It Has Been a While – And Nothing Changed!


I have been away – (Seems quite a recent thing these days) – In fact I havent been in the TV space for some time, as I am now in the world of ‘Direct-to-Consumer Sport Streaming.’ Another mighty complex space that is unfolding as we look to bring new technologies and business models the market. This sector has more of a business model problem than it is does tech challenges. It is very exciting I must say.

Soooo … Did anything else change in our TV world? Not really! – Broadcom is suing Netflix for streaming patent abuse … ATSC3 is blighted by Patent $ demands. This is nothing new in our ‘bindustry.’ Content is more than ultra-fragmented – It has grown exponentially over the last few years and SVOD prices are rising – There is a modicum of consolidation, and many streaming giants are realizing that it is a costly business – HELLO! Life is expensive! My Cox bill was a horrendous $270 dollars last month (that is without all of the streaming services we add on top). Cord cutting can only be driven positively by this kind of situation. I hang on in here out of respect to my employee and the industry I represent. However, many people I know (within the industry) are cord cutting and password sharing – shooting their own businesses in the foot.

In a world of data, it, like software, only rises in bytes exponentially. Just look at any latest APP update and you will see 45MB-1GB of new data needed to make your apps work … Then you are required to stream additional operational and functional data into most of them for there to be any value. Costs to the consumer are rising exponentially. Meanwhile back in the bat cave …

AI popped up and we all went nuts for it. Hollywood went on strike because of it. TV shows ground to a halt in fear of it … AI didn’t fill the gap though – and it really can’t at this point. My one take is that Media and Entertainment is emotion and AI has none: end of story.

The industry invented some new acronyms and new people on LinkedIn are trying to make us believe that we have invented something new and amazing. The whole industry is pretending we are advancing when in fact we are going backwards – FAST! (That is the latest acronym for streaming linear Ad supported content.) Yawn!

The next thing will be someone will invent a better EPG (Programme Guide) and a UI/UX to improve the experience that is too much to scan through and nothing to watch … A system so we can filter the 1000s of channels into a manageable amount for human consumption … and then someone else fresh out of tech school will suggest we need ‘personalization’ and interactivity – maybe second screen synchronisation, and we will see everyone hop on the Merry-Go-Round once again.

Social Media is another train wreck. Nobody X’pected what happened. That will be a lead for another musing.

Alan Wolk has said it all so succinctly today and it leads me to think in TV we are now in the era of business models because we have all the tech in the world needed to deliver to anyone over any type of transmission and to any type of device – even the refrigerator:

“Rather than look to emphasize features that will benefit consumers, services all too often look to benefit advertisers or engineers. Apps—free and streaming—are designed in ways that make sense from a business perspective, but not from a consumer one.”

Until the next post – Hasta La Vista

TVANGELIST

The Pay-TV Industry’s Long Game


Let’s jump straight in. Linear TV is dead because online VOD services are what people want. This headline from 2014 was a typical attack on broadcasting –

“Netflix CEO says broadcast TV will be dead in 16 years.”

Just recently and six years into that prediction, Netflix started a LINEAR TV service akin to broadcast, online (in France). Streaming linear is now the norm for many online services. In the end, and to please most of the viewing population, you have to create small changes to existing habits and please as many people as possible with different access choices. I have discussed this often in previous posts. To gain volume viewership, you have to satisfy a vast demographic, and many people don’t want to spend 20 minutes searching for content, which is the norm in streaming – Linear is convenient and has been in the market using the good old EPG since 1981.

DAZN, who professed to be the new ‘Netflix of sport,’ talked about their LINEAR service offering just a few days ago in a conference and added insight into why they are signing up with Pay-TV Service providers. Their streaming dream and takeover of sports stuttered to a halt, exacerbated by COVID with the lack of live events. However, before COVID, DAZN was already struggling, and when the pandemic really hit, they immediately sought investors to shore up the company. The volte-face of the ‘Netflix of Sports’ and D2C disruptor was a pragmatic move and a strategy change needed to keep the DAZN legs pumping.

Broadcast TV isn’t dead nor dying; it is merely morphing and has another medium (the Internet) upon which it rides. Pay-TV is TV that you pay for but the phrase is often used to describe the traditional cable and satellite service bundles are now aggregating streaming service as channels or additional VOD stores. Its all going to look the same soon.

