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February 2017

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2017

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TV

Mobile prepares to change up a gear

csi-cover-February2017-V2.indd 1 09/02/2017 14:46:21

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September 2016

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TIB

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As close as it gets: Virtual Reality television

csi-cover-september2016.indd 1 23/08/2016 11:45:24

CSI magazine is now available as a digital-edition across all tablet and smart-phone devices

• Your window to the world of digital TV and media • Targeting top-level industry decision-makers • Independent news, insight and analysis• International coverage • Market trends

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June 2016

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Connected living:A look inside smart cities

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csi-cover-june2016.indd 1 23/05/2016 11:22:56

sign up to our free e-newsletters and CSI Magazine at www.csimagazine.com/csi/signupcsi.php

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digitalEditions-feb2017-204x271.indd 1 13/02/2017 11:12:25

Perspective Publishing3 London Wall BuildingsLondonEC2M 5PDwww.perspectivepublishing.com

Editor’s report:Shockwaves is perhaps too strong a word, but Sky certainly caused a stir with its announcement that it would deliver its full rostra of channels over fixed broadband (see page 5). SES, whose contract with Sky runs until mid-2022, subsequently played down the threat of OTT, and satellite delivery does indeed remain in rude health despite occasional harbingers of doom claiming to the contrary. While Sky’s plans, due to start in 2018, will

initially affect only a small percentage of its overall customer base, it can nonetheless be seen as something of a watershed in the move to all-IP. The industry has talked about this shift for a while and we are now seeing some very real and tangible action from operators. Of course, Sky is not just any old satellite TV company, but it is a big brand so as statements of intent go, it is certainly one to take note of moving forward. In the meantime, more and more people will keep streaming linear and on-demand TV across all platforms. Goran Nastic, editor

Contents

05 NewsThe latest industry news and analysis

10 Open source in TVHow is the use and proliferation of open source software and ways of working affecting innovation in the television industry?

13 Analyst corner Futuresource Consulting delves into the market opportunities for professional PTZ cameras

14 2017 trendsHDR, machine learning and live sports streaming are among the key trends we can expect to see this year

18 Security and geo-locationIP intelligence can restore the value of video-on-demand content, says our guest columnist

20 COVER STORY: 5GWe look at the business case for the upcoming mobile standard and the impact it might have on the media sector among others

24 Q&A: Level 3A chat with Jon Alexander, senior director, product management, about carrying more broadcast content over the company’s CDNs

27 The future of VoDIn the wake of some high profile service closures last year, what does the future hold for VoD platforms?

30 Artificial intelligenceA look at how AI is being applied in theory and practice in today’s media

33 Data corner Drilling into the numbers for EU quad-play bundles

34 Video optimisationOTT needs to implement further optimisation methods to thrive

36 CSI Awards 2017This year’s categories in full

38 Events diaryA list of some of the main industry shows

www.csimagazine.com February 2017 03

2017

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February 2017

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csi-cover-February2017-V2.indd 1 09/02/2017 14:46:21

EditorGoran Nastic

CommercialJohn Woods, Camilla Capece

Design and productionMatt Mills (Manager)Jessica HarringtonMatleena Lilja-Pelling

Regular contributorsAdrian Pennington, Philip Hunter,David Adams, Stephen Cousins, Anna Tobin, Chris Pickering

CirculationJoel Whitefoot AccountsMarilou Tait, Lynta Kamaray

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Printed by Buxton PressManaging DirectorJohn Woods

Publishing DirectorMark Evans

ISSN 1467-5935

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news in brief

Eutelsat closes on 1,000 HD channelsEutelsat broadcast 997 high

definition channels at the end of

last year, versus 757 a year earlier,

an increase of 32%. The

penetration of HD channels

stood at 15.7% compared to

12.6% a year earlier. HD

penetration at HOTBIRD stood

at 24%, up from 18% a year ago.

As the satellite operator notes

progress on ultra HD, it goes to

show how far UHD has to go to

match these rates. At 31

December 2016, the total number

of channels broadcast by Eutelsat

satellites stood at 6,339 up 5.6%

year-on-year. The number of

operational transponders rose by

58 to 1,326 year-on-year, mainly

due to the entry into service of

Eutelsat 36C, 9B and 65 West A

satellites. The fill rate stood at

70.9% compared to 73.9% a year

earlier, reflecting mainly the

impact of this new capacity.

Highlights include contracts

signed for in-flight Connectivity

for SAS and Finnair on KA-SAT

and for Saudi Arabian Airlines on

the HTS payload of Eutelsat 3B,

which is now fully leased.

EU content portabilityThe European Parliament and

European Union member states

have reached an agreement

on the European Commission’s

proposal to allow consumers

to use their subscriptions to

films and music services when

travelling within the EU, under

the same terms as at home.

The agreed text, part of the

Digital Single Market strategy,

must now be formally confirmed

by the Council of the EU and

the European Parliament.

Once adopted, the rules will

apply by the beginning

of 2018.

February was a busy month for

Sky, with some big

developments that point to the

future of TV from a delivery

and business perspective.

The European pay-TV

provider, which has 26m

subscribers across five

countries, will for the first

time make its full lineup of

270 channels available over IP

without the need for a satellite dish

in 2018.

CEO Jeremy Darroch said the

move would allow Sky to target up to

six million households across Europe

who cannot, or will not, have a

satellite dish. In the UK, where the

all-IPTV service will be rolled out

first, it could open up about 2m

homes in the UK for Sky to target.

“This is the first we have been able

to offer the full Sky TV service

without a satellite dish,” said

Darroch. “It is a big moment for the

business, building on our position as

Europe’s leading OTT provider.”

The broadband-based service

comes both as a response to

competitive pressures, but also

because of the benefits Sky stands

to gain by going all-IP, such as

flexibility, personalisation

and interactivity.

Sky is only dropping satellite

delivery, which has provided the

backbone for its business for 30

years, for some customers - those

with a new SkyQ box, which is in

some 600,000 homes.

In addition, although not specified

by the press release, it is likely that

Nokia’s Velocix CDN will act as the

main underlying architecture for the

new broadband TV service. Sky has

been migrating its VoD and OTT

customers onto Velocix over the

course of 2016, citing greater control

from moving away from third-party

global CDNs, and Nokia confirmed

it is in talks with the operator for its

plans in 2018.

Sky is high profile enough to make

this noteworthy, even though it is

very much a long-term game. As Eric

Beaudet, a satellite equity analyst at

Nataxis Securities, said in a research

note: “We do agree that, as fiber

expands, more and more people will

watch TV through a terrestrial

solution as it has an advantage

compared to satellite. On the other

hand, even with current ambitious

coverage plans by European telcos,

there will still remain 30/40% of

Europe will not have access to

DTT solutions with enough

bandwidth to view TV.”

Sky also caused a stir when a

dispute over carriage fees between

Sky and another big name,

Discovery Communications, went

public. Both companies used

customer interests as their motives

in the negotiations, which almost

saw the entire Discovery line-up

pulled from the Sky platform on

February 1.

Eventually, a last-minute

deal was reached that will see

Sky continue transmitting

Discovery’s portfolio of channels,

including Eurosport, in the UK

and Germany.

Sky claimed Discovery wanted

$1bn for channels that are losing

popularity, a figure that Discovery

subsequently denied.

Darroch told the media: “Their

main channel, Discovery, is down

by one-third over the last ten years.

In a world of so much choice, in

my view, this is where success is

going to lie. Because re-runs of

Animal Planet just aren’t going to

cut it any more, unfortunately.”

US cable operator Altice USA has

signed up Nagra as its main content

security provider for advanced new

services, in the process also giving it

greater choice of set-top box suppliers.

Nagra will provide Altice, the

country’s fourth largest cable

company, with the content protection

and innovation platform to enable

encryption and content security for

its HD and 4K offerings.

Nagra Connect, the converged

CAS/DRM protection solution,

together with the MediaLive platform

multiscreen video platform, will allow

Altice USA to deploy new IP- and

QAM-based content including 4K

Ultra HD. The security solution

offers CAS/DRM, multi-DRM and

forensic watermarking technologies

as well as anti-piracy and

cybersecurity services.

Through the use of advanced

encryption technology, Nagra said its

solution can efficiently coexist within

legacy US cable systems while

avoiding duplication of bandwidth.

Equally significantly, the deal will

also give Altice greater choice in

selecting set-top vendors.

“We have been impressed by the

flexibility NAGRA has shown in

adapting to US-specific

requirements in a short amount of

time, and this partnership will

enable us to design integrated

services to meet our customers’

expectations,” said Hakim

Boubazine, COO, Altice USA.

Sky, IP and the future of content

Nagra helps Altice USA open up, innovate

News

www.csimagazine.com February 2017 05

05news.indd 1 10/02/2017 15:42:25

news in brief

BT offers mesh WiFiUK telco BT has commercially

started to offer its meshed

wireless solution to customers in

order to enhance WiFi coverage

in the home. The telco claims it

is the first whole-home WiFi

system of its kind in the country.

The system, which costs £299.99,

consists of three small 165mm

repeater discs that are placed

around the home, each with four

dual-band antennas and a wired

Ethernet port. The ‘Whole Home

Wi-Fi’ solution eliminates

so-called dead spots around the

home that either have weak or no

wireless signal, believed to be

based on MediaTek’s adaptive

network technology. BT joins a

select group of payTV operators

deploying mesh WiFi.

News

Benchmark for video encoding ‘Cinescore’ is claimed to be the first

industry relevant benchmark for the

meaningful measurement of video

encoding performance.

Developed by Cinegy, Cinescore

is said to accurately benchmark a

wide range of commonly used

formats and codecs by measuring

the encoding speed and the load

that encoding places on a system

for different target resolutions, such

as SD, HD and UHD.

Cinescore uses a combination of

professional- quality codecs to

measure the encoding speed of a

system and determines a system

score. It provides a reliable

indication of how many channels

of a particular video format a given

machine can capture; how suitable

it is for HD or 4K editing; or what

transcode speed to expect from a

newly purchased server.

CPU-accelerated, graphic-

card equipped commodity

machines powered by Intel

processors are at the heart of

modern video and broadcast

systems. Yet it is still difficult

to quickly and accurately

measure any machine’s actual

video processing performance.

Cinegy co-founder and chief

technology officer Jan Weigner

said, “The industry has been

waiting for a tool like Cinescore,

which provides a simple way to

assess the video processing

performance of any given machine.

Although there are many benchmark

tools that provide general ideas of

system performance and comparison,

there have been none specifically

designed for the broadcast industry,

until now.”

• In related news, V-Nova has

acquired the global patent portfolio

of Faroudja Enterprises for an

undisclosed amount. The addition of

the Faroudja technology is expected

to further improve the efficiency of

V-Nova’s own Perseus compression

technology after tighter integration.

According to the companies,

Faroudja’s software has already been

demonstrated to provide a bitrate

reduction of 35-50% over an existing

compression technique.

30 May - 1 June 2017EXHIBITION & CONGRESS

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news in brief

Grand Tour a hit for AmazonIndependent figures reveal the

show swept the board versus

other titles viewed on the SVoD

service. It is also helping to

attract new subscribers to

Amazon’s UK video service.

According to GfK’s analysis, The

Grand Tour “drove spectacularly

into pole position” as the most

viewed title in both November

and December 2016, attracting

the biggest audience reach for an

Amazon show in the UK since

GfK’s tracking service began in

2015. Despite launching halfway

through the month, TGT became

the most streamed show on

Amazon in November 2016,

accounting for 8% of all the

streams watched. The following

month that increased to 17% of

all streams, well ahead of the

second placed title, The Man in

the High Castle, which attracted

9% of all streams viewed.

Interestingly, 45% of all Amazon

users in December watched at

least one episode of the

programme: the highest

proportion of unique viewers ever

recorded by GfK - not just for

Amazon, but also across all other

platforms captured by GfK’s

tracker in the UK, which includes

Netflix and NowTV. If this were

to be equated to actual viewer

numbers, GfK’s estimates would

put the total audience for TGT at

around 2.3 million viewers, a

figure slightly higher than the 2.1

million online adults recorded by

BARB as watching Game of

Thrones on Sky Atlantic during

the same time period.

Fell becomes WBU chairSimon Fell, director of the EBU

Technology and Innovation

Department, has been elected

chair of the World Broadcasting

Union’s Technical Committee.

08 February 2017 www.csimagazine.com

News

HbbTV issues streaming RFP The HbbTV Association has

announced a Request for Proposals

for the creation of a reference

application for online streaming of

DRM protected video to supported

televisions and set-top boxes.

Through this initiative, HbbTV

aims to make it easier for

broadcasters and content providers

to monetise content in the HbbTV

ecosystem by providing a known

working application with content

that they can use as a model for

their own services.

The Association said it has

approached DRM suppliers for

support on this project, as it does

not include specific DRM systems

in its specifications.

HbbTV is a global initiative

dedicated to providing an open

standard for the delivery of

broadcast and broadband services

through connected TVs and STBs.

The installed device base now

reaches 46 million of which a large

majority support DASH and DRM.

The commissioned reference

application will work on as much of

this installed base as possible, as well

as on HbbTV 2 products entering the

market in 2017, the group added.

Companies interested in

responding to the RfP can access it

at http://hbbtv.org/resource-

library/#current-rfi

• Meanwhile, a new specification

from AIMS is designed to make it

easier to create and change

connections between IP-enabled

devices, providing a common

upgrade path from SDI.

The Alliance for IP Media

Solutions has added the IS-04

specification to its roadmap.

According to the group, IS-04 will

bring critical uniformity to the use of

video, audio, and ancillary data on a

network of devices.

The specification is important

because it defines how IP-enabled

devices can discover each other and

connect compatible IP streams as

part of a workflow, it said.

Furthermore, IS-04 automates that

process, making discovery and

connection more fluid than in a

conventional SDI environment.

The membership agreed that a

common approach to managing

discovery and registration was

important, as such an approach

provides a clearly defined way for

SMPTE 2022-6- and SMPTE

2110-compliant devices to find and

connect to each other. This allows us

to leverage the benefits of IT and

networking technologies to create a

more flexible and scalable solution

than conventional SDI routing

systems will allow.

“IS-04 provides the next level of

interoperability beyond transporting

data. By adding it to our roadmap,

AIMS is not just advocating for

protocols related to video, audio, and

data transport, but for protocols that

determine how multivendor solutions

can create seamless interoperable

environments,” said Michael Cronk,

AIMS board chair.

Vizio fined for use of smart TV dataVizio, a manufacturer of smart TVs,

is found to have unlawfully tracked

viewing habits and sold it to

other companies.

The US Federal Trade

Commission said Vizio’s smart TV

technology had captured data on

what was being viewed on screen

and transmitted it to the company’s

servers. The FTC said data was then

sold to third parties.

Vizio has now agreed to pay

out $2.2m in order to settle

allegations, although it said the

data sent could not be matched up

to individuals, such as name or

contact information.

The practices challenged by the

government related only to the use

of viewing data in the ‘aggregate’ to

create summary reports measuring

viewing audiences or behaviours, the

company noted.

