business today the future of broadcasting


After the hustle and bustle of Mobile World Congress, the marriage made in heaven that will surely be Microsoft’s union with Nokia, after the launch of the Xfinity app from Comcast, and following the launch of the iPlayer on the iPad and Android devices, the conclusion is clear: we are living in a multi-platform world. And that’s not to forget the advances that have been made in Connected TV, IPTV and, of course, OTT video. Joe O’Halloran reports.


All change I


n fact, and as is the wont of the broadcast technology industry, many are using the phrase trans- platform delivery to describe the current state of play. Yet as content is consumed in many more different places than before, it has to be said that the means of making money from content has received a lot less attention than the devices on to which content will be delivered. You’d expect that new platforms would generate a commensurate increase in the ways the business of broadcasting can be exploited. That is something of an assumption right now.


So what are the fundamental trends in broadcasting right now and what is driving the changing shape of the industry? Fundamentally the fundamental, so to speak, is connectivity. The rollout of high speed networks, both wired and wireless capable of supporting distributed communication of broadcast content, is the cornerstone of broadcasting in 2011 and, truth be told, has been for about 12 months or so. The key thing is that such networks are now more or less ubiquitous in the major markets of North America and Europe at least, with Asia catching up fast. Indeed research by RNCOS in January 2011 found that, as broadband proliferates across all regions in the next five years, there will be a commensurate rapid take up


6 l ibe l march/april 2011 l www.ibeweb.com


The next five years to 2016 will see global IPTV subscribers surpass 106 million users, expanding at a CAGR of around 24%. Connected TV is also very much on the rise.


in IPTV services. Specifically the analyst predicts that in the next five years to 2016, this uptake will see global IPTV subscribers surpass 106 million users, expanding at a CAGR of around 24%. Connected TV is also very much on the rise.


Also in January 2011, analyst DisplaySearch calculated that 21% of all TVs shipped in 2010 will have Internet connectivity, predicting in its Quarterly TV Design and Features Report that the rise of Connected TV in 2010 would act as the foundation of a quiet revolution in TV viewing. It estimated that the Connected TV sector would grow globally from just under 50 million units to over 122 million by 2014.


Niall Duffy, managing director of Mediasmiths, called the launch of Apple’s iPad a game changer in the way people are able to consume their media on-the-go. Since the iPad we have seen the tablet market boom with Samsung launching its Galaxy Tab before Christmas 2010 and many more technology manufacturers showcasing their latest devices at the recent CES show in Las Vegas. As a result of these developments we are starting to see broadcasters shift the way content is pushed out to consumers. The result of so many more platforms over mobile and fixed networks will likely be a huge spike in the entertainment content market. Futuresource Consulting believes that


online and mobile media were the growth engines for the entertainment content market in 2010, calculating that the market is likely to have been worth around $320 billion by the end of year. The analyst’s data showed that in 2010 the growth of consumer expenditure on online and mobile entertainment outstripped that for traditional packaged media, theatrical, cable and satellite TV, and surpassing even IPTV.


The industry seems to be rather taken by technology but this would be a mistake in business terms said Eric Elia, VP TV solutions for online video platform Brightcove, who painted a rather realistic picture of turning a buck from the new consumption methods. That is, things weren’t as easy as simply tapping into the demand - the players, especially those involved in content, may have not yet taken the plunge. He said: “Most of the big problems are not [related to] technology any more. The biggest thing holding back video, TV and film, is a lot of content still held up because of contractual issues and rights issues that are artificially restricting the amount of content that is made available. People will have tremendous choice and control and receive content from search and recommendation but we still see these restraining 10-20 year deals where content is restricted to certain devices and exclusivities.”


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