In fact in the USA the ATSC 3.0 NextgenTV will be an IP Stream over the air, which means that they will have the ability to offer streaming-like service. 5G will too look to be the new TV ‘high-speed-access-to-the-home.’ While all of this is good for consumers the business model of TV remains as complicated as ever – You have to pay for access to premium content (Pay-TV) – unless it is funded by another method such as advertising.

The difference today is that you can take as little or as much content as you want, depending on your budget (not necessarily desires). Consumers are simply giving up on certain pay-walled content or pirating it in this complex a la carte landscape. The technology boundaries are blurring – how long will it be before the subscription costs start blurring, and we have a market that levels out price-wise … not long methinks.

TV Fragmentation Reigns


Some years ago, it was plainly evident to anyone who has any common sense that the world of media and entertainment content would fragment. In the transition from broadcast to online, the opportunity seemed clear to content owners that a global reach for their content was as simple as putting it all online and direct-to-the-consumer. However, the business, at the time, just wasn’t ready for this and quite frankly still isn’t prepared to allow that to happen ‘carte-blanche.”

I wrote on this topic in 2009 and an update in 2012. It is now 2020, and content rights, geo-blocking, and market dynamics all inhibit the passage of content from broadcast to over the Internet worldwide. Like websites, there is a myriad of Apps all purporting to offer the same content, but in reality they do not. Still, the truth is that national, regional, and content licensing remains an industry sticking point – there is not going to be a central repository of content that we can dip in and out of.

Sports are the most affected in recent years and coming up against the complexity of the industry. Pay-TV has been able to keep sports as one of the mainstays of its premium tier offers and, in some instances, they offer less popular sports (lower tiers), often at odd times of the day i.e. not prime time. This causes a dilemma for these sports as they sign-up to broadcast deals (often behind pay-walls), limiting their rights to show the games on other platforms such as OTT in particular. Happy to be considered good enough for broadcast TV, but then caught in the mouth of the lion.

The industry adage of ‘What I Want – When I Want – Where I Want’ still cannot be satisfied. Content owners have fragmented or gone vertical, leaving the consumer foraging for certain content across all manner of locations. The costs are mounting up and the consumer is becoming disheartened.

On a recent weekend, I wanted to watch Wales against Scotland and saw that it was not on my NBC Sports Gold app. I quickly went hunting and could not find the match on any platform that I was subscribed to. How frustrating! Very, very disappointing! Even the pirate sites that I found were asking for money (naturally) so its not an option.

At home I have a Cox subscription (it wasn’t being shown on any channel) … I also have a NBC Sports Gold rugby pass but it didn’t show it, Netflix – don’t do sport – Hulu – don’t do sport – HBO Max – don’t do sport … then there is DAZN purported to be the Netflix of sports – don’t do International rugby in the USA – Rugby Pass – geo-blocked … #WTF what’s the point? I am feeling hard done by and frustrated. I am tempted towards piracy – it is cheap and is available. Doesn’t the industry understand that they have an issue?

I’ll keep up my hopes of getting – What I Want -When I Want – Where I Want, but I don’t think that will be for quite some time, if ever!

TV Middleware – The long and winding road.


cogs

The digital TV middleware/OS market has been in full and continued development since the early 1990s. For the last 28 years, the TV receiver software (digital) has remained a fundamental building block or foundation stone of Advanced Television Services. Middleware/OS continues to evoke strong opinion and is a much-maligned. Despite this, it remains firmly ensconced in the digital TV business, forming part of the DNA that is interactive digital television, whether we like it or not.

BTW: There is very little that has not already been tried in the TV domain and not a lot of ‘new’ inventions when it comes to the world of TV.

e.g. Voice made its debut back in the early 2000s. We laughed at it back then; now it is a must-have technology in a very packed content world. Gesture control came and went and now, according to many TV experts, it’s going to be micro-gesture going forward. There was face recognition capability, widgets, and Social Media on TV and good old 3D! Well, let’s not go there …