The FTC said the data collection

began in February 2014 and affected

around 11 million televisions.

“Vizio collected unique data from

each household with a Vizio smart

TV that included not only second-by-

second viewing information, but also

the household’s IP

address, nearby access

points, zip code, and

other information,” the

FTC said in a blog

post explaining

the settlement.

As part of the

settlement Vizio

agreed to more

prominently tell its

customers how data is

stored and collected, and to seek

firmer, clearer consent beforehand.

The company has been ordered to

delete the data it collected.

It is not the first time smart TVs

have been involved in illicit use of

data. Samsung and LG have raised

privacy concerns before with their

models, both in the US and Europe.

08_news_3.indd 1 10/02/2017 11:14:09

www.dvbworld.org

Speaker sessions include an impressive line-up of influential figures in the broadcast industry to update and inform on current work taking place in DVB as it engages in the ongoing development of UHD TV with HDR, HFR and Next Generation Audio; future transmission systems; reports from Study Mission Groups including Virtual Reality; and much more...

Lunches, coffee break sessions, a sightseeing tour of Vienna as well as a night out for dinner and celebration provide the opportunity to connect with other delegates, exchange ideas and explore new horizons.

Further information including the Conference Program, Virtual Reality Masterclass and Hotel Reservations is available on the DVB World 2017 website.

For Exhibition & Sponsorship opportunities please contact Désirée Gianetti: Tel: +41 22 717 2714 Email: [email protected]

Vienna13 - 15 MarchConference + Exhibition

2017

CSI 204 x 271 DVB World 2017.indd 1 28/11/2016 17:31:23

Open source software has been

gaining momentum across pay

TV and broadcasting, driven

partly by growing demand

from consumers for the same

kinds of apps, services and

experiences on TV they have

come to expect online and especially on mobile

devices. This is leading operators and therefore

their infrastructure providers towards the Android

TV OS in particular to gain access to the huge

community of developers around that platform,

which as a derivative of Linux is open source.

Indeed, a notable trend evident at IBC 2016

last year was a profusion of open source

developments, including software for set top

boxes. Among notable developments was

integration of Ericsson’s MediaFirst platform,

the multiscreen sequel of its Mediaroom, onto

the Android OS, as well as its alignment with

the “shared source” RDK. Shared source is a

hybrid where the software is owned by multiple

entities, with some of the same benefits and issues

as open source.

True open source software is available free with

access to the source code so that anyone can

make changes and enhancements. As such it is a

model for building, evolving and maintaining

software at all levels, including the OS,

components, tools and applications, as opposed

to proprietary software, which is under the

control of a single provider. Neither is inherently

superior to the other and operators should be

wary of jumping onto the open source bandwagon

for the sake of it. At the same time the open

source approach does bring some benefits,

including robustness, agility and speed of

innovation, in the right context. The main caveat

is that it does require resources and commitment

to work properly, which means that smaller

operators will require a trusted partner to make it

work, which could be a systems integrator or a

turnkey platform provider.

Client and server-side considerationsLike many recent developments in video

infrastructure, such as cloud computing and

software defined networks, open source has come

across from the enterprise IT world, where it has

a long history dating back to the 1950s when all

software was produced by academics. The modern

era perhaps began with the release in 1991 by

Linus Torvalds of the Linux operating system as

freely modifiable source code. Most recently open

source has proliferated in the era of the internet

in projects like Wikipedia as part of the broader

open collaboration movement.

Proponents argue that open source

development brings potential for greater agility

and faster innovation, because the resulting

software is the product of collaboration among a

large number of programmers. This same factor is

also held to increase reliability and robustness,

because the golden rule of software testing is that

errors and bugs can only be eliminated through

large scale exposure. By contrast developers of

proprietary software may be under commercial

pressure to prioritise new features over reliability

because that helps sell the products.

Critics contend that open source development

tends to favour technical innovation at the

expense of ease of use, which has to an extent

been born out in the enterprise IT world. While

Linux has had great impact on the server side for

corporate software such as finance and

manufacturing control with a move towards cloud

based open source components, there has been no

corresponding trend on the desktop front. This

reflects the challenge of getting to grips with

Linux and the inferiority of the associated user

interfaces, compared with the Windows or Apple

Mac OS X operating environments. This holds

also for applications, with the Microsoft Office

more polished and easier to use than open source

alternatives such as Apache OpenOffice.

This point is picked up by Andy Hooper, Vice

President, Software & Services, at Arris, who

argues that open source is unlikely to gain any

foothold on the client side of pay TV. “The UI is

too important for most pay TV operators and

hugely subjective in terms of design to the degree

that it would be near impossible to run as an open

Open source

The march towards open sourceOpen source can help boost TV innovation, but is not a panacea, says Philip Hunter

10 February 2017 www.csimagazine.com

“Operators should be wary of jumping onto the open source bandwagon for the sake of it.”

10-12_Open_Source.indd 2 13/02/2017 12:36:24

source project,” says Hooper.

On the server side the situation is more

nuanced but even there some operators would

continue preferring proprietary software. Most

larger operators at least regard their server-side

applications for payTV as highly important

strategic assets to be kept in-house and run either

on a private cloud or internal data centre, Hooper

adds. “In this context, open source selection by

operators can still play a role for some set of

server-side components. Equally, some server-side

platforms will continue to be serviced by

proprietary software solutions from a variety of

software and systems vendors.”

When it comes to underlying software

components and tools that are not sources of

differentiation and will be employed by many

operators the open source approach is tending to

win out, according to Fleming Lampi, Global

Product Director at ACCESS, a German-based

provider of software for TV services and the

connected home.

“Such open source software can be used as

applications and also components of proprietary

solutions to complement their core features,” says

Lampi. “Such software is under constant review

by the public, which allows the industry to rely on

its quality. Operators tend to prefer this as it

enables them to avoid long and costly

development and testing cycles on these building

blocks and to focus on their own developments

to provide a ready to market solution to the

general public.”

Hooper agrees that open source toolkits and

libraries were being used even on the UI and

client side, because they provided broad functions

embedded within the system, offering no

competitive advantage. In those cases open source

brought economies of scale.

DevOps and agilityWhen it comes to front line software for

functions such as the UI, personalisation and

recommendation, there can be tension between

the desire for differentiation and the need for

innovation, both of which are driven by

competitive pressures. Open source tends to

favour agility and rapid innovation but at the

cost of opening up to third parties including

potential competitors.

According to Lampi at ACCESS, the drive

for agility and rapid innovation is winning and

favouring open source increasingly. “We believe

that open source and standards are fundamental

for payTV innovation,” he says. “Today’s fast-

paced and highly competitive market needs

solutions that can be implemented in record

time frames and updated easily. Using open

source and standards-based software provided by

expert third parties is the best way for operators

to comply with demand for high quality,

consumer-friendly UI and services without having

to invest in support and maintenance teams.”

Lampi does agree, though, that the innovation

issue went deeper than the debate between open

source and proprietary software. “The key is

to remain relevant and to continue to provide

high value software solutions that easily plug

into existing infrastructure and workflows,

including content protection, search and

discovery, and connectivity.”

Others go further and argue that this debate is

a complete red herring and what matters is the

overall approach taken to software and project

development, not whether the components are

open source or proprietary. The key challenge is

to establish a software development pipeline that

enables the latest features to be delivered quickly

and at high quality, according to Roland Mestric,

Video Marketing Director at Nokia, which has

become one of the main players in TV

infrastructure through its EUR15.6 billion

acquisition of Alcatel-Lucent finally completed in

November 2016.

This can only be delivered by adopting DevOps

methods bringing together development and

operational teams, which enables software for new

features to be rolled out on a continuous basis

with much shorter lead times between

specification, deployment and testing.

“In order to deliver quality software into

production and support robustness, security and

performance, DevOps models are important,”

says Mestric. “This is true for pay-TV, where

delivering functionality at the expense of

robustness, security and performance is not an

option. Modern software delivery methods should

be adopted, such as CI/CD (Continuous

Integration/Continuous Development), where

continuous, iterative development underpinned

by automated testing raises the confidence of

software quality. Closer interworking between

Development teams and Operation teams

increases confidence further by supporting rapid

code delivery into production and rapid feedback

from production.”

Mestric regards the open source question as

orthogonal to this more fundamental issue of

development methodology. However, he does

acknowledge that the open source movement

has become an important source of software

that has a big role to play, but alongside

proprietary components and subject to the

same scrutiny. “Open source is important to

Nokia products and we leverage it extensively,”

he says.

“We also contribute to various projects and

leverage the wider benefits of being active

within the community. But for Pay TV, Open

Source is not the beginning and end of building

video delivery products. Nokia brings open

source and our own software development

together to the value required by pay TV

operators to support robustness, security

and performance.”

Mestric’s key point here is that open source

is not a panacea and all software needs to be

integrated into wider video delivery platforms

that provide a consistent experience,

incorporating a common platform for analytics,

monitoring, management, deployment, security,

Open source

www.csimagazine.com February 2017 11

“There can be tension between the desire for differentiation and the need for innovation.”

“But for payTV, open source is not the beginning and end of building video delivery products.”

10-12_Open_Source.indd 3 13/02/2017 12:40:34

performance modelling and device integration.

“These are all massively important factors

which enable Pay TV operators to more

seamlessly integrate our products into

their products and services, rather than having

to integrate multiple solutions themselves

in a multitude of different ways,”

said Mestric.

Costs and savingsKaltura is an open source advocate and the

company’s VP of Platform, Ecosystem and

Community, Zohar Babin, argues that it

brings benefits across the whole video lifecycle,

including the UI. He suggests that the inferiority

of some client or desktop open source projects

was a result of less commitment rather than

an underlying deficiency in the culture. “As a

counter example, look at WordPress, which is

the leading blogging platform by far,” notes

Babin. “I’d argue that it is the leader because

of its UX.” WordPress is open source.

Babin does agree though that open source

should not be adopted on the basis of expected

cost savings, which may come as a surprise to

those who believe that commonly touted headline

figure that it saves the world’s users $60 billion

a year. Babin’s point, which most in the field

would now agree with, is that when the ongoing

costs of software such as maintenance, support,

updating, customising and integrating with other

systems are taken into account, open source

will not necessarily yield any savings. “This is

not really the value that open source ever

brought to the table. It’s more about trust,

ecosystem and not being locked into black

boxes,” he says.

What about security?One final bone of contention relating to

open source is whether it improves or weakens

overall content security, with arguments in

both directions. The negative argument centres

around the fact that since the code is generally

openly available, pirates or hackers can readily

scout for vulnerabilities. But the counter

argument is that the weight of community

exposure will identify vulnerabilities and develop

fixes more quickly, shortening the window of

opportunity for attacks.

Babin is in the latter camp. “Yes, the

code is open, and thus security holes will

be found faster and more frequently, but at

the same time, these will be fixed faster and

more frequently. Another point is your own

ability to scan the software for these types of

risks and holes, which you can’t do with

proprietary software.”

Hooper from Arris espouses an increasingly

common view when he suggests that security

considerations have little bearing on whether

to adopt open source. “We would not cite

security in the case against open source,” he

says. “It is now very well established that in

this regard, open source has both strengths

and weaknesses when compared to closed,

proprietary software. Security is a much broader

issue and closed versus open source is just one

of many dynamics.”

The conclusion perhaps is that operators

should not be led towards open source in the

hope of enjoying immediate cost savings or

functional benefits. It should be just part of a

longer-term commitment to modern agile software

development methods that enable continuous

innovation but not at the expense of robustness

or security.

Open source

12 February 2017 www.csimagazine.com

The Netflix modelThe open source question can, however, be

shaded by the size of the operator, with the

very largest Tier 1s seeing it as a route to

innovation and competitive advantage, not just

for individual components or tools, but by

establishing a culture that attracts the best

people both internally and at a community

level for solving problems.

Netflix is notable for taking this route at an

early stage of its evolution and has singled out

its open source strategy as pivotal to its

success. Netflix embarked on this path by

becoming a major user of Apache licensed

open source software for a variety of

components. This included its data storage

solution based on the Apache Cassandra open

source database. That gave Netflix

programmers access to the Apache Software

Foundation, one of the world’s largest

decentralized open source community of

developers and enabled them to exploit

Amazon Web Services (AWS), which relies

heavily on this model. This led Netflix to

adopt AWS as its global cloud infrastructure

provider because it was deemed to provide the

greatest scale, broadest features set and

adequate redundancy. At the same time,

Netflix started to contribute fixes and also

extensions to Apache Cassandra, which as

Ruslan Meshenberg, Director, Cloud Platform

Engineering at Netflix, has explained in

various blogs, led to much deeper involvement

in the open source movement.

Since then Netflix has enjoyed the benefits

of being a producer as well as consumer of

open source projects, according to

Meshenberg, although by the very nature of

the movement the distinction between the two

can be blurred. Meshenberg has cited various

benefits for Netflix, including some derived

from improved community relations and peer

pressure. He reckons the quality of code and

documentation has improved because of the

latter, driving engineers almost as a matter of

pride to raise their game over these issues. He

also cited durability, which is perhaps one of

the more widely agreed benefits, in the belief

that code will improve over time if it is actively

developed by an open community and used

widely, rather than being maintained by a

small number of software engineers for a

single workload.

However, Meshenberg also made a point

that would chime with Nokia’s Mestric when

he conceded that open source projects would

only deliver high quality software when they

were well managed and involved good

engineers. Netflix has owned up to issues with

some of its own open source products, for

example, failure to make it clear when some

projects had been archived with active

maintenance ceasing, and generally not being

open about internal assessment of quality.

At least these deficiencies are being

remedied but this does highlight that open

source as well as proprietary software can fall

by the wayside of history and end up leaving

users adrift. Netflix has also admitted that it

has had to devote a lot of resources to its open

source programme to make it work, with the

obvious implication that this would be beyond

many other Tier 1 operators and certainly

smaller Tier 2s and Tier 3s. Those operators

are more likely to encounter open source

either through systems integration partners or

complete solution providers. Kaltura is

an example of the latter, offering a variety

of turnkey and integrated video

delivery platforms.

10-12_Open_Source.indd 4 13/02/2017 12:36:50

One of the uniting aspects

of most of the pro video

and AV industries is that

almost all end-users are

looking to cut costs

whilst at the same time

aspiring to do more with

the video format. This idea of doing more for less

has driven down price points significantly in the

pro camcorder market (a global figure of -28%

over the past five years) and has encouraged

people to consider alternative ways in which to

capture video.

Alternatives to pro camcorders include

DSLRs and CSCs, a trend which has been well

documented, but in the world of live video

production, the burgeoning professional (pan-tilt-

zoom) PTZ camera market is fulfilling

this function.

For instance, take broadcast, the origin of

professional video use. Traditional studio set-ups

require at least two or three cameras and their

camera operators as well as a camera controller in

the studio’s gallery. Use of comparatively

inexpensive PTZ cameras does away with the

need for camera operators, reducing the required

headcount for a three camera set up from four to

one. In a world where budgets are being squeezed,

this is a significant reduction in both CAPEX and

OPEX that is very appealing to some.

