African Telecommunications Union Opening Keynote, Professor James KulubiTHE IMPORTANCE OF DIGITAL ANDINTERACTIVE TV TO AFRICA BOTHSOCIALLY AND IN STIMULATING AFRICANINNOVATION
Africa is wealthier than IndiaAfrica has a greaterAfrica: of households earning more than Understanding number $20,000 per year than India
Africa has 52 cities with a population of more than a million, thesame number as Europe and more than China. 40% of Africanslive in cities, the same number as China and greater than India. Urbanization is critical to economic and technological development
More than 85 million people earn more than $5,000 per year, alevel of income which allows >50% to be spent on non-food items Large scale discretionary spending is the first sign of long-term prosperity, as in Brazil 10 years ago
There are over 900m consumers on the African continent.African consumer spending is $860 billion per year, which is larger than that of Russia or India.
Most multinationals serve the 150 million „Africa 1‟ market of the upper middle class, ignoring a 500 million „Africa 2‟ middle-market that is vastly underserved, compared to their equivalent in India and China.
Mobile reset the World‟s assumptions on Africa.Africa‟s ARPU is comparable to Latin Passed 500M Mobile Understanding Africa: In 2010 We America and China, and Subscribers twice that of India
M-PESA – unique innovation out of Africa
mHealth – unique innovation out of Africa
Key Points• Africa was the fastest growing mobile region in the passed decade• Through the digital TV transition Africa is likely to be the fastest growing region for digital TV in the World• Unique innovations have come from Africa such as mobile money (M-PESA) and mobile health• Digital TV has the potential to repeat these innovations given the unique African market
MultiChoice and UEC, Chris Oberholzer & Alan SullivanSatellite and Hybrid TV:The Realities of TV Service Delivery in Africa
Multichoice and UEC focused on how DVB over IP can be used in a solution targeting Hospitality, that is MDUs and gated Target Marketcommunities. Example of the diverse solutions required to meet the unique African market.
Solution Architecture shows the importance of a Hybrid TVsolution to delivering the broad range of services described in the Solution Architecture next slides
Services• DVB over IP / Connected Set-Top-Box and OTT (Over-the-Top) content• OTT –Over the top content o VOD –Video on demand streaming (Unmanaged -> Internet) o Catch-up TV –(Typically offered as over internet service by Broadcasters) o Internet Radio services –(World radio streaming services) o Interactive services/applications –(Information based applications and games) o Open Internet access –(Internet searching via search engine, e.g. Google) o Social networking tools –(Facebook, Tweet , LinkedIn, Flicker, MySpace etc) o Security and local community content• Other revenue related opportunities – o Targeted advertising –(Advert insertion, interactive newspaper) o Search & recommendation engine -(TV content related search engine) o Enhanced EPG –(Detailed meta data retrieval and display capability)
Key Points• Interactivity is difficult in Africa given the lack of fixed broadband infrastructure, broadband cost, and variable performance of mobile broadband infrastructure• It‟s a diverse market so diverse solutions are required• The MultiChoice / UEC project provides an example of how Hybrid TV is being introduced into the market to deliver a richer experience
IMPALA, Joss ArmitageMHEG AND MHEG-IC
Example of MHEG Electronic Program Guide
Example of MHEG Services
Key Points• MHEG and MHEG-IC have achieved significant deployments• It presents a mature standard that can be implemented at low cost which is attractive for the African market in achieving its universal service obligations• An issue is the relatively small number of experienced developers available to create content and services in MHEG
Huawei, Ted HsuingDigital TV – Challenges and Outlook