Along the digital TV software journey, there is one constant = the infamous middleware/OS, and we have seen many solutions come and go, with the resurrection of some technology blocks that were once tried, disliked and considered not fit for purpose. These solutions have a new lease on life now that the STB/CPE products have much faster chipsets and huge memory capability. Not to mention that the transmission medium, which has developed at an equally impressive rate allowing for the offsetting of services in a client-server arrangement. Flash, HTML, JavaScript, and Java are examples of once used, refused only to see a re-introduction into the TV landscape. Back in the 90s, a company called Liberate (part of Oracle) (Liberate Technologies: Taking Strange to New Levels, 2009) had championed an early web-like solution, only to see very expensive, clunky, slow, STBs that led to extremely dissatisfied customers. Flash for the STB/CPE came and went. We had Java as part of Open Standard initiatives right across the TV landscape but back then it didn’t manage to make enough headway to stick. Java is once again back under the umbrella of Android, with their 4th or 5th time out of the middleware/OS starting blocks. The finish line is a long way off before there can be a single winner declared. This is truly a long and winding road.

Here is a long and incomplete list:

  • powerTV
  • OpenTV Core
  • MediaHighway
  • MicrosoftTV
  • Liberate
  • NDS core
  • MHEG
  • DAVIC (MHEG + Java)
  • MHP
  • OCAP
  • ACAP
  • MHP-GEM
  • ARIB B23
  • JavaTV
  • EBIF
  • GINGA-J
  • ON-RAMP to OCAP
  • Various flavours of Linux Distee
  1. OpenTV 5
  2. Frog by Wyplay
  3. Espial
  4. Alticast
  • Boxee TV
  • Horizon TV
  • InView
  • Oregan
  • WebOS
  • Tizen
  • iOS
  • Tivo
  • FireTV
  • Roku Brightscript
  • Google TV
  • Android AOSP
  • RDK
  • Android TV
  • ATSC3.0

So what else do we have in store for the STB/CPE as we blend Broadcast & Internet and look to create new and exciting services for a future generation? Who knows where the digital TV middleware/OS industry will finally settle.

I just cancelled HULU


I just cancelled Hulu because the interface annoyed me and the content that appeared in my ‘TV Feed’ was not doing it for me. The Handmaiden’s tale was all that was of interest. However, this title is not worth 45 dollars a month.

We are being subjected to the BEST TV CONTENT we have ever had and the WORST TV Experience we have ever had.

Now I am having to Content Stack, Search and be on top of all the different content that is all over the place and that has become very tedious. The cognitive burden that the TV industry has put on me the consumer is really a sad indictment of the belief that we all actually know what we want to watch. We may do but we also need to know where to find it as it is generally spread on different services that require a subscription and a device. As far as silos are concerned – algorithms deciding on my content line-up has highlighted that my ‘TV Feed’ became very boring. Same-Same but really just the same.

TV is actually pushing people away. That is an odd way of doing business.

 

 

 

PLEASE STOP PREDICTING THE DEMISE OF TRADITIONAL TV – IT’S BORING!


tvoldHere we go again! … Old TV versus New TV … Because you can open a TV channel on the Internet you can make money and therefore traditional TV is dead!  Since the AWS announcement certain ‘TV Experts’ have declared it so.  There are so few people in the world that can predict the future (i.e. ZERO) but there are people who can look at the past and the present and then extrapolate ideas of how things MIGHT work out: Seldom are any of them right.

By the way, notwithstanding the progress of video content over the Internet (OTT) there is an abundance of closures:

Fullscreen, Afrostream, Sportflix, Go90, Vessel, SeeSo, Redbox Instant, Xbox Entertainment Studios, Samsung Video & Media Hub, Stickam, Flickr Video, Metacafe, Justin.tv, Veoh, Blip.tv, vidiLife

Can you make money in OTT Shelly Palmer? – You make it sound so easy … (Why not try starting a video business and see how it goes).  It’s OK here is someone who has done it: This is a real OTT story Afrostream Closes – This is an amazing insight into the $$$$$$$ that are needed to survive and it openly describes the full impact of what it takes.

If  a 2% Churn rate is an issue for a Pay-TV provider why is the following statistic not an issue to the on-line video businesses?

“OTT Churn Rates Pass 50%”

We do not know how this industry will pan out. Fragmentation, Churn, Net Neutrality, Content Investment and the Pay-TV businesses not just rolling over and dying is some, but not all of the things to be considered when predicting the future of TV … And touting Statistics does not make you an expert…

The rigours of life and television … is still the same as it ever was.