There are caveats to this of course: PTZ

cameras can’t yet match the image quality of 2/3”

sensor studio cameras and they can only be used

in non-dynamic environments where the action is

pedestrian. PTZ cameras are therefore better

suited to static studio set-ups (interviews, news or

cooking shows for example) than fast moving

sports. Because of this, reality TV is another key

application, for example the UK production of

reality staple ‘Big Brother’ uses 55 high-end PTZ

cameras controlled by just one operator.

Away from broadcast, the video conferencing

market is going from strength-to-strength, partly

due to the cost savings derived from people being

able to communicate face-to-face without the

expense of traveling.

Another way broadcast is starting to save

money by using PTZ cameras is through remote

production. Where small, satellite studios are

required, PTZ cameras (along with other

production equipment) can be operated remotely,

requiring no on-site staff. This is perfect for

locations that often require people to be

interviewed, but don’t warrant investment in a full

stand-alone studio - financial districts for example.

Aside from cost savings, another point key to

the growth of the PTZ camera market has simply

been the emergence of video as a central part of

modern life. The dominance of the internet in our

lives and increasing broadband speeds has meant

that video is now everywhere. Smart phones and

tablets mean that video content is always at arm’s

reach, websites are now almost expected to feature

video in some way and video-based display

signage is ubiquitous, we can rarely escape video.

It follows therefore that the use of video is

growing fast outside of the world of broadcast.

Video hasn’t been the exclusive preserve of

broadcast for at least 10 years now, but its use

in a whole variety of applications is now being

accelerated by this wider

cultural phenomenon.

In addition to video

conferencing, other markets for

PTZ cameras include internal

corporate communications,

education, houses of worship,

government and military as well as

medical, event venues and stadiums.

Some of these applications use PTZ

cameras due to their low cost and

comparative simplicity (they are

often seen as “fire and forget” in

terms of installation) while others such as

education, stadiums and houses of worship

use them because they can be mounted out of

the way on ceilings or high on walls and

controlled remotely.

The education market in particular is extremely

interesting in its use of PTZ cameras and is a

good example of the cultural encroachment of

video. While PTZ cameras are used to record

lectures or lessons for students to catch up on

later or for teacher assessment, the cameras come

into their own in this environment when distance

learning is considered. Massive Open Online

Courses (MOOCS), typically fielded by

technology companies rather than educational

establishments, are forcing some of the world’s

leading universities to change their business

models. The ability to distribute videos of

lectures, whether recorded or live, gives

universities valuable assets that can be monetised

without geographical boundaries. PTZ cameras

are at the heart of this trend and are allowing

traditional higher-education establishments to

compete in this new market.

Considering all of these factors, the PTZ

camera market is growing in volume terms, with

49% growth expected between 2016 and 2021.

Although much of the 103,000 units shipped in

2016* were accounted for by comparatively

inexpensive products used extensively in video

conferencing, most volume growth over the next

five years will be found in the $2,000-$3,500

segment as more quality conscious markets grow

in importance. This means that despite significant

price erosion, the shift in product mix will allow

for a 27% growth in value over the same time

period, up from $220 million in 2016 (note that

as the report was completed before the end of

2016, full 2016 data was forecasted based on

vendor feedback). Futuresource’s 2016

Professional PTZ Camera Market Overview

Report was published in December 2016 and is

available at the Futuresource website.

Professional PTZ cameras A market full of opportunities

Adam Cox is senior analyst, broadcast & professional video equipment, futuresource

Analyst corner

www.csimagazine.com February 2017 13

13_Analyst_Column.indd 2 10/02/2017 11:59:15

The Guardian newspaper hailed

2016 as the year that TV

streaming finally came of age,

pointing to the number of

popular ‘must-see’ shows that

made the move from terrestrial

onto SVoD platforms.

Most notably these were The Crown, Stranger

Things and The Grand Tour on Netflix and

Amazon. The BBC, meanwhile, experimented

with showing some programmes on its online-only

BBC3 channel, as well as iPlayer exclusives. Sky is

similarly pushing to original content – and not

just expensive sports either.

In terms of multi-device viewing and self-

scheduling, the paper said “2016 was the year the

revolution finally happened. We will never look at

television the same way again.”

This sets the backdrop to our predictions for

2017. Of course, OTT will continue its march but

there is a lot more innovation to look forward to

in other areas.

1. Ultra HD with HDRIn the fast paced world of technology, neither

UHD nor HDR are that new anymore, but we

should start to see some concrete deployments

from broadcasters and payTV operators

throughout this year, following approval of the

HDR specs by leading standards organisations. In

parallel, wider 4k delivery will also happen while

in some cases a combination of 1080p with HDR

can deliver a better viewing experience.

“The majority of activity we’ve seen so far has

been in the growth of devices supporting UHD,

rather than UHD content,” notes Matthew

Huntington, CTO, Freesat. “In 2017 I believe we

will see rapid growth in UHD content production,

including HDR as the format of choice for high-

end production. What is clear is that content

production and new UHD broadcast services will

move directly to UHD with HDR.”

Huntington similarly thinks 2017 will become

the year that standard definition becomes

unacceptable for the majority of consumers with

access to a HD service, requiring vendors,

broadcasters and operators to provide services in

HD at the very least, if not UHD.

“HDR will become a growing consideration

in the market, with 4k/HDR probably the new

high-end standard for people to aspire to and

broadcasters to aim at,” agrees Jonathan

Berman at MX1.

Harmonic’s Ian Trow is more cautious. He

thinks that UHD HDR is going to be limited to

proof of concept, with a few operators delivering

HDR to a limited set of screens. This is due to

limiting factors including screen availability and

lack of an end-to-end production workflow.

“Once there is an established solution for

delivering UHD to SDR legacy screen sets and a

complete production and distribution workflow,

UHD HDR will really take off. Expect to see

UHD HDR deployed to the masses toward the

end of 2017 and early 2018,” says Throw.

As Ravi Kumar Palepu of VirtusaPolaris notes,

though the network technologies to deliver 4k

UHD are already present, the bandwidth to

deliver 4k is not available in every household.

“In 2017, we’ll witness the real test for content

delivery, as providers try to adapt to the 4k

boom and start delivering far richer content on

a massive scale.”

While much of this will still be of the

on-demand variety, John Bishop, CTO for Media

at Akamai Technologies, anticipates seeing more

live events being streamed in 4k over the public

Internet as well.

As the costs incurred to create and deliver this

pixel-rich content are higher, however, the

availability of cost-effective solutions is paramount

to the success of UHD content creation for

content players, and its concurrent adoption by

consumers, argues Ian Finch of Simplestream.

2. From big data to machine learning/artificial intelligenceBig data analysis is now big business, which

operators are trying to get to better grips with.

Netflix has set something of a data analytics

benchmark in the digital entertainment space,

acquiring and presenting content to individuals

profiles based on sophisticated algorithms.

But making use of and deriving true business

value from all the massive data collecting

capabilities that today’s digital entertainment

networks have at their disposal still remains “quite

a tough nut to crack”, acknowledges Kai-Christian

Borchers at 3 Screen Solutions (3SS). “We

foresee that in 2017 and beyond the secret recipe

will begin to become clearer. The mystery behind

big data alchemy will begin to dissipate.”

Good news, then, for solutions with advanced

analytics capabilities. Viaccess-Orca believes that

data analytics will be a game-changer in the

payTV environment from this year, especially for

OTT. Utilising data related to the television

subscriber profile, operators can provide

contextually relevant content and ads, increase

satisfaction with the service, boost content

efficiency, and prevent piracy.

“Regardless of whether you’re an advertiser,

broadcaster or platform operator, everyone will be

2017 trends

Future imperfectFrom VR to micro-services, CSI looks at what lies in store for the industry this year

14 February 2017 www.csimagazine.com

14-16_trends.indd 2 06/02/2017 16:05:34

looking for ways to better understand their

audiences and viewers. By bringing together rich

and broad datasets the industry will be able to

gather greater insight into TV viewing behaviour.

We will see organisations begin to capture and

use data that will enable them to do so,”

adds Freesat’s Huntington.

Slightly longer term, he sees census-level

audience data emerging in years to come become

a staple ingredient in delivering compelling TV to

viewers for all parties in the TV value chain.

Beyond big data, there is a lot of excitement

about the potential for machine intelligence and

machine learning to transform networks into

smart and proactive ones that offer better service

delivery and personalised customer experiences.

“When algorithms become more sophisticated

and become AI assisted, we will start to get

dynamic scheduling where content in segment 34

is determined by the combination of the choice of

content in segments 23 and 25, for example,” says

Craig Moehl, Groovy Gecko. “So the scheduler

has a rough idea of the program stream and the

users pull the active and passive content via

replacement in real-time. The short term gains

will be massive surges in CPMs but the longer

term there will be increased value in brand loyalty,

helping to build small niche communities

(gaming, amateur architects and small space /

shed lovers for example).”

Guavus sees service providers leveraging

machine intelligence for smarter networks and

automation to improve customer experience.

“This will manifest itself with CSPs adopting

analytics solutions that can embed machine

intelligence into operations fabric, automating

decision cycles and preventing customer affecting

issues,” reckons Chris Menier.

For organisations looking to provide rich

experiences to their customers while still

maintaining profitability, automation is the only

answer, agrees Brite:Bill’s Alan Coleman.

Machine learning enables the system to

understand that an interaction is needed to avoid

the next step and artificial intellignece can be

applied to determine the right response given the

previously learnt preferences of the customer.

3. VR/AR & 360 videoIt will be interesting to see how Virtual Reality

evolves and whether it will bridge the gap to the

mass market or instead become simply more

established with the gaming community. While

the focus is on gaming, there have been some

successful examples of VR VoD content being

streamed to PlayStation, so others may follow.

If nothing else, we can safely assume that

broadcasters will experiment more with delivering

virtual reality content, particularly around live

events. Whereas Akamai helped deliver roughly

two or three VR events per month during 2016,

the CDN company expects to do around ten a

month during 2017.

As Accedo points out, VR is just in the

beginning of the hype curve and we will see many

failed attempts in this market. It may take another

five or six years before technology has matured.

Again, as with UHD, VR may suffer from

bandwidth constraints. “As more people look to

adopt it – or even just try it out – the challenge of

distributing content that essentially requires 16

times more bandwidth is more evident,” says

Edgeware CEO Joachim Roos.

In parallel, we will likely see more 360 content

emerging, which can be viewed on a standard

device, but giving consumers some of the benefits

of VR, meaning they can move the view around to

get a different camera angle.

According to Kaltura’s Iddo Shai, this may be

the year in which we finally get to judge for

ourselves if the mixed reality headset that Magic

Leap has been working on is as great as all the

initial reviews by the tech geeks who have had

an early look. He also thinks the iPhone 8 will

need to deliver something really spectacular and

that thing may be a new Mixed Reality and

Virtual Reality technology. “Those technologies,

along with Google’s DayDream and Samsung’s

GearVR, will make video in VR even more

exciting and valuable in ways that we are only

now starting to realise.”

Ultimately, Viaccess-Orca believes that the true

potential of VR technology will be unlocked when

it’s combined with UHD.

4. Live sports streamingLive sports streaming is on the rise, as the

2016 European Championship saw record views

over OTT platforms, as did other big events

like the Olympics.

While live sport has always been considered by

broadcasting companies to be the lynchpin of live

TV, new studies have suggested that they don’t

have the same appeal to the younger generation.

As young people seem to be watching less live

sport, broadcasters need to find better ways of

engaging them and making sport content more

relevant to them.

One sports body trying to combat this change

in behaviour is the NBA, points out Tom Williams

at Ostmodern, who says last year saw the

basketball association move to a new content

distribution model, as they look to social media

and other channels to give millennials short,

‘snackable’ content in places that already capture

their attention (see also Facebook Live, below).

“Broadcasters/content creators will have to

fiercely adapt to accommodate how young people

view sports. They will be much more creative

about how they deliver first and second screen

experiences, and combine these with social, for

young people,” says Willaims.

Another is the rise of eSports video content,

which has, to date, been dominant on free

platforms like YouTube and Twitch. As e-sports

continue to surge in popularity, premium services

with advanced UX will become increasingly viable

options to reach those hungry fans 24/7, notes

Simplestream’s Dan Finch. Moreorver, he thinks

OTT TV offerings present the most promise for

effectively hosting 24/7 eSports channels.

“The future lies in adding eSports channels to

alternative TV packages that live stream over-the-

top and offer a growing range of niche sports

content from around the world – think

skateboarding, surfing and darts. These packages

could enable eSports fans to justify the cost of

premium, 24/7 gaming content that includes

access to a selection of other channels without

the burden of locking into a fixed-term contract.”

Harrie Tholen of NexGuard sees premium live

sports remaining the top driver of subscriber

attraction and retention for pay TV operators.

2017 trends

www.csimagazine.com February 2017 15

“Broadcasters/content creators will have to fiercely adapt to accommodate how young people view sports.”

14-16_trends.indd 3 06/02/2017 16:05:41

And demand for online access through fixed and

mobile devices will only continue to encourage

operators to make live content available across

multiple platforms.

5. More Live OTT: part IIMuch of online viewing has been on-demand but

Per Lindgren at Net Insight believes that live will

be a strong focus in OTT in 2017.

According to Lindgren, there will be an

increased focus on low delay in live streaming and

screen synchronisation. For the first time live

television will be harmonised across all screens,

enabling new features to be applied to a

complementary second screen and provide

unprecedented viewing experiences that will

induce new business models to accommodate the

changes in the media landscape and consumer

viewing habits

This coincides with OTT’s general move into

mass market. In some markets, OTT distributed

video is already more than 20% of total amount of

video minutes consumed.

“Healthy business case analysis will drive new

launches rather than what we’ve seen in the

earlier stages of the market. We will also see some

less well run services decide to pull out or adapt

their strategies to reality,” says Accedo CEO

Michael Lantz.

In parallel, as Harmonic’s Throw observes,

software-defined networking and cloud technology

will be used more and more by video content and

service providers to speed up time to market for

these new services.

6. The role and impact of Facebook LiveIn 2016, Facebook launched its Facebook Live

feature and as a result it has seen 88% growth in

video posts. Since the launch of Facebook Live, a

number of broadcasters began to experiment with

streaming content or teasers live to the platform

to attract viewers to broadcast programming.

Commentators expect Facebook Live to keep

growing in the coming years. There is a lot of

interest in using it as an avenue to build

awareness, driven by Facebook’s established

market position and ability to help content owners

reach niche audiences through its rich data on

user needs and wants.

There is an OTT opportunity to effectively

harness this platform, but it has to be part of a

larger strategy to deliver in ways that provide

better direct monetisation, according to Finch at

Simplestream. He sees Facebook Live as a prime

example of simplified content delivery: “All

content players need is a good-quality smartphone

with an Internet connection and suddenly

thousands can tune in.”

Monetisation, however, remains a crucial piece

of the puzzle. With platforms like Facebook Live

generating and delivering live content to a

plethora of socially-syndicated devices, the need

to ensure effective delivery to drive monetisation

efforts is important, especially to mobile.

