor (BNP) for broadcast statistical multiplexing and Dynamic Bandwidth Manager (DBM) for video-on-demand (VOD) statistical multiplexing, the demo will highlight how 3D content can be delivered alongside existing video services, allowing service providers to gradually and cost-effectively introduce 3D programming into their channel line-ups.

For free entry into IBC (including a five-day local travel pass), please click here and use customer ticket code 15307.