Let’s open with a quote from Colin Dixon’s (of NScreenMedia) well written article on TV viewing habits, where we are debating (in the comments) the merits of the small screen in the mix of viewing devices.  We all have our opinions on that.

On-demand, live, and online viewing peak at the same time

What is interesting and to me, and hardly a revelation, is that people all watch TV when they can or want to. It is generally around the same time, in the evening after work, after homework and after the kids bedtime (if you have some of course) – This is called PRIME TIME VIEWING – i.e. it is when you are most available to consume content uninterupted. So no matter where it comes from, Prime Time content is still Prime Time content.  The TV industry and ‘wannabee TV operators’ (i.e. Facebook, Twitter, Snapchat et al) think they can all have you as their sole Prime Time viewer…

I have covered this time and time again – Despite all of the content that is available, on all of the systems we have, we all have a limited window of time that we can offer this particular entertainment medium.  Most stats reveal that it is the same window of opportunity on a per country basis, which is enough for the news, a couple of TV shows and/or a film.  There is simply too much TV available today to fill everyone’s 15 years-of-lifetime-TV-viewing (yes we spend around 15 years of our lives in front of the TV).

Nothing new: Rebecca Lake a financial journalist from North Carolina – published this in 2015

What’s the most popular time of day for watching TV?
Prime time is when the majority of viewers are tuning in, with nearly 2 hours of daily TV watching taking place between 8 and 10 pm. Daytime TV airing between 11 am and 4 pm comes in second, with people watching about 1 hour and 40 minutes on average.

However when Robots take over our jobs we will have more time to watch much, much more .

The Reality of the Lazy TV Audience


So let me start with a few extracts from a blog piece that was written by Mr. Will McKinley a New York writer and author. Why? Well, I want this subject matter (Streaming versus Linear TV) to not be seen as my opinion (because I don’t have the clout when it comes to people taking note of what I say … But I do say things that other more famous people say, often way before them – Sometimes that is frustrating. Sometimes it reassuringly delights.)

I love the convenience of streaming. It’s thrilling to have easy access to every episode of shows (and movies) I love, and have loved for my entire life. But, in a landscape where there’s so much choice, having everything can almost feel like having nothing. There’s no call-to-action, no immediacy, no reason why I should watch one thing over another right now. But perhaps more importantly, there’s no shared experience…

But perhaps most importantly, a linear network means that someone else is doing the work for you. Because sometimes you just want to plop down on the couch and watch, not assemble your own custom lineup from across multiple streaming platforms (and I speak from experience, because I subscribe to pretty much all of them)…

Will on-demand streaming be a dominant force in TV? No doubt. In a sense, it already is. But creatively curated linear programming will always be an important option. They call TV viewers couch potatoes, not couch amateur TV executives for a very good reason. Never underestimate the laziness of the American public.

While this ‘Linear versus Streaming TV’ narrative plays out across the world, it was interesting to see at IBC 2016 show in Amsterdam that TV technologists can now introduce SVOD content into EPGs as if it were a Linear channel. There are also companies that will, for a small fee per annum, curate Free on-line programmes for you (e.g. Rabbit TV’s Freecast) so that you do not have to do the hard work of being your own amateur TV executive – Thank you, Will McKinley, for that expression, which I too have used in many previous articles to express the burden TV viewing is becoming.

Let’s not forget that TV, despite its modernisation, is a product that has to appeal to the masses. i.e. The old, not so old and the very young. I don’t like to use the term Millennials because they too will have life-events that will make them lazy couch potatoes. So as far as the majority of TV viewers is concerned, being entertained must not be hard work. So if TV streaming becomes the norm, we will be expected to be our own TV show curator, which means that we will end up stuck in a viewing rut, as our limited knowledge of what is available from the global pool of entertainment is limited by our ability to memorise the planet’s content. Yes, we are we now expected to take the cognitive burden of knowing what content is available from what provider and whether we have already seen it or not by having to dig through all the buried content.

Live broadcasts are also an opportunity to encourage sampling by channel-surfing new viewers, in a way that streaming will never offer.

I agree with Mr. McKinley when he says that we still need the lazy person’s option for a long time to come.