Huawei‟s Hybrid TV solution: Ningbo and SaudiTelecomNingbo (IP+DVB-C): Enhancing Revenue by Saudi Telecom (IP+DVB-S): Bringing Large no.Threefold with VoD Services of FTA Channels plus VoD Service to the Mass Live Satellite signals coding Headend IPTV+DTV Home antenna IPTV content DTV antenna platform platform IPTV management platform Platform Ningbo IP IPTV+DTV Ningbo service support IP Bearer broadband platform Netcom STB HG Network network cable network DSLAM 1. All the free channels received by a home First stage: antenna VOD/ Time- Live 20,000 shift TV TV 2. Encrypted channels received by a headend IPTV&DT subscribers antenna V dual Second stage: TV mode STB 60,000 subscribers Customized dual-mode Customized STB + Remote solution: Control Solution: DVB-S + IPTV • Function + Shape + Interface • Automatically initial configuration •Huawei provides an IP and HFC-convergent interactive Customized EPG through USB television solution to launch value-added services such as Customized home wiring VOD and time-shift TV. Customized network plan & solution optimization Service •Distributed deployment of large-capacity and carrier-grade Support for XDSL, WiFi, • Encoder optimization and FEC & streaming server M12000 to address massive requests for on- and Cat 5E ARQ deployment Support for multiple STBs • decrease network requirement demand content. Support for network access • SQM deployment to save OPEX •Flexible BSS middleware system is used, providing support through power cables for smooth expansion of services. Huawei Hybrid TV Deployments
Huawei‟s End to End Solution for Digital Video ( DVB-T,IPTV, Hybrid TV & OTT) provides Unique Value Based on SDP & SDK Cost Efficient Consistent Open for 3rd Party Developers Solution Openness Open for Terminals CTC STB cost is Open for Value-added Services reduced 30% Browser based EPG Flexible Customer Customized EPG (within 1 month) Driven Customization Customized functions & VAS ( Roadmap 1month/ VAS) EtisalatRich Experience in Pre-integrated solution with 3rd party Future proof IPTV vendors investmentNetwork & System Efficient reuse of Comprehensive SDP & Network Integration existing components Management solution protecting operator‟s Network Assessment, Integration & investment. Management Content Acquisition Fast Time to Fastest Strategic Plan Development Deployment Market Operations consultancy within 83 days! Managed Services Malaysia Vast R& D Resources TM
Huawei Has > 10 years of Digital TV Service Experience forSuccessful Deployment of TV Service 2000 2004 2007 Up to 2010Multimedia Digital Digital Home Digital Home Product lineProduct line Entertainment Product line 6 solutions:3 solutions: Product line 5 solutions: IPTV, Digital TV, Mobile TV, InternetDigital TV, Video 4 solutions: IPTV, Digital TV, TV,phone IPTV, Digital TV, Mobile TV Video Surveillance, Hybrid TVVideo conference Mobile TV Internet TV, Video Product:Product: Internet TV Surveillance QAM/IPQAM, Encoder, VOD, SQM,STB, QAM, Product: Product: CDN, HIC, MashupEncoder, QAM/IPQAM, QAM/IPQAM, Encoder, Terminal Company: Encoder, VOD, CDN VOD, SQM, CDN, HIC Video phone, Video conference, STBTerminal: HG/AG/ONU/RGSTB Terminal: Terminal: Video phone,Video Video phone, Video Fixed Network Product line:Network conference, STB conference, STB, Fiber transmission of TV stream, Multi-Product: HG/AG/ONU Play SolutionFiber Network Product: Network Product: Mobile Network Product:transmission of Fiber transmission of Fiber transmission of Mobile network optimizationTV Signal and TV TV stream, Multi- TV stream, Multi-Play LTE based TV Servicestream Play Solution, Mobile Solution, Mobile Core Network Product: network ptimization network optimization IMS based IPTV Core Network Product: Hisilicon Company: IMS based IPTV Encoder/Decoder chipset Huawei has already deployed 37 IPTV applications with over 2 Million Active . subscribers and 7 Million system capacity
Huawei Digital TV Global Commercial Case List Guangdong Telecom China Unicom Xinjiang Telecom Shanghai Telecom UAE Etisalat 2006/1,950,000 2006/540,000 2007/400,000 2008/500.000 4.2011/200,000 Zhejiang Telecom Russian NMN Telecom Ecuador Telecom Malaysia TM Qatar Qtel 2010/1,000,000 2007/110,000 2009/100,000 2010/340,000 Impl/200,000 Morocco Telecom Pakistan PTCL Saudi STC Mexico Iusacell Hungary DT/MT 2006/150,000 2008/100,000 2009/45,000 Impl/50,000 Impl/500,000 Top supplier in E2E IPTV projects : 40 commercial E2E IP Video projects deployed Huge total capacity : More than 9.500.000 subscribers Q1.2011 Top recent growth in E2E projects : 20 awarded projects in 2009 and 2010; 15+ expected in 2011 Strong growth outside China Top in relevant project size : 17 projects with 150k+ capacity sold 8 with 100.000+ act. subs; 1 with 1.2 Mio.+ act. subs China Telecom will grow in 2011 about 3.5 million subs
Key Points• Huawei is perhaps an overlooked supplier in the Digital TV space in the developed markets• However, its clear Huawei is committed to Africa and delivering solutions that meet the markets‟ diverse needs
Alticast, Anthony Smith ChaigneauDVB Middleware – DTT & Hybrid
HistoryThe DTT Interactive Market Opportunity Was Decided Well Over 15 Years Ago However even in the In the Last 10 Years Only a Very Small Percentage of DTT Went Interactive WHY?
Because…Launch of SD = ASO, No Real Business Model for Interactive, Lack of Good ReturnChannel then came HDTV and IPTV, Then 3DTV, NOW OTT & Catch-UpTV… % of Digital PayTV Subscribers Worldwide Now There is a BIG Fight For Control of “The TV Remote” This is a key point, interactive TV has been slow to take off
DVB MARKET GROWTH -GEM-HBB for DVBT2 DVB-GEM 1.3 Published Common Middleware• State of the art Java-based TV middleware• Deployed in Terrestrial, Cable and Satellite broadcast, IPTV and adds Blu-ray, OTT• Secure multiple application environment• Networking, device hardware access• Flexible signaling and protocol interfaces• Stored applications, PVR APIs• Supports broadcast, Managed and Unmanaged broadband & Blu-ray interactive DVB-T2 Gets GEM 1.3 Hybrid OTT Interactive SpecificationDVB-GEM uses Java, so can leverage a larger developer base than MHEG36
Conclusion – More Innovative DTT Solutions Pave the Way 2009-2010 Onwards Broadcasters Have Been Forced To Move • To Date In Countries with Well Developed INTERNET infrastructure the advent of the “Connected TV” devices have made the Consumers aware that there is an alternative. TV EVERYWHERE initiatives - So Broadcasters have had to make moves to try to bring good programming and Value Added Services… Cater for ALL Levels – Basic to Multi-Level Offering JUST PATCHING DTT with MHEG5 OR PAPERING OVER THE CRACKS WITH RED BUTTON & DIGITAL TELETEXT IS NOT ENOUGH TODAY!With all the Technological Advances in MOBILE, TELCO, a More SophisticatedConsumer with Smartphones and APPS and Hi-Tech Gadgets…And it is becomingaffordable In Technology Today’s Technology WHY SHOULD TV COMPROMISE…INVEST IN THE FUTURE OR LOSE OUT – WE HAVE ALREADY SEEN THIS! 37
Key Points• Anthony provided a great presentation on DVB-GEM• Its broader capabilities and use of Java (many more experienced developers than MHEG) enables it to provide far richer experiences to the user• There are potentially higher component costs, but without specific STB implementations to compare such its hard to quantify.• Another option is HbbTV (which has recommended CE-HTML), its component costs are higher than DVB-GEM, however, it enables all web developers to be able to create content• For Africa the key is to define what Universal Service means o That is, what services will be universally available. Of course broadcast TV and radio, but specifically what services above that, e.g. if education is a core requirement, what specifically needs to be supported? o With the services defined its then possible to see (through real product demonstrations) the service capability versus cost from the many STB suppliers.
Verimatrix, Pierre HunterConverging PayTV and OTT to Build a Stronger Position inthe TV Delivery Ecosystem
HLS is an essential part of Over The Top TV – as it can cope with variable performance of an unmanaged IP connection
Smooth Streaming (Microsoft) and Apple HLS are the two main options at present
Example of security applied to Managed IP
Example of Security applied to an OTT Solution
Key Points• Content owner‟s approval of the security solution is critical• Also content owner‟s rights must be negotiated for each method, e.g. the rights for mobile, broadband, and internet are separate o The content owners are currently the biggest challenge in enabling TV Everywhere for most PayTV providers• This is a theme that recurs several times, the content owners are the puppet-masters in the TV ecosystem
Thabo Makenete, Universal Service and Access Agency of South AfricaUSAASA‟s role in building the digital TVindustry of Africa
Why the need for subsidies?• Looming deadlines – ITU (2015) and Policy (2013)• Short migration programme (towards 2013 or 2015)• Market forces may not be enough to depend on, especially for those needy TV households (more than 5 Million TV households may be considered needy)• South Africa needs to speed up the process of ensuring that needy TV households migrate to Digital TV and are part of the digital revolution• Through the USAF, USAASA will facilitate the speed up of migrating needy TV households to Digital TV (STB Subsidy Programme)
Contributing to the South African digital TV industry Manufacturing Distribution Retailing Installing • USAASA‟s STB Subsidy Programme will contribute to the STB building blocks of the Digital TV industry value chain • Subsidies to +5 Million needy TV households towards the cost of an STB, contributing to – Manufacturing of those STBs by local manufacturers – Distribution to all areas, including far flung rural areas – Retailing, with more focus in rural areas where many of the target TV households are located – Installation of STBs in households that may not be able to self install
Extending contribution to the African digital TVindustry• Through subsidization of locally manufactured STBs, local intellectual property will be developed, which may be shared and further developed within the continent• With the STB Subsidy Programme, we will be able to share knowledge on o Subsidizing needy TV households and developing systems and processes to achieve this o Reaching TV households in rural areas and ensuring a less cumbersome process o Installation support for needy TV households that may not be able to self install
Key Points• Voucher system is likely• In some neighborhoods up to 75% of needy homes could need installation support, though 25% would be a broader market figure• Motivation will be critical, as in other countries advertising the benefits (more channels, radio, better quality, education services, etc.) as well as making it fashionable will be key.• I remain perplexed on the need for local manufacturing. I understand the need to create jobs, but perhaps jobