22 TVBEurope Feature
niches for exploitation, including the opportunity to target a connected audience that extends beyond the confines of the household. Consumers will value simplicity and perceive value in a single service, combining content and services together.
Ericsson research suggests that the pay TV subscriber market will be worth $460 billion by 2020 — but that excludes factors such as advertising revenue, licensing, and merchandising. The opening up of the broadcast spectrum, coupled with competition within satellite and cable markets, has forced incumbents to evolve. Content owners and broadcasters will need to cooperate and engage with TV service provider aggregators as they focus on continued bundling of all related services such as broadband, telephone, TV and mobility. The TV industry players of 2020 can adopt multiple roles to best fit their competence and focus as they undertake a period of consolidation. The acceleration of broadband capacity and penetration, along with ever more connected devices, potentially enables a powerful device or social ecosystem to become an ultimate content aggregator.
Is digital transformation a danger for the separate components of converging industries? For instance, is the merging of the telecoms and media sectors a precursor to the collapse of one industry into the other, or the creation of a whole new ecosystem that forces companies to evolve away from their core competencies? There will be no collapse in terms of the industries. Rather than the ‘convergence’ of industries, we will see collaboration between the telecoms and media sectors and they will learn how to interact with one another in a far deeper way. It’s ultimately about the growth and spread of entertainment and information, enabling content to become a continuous viewing experience, alongside the management and distribution of various service offerings. In order to reduce complexity and rising costs, we will see these industries intertwine and cross-pollinate. Instead, the greatest challenges facing these industries will be the distribution of video/ TV in a fully connected (and predominantly IP) world. In order to serve a TV industry of over eight billion
Simon Frost
irrevocably transform video delivery; it will change the way consumers access content. By ensuring the efficient delivery of video over mobile networks, TV service providers will be able to maximise the revenue opportunities presented by the rapid evolution in media consumption. LTE will also transform mobile download consumer behaviour to always- accessible streaming behaviour. It’s also important to realise that our vision of what media may look like in 2020 will be guided by a number of variables and factors, including the individual country,
expectation that TV experiences can be discovered, interacted with and consumed on them.
Expanding on LTE Broadcast, what opportunities and challenges does it present to broadcasters?
“Thanks to the
connected mobile broadband subscriptions, with over 15 billion connected video devices plugged into a global IP network, the telecom industry will need to align itself accordingly. IP will become utterly essential for consumers and business; broadband access will help drive national economies and offer a level of connectivity which will enable a seamless transition between devices and the realisation of a true TV Anywhere world. If broadband providers (including telcos, cable operators and other ISPs) understand this opportunity, they will be able to focus on rebuilding their business model to become a critical consumer service, and leverage their capability and core competence towards the media industry and its core competence of great content. Cooperation between content owners, broadcasters and TV service providers will be key in this digital transformation. The industry will target the bundling of all related services such as broadband, TV, internet, telephone and mobility. Collaboration will be fundamental to driving the quality of experience that consumers expect; a service that will consist of easily accessible, interactive and compelling content, offered in a simple and engaging way. This means deeper engagement with content formats, the seamless addition of social networking sites and forums, the distribution of content on any network to any device and
becoming a more relevant and accessible proposition to the consumer.
Within a super-connected society, how will
technologies such as The Internet of Things, 5G and even wearable technology affect the production and consumption of broadcast media in the future? What are the main considerations today’s broadcasters need to bear in mind to adapt for the potential changes they bring? The term ‘The Internet of Things’ has been coined by many industry commentators to describe advanced connectivity of devices, systems and services that enable more than traditional machine- to-machine accessibility. However, our vision of the Networked Society, which was first launched in 2011, runs far deeper than that. As we move towards 2020, we see a world where everything that can benefit from being connected, is connected. The Networked Society will not only enable the use of machinery or devices, it will empower people, business and society, and enhance the overall quality of our lives. 5G will be a key component in enabling even greater consumer experiences and services, and will fuel even greater industry opportunity. However, we do not need to wait for the widespread deployment of 5G to enable the realisation of a TV Anywhere world. LTE and LTE Broadcast are the networks that will
LTE Broadcast enhances the powerful capability in LTE networks to deliver high quality video to ever more connected mobile devices with superior quality. It enables an unlimited number of users in the broadcast areas to receive popular content, ensuring a high quality user experience and efficient use of broadcast spectrum. It is also a far more cost-efficient solution
seismic change
in consumption models towards on-demand and multiple mobile devices, we will see the rapid adoption of IP to become the dominant delivery technology for video”
operator and audience
demographic. For some, the trends we’re outlining in our Media Vision 2020 project may happen much later but in a more mobile-centric way. Emerging markets will have significant differences in timing and will have to adopt their own unique approach. For instance, instead of investing in fixed broadband infrastructure, emerging markets will leverage their investment in mobility centric 3G networks and then LTE networks, having a far more mobile-broadband- specific way of delivering television content in all scenarios; for example, complimenting one-way delivery of TV content via satellite. With regard to wearable technology, many new
categories of devices will emerge on the road to 2020, highlighted by our vision of 50 billion connected devices. Of these, 15 billion will be video-enabled such as Google’s Glass, connected smart watches and connected white goods. All will drive a consumer demand and
www.tvbeurope.com June 2014
compared to unicast. However, these
two diverse capabilities can complement one another; broadcast enables scalability and cost optimisation, while unicasting offers a personalised service. Broadcasters commission and create some of the most popular content in any country and have largely defined the increases in quality of programming and video delivery. We have witnessed the quality evolution transition from black and white to 1080p, from analogue to digital, HD to (soon) 4K and linear broadcasting to on-demand libraries — all in just 50 years. This content is the most popular, and naturally demanded by consumers on all devices, at any time. While on-demand access via play services is rapidly meeting consumer needs, broadcasters’ most compelling content is often watched live, or scheduled — especially on mobile devices — as consumers make conscious decisions to watch in realtime, and increasingly engage with socially. LTE Broadcast opens up the
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