Craig Moehl of Groovy Gecko shares the

opinion that over the coming months, we are

likely to see a growing role for Facebook for

broadcasters and other content providers

including brands. “This year sees the launch of

Facebook Live 360, giving broadcasters the

opportunity to stream live 360 content direct into

the news feed and we are likely to see some

innovative uses for that.”

7. And some othersAddressable TV is here. The notion of being able

to serve personalised ads in TV pods has existed

for a long time, but the infrastructure was never

there. To date, addressable TV was only present in

about 3% of the US market, but this year AT&T is

planning to sell targeted ads via Direct TV Now.

In addition, Facebook’s Audience Network is

testing ad delivery in TV apps running on Roku

and AppleTV. If Facebook can do as good of a

job on the big screen as it does on mobile and

web it will have a bright 2017, reckons Shai.

Continued shift to personalised video

experiences. The movement towards customised

video experiences will continue as the audience

moves to new-age content platforms like Facebook

live and Periscope. Content will continue to shift

from destination-oriented models to social-feed

based, more personalised model, says KA

Srinivasan of Amagi. Adoption of personalised,

multi-screen viewing will also have an impact on

advertising and monetisation, he adds. With the

rise in ad-blockers, we could see major

broadcasters and content owners moving to a

native app-based subscription model for

monetisation, or shifting to a server side ad

insertion platform.

Collaborative models of broadcast management

and delivery. Srinivasan also predicts a rise in

cloud-based, dynamic collaboration for broadcast

management as broadcasters and content owners

try to tackle the demand for personalisation.

For example, a live broadcast could be produced

with multiple contributors who may or may not

be co-located. The live feed could be from an

event in Germany, the commentary from

Norway, and the on-screen graphics could be

processed in India.

Early window movie releases. People expect

films sooner after their initial cinema release

window. With Netflix releasing blockbuster films

straight onto its service, 2017 could see the

cinema business model challenged even more

strongly. “We’re likely to see a growing sub-section

of VoD services in 2017 that cater to home-

release models, including exclusive partnerships

between VOD providers, studios and production

companies,” says Williams at Ostmodern.

NexGuard’s Tholen is confident shortening

release window for home consumption will

benefit forensic watermarking technology, which

constitutes “a crucial step” in an early release

VoD environment.

Mico-services. More and more (micro-) services

will move the beating heart of their operations

to the cloud. And a diverse range of services

will start to be made available to consumers via

APIs. Nobody will need to build everything

in-house from scratch any more, or even continue

to rely on standard software components that are

hosted and operated in-house. “Complete

ecosystems will be made available in the cloud as

‘plug-and-play’ solutions,” predicts Borchers

at 3SS.

“Generally our industry will be seeing less of

what we conventionally consider ‘development’, in

favour of more digital engineering in the purest

sense of the word, combining and configuring

services that are readily available in the ‘cloud-

sphere’ with real creativity and flexibility as

fundamental requirements of progress.”

2017 trends

16 February 2017 www.csimagazine.com

14-16_trends.indd 4 06/02/2017 16:06:01

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While the increased

popularity of Video

on Demand (VoD)

has given

broadcasters a

wealth of new

and exciting

opportunities to engage consumers, it also brings

with it a host of challenges as viewers expect

access to a full range of video content wherever

and whenever suits them.

More than ever, consumers are trying to

circumvent geographic restrictions and access

video content from all over the world, whether

content owners consent to it or not. Tools such as

Virtual Private Networks (VPNs), Domain Name

Systems (DNS), Tor, and proxy servers are

helping drive a growth in the illegal viewing of

geographically restricted content, posing a

significant challenge to the media industry. And

with the threat of “spoofing” – in which an

illegitimate viewer uses technology to impersonate

a trusted IP address and appear to have a

legitimate connection – having directly affected

the value placed on content in recent months, the

pressure is on to provide and implement robust

measures to combat the issue.

It is vital that video distribution companies

utilise effective technology to understand where

their viewers are accessing content from and

identify those who are falsifying their locations,

to ensure content suppliers’ regulations are

adhered to – in fact, some studios mandate that

providers incorporate IP geolocation technology

into their distribution platforms

for this very reason. But how are

viewers hiding their locations and

how can VoD providers utilise IP

intelligence to block these users,

without having a negative impact

on those watching content legitimately?

Where they’re hidingBy using proxy servers such as VPNs, users can

hide their physical locations in an attempt to view

content, which may be restricted in their country.

And as more and more viewers use proxy services,

production companies are seeing their profits

diminish, as they no longer have the ability to

control content distribution effectively. As

a result, broadcasters are facing increasing

pressure to keep abreast of their audience’s

viewing habits and ensure they deliver the right

content to the right users, adhering to geographic

rights restrictions. Achieving all of this can

prove a juggling act, even for the savviest of

content operators.

Security

Where in the world are you?Charlie Johnson outlines how IP intelligence can restore the value of VoD content

18 February 2017 www.csimagazine.com

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It is no longer acceptable to turn a blind eye to

users who appear to be bypassing restrictions for

accessing online content, and some of the major

VoD providers – including US-based Hulu – have

already started to tackle the issue of geofencing

circumvention by blocking viewers who use a

VPN, DNS or other hosting designation to view

content from another country.

It seems the industry is starting to come

together in the fight against illegal access, but

how will the new measures affect legitimate,

subscription-paying customers?

It is important to recognise that not all

users who connect to the internet with tools that

hide their location are intending to view content

illegally. There are several reasons for connecting

via a proxy, for example to protect user privacy,

or to take advantage of a faster internet

connection, and ultimately, enjoy an enhanced

viewing experience. VPN usage also tends to

rise dramatically in countries where certain

websites are unavailable. For instance, internet

users in China are progressively turning to

VPNs to access social networking sites such

as Twitter. Increasingly, users are accessing

the internet via mobile connections, even

to watch content. However some telcos and

mobile providers are sending through centralised

proxy servers, unwittingly changing the

customer’s location.

How to find themUntil now, content operators have understandably

found the prospect of detecting which users

are illegally viewing content a daunting

prospect, as unlike terrestrial channels – which

broadly speaking do not function outside their

country of origin – digital channels require a

different approach and a clear strategy for

handling geofencing.

IP geolocation technology, however, enables

broadcasters to pinpoint where in the world a user

is viewing content, right down to their postcode.

Once the viewer’s location has been established,

the broadcaster can decide whether to allow or

revoke access to that user depending on the

country they are in. In many cases, geo detection

down to a postcode level may be overkill but in

reality, with geographic borders being just a line

on the map, country-level accuracy has become

increasingly important. Recognising when a

Norwegian subscriber drives into Sweden and

may only be a few miles away from his or her

home address is a big concern for many VoD

channels. This level of “bleed” used to be deemed

acceptable within the streaming space, but with

tighter margins this is no longer the case.

Layering on proxy knowledge to understand those

who may knowingly (or not) be changing their

physical locations can keep broadcasters on the

right side of their geofencing commitments. This

ability to holistically evaluate user location along

with proxy data is invaluable in enabling

broadcasters to remain compliant with geographic

rights, while at the same time delivering the best

possible viewing experience to genuine customers.

IP intelligence technology is continually

evolving and now has the capability to combine

accurate location analysis and proxy data to

assess user connections in real time. So how does

it actually work?

IP intelligence and geolocation at work One company that has successfully incorporated

IP intelligence and geolocation data into its digital

rights management (DRM) initiatives is

VUBIQUITY. The organisation connects content

owners and video providers to deliver

entertainment to viewers on any screen, and

works with nearly 650 leading film studios,

television networks, independent producers and

multi-channel networks (MCNs) to bring

premium content to over 1,000 global video

distributors spanning 109 million households

across 121 territories.

VUBIQUITY needed to find an IP geolocation

provider that would offer accurate and reliable

data, specifically for African and Latin American

regions, to gain access to high quality, all-

encompassing datasets that were continually

updated. Using IP intelligence technology, the

company was able to uncover actionable

information about online users such as geographic

location and proxies (including VPNs) – all while

respecting the user’s right to privacy.

VUBIQUITY has incorporated this technology

into its Content as a Service (CaaS) platform,

which consists of a cloud-based centralised

repository of pre-licensed, pre-configured content

that is stored, hosted, and distributed across a

global delivery network.

The use of these datasets within the CaaS

platform assists VUBIQUITY in processing

incoming requests and delivering content to any

point on the network on demand, while managing

entitlements and access to video assets based on

the authentication of user rights and integration

into the order process. According to

VUBIQUITY, the risks are significant without

this type of digital protection and the company

takes comfort in knowing that it is using reliable,

quality data to meet the studios’ licensing

requirements, protecting not only the studios,

but also the company and its operators.

Restoring value for content producers and distributorsTo optimise revenues, the media industry must

constantly adapt to changing consumer habits

and the growth of digital platforms, which

present wider opportunities to connect. Analysing

IP addresses is a complex business, with new

attempts to overcome restrictions occurring on a

daily basis. Winning this game of “whack-a-mole”

requires expert engineering knowledge and regular

updates 365 days a year. Meanwhile, isolating

suspect connections means the rest of the user

base (i.e. legitimate customers) remains

unaffected, and media companies are able to

protect the value and revenue derived from

premium content, which would otherwise be lost

to opportunistic proxy users taking advantage of

modern-day technology.

The fact that broadcasters are increasingly

taking more steps to combat these circumventions

represents a positive and significant milestone for

the media industry. However, there is a long way

to go before digital piracy is eliminated

completely. Content producers and distributors

need to work together to invest time and resources

into their DRM strategies, and identify the

patterns and behaviours of their users, which

includes generations of “always on” consumers.

In an age when maintaining data privacy is so

important, using IP intelligence also enables

broadcasters to verify each of their customers

without any Personally Identifiable Information

(PII) ever being exchanged, which means they can

rest in the knowledge that they are remaining

compliant with data-protection laws.

Focusing on high-quality data – powered by

accurate IP intelligence and geolocation

information – will enable media companies to

strike that all-important balance between

compliance with geographical rights and provision

of a first-class streaming service, which keeps

their customers coming back for more.

Charlie Johnson is Vice President, UK and Ireland,

Digital Element

Security

www.csimagazine.com February 2017 19

18-19_Geotagging.indd 3 07/02/2017 12:41:51

The mobile industry has never

been one to shy away from

big targets so it’s only

natural that its ambitions

scale up with every new ‘G’.

The latest pushes up the dial

a significant level up from

previous mobile communications generations,

which were focused on a narrower set of services:

2G was designed for voice, to which was added

packet data; 3G was voice, circuit-switched and

then low-data rate packet data; and 4G was for

mobile broadband, now being extended to support

narrow-band machine-type traffic.

To be sure, 5G’s scope is wide ranging to say

the least. Digitalisation, business transformation,

ubiquitous connectivity (both machine and

human) and automation (highly automated

systems and processes) are terms that are used

almost synonymously with 5G.

“Arguably 5G is the first network to be

designed to support all types of traffic. Previously

we designed networks with more of a specific

purpose in mind,” notes Jason Elliott, 5G market

development manager at Nokia.

The industry is trying to put technology in

place that can handle exponential traffic growth

that will only increase with the Internet of Things

(IoT) and other applications, such as AR/VR.

Cisco’s latest Mobile Visual Networking Index

forecasts that by 2021, 5G will account for 0.2%

of connections (25 million), but 1.5% of total

traffic. Cisco estimates that by 2021 a 5G

connection will generate nearly 30 GB per month,

which is (a very specific) 4.7 times more traffic

than the average 4G connection and 10.7 times

more traffic than the average 3G connection.

At the same time, industrial, healthcare and

transportation sectors are especially on 5G’s

opportunity radar.

According to Ericsson’s research, 94% of

executives from eight major industries rate next-

generation mobile networks as a top strategic

priority. “We believe 5G is not only a facet of

mobile technology;

it will do for

industries something

like what mobility

has done for

consumers and

smartphones. It will

bring the benefits of

scale, affordability, ubiquity, mobility and

performance to industries beyond smartphones,”

says Aniruddho Basu, head of technology

advisory and portfolio at Group Function

Technology, Ericsson.

“5G is about enabling new ‘use cases’ and

creating new business models. It is more than a

new radio technology and will fundamentally

change the way we build and operate networks,”

adds Elliott.

5G use cases have been grouped into three

high-level categories:

• Enhanced Mobile Broadband (eMBB);

• Massive Machine Type Communications

(MMTC); and

• Ultra Reliable and Low Latency

Communications (URLLC).

To achieve these goals, 5G is asking for very

high bandwidth (up to 10Gbps), together with

very low end-to-end latency (under a millisecond).

This makes 5G something of a “requirement

paradox”, as Dr Sameh Yamany, CTO at Viavi

The long and winding road to 5GTransformative or overly grandiose? Goran Nastic weighs up the big fi fth-generation mobile debate

20 February 2017 www.csimagazine.com

5G

20-23_5G.indd 1 13/02/2017 11:53:50

Solutions, puts it.

Independent analyst Dean Bubley likens 5G to

something of a philosophical debate. “As usual,

the biggest risk to the mobile industry is strategic

over-reach,” he says. “If it persists in trying to

define 5G as an all-encompassing monolithic

architecture, with the hope of replacing all fixed

and private networks, it will fail. The risk is that if

it tries to create a jack-of-all-trades, it will likely

end up as master-of-none. 5G has huge potential -

but also needs a dose of pragmatism, given that it

is running alongside a variety of adjacent

technologies that look like potential disruptors.”

Anand Gonuguntla, co-founder and CEO of

Centina Systems, agrees that, historically, the

mobile industry has perhaps tried to get too far

ahead of market realities. “But, the other thing

that’s historically accurate is that with the

migration to previous generations, the use cases

weren’t always spelled out. So, with 5G the same

questions are coming around, and maybe ‘killer

app’ is kind of an antiquated term.”

Build it and they will come?Within all these stated opportunities, mobile

network operators (MNOs) will need to identify

new and profitable business models for deploying

new services.

Dr Yamany sees 5G as the next industrial

revolution in terms of automation. “Automation

will be the business model that drives 5G,” he

argues, noting that CTOs of Tier 1 MNOs like

Vodafone and Orange have solid business plans

on how they will use 5G technology. As a result,

he points out we won’t see a wide range but a very

specific, very individually business-model

orientated deployment of 5G. In this sense, he

suggests, MNOs have learned from their

experience with 4G/LTE, which failed to generate

incremental ARPUs.

Others aren’t so convinced. “The business case

is unproven and the user-case situation is quite

frankly a bit of a mess. At the moment, there

simply aren’t the applications that require a 5G

network,” reckons Kester Mann at analyst firm

CCS Insight.

“There’s an awful lot of potential applications

touted by 5G that actually the evolution of 4G

networks is perfectly capable of dealing with,” he

continues. “Ideas like autonomous cars, drone

deliveries and remote surgery are all well and

good but that’s very much in the long run and do

they create a genuine business case?”

VR and IoT can be done with 4G advances

such as LTE-Advanced Pro, while 4G in

combination with NB-IoT can address most needs

of M2M type connections, adds Mann.

Nevertheless, he is not entirely dismissive.

“Low latency is probably the headline feature of

5G, more so than simply greater speed. That

could be become a key marketing tool of

promoting 5G.”

Mann also highlights the need to involve

other industries such as health, energy and

utilities in developing a 5G vision and inputting

into standards. “For operators, such engagement

is vital to establish early business models and

could create opportunities to establish

competitive advantage.”

Nicolas Ott at Arqiva, admits that 5G will

struggle to live up to the hype - at least early on.

“It’s being heralded as the mother of all solutions,

but it’s unlikely that all of these promises will be

delivered, or at least in 5G initial phases. However

of those promises you can be almost certain that

ultrafast mobile broadband and probably

improved latency will be fulfilled. It will be

transformational and you’ll see a wider divide

between winners and losers after it’s happened.”

Standards timelineThere is no official definition yet of what makes

5G, but it is taking shape. The ITU will ratify the

standard in 2020, with a lot of pre-standard trials

and momentum in place as MNOs and vendors

jostle for positioning. Nokia and Ericsson count

more than 75 5G projects between them alone,

and that’s without mentioning other equipment

heavyweights like Huawei. Different companies

and regions have different priorities in terms of

which features should be standardised when.

“Our target is to commercialise 5G during next

year and we are on track regarding that target,”

notes Nokia’s Elliott.

A key activity that is taking place now is the

standardisation of 5G radio access and core

network technologies. With the aim of submitting

a candidate radio technology to the IMT-2020

process that was established by the ITU-R, 3GPP

has started the standardisation of a new access

technology named 5G New Radio (NR). The first

phase of 5G NR specifications - 3GPP Release 15

- is expected to complete in 2018, allowing for

early commercial deployment in the 2020

timeframe. The second part - Phase 2 Rel 16 - is

expected to complete in late 2019, allowing for

commercial deployment in 2022 onwards.

“It’s important to try to cut through some of

the hype,” warns Mann. “Given what’s happened

in the industry and efforts of some operators and

manufacturers have made early on in the 5G

roadmap this could almost create confusion,

where some claim they have launched 5G before

standards have even been ratified.”

Perhaps with this in mind, 3GPP in February

2017 unveiled a logo for 5G, which can be used

for both Rel-15 and Rel-16 specifications.

In a way, 5G will entail revolution, but it will

also be about evolution. For instance, 5G will not

replace 4G. It is designed to co-exist and many of

the fundamental building blocks for 5G will come

from the evolution of today’s 4G LTE networks.

“Operators will need to identify optimal

investment timing for 5G networks to support

services that can operate on 4G+ networks,” says

Chris Cave, director, R&D, InterDigital, which is

involved in the system design, prototyping and

standardisation of 5G systems.

4G LTE networks continue to evolve and will

be capable, in the 3GPP Release 15-16 timeframe,

of addressing a large number of use cases and

requirements that have been defined for 5G.

“5G is indeed very ambitious in its objective to

support such a broad set of use cases. In our view,

this will work itself out through the ‘phasing’ of

5G, for both standardisation and commercial

deployment,” reckons Cave.

5G technologiesA number of key changes are expected on the

mobile infrastructure side for 5G, taking in

constituent technology parts like beamforming,

massive MIMO, small cells and dense networks

with intelligence moved to the edge.

All the vendors CSI spoke to see virtualised

NFV and SDN as key building blocks for 5G

networks. Both 5G Radio Access Network (RAN)

and Core Network (CN) architecture and

protocols are being designed in 3GPP under the

assumption that they could be deployed using

NFV/SDN concepts in order to enable more

flexible deployment options for operators.

In theory at least, NFV/SDN together with

network slicing, will handle these diversity of

requirements that comes with 5G, with networks

themselves becoming more flexible and fluid.

The point of slicing is especially important in

5G, as it allows for multiple virtual networks each

with a specific level of service running on the

www.csimagazine.com February 2017 21

5G

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22 February 2017 www.csimagazine.com

5G

same hardware infrastructure, which in turn will

allow 5G networks to satisfy Dr Yamany’s

paradox of high broadband and low latency.

“Network slicing will fundamentally change the

way we look at provisioning services,” points

out Elliott.

Additionally, a 5G architecture is designed to

accommodate different types of access

technologies, which includes non-3GPP ones like

WiFi. Fixed access will also be included in

delivering the increased capacity to meet demand.

“After all, the application experience is always

more important that the access it is delivered on,”

notes Ericsson’s Basu.

“The line between what is wireline and wireless

will very soon literally disappear,” adds Dr

Yamany. “We are seeing Ethernet, transport and

backhaul fundamentally change.”

These elements together are expected to create

an architecture that looks and behaves much

differently than previous generations.

“We have a system view on 5G where radio

and core assets will evolve at the same time. It is

a merger of the building practices of telecom, IT

and media industries, embracing both mobile and

fixed access, data centre and cloud base core

networks, micro service architectures from the

media world, and more horizontal and

programmable platforms than ever before,”

explains Basu. He belives that with a 5G system

approach the industry can address a bulk of

critical and mass scale use cases.

“Strategically, you’ve got to think differently

about managing that, and getting systems in place

that are capable of tracking the health and

performance of this dynamic network,” believes

Gonuguntla at Centina.

Will Europe lag behind?Each region is looking at 5G in a different way,

depending on their needs. Trial activities are

currently more intense and timelines are more

aggressive in markets such as Japan, Korea, China

and the US than in the rest of the world.

Asia has taken an early lead, with a strong

push to showcase 5G technology at key

international events. The winter and summer

Olympics in South Korea and Japan in 2018 and

2020 are driving pre-commercial trials and early

deployments in late 2017 and into 2018.

The US market is looking at a very specific

segment of 5G, which is fixed wireless in order to

stave off competition from cable. The first

deployments there are also expected by the end of

this year, with AT&T planning to launch pre-5G

services in Austin and Indianapolis offering

theoretical speeds of up to 400Mbps initially and

1Gbps thereafter through the use of carrier

aggregation. The telco (which aims to explore 5G

signal coverage for the 28GHz, 39GHz, and sub-

6GHz bands) is involved in a strategic game of

5G chess with rival Verizon.

In Europe, meanwhile, MNOs appear a lot

more conservative and will likely deploy new 5G

technology in phases in line with commercial

demand for new services. There is nonetheless a

lot of engagement in trials, pilots and projects,

with a big focus on cross-industry participation

and public-private partnerships, chief among them

the EU-formed 5G Public-Private Partnership

Association. Within 5GPP, there are some 20

projects taking place focusing on all different

types of applications and approaches, albeit with

M2M and automation firmly in mind.

Europe is very keen to leverage the 5G system

to a higher degree than was done with 4G, argues

Ericsson’s Basu. “Europe’s ambition is to

on-board industries very early. We see initiatives

such as METIS, Horizon 2020 and 5G for Europe

which include industries, universities and

operators. The ambition is bigger than just a

consumer perspective.”

But Bubley at Disruptive Analysis does not

mince his words in his own assessment of the

practical challenges involved. “The European 5G

community seems to be seduced by academia and

the promise of lots of complex network-slicery

and equally-dubious edge-computing visions. It’s

much more interested in the (late, uncertain-

revenue) IoT use-cases rather than fixed-access

and mobile broadband.

“Fixed-access 5G won’t need complex network-

slicing & NFV cores to be useful, as it can be

functionally similar to other forms of broadband

access. It’s a lot simpler, and a lot faster-to-market.

“In other words, it’s missing the boat. By the

time the EU, the European operators and

European research institutions get their 5G act

together, we’ll have had a repeat of 4G, with the

US, Korea and Japan leading the way.”

Nokia’s Elliott is, naturally, somewhat more

optimistic. “At the end of the day, it is not only

about who is first but mainly who is able to

generate most business out of 5G and who can

generate most impact of the entire economy. And

this phase has not even begun.”

Spectrum fragmentationWhatever happens gloablly, spectrum allocation

and harmonisation are widely perceived as key,

including the need for unlicensed frequencies. 5G

will require significantly more spectrum than is

currently available. The three ranges are Sub-1

GHz, 1-6 GHz and above 6 GHz depending on

the use case.

Although there has been significant progress

towards 5G spectrum identification

internationally (namely in ITU-R), it is still not

entirely clear which spectrum bands will be used

above 6 GHz in various regions around the globe,

notes InterDigital’s Cave.

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www.csimagazine.com February 2017 23

5G

The US operators have freed up around the

28Ghz band to trial and use. So have their South

Korean counterparts like SK Telecom, including

above 30Ghz for high bandwidth purposes.

As 28Ghz is taken up by the satellite industry

in Europe, operators are looking at 3-6Ghz for

low latency applications, using different access

technologies including microwave.

European MNOs may have access to 25Ghz

and 32GHz frequencies, which are in the process

of being identified, as well as harmonised 700Mhz

spectrum used by incumbent broadcasters.

“5G is really an open vessel into which

everyone pours their hopes and dreams. The only

realistic way to make this spectrum available is

through aggressive sharing, through the use of a

collection sensing, location monitoring and

database technologies,” argues out Kalpak Gude,

president of Dynamic Spectrum Alliance.

“The standard is catching up but there are so

many flavours of 5G I don’t know how we will

standardise that and have ubiquitous 5G services

across the entire planet,” agrees Dr Yamani.

“With spectrum not yet completely defined, you

can imagine the headaches all of these handset

and chip manufacturers are thinking about.”

That’s where potential fragmentation could

arise. Equally important, the higher bands will get

the support from the major handset

manufacturers such as Apple and Samsung.

With regards to these handsets, as 5G will

support a broader range of radio spectrum and

new coding schemes, devices will need be

designed to take advantage of these improvements,

according to Steve Plunkett, CTO, Broadcast and

Media Services, Ericsson. “From a media

perspective, increased support for multicast

modes within devices will offer more flexibility

and capacity for live events.”

5G TV: what about satellite, cable?With regards to media, is 5G a threat or an

opportunity to broadcast, and what role will it

play? A somewhat unsatisfying answer is that it is

too early to tell, but probably a little of both.

5G NR is being designed with the requirement

to natively efficiently support existing 4G

Multicast/Broadcast services, notes Cave.

The broadcast industry has enjoyed a somewhat

chequered relationship with mobile, but has

identified 5G as an important enabler for future

media services, with standards bodies, trade

associations, media organisations and the vendor

community tracking progress and actively

contributing to 3GPP activities in 5G.

The EBU, which has been critical of mobile’s

spectrum demands in the past, ran a consultation

process with its members in 2016 and in

November published a report identifying the

opportunities 5G presents for A/V distribution, as

media consumption on mobile devices continues

to increase year on year, both in terms of viewing

hours and bandwidth consumed.

“More than any previous generation of mobile

technology, 5G is drawing in a broad constituency

of industry interest and media is very well

represented,” says Ericsson’s Plunkett

Ericsson reckons 5G will enable “live TV at

scale”, while in a recent report Strategy Analytics

similarly recommends it is time to include TV

delivery as an ‘anchor’ use case for 5G.

“The emergence of 5G TV would represent a

further stage in the convergence of media and

communications. It would also raise important

questions relating to the roles of different

ecosystem players and the future structure of the

media value chain,” says Strategy’s David Mercer.

“For 5G to become a viable TV platform, other

emerging network technologies need to be

deployed, improving the overall capacity and

suitability of the network for TV-like services.

Realistically it is likely to be beyond the next

decade (2030+) before 5G TV becomes as

important as existing platforms in terms of

market penetration, but we could see regional

success stories over the course of the next

decade which will help to demonstrate its

commercial viability.”

In the meantime, the satellite industry is keen

to push the message that satellite has a big role to

play in 5G and IoT. Satellite body ESOA

published a position paper arguing that a win-win

solution can be found that allows terrestrial and

satellite 5G services to cooperate. Indeed, satellite

already delivers many services promised by 5G

and the growth in High Throughput (HTS)

systems delivering terabits of connectivity

worldwide, so it would almost be rude to ignore.

Ericsson’s Basu further notes that the HAPS

(high-altitude platform station) is showing a

strong interest to start using 4G and 5G in

their ecosystems.

These are still early days on the road to 5G and

developments will almost certainly occasionally

stall on the way. But, whatever form it eventually

takes, get ready for a 5G future.

5G in the UKAs part of the UK government’s 5G research

initiatives, the country’s Ordnance Survey

(OS) is to lead a consortium developing

what is being labelled a groundbreaking

planning and mapping tool that will be

instrumental for the national rollout of 5G

technology. It will determine the prime

locations to place the radio antennae or

access points necessary to enable a 5G

network. The intelligent modelling tool will

be trialled first in the city of Bournemouth,

and if successful it could be shared with

other countries as they develop their own 5G

networks. The aim is to deploy 5G quickly

and efficiently and turn the UK into a 5G

and digital leader.

While the 3.4-3.8 GHz band is identified

as a ‘primary’ band to provide capacity for

5G services in the UK, the 24.25-27.5 GHz

band is described by Ofcom as a ‘pioneer’

millimetre-wave spectrum for higher capacity

services. “The choice of 700 MHz, 3.4 to 3.8

GHz and 26 GHz will create the best

opportunity for the UK to benefit from the

first wave of 5G equipment,” said Ofcom.

Arqiva, the UK communications

infrastructure company, also sees huge

opportunities in outdoor small cells

proliferation, in macro sites densification,

and in the possible emergence of 5G fixed

wireless access to complement fibre where it

will become uneconomical.

“We’re very excited about it. We’re

working with Ofcom to explain the positive

implications of 5G as the government needs

to take bold decisions now to allow 5G to

flourish in future,” says Nicolas Ott, MD

telecoms & M2M at Arqiva.

According to Ott, the radius of a small

cell is typically around 250 metres and may

decrease with use of higher frequencies. “So

when you look at a major city, London being

an example, you might need as many as

500,000 small cells”.

Arqiva is, in fact, currently rolling out

small cells in London, and the amount of

small cells that would need to be added

would be a significant jump from current

figures. “So there is a very interesting

opportunity there,” says Ott.

20-23_5G.indd 4 13/02/2017 11:41:51

CSI: Give us a quick company update to start with.Jon Alexander: I run the media business for

Level 3. This includes the CDN network as well

as a separate product called Vyvx, our broadcast

video transmission service. Those services are

bringing the two worlds together – with the rise of

OTT, we see those products are getting closer

together and we see we are well placed to help our

customers take the traditional broadcast content

and move it online. It made a lot of sense to

put those groups together and we’ve aligned

our engineering, operations and development

teams together as well; sharing the expertise

between those worlds.

Satellite used to be the only way of moving

broadcast quality video around. The 1990 Super

Bowl was our first major event, and we’ve carried

it every year on the Vyvx network – that’s our

marquee event we launched with and have

supported ever since.

We acquired the CDN business in 2007 from

Savvis but that business goes back to 1996. So a

long history with separate development paths and

we only really brought them together

in 2012 inside Level 3.

As we started to see more OTT and convergence

with our customers, it made a lot of sense for us

to go down the same path as well.

CSI: How would you say the CDN landscape has changed since the start of the century? Is it a case of evolution or revolution?JA: That’s a good question. There have been

step changes but the pace of growth in that

market is pretty phenomenal, even if there

hasn’t been acceleration. We have grown our

network between 60-80% year-on-year. It’s

been almost ten years now that we’ve been

growing at that pace and there’s no sign of

that slowing down.

Key drivers behind that are not just OTT

video, but also increasingly we’ve been

seeing gaming driving peak traffic levels that

are even bigger than large video events. When

a new patch or game is released, it can drive

terabits of traffic pushed out to millions of

users pretty quickly. In terms of eSports or

online gaming, companies like Twitch were

regularly delivering to audiences of a million

concurrent users even five years ago.

Broadcasters have now overtaken that. All

the connected devices are driving those

trends as well.

CSI: How much of a concern is commoditisation in the CDN market?JA: As with any network service or hardware,

there is price compression. It runs typically

around 10% y-o-y. We see the same thing in the IP

transit business, voice and other markets we

operate. It is something we are constantly looking

at working out how to bring our cost down in line

with that. Fortunately, so are silicon, networking

equipment and other components built into

our costs structure. That point around

commoditisation of bandwidth keeps coming up

in relation to CDNs, and this is one of the

advantages that Level 3 has. With our ownership

of the network, we are in a strong positon of

owning many of the underlying elements that help

facilitate the CDN business. Given the three

largest cost components of a CDN – the servers,

network and data centres – we really have an

advantage with the last two. So some of our

competitors may be feeling the pressure where we

have more advantage in ownership economics.

CSI: I guess then you would distance yourself from the ‘spray-and-pray’ approach given to your competitors.JA: We wouldn’t call it spray-and-pray, there’s a

lot of science that goes into it. Within Level 3,

we have a robust planning organisation that looks

at all the layers of our network. We plan from

fibre in the ground, the IP equipment that sits on

top of that, the CDN servers on top of that, all

of the interconnections with last-mile network,

data centre connectivity power and cooling

infrastructure… if we’re looking into expanding

into a new market, we’re really looking from the

ground up. We have to be very rigorous and we

have developed good prediction models based

on demands placed on the internet.

CSI: How have broadcasters’ demands changed over the years in terms of CDN and data centre requirements?JA: It’s a little different for every broadcaster.

It comes down to their specific culture, if you

will. For instance, some have a strong internal

technology team and like to do things in-house.

Others want more of a managed service with a

usage-based model. This influences their decision.

It’s not a one-size-fits-all.What I would say is that

the online media part of broadcast was an

underfunded side project 10 years ago, whereas

now it’s a central part and has seen as a huge

growth driver for broadcasters.

CSI: Can providers such as Level 3 play

Q&AQ&A

We spoke to Jon Alexander from Level 3 about the company’s plans for growth and how it aims to carry more broadcast content over its network

Taking CDNs to the next level

24 February 2017 www.csimagazine.com

Jon

Ale

xan

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24-25_Level_3_Q&A.indd 1 06/02/2017 14:05:41

more of a role in terms of tacking growing online piracy threats such as live OTT sports?JA: We definitely have a role to play. It’s not

a problem we can solve alone; there’s an

ecosystem we fit into. Within our products, we

have security controls, access and authorisation

mechanisms to make sure content goes to the

right people. We make sure we protect the

content on our network and that it’s not

leaking out. For premium events like the Super

Bowl with huge global audiences, protecting

that content is obviously key. There’s very

much a layered approach to that, from

acquisition, contribution in mezzanine format,

and as that moves through the processing chain

and gets encoded for broadcast and online

distribution, it then gets encrypted, wrapped with

DRM maybe or other access controls put in

place, and as it comes onto the CDN, we get

involved in protecting those when delivering

to consumers.

CSI: Are you seeing a rise in encrypted content as Netflix and others move more toward this type of traffic?JA: We have seen a huge increase in requests

from our customers to deliver the video over an

encrypted transport, so using SSL or TSL

encryption. Over the last six months, there’s

been a 10x increase in the amount of encrypted

content that we are delivering. A lot of that is

driven by browser vendors like Google, Apple

and Mozilla, who are now preferring encrypted

content. If video delivered to Chrome for instance

is not encrypted, it will generate warnings.

Apple also won’t allow any apps to be published

that don’t deliver encrypted video.

CSI: On a general level, what technologies or techniques are you looking to help deliver high bandwidth services like 4K UKD and VR?JA: Again, it’s more incremental rather than

revolutionary. The way we deliver video today

is primarily over TCP, using HTP as the

transmission protocol. On top of that, the

majority of video we deliver is formatted as HSL

and encoded as MPEG-4/H.264. New codecs

such as HEVC and new formats like MPEG-

DASH are coming along to make delivery more

efficient. More fundamentally, there are new

versions of HTTP like HTTP/2, which make

transmission more efficient, reduce some of

Q&A

www.csimagazine.com February 2017 25

24-25_Level_3_Q&A.indd 2 06/02/2017 14:05:57

the overheads and help us support higher bitrate

streams at a high level of resiliency. UDP is

also an alternative protocol to TCP that has

some advantages in delivering very high

bit-rate video.

None of these are a silver bullet for jumping to

a 4K or 8K stream, but in aggregate, all these

changes - in conjunction with faster network

infrastructure and inter-connections with last-mile

ISPs in more locations to bring the content closer

– all of that together is how we are enabling

those higher quality experiences. We did testing

with VR streams in 2016 and customers were

typically looking at a 15-25 Mbps stream, which

is at the top end of what most networks can

sustain. The issue we are seeing is not the

backbone, but more from the last mile perspective

and inside the home; the last 10 feet is often

the bottleneck.

That’s the path we are on now. Twenty years

ago, none of the things we are talking about now

was possible. In five years time, we will deliver

even more. We will continue to see incremental

improvement, as a lot of technologies exist

already that will get us where we need to be in

five or even 10 years. We just need to continue

investing to keep up with demand.

CSI: Away from technology, how do you see the CDN market evolving over the next five to 10 years? JA: As a CDN provider, we are very bullish on

the market. There are two fundamental trends

driving the industry: growth in OTT consumption

and OTT replacing broadcast; and IoT. We will

see more devices connected to the internet that

will require software and security updates and

content pushed to them. Both will need

more CDN services.

We feel good about our position in the market

and our opportunity to scale up. We have seen

the overall market growing at roughly 18-20

percent over the last several years, and that

rate will continue going forward.

CSI: What impact do you see 5G having on your business? JA: Part of our challenge is that we can only

get so close to the end user devices. The lowest

common denominator affects our service and

the challenge can be in that final piece we

don’t control. So new technologies that make

networks perform better are helpful for us. 5G

is not a silver bullet, but that kind of investment

will keep us on our path and stay ahead

of demand.

CSI: Finally, what’s on the horizon for Level 3?JA: We announced a service last year called

‘Linear Channel Distribution,’ which is a

Vyvx service. The idea there is around facilitating

the distribution of broadcast television, and

we’ve actually launched the service with Fox

in the U.S. Traditionally, Fox has distributed

all of its programming via satellite to MVPD,

MSO and cable customers. Fox wanted to deliver

a high quality mezzanine feed and richer

metadata to describe the video and allow more

advanced ad replacement, supporting things like

local blackouts, which wasn’t possible over their

traditional broadcast means. With the LCD

service we launched, we are providing a fibre-

based transmission; Fox publishes all of that

programming onto our network and we provide

the ability for those MVPD platforms to subscribe

to that content and pull that content over fibre-

base connections into headends or

processing centres.

A lot of the early growth we’ve seen in that

service is from the OTT services, primarily in

the U.S. and Europe. We launched with Fox and

added several other broadcasters to that platform.

Our goal is to make that the default location to

get access to broadcast content.

Q&A

26 February 2017 www.csimagazine.com

“Over the last six months, there’s been a 10x increase in the amount of encrypted content that we are delivering. A lot of that is driven by browser vendors.”

24-25_Level_3_Q&A.indd 3 06/02/2017 14:06:27

VoD

www.csimagazine.com February 2017 27

The era of VHS

video popularity

in the 1980s

seems a very long

time ago now,

but the pleasure

of being able to

get hold of the content you want

to watch quickly and easily has

a universal, timeless appeal. This

is part of the reason why online

subscription video-on-demand

(SVoD) services appear to have such a bright

future. Or – to be precise – some

of them do.

The number of homes with a subscription to

some kind of SVoD service should reach 428

million, across 200 countries, by 2021, compared

to about 248 million at the end of 2016,

according to Digital TV Research. Global SVoD

revenues grew from $12.2 billion in 2015 to

$17.46 billion in 2016; and may reach $32.18

billion in 2021.

Any SVoD strategy is shaped by and depends

upon the interaction of factors including country-

specific consumer preferences, regulatory

conditions and the existing TV landscape within a

country. But the emergence of global SVoD

services has had a significant impact in some

markets. In November 2016, Canadian SVoD

service Shomi, a joint venture run by cable

providers Rogers Communications and Shaw

Communications, ended operations. It had

around 700,000 subscribers, compared to the

5.2 million households in Canada with a

Netflix subscription.

It is now ten years since Netflix launched its

streaming service. With a business model now

based in large part on original content, since

January 2016 its services have been available in

almost every country on earth (exceptions include

China, Syria, North Korea and the territory of

Crimea). Digital TV Research suggests Netflix

will have 118 million subscribers worldwide by

2021, 27.5 per cent of the global total, although

44 per cent will be in the US, which will provide

52 per cent of its predicted $13.14 billion

revenue. This is despite the fact that its impact in

Asia, which may by then be the fastest growing

SVoD region, is expected to be limited.

Meanwhile, since December 2016, Amazon’s

SVoD services have also been available almost

everywhere; and Amazon is also investing heavily

in original content. Further global competition for

Netflix may soon come from other technology

giants: in January 2017 it was reported that Apple

is planning to produce original TV and movie

content to offer subscribers to its music services

by the end of 2017, while Google is also expected

to continue to invest in original programming to

add to Google Play services and catalogues.

“I think what Netflix and Amazon have done

means that the market changed dramatically in

2016,” says Mihai Crasneanu, CEO at VoD

content service provider Grey Juice Lab.

In addition, a growing number of content

owners, from broadcasters to

sports organisations, are

developing direct to consumer

(D2C) SVoD propositions.

Recent launches include

BritBox, an ad-free SVoD

service being launched in the

US by BBC Worldwide and ITV

to showcase the best content

produced by both broadcasters.

Nor does the emergence

of OTT SVoD seem

to have been a purely negative development for

all payTV providers. For example, research

released by Decipher in December 2016 suggests

that SVoD usage in pay TV households in the

UK increased from 10 per cent to 45 per cent

over the past four years, while the whole pay

TV base increased from 61 per cent to 69 per

cent of the UK population. Top tier pay TV

subscribers seemed to be buying SVoD services

at a faster rate than subscribers to cheaper

pay TV packages.

The same research suggested that households

without pay TV subscriptions were less willing

to subscribe to SVoD: take up of such services

had increased only from nine per cent to 28

per cent. The study suggests that households

favouring free TV but also using OTT apps

and SVoD were not a large enough group

to affect the pay TV segment to a

significant degree.

Understanding local audiencesLocal knowledge can also play an important role

in helping broadcasters and other players develop

viable SVoD services that can prosper alongside

Netflix and other global players, says Tom

Williams, chief executive of content delivery

specialist Ostmodern.

“Established broadcasters know they can’t

compete with these content giants with their

endless budgets, and must instead coexist with

them,” says Williams. “Localisation,

personalisation and content discovery are

What next for VoD?With some high profi le SVoD closures in 2016, David Adams asks what the future holds for video-on-demand services

“What Netflix and Amazon have done means that the market changed dramatically in 2016.”

27-29_VoD.indd 1 10/02/2017 15:44:56

personalisation and content discovery are

all concepts these players can and should use

to adapt and thrive.

“It’s important for VoD services to understand

the changing behaviours of these local audiences.

In Brazil, for example, evening TV has in the

past been dominated by telenovelas but in

recent years, a new trend has emerged in which

younger people increasingly turn away from

linear broadcast towards OTT content like US

sitcoms or dramas and short-form content on

YouTube or Facebook. Pay TV operators

need to respond to this change by providing

SVoD services tailored to these preferences

that does not replicate the operator’s cable

offering.” With the right strategy, he suggests,

incumbent operators and broadcasters

may be ideally placed to capture SVoD

market share.

Niche and not-so-niche D2C servicesOther service providers are focusing on a

particular niche of content, such as children’s

programming, content in a specific language,

non-mainstream sports, or telenovelas. A

number of technology companies offer solutions

enabling delivery of D2C services via multiple

platforms and devices. In January 2017 Turner’s

Cartoon Network App was adapted as a cross-

platform app using the You.i Engine One solution,

which is pre-integrated with widely-used

online video platform backends.

Iddo Shai, director of product marketing

for OTT at online video management firm

Kaltura, suggests that many smaller companies

now have more options in terms of template

applications and end to end solutions provided

by his company and others. “This really

lowers the barrier to entry for the smaller

companies,” he says.

Overall then, the picture is complex for

consumers and for industry strategists alike.

“There are a lot of OTT platforms,” says Peter

Docherty, founder and chief technology officer

at content recommendation technology provider

Think Analytics. “You’ve got content owners

with OTT services going direct to the consumer,

you’ve got Netflix and Amazon, you’ve got

VoD broadcasters, pay TV operators with an

OTT VoD arm and other OTT VoD services on

top of that. “Many consumers now have multiple

VoD

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28 February 2017 www.csimagazine.com

“Many consumers now have multiple OTT subscriptions. That’s a technical challenge for the industry, but also a big commercial opportunity.”

27-29_VoD.indd 2 13/02/2017 11:00:39

remember where everything is. That’s a technical

challenge for the industry, but also a big

commercial opportunity. But it all comes back

to the content. You’ve really got to make sure

you have the right kind of content; and that

means you’ve got to understand your customers.”

“There is a battle underway,” says Kai-Christian

Borchers, founder and managing director at

multiscreen service software provider 3 Screen

Solutions (3SS). “The key will be to use analytics

in the smartest way, adapting the user interface

and content display for users, with all of the

cloud and big data abilities in the background;

to constantly adapt SVoD services to become

more efficient and attractive to end users.”

However, it is still generally the case that

the best way for a service to be found by a

potential viewer is through some form of EPG.

“When these services are available as part

of a TV service, usage is much higher,” says

Jeff Miller, president and CEO at cloud-

technology content delivery provider ActiveVideo.

“The real challenge for those services is how

to be discovered.”

Ultimately, the niche service providers will

depend on different forms of aggregation

mechanism, whether this comes in the form

of a specific consumer technology platform or

device, or the EPGs of larger service operators.

Redefining service qualityBut just capturing eyeballs and good

content may still not be enough: the last

piece of the strategy must be ensuring a

very high quality of service (QoS). Ian Munford,

director of product marketing, media solutions,

at Content Delivery Network (CDN) and

cloud services provider Akamai offers a few

details about research commissioned by the

company that will be published shortly, in

which the company sought to quantify the

impact of good and poor quality TV experiences

on specific business models. It measured

consumer responses to a range of VoD

experiences, created for the purposes of the

research to avoid any brand bias. The

researchers tested the responses to free ad-based

VoD and SVoD services in standard definition

form; and in HDR/4K with very high

quality audio.

“We found that the SVoD services actually

had a much higher propensity to be impacted

in terms of viewer engagement than any other

form of business model,” says Munford. “SVoD

is seen as a premium service, so if you introduce

a quality impact you reduce the engagement

an individual has with the service. The

responses suggested many people would stop

using the service or cancel subscriptions if [QoS

problems] persisted.”

This underlines the need for a strong

infrastructure. One option that successful

SVoD providers may consider taking in future

is – to some extent – to emulate Netflix, which

has effectively created its own CDN capability

by placing video servers within operators’

premises rather than relying on CDN

service providers.

Nivedita Nouvel, vice-president, marketing, at

video delivery technology specialist Broadpeak,

notes that it is among the technology specialists

that can offer equivalent capabilities and

efficiencies to smaller content owners and

service providers.

Cloud technologies are also likely to play a

more important role within SVoD infrastructures,

particularly for smaller service providers, suggests

says Sam Orton-Jay, sales and marketing director

at video delivery specialist Simplestream.

“Cloud makes it easier for a niche broadcaster,

or content owner to launch SVoD,” he says.

“We’re able to deploy services for some of these

small content owners very rapidly and at low

cost. We have services running with less

than 2,000 subscribers, very profitably.”

Getting a slice of the SVoD pieBut even with strong technology, a very good

service and great content, there is still no

guarantee of success. “In the next couple of

years there will be attrition of smaller SVoD

players,” says Chris Alner, business development

director, satellite and media, at Arqiva. “It will

be increasingly hard for them to make meaningful

returns in terms of the cost of content and

of running the platforms, and the number

of customers they can get.”

Yet this is no reason for any content owner

to give up on the idea of getting a piece of the

SVoD pie, says Matt Nelson, director of strategic

alliances at You.i TV. “This market is so huge

and is only going to keep growing,” he says.

“By 2020, 95 per cent of all traffic on the

internet is going to be video. Higher bandwidth

services for consumers is only going to drive

more video.”

For consumers, even in markets where

service providers fail to develop genuinely

effective, personalised content discovery/

recommendation capabilities, competition

in the SVoD market should continue to

encourage the development of ever-improving

SVoD services, with a growing range of content.

Interactivity features may well continue to be

developed, but service providers must never

forget that, ultimately, it is the quality of content

that decides the fate of any video service, says

Docherty at Think Analytics. “It all comes

back to the content in the end,” he says. “It

doesn’t matter how cheap your service is if

there’s nothing interesting to watch.”

VoD

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27-29_VoD.indd 3 10/02/2017 15:45:15

Artificial Intelligence

was arguably the hottest

topic at the CES with

products from Amazon

Alexa voice controlled

speakers to toothbrushes

boasting the new capability.

In media, such systems are already being used

to develop new compression schemes and

better analyse big data for services like

content recommendation.

Although alive in concept since the 1940s,

AI began its renaissance around 2010 by

being applied to a number of problems

that had been extremely hard to solve:

object recognition, voice recognition and

text translation to name but a few. To illustrate

the scale of the progress, the performance

of object recognition algorithms on the

benchmark ImageNet database went from an

error rate of 28% in 2010 to less than 3% in

2016, lower than the human error rate on

the same data (see www.image-net.

org/challenges/LSVRC/).

Such extraordinary advances

have been possible mostly thanks

to technical and intellectual

advances that have allowed the

development of very large Artificial

Neural Networks (ANN) coupled with

the availability of a huge quantity of data

to train the networks.

Following the moneyAn unprecedented amount of money

subsequently poured into machine

learning research, led by the largest internet

companies - Google, Facebook, Apple, IBM,

Twitter - to develop the software and hardware

tools to support the design and deployment

of ANNs.

Equity funding of AI-focused startups reached

an all-time high in the second quarter of 2016

of more than $1 billion, according to researcher

CB Insights. There were 121 funding rounds for

such startups, representing more than $7.5bn

of investment.

Among the investments, Facebook acquired

FacioMetrics in November. This spin-off from

Carnegie Mellon University developed IntraFace,

a technology that can detect seven different

emotions on peoples’ faces. Speculation is that

the acquisition will feed into Facebook’s work on

life-like avatars that convey emotions via

‘VR emoji’.

In August, Intel bought machine learning

start-up Nervana Systems and in October

Samsung acquired AI software developer Viv

Labs [http://viv.ai], with plans to equip its

next Galaxy S smartphones with a Siri-like

digital assistant.

In September, Amazon, Facebook, Google,

IBM, and Microsoft formed the nonprofit

Partnership on AI to advance public

understanding of the subject and conduct

research on ethics and best practices.

“The reality [is] that every person, business

and nation must deal with the emergence of

AI as a competitive advantage,” says James

Canton, CEO at the Institute for Global Futures.

“Those that have it will gain a vital global

strategic advantage over others.”

If that sounds like overkill, here’s Google chief

Artificial Intelligence

Advanced neural networks take shapeMachine learning and AI systems are set to become a dominant feature across the media ecosystem. How is AI being applied to media in practice today and in planning for tomorrow, asks Adrian Pennington

30 February 2017 www.csimagazine.com

30-31_AI.indd 2 10/02/2017 15:49:03

exec Sundar Pichai; “We are at a seminal moment

in computing. We are evolving from a mobile-first

to an AI-first world.” Speaking at the launch of

Google’s Pixel phone in October, Pichai said that

the company’s shift to AI is as fundamental “as

the invention of the Web or the smartphone.”

“When I look at where computing is heading, I

see how machine learning and artificial

intelligence are unlocking capabilities that were

unthinkable only a few years ago. This means that

the power of the software — the ‘smarts’ — really

matter for hardware more than ever before.”

Augmented IntelligenceMachine learning and AI are used

interchangeably, but in reality most so-called AI

apps are productised machine learning (ML)

applications for which AI is a catch-all but

misleading phrase. ML is best understood as

learning machines and should be distinguished

from AI, or machines that think. AI is a branch of

computer science attempting to build machines

capable of intelligent behaviour, while Stanford

University defines machine learning as “the

science of getting computers to act without being

explicitly programmed”.

You need robust ML built on ANNs

before you get to AI but currently there are

few true mainstream AI applications outside

of autonomous cars and, to a lesser extent,

virtual assistants like Alexa, Siri and the

Google Assistant.

“More complex types of cognitive technology —

neural or deep learning networks, natural

language processing, and algorithms — can

seem like black boxes even to the data scientists

who create them,” says Thomas Davenport,

a professor in IT at Massachusetts’ Babson

College, co-founder of the International Institute

for Analytics and a senior advisor to

Deloitte Analytics.

“AI used to be relegated to only the fastest

supercomputers, but recent advances in software

and the use of GPUs to process the algorithms

mean that the cost of AI assistance is no longer a

barrier to entry,” says Paul Turner VP, enterprise

product management, Telestream.

“You can certainly imagine that AI systems

will be able to analyse the actual content for

metadata gathering. Given that metadata is key

to automated workflows, this could vastly

expand our capability to ‘mine’ content for

other purposes.”

IBM prefers to talk about augmented

intelligence. “It’s an approach which asks how AI

supports decision making and demands a societal

change in how we look at technology,” says Carrie

Lomas, IBM’s cognitive solutions and IoT

executive. “Through personal devices like tablets

to all manner of items with sensors, the (industry

as a whole) is taking in lots of data and

combining it with different types of information

to enable a genuinely new understanding of

the world.”

IBM’s cognitive computer system Watson,

for example, has combined its Alchemy Language

APIs with a speech to text platform, to create

a tool for video owners to analyse video – forming

IBM Cloud Video. It is able to scan social media

in real time to monitor reactions to live

streaming events.

Much of the ML and AI applications a CES

are built on Nvidia chipsets. Nvidia describes

its TensorRT product as a “high performance

neural network inference engine for production

deployment of deep learning applications”.

It is targeting delivery of super fast “inferences

and significantly reduced latency”, as demanded

by real-time services such as streaming video

categorisation in the cloud.

AI technologies will undoubtedly broadly

impact the media sector at all stages, from media

production to delivery.

The biggest corporations on the planet are

embedding predictive intelligence into everyday

apps to make all our lives easier. The most

obvious examples are digital agents or chatbots

like Amazon Alexa, Apple Siri, Google Assistant,

Facebook M, and Microsoft Cortana. Siri, for

example, acts as a personal assistant, using

voice processing.

Promising applicationsThe bulk of AI’s potential, however, has still to

reach the mainstream. Here are a few examples of

Artificial Intelligence

www.csimagazine.com February 2017 31

Most Active VC Investors In AI Startups Q1’11 - Q2’16

Rank Investor

1 Khosla Ventures

2 Data Collective

2 Intel Capital

4 New Enterprise Associates

4 Google Ventures

6 Plug and Play Ventures

6 Horizons Ventures

6 Formation 8

6 Andreessen Horowitz

6 Accel Partners

11 Norwest Venture Partners

11 GE Ventures

13 Samsung Ventures

13 Two Sigma Ventures

13 Bloomerg Beta

13 Frost Data Capital

13 500 Startups

Source: CB Insights

30-31_AI.indd 3 10/02/2017 15:50:16

the most promising applications that are

being developed:

Accessibility. Automatic description of photos

and movie scenes for the blind. Facebook

delivered a first cut of this technology for static

photos. Microsoft and Google have similar

functionality in the works.

Subtitling. Automatic subtitles for hearing-

impaired people, both from speech recognition

and lip reading.

Content production. AI should not be

confused with intelligent creation, yet even here

the edges are being blurred. Editing software

such as Magisto, with 80 million users, takes in

raw GoPro or smartphone shot video and

automates the process of editing and packaging

it with a narrative timeline, tonal grade and

background music for consumers and even

marketeers facing huge demands on their

time and too much video to process and

publish online.

A number of recent developments in ML

research will allow picture and movie content

editing with Photoshop-like tools that edit

conceptual elements of an image instead of

individual pixels. It will soon be possible to

directly edit facial expressions.

Ad insertion in movies. Mirriad, a London-

based startup, has developed an application for

product placement (replacement or insertion) in

movie scenes depending on target audience,

location, context, etc.

Content creation. In the near future, AI

methods will be used to create new content. The

first pioneering applications are already available.

A documentary assembled by the Lumberjack AI

system is hoped to be presented before the

SMPTE-backed Hollywood Professional

Association (HPA) by 2018 and has already

helped create Danish channel STV ‘s 69 x10’

episodes of semi-scripted kids series Klassen.

In the more distant future, AI will be able

to generate new written and video content

on the fly, based on the interaction with

the user.

Content distribution. According to Berkes,

new ANN techniques are being developed to

beat traditional encoding and decoding algorithms

for pictures and movies. “They will allow the

transmission of high quality media content

even in regions with low internet and mobile

bandwidth,” he says. “ANNs are being used not

only to build better compression methods but

also to artificially clean up and increase the

resolution of transmitted images (known as

‘super-resolution’; one example is from

London startup Magic Pony Technologies,

acquired by Twitter last June for $150m to

reconstruct a HD video from a low-definition,

compressed stream).

The need for a human touchWhile some AI critics imagine catastrophic

scenarios, others like to imagine a future in

which AI helps us all to be more productive

and constructive.

“Overall, end-users will benefit from the

increasing role of AI, in particular in interacting

with the media,” says Berkes. “Virtual assistants

will understand their preferences and respond

to vocal command, facilitating content discovery

from multiple sources. As traditional media

becomes increasingly connected, AI will enable

content providers to interact with end-users. AI

assistants will help consumers select personalised

camera angles for sport events and they will

deliver automatic summaries of the latest news

and missed TV shows.

He also predicts that AI will make creative

tools accessible to everyone, assisting users in

editing pictures and movies and creating musical

compositions.

One fear is that AI will inevitably force humans

out of work. This was realised in Japan last month

when Fukoku Mutual Life Insurance replaced

34 employees with IBM’s Watson.

“You still need people to train Watson,”

emphasises Lomas. “That’s where the magic

and specialism of creatives is of huge value. AI

has a huge opportunity in the creative space. It

doesn’t mean we don’t need creatives, it means

they can move to higher level jobs and focus on

being even more creative.”

32 February 2017 www.csimagazine.com

Source: CB Insights

“New ANN techniques are being developed to beat traditional encoding and decoding algorithms for pictures and movies.”

Artificial Intelligence

30-31_AI.indd 4 10/02/2017 15:50:23

The cable business has

long been about service

contracts and multi-play.

It was the cable industry

that first championed the

counting of contracts—or

revenue generating units

(RGUs)—as a measure of its own success. Now

that the industry has embraced wireless in the

form of mobile, four services make up the

top-end bundle.

Bundles have been the bread and butter of the

infrastructure-led cable business for years. These

days though it seems that all anyone talks about is

Over-the-Top (OTT), a distribution freed from the

reins of infrastructure altogether. But, as more

and more homes bundle multiple OTT services

into their entertainment mix, the benchmarking of

OTT subscriptions on a contract share basis

becomes more applicable.

So, as operators outside the cable sector

increasingly launch triple or quad-play offerings,

and with OTT ascending in the overall

communications and entertainment mix, what’s

the reality of contract market share and is the

fuss over OTT justified?

Taking three cuts of pan-European Union

multi-play contract share is revealing. OTT

barely makes a dent when measuring contracts

by service type (TV, broadband, telephony,

mobile) accounting for just three per cent of

the market in the EU. This compares to 12%

for traditional pay TV; 14% for fixed broadband

and a whopping 55% for mobile.

Looking instead at technology, mobile again

dominates. Cable, DSL and PSTN are all roughly

equal in market share of contracts. at between

nine and 12%. Satellite’s share of EU multi-play

contracts is just five per cent (5%)

and OTT and IPTV are even at three per

cent a piece.

So why all the fuss about OTT? For that

we need to look at contract counts a third way…

splitting paid TV subscription contracts and

recalculating market share of subscriptions shows

that OTT accounts for one-fifth of all EU paid TV

subscription contacts, not far

off satellite’s 23% and IPTV’s

21%. Cable remains the biggest

paid TV platform at 33% of

contracts. Within the paid space,

at least, terrestrial sits at just

three per cent.

OTT’s disproportionate

impact within the TV sector

becomes crystal clear by this

measure, but being platform

agnostic, it’s far more common

for homes to take multiple

OTT services than multiple

paid services from more

traditional providers. In that

respect the figure can still be

a little misleading.

Nonetheless, while there

remains a strong ARPU disparity

— the EU average for OTT

television monthly revenue per

subscriber stands at €7.50

against traditional pay TV’s €21

— it becomes crystal clear how

important multi-play as

a core strategy could become.

Infrastructure-led operators

launched multi-play services

to compete with one another,

not with OTT. Historically,

it is the pay TV business

that has not been subject to

commoditisation while bundled

communications services have

come under increasing

price pressure.

But now that those TV

services face an increasing

competitive threat — and if (and

it’s a big if) OTT services cause

a price adjustment in the wider

market for TV — those good old

commoditising communications

bundles might just come to

the rescue.

Three sides to four-plays

www.csimagazine.com February 2017 33

Source: Ampere AnalysisBy Guy Bisson, Research Director, Ampere Analysis

Data corner

33_DataCorner.indd 3 10/02/2017 15:52:18

The growing popularity of

streaming media turned

OTT video, that only a short

while ago was considered

a complimentary service,

into a multi-billion market.

Nowadays, in addition to

OTT-only players like Netflix and Amazon, many

carriers offer a streaming experience not only as a

complimentary “on-the-go” service to their primary

cable/satellite TV subscription, but also as a

stand-alone option. The entire industry looking to

attract new audiences, while promising greater

variety of content and subscription packages,

higher resolution video and broadcast-like

streaming experience.

What’s choking our networks?With great promises, come even greater

expectations - today’s consumers expect their

streaming experience to be great, regardless their

location, time of day or devices they are using. As

a result streaming video content providers,

connected device manufacturers and the rest of

the ecosystem, are looking into ways to perfect

the viewing experience, by offering consumers

higher resolution content, enhancing devices’

streaming capabilities and improving the delivery

techniques. But with more users streaming

content - the more challenging it is to deliver on

the promise of flawless and stable streams.

While UHD 4K and HDR formats’ adoption

is led by the streaming services, their delivery

impacts the entire ecosystem, further challenging

the current video delivery infrastructure

capabilities. Although 4K streaming may seem

less challenging compared to broadcast, the

viewing experience is still very much constrained

by users’ available bandwidth, due to large file

sizes of such content. In addition, the

proliferation of live streaming and the Virtual

Reality (VR) hype, made the networks even more

congested, affecting end-users’ viewing experience,

even in case of a low-res short clip.

Balancing the cost vs quality tradeoff Network operators now find themselves in a

conflict between delivering greater viewing

experience to their subscribers and optimising the

costs of their operation, such as network

infrastructure upgrade.

Adaptive Bitrate (ABR) streaming protocols

were introduced also as a way to mitigate

buffering at the tradeoff of video quality. Aimed

to eliminate buffering pauses, the implementation

of ABR eventually created a user experience

paradox in form of constant bitrate switches, that

tend to be more visible to the human eye with

HDR and UHD 4K and in particular with VR.

The viewers no longer always get the content

quality they have subscribed to, especially in case

premium UHD content plans. They expect

flawless true 4K resolution but eventually receive

HD, SD and on occasion even buffering.

In order for the streaming to really thrive, the

OTT ecosystem will have to implement further

optimisation methods and match the increasing

consumers’ expectations.

Bandwidth demand reduction can be achieved

through more efficient encoding and compression

technologies. Innovations in HEVC and other

compression technologies that will continue

the reduction in file sizes and at the same time

will reduce the required computing power,

essentially leading to faster

streams. Moreover, to reduce

the bandwidth for VR and

360 degree video, app

developers can implement

tiling solutions aimed to

improve immersive video

quality, like the recently announced integrated

platform from Viaccess-Orca, Tiledmedia,

Harmonic and Digital Immersion.

High Dynamic Range (HDR) coding on lower

resolution video can also contribute to smaller

video files and lead to bandwidth reduction. Since

HDR delivers wider range of color shades and

greater luminance, HDR-enhanced content will

provide more vivid viewing experience, instead

of pushing enormous 4K files over congested

networks, in many cases the combination of

1080p with HDR can deliver better viewing

experience than unstable 4K.

Of course there is an option to increase the

available bandwidth. Expending and building next-

generation networks takes considerable amount

of financial resources and will take time. 5G

networks are not expected to become mainstream

in the next 5 to 7 years.

Increasing the capacity of existing fixed

networks, as well as using virtualisation

technologies to dynamically adapt the capacity

for major events when needed (like the Olympics

or Super Bowl live stream), can provide a timely

and cost-effective response to the growing

demand for OTT video.

More efficient CDN implementation will also

save costs and deliver better viewing experience.

As ABR video files consist of multiple fragments

of different bitrates, using techniques that

minimize the number of files will lead to reduced

storage and smaller manifest files, leading to a

more efficient CDN distribution.

There are measures, too, that can be taken

on the client side to increase bandwidth

efficiency. Improving media players’ streaming

logic will significant increase the QoE, as well

as the integration of network congestion

management solutions.

Streaming video, 4K, VR and ABR will only

continue to grow, but they need to work together

for OTT and connected devices purchasers to

receive the highest quality experience - both in

content delivery and perceived value.

Ravid Hadar, VP Product, Giraffic

34 February 2017 www.csimagazine.com

Mobile Video

Better streaming experience- at what cost? Further video optimisation methods are needed for OTT to strive, says Ravid Hadar

34_Video_Optimisation.indd 2 10/02/2017 10:45:31

2016 was definitely a year of great

change in which we saw 4K/

UHD launches, Freeview Play

and Freesat celebrating their

success and Virgin simplifying

TV, as well as dynamic growth in

VOD, Catch-Up and Hybrid TV.

The widespread adoption of HbbTV and

mandating HEVC for IP HD services (as outlined

in the DTG’s D-Book 9 which was published in

November 2016) provides a real opportunity for

UHD content to be more widely distributed and

hopefully paves the way for broadcast to follow

in the very near future. The publication by

DVB of the latest specification of Ultra HD

(UHD-1 Phase 2) options for object and scene

based immersive audio profiles, also offers

exciting potential.

However, what we didn’t see was 2016

becoming the Year of Virtual Reality. After

discussion about whether VR was the next 3D

early in the year and stories about significant VR

investment in March, IBC 2016 really set the

scene with much VR excitement and then

October 2016 became ‘VR Month’ with launches

from Google Daydream, Oculus Touch and

Playstation VR.

The DTG has been heavily involved in an

industry initiative to help make new VR

experiences simple and interoperable for both

content producers and consumers. This came to

fruition at CES 2017 when the Virtual Reality

Industry Forum (VRIF) was launched with the

goal of encouraging the adoption of common,

interoperable technical standards for end-to-end

VR systems and plans to create voluntary best

practice guidelines and promote VR services

and applications. These will certainly be needed

if it is to be widely adopted within the

broadcast industry.

Despite the fears of Brexit impact, the DTG

believes that 2017 will be a pivotal year from a

Policy perspective and undoubtedly a year of

major opportunity for our industry. The UK has

historically led innovation in TV, although some

European states have recently made bold moves

in the adoption of DVB-T2. Still many of our US

and European digital, creative and television

partners are currently looking to the UK to

innovate and lead.

To expedite this the we are focusing on some

key initiatives for 2017 which have been designed

to address the future of content delivery. These

include: Advances in Broadcast & Hybrid;

Advanced AV – UHD, VR & AR; The IP Future;

Wireless & Mobile Innovation; Spectrum

Changes; Content Innovation; and Data.

Our work on D-Book 10 is well underway and

we look forward to TV going from strength to

strength. While OTT viewing will grow it doesn’t

mean it will be to the detriment of traditional

linear broadcast viewing. Internationally, we are

interested to see how ATSC 3.0 takes off. With

LG announcing the launch of an ATSC TV for

Korea is this likely to prompt other countries

(such as the USA) to look at a switchover? Some

predict this points to a move away from the

transport stream with a new IP based hybrid

broadcast world. Probably not something for

2017 but ATSC aren’t the only ones looking

seriously at this.

What we are looking forward to this year is

that HbbTV looks set to be the standard for

hybrid and interactive services in horizontal

platforms. This will place the UK not only in-line

with a growing number of European countries,

but also at the forefront with regards to

functionality such as UHD support for IP

services. This is all due to the DTG working with

our Members and Partners in the form of DUK

and Freeview in capturing the Freeview Play

HbbTV requirements for 2018 products in

D-Book 9, and then also these being adopted for

Freeview HD in the future too.

Mobile and wirelessOur Future Wireless Technologies programme,

which incorporates 5G, brings together all

aspects of wirelessly delivered TV and video.

One element of this programme is the Mobile

Video Alliance (MVA) which is a DTG Working

Group. We have looked at methods of optimising

unicast delivery, as well as quantifying and

describing the ‘quality of experience’ of the

mobile video viewer. Our experts have also looked

extensively at LTE broadcast, which although

unlikely to replace DTT, is a crucial optimisation

in the way live content is delivered to mobile

handsets. Consumers have shown that they have

an appetite for live events on mobile – and LTE

broadcast looks to be leading the way to do

this at scale.

Where 2016 was a rollercoaster, all in all

2017 is shaping up to be an exciting year

for our industry.

DTG

www.csimagazine.com February 2017 35

2017 – a pivotal yearDTG’s Peter Sellar looks forward to what we can expect this year, including VRIF and HbbTV

Peter Sellar is Associate Director, Programme Delivery, the DTG

35-DTG.indd 1 13/02/2017 13:58:05

The CSI Awards 2017 – Call for entriesDeadline for entries: 12 May 2017 Established in 2003 the awards are among the most prestigious and competitive technology awards in the industry, designed to recognise and reward innovation and excellence in the cable, satellite, broadcast, IPTV, telco, broadband/OTT video, mobile TV and associated sectors.

NEW CATEGORY ANNOUNCED! Best 5G project or innovationThe mobile industry is on the cusp of a major transformation as fifth generation cellular technologies begin to appear over the next few years ahead of a widespread commercial rollout globally around the 2020 timeframe. These are expected to impact a range of other industry verticals, with trials ranging from smart parking to massive MIMO. This award category is open to companies and organisations that are involved in pre-standard 5G projects, solutions and strategies.

For the latest news and updates follow us @CSI_Magazine #CSIAwards

1. Best digital video processing technology

2. Best cable IP solution

3. Best satellite IP solution

4. Best customer premise technology

5. Best monitoring or network management solution

6. Best content protection technology

7. Best content-on-demand solution

8. Best interactive TV technology or application

9. Best mobile TV technology or service

10. Best internet TV technology or service

11. Best ultra HD TV technology or project

12. Best TV everywhere/multi-screen video

13. Best social TV technology, service or application

14. Best data & analytics innovation

15. Best cloud/virtualisation innovation

16. Best IoT product, technology or application

17. Best virtual reality innovation

18. Best 5G project or innovation - NEW CATEGORY

The CSI Categories

Awards 2017page thirty six www.csimagazine.com

CSI magazine • Awards

AWARDS CEREMONY15 September 201715 September 2017

Amsterdam

For the latest news and updates follow us

36-37_Awards.indd 2 06/02/2017 12:40:09

For awards or entry enquiries:Danielle Devine+44 (0)20 7562 [email protected]

For sponsorship enquiries:John Woods+44 (0)207 562 2421 [email protected]

Camilla Capece+44 (0)207 7562 [email protected]

ENTER NOW: www.csimagazine.com/awards

The CSI Awards 2017 will be taking place on Friday 15 September in Amsterdam.Join us at the 15th annual CSI awards to see this year's winners exclusively announced. The Awards ceremony will include drinks and canapés and will as always be a wonderful evening.

Date: Friday,15 September 2017

Timings: 6:00pm: Drinks Reception6:30pm: Awards Ceremony 7:15pm: Post Networking and Drinks

Host of the CSI Awards 2017 The 2016 awards were hosted by specialist business presenter Nadine Dereza, and we are delighted that she will be back to host the 2017 CSI Awards.

page thirty sevenwww.cable-satellite.comAwards 2017CSI magazine • Awards

AWARDS CEREMONY ENTER NOW

Why enter the CSI Awards? • Stand out against the competition• Attract talent• An opportunity to celebrate• Reward employees and motivate your team• Leverage your marketing - through PR and increased brand awareness• If you are shortlisted your company logo will feature at the awards ceremony attended by hundreds of the leading names in the industry.

36-37_Awards.indd 3 06/02/2017 12:40:37

Events diary 2017

Date Name Location Website

14-16 February FTTH Conference Marseille www.ftthconference.eu

27 February - 2 March Mobile World Congress Barcelona mobileworldcongress.com

28 February -2 March BVE London bvexpo.com

6-9 March Satellite 2017 Washington DC satshow.com

8-9 March Cable Congress Brussels cablecongress.com

13-15 March DVB World Vienna dvbworld.org

21-23 March CabSat Dubai cabsat.com

21-22 March HbbTV seminar Munich irt.de/en

23-25 March CCBN Beijing ccbn.tv/en

28-30 March TV Connect London tvconnectevent.com

3-6 April MIPTV Cannes miptv.com

22-27 April NAB Las Vegas nabshow.com

27-28 April M2M World Congress London m2mconference.com

16--18 May Internet of Things World Santa Clara iotworldevent.com/

17-18 May Connected TV Summit London connectedtvsummit.com

10 May DTG Summit London dtg.org.uk/dtg/summit.html

23-25 May Broadcast Asia Singapore broadcast-asia.com

25-26 May FTTH Council Asia-Pacifi c New Delhi ftthcouncilap.org

30 May-1 June ANGA Com Cologne angacom.de/en

13-15 June Apps World London tmt.knect365.com/apps-world

14-18 September IBC Amsterdam ibc.org

20-23 September Smart Summit London iotsmartsummitlondon.com

26-28 September SD-WAN Summit Paris CDG

16-19 October MipCom Cannes mipcom.com

17-20 October SCTE/ISBE Cable-Tec Expo Denver expo.scte.org

November 2017 OTT TV World Summit London ottworldsummit.com

November 2017 CDN World Summit London cdnworldsummit.com

December 2017 Connections Europe Amsterdam parksassociates.com/events

TBC December Future TV Advertising London futuretvads.com

For a full list of events taking place in 2017 please go to http://www.csimagazine.com/csi/events.php

38 February 2017 www.csimagazine.com

EventsDiary2017.indd 2 10/02/2017 15:43:10

38 May-June 2014 www.csimagazine.com www.csimagazine.com February 2017 39

To advertise contact John Woods +44 (0)20 7562 2421 [email protected]

Business DirecTory

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There’s never been a better time #neverbetter for Cisco to partner with Service Providers to transform Entertainment. As the longstanding, market-leading supplier of video entertainment solutions and cloud services, the company empowers Service Providers and Media companies to connect consumers and businesses to a world of new experiences. With more than 7000 video professionals, Cisco has the scale, resource, and vision to deliver differentiated solutions..

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ATX Networks designs, manufactures, markets & delivers a broad range of OTT, IPTV & CATV digital video solutions to the global cable television industry, & PVNs (Private Video Networks). Sectors served include cable operators, broadcast, education, enterprise, government, healthcare, hospitality, sports & entertainment, retail, worship, & telcos.

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39_Directory.indd 1 08/02/2017 16:02:21

SECURING THE CONNECTED FUTURE

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Download the follow-up Frost & Sullivan Paper: Build or License: The Multi-DRM Quandry forOnline Video Publishers www.verimatrix.com/build-or-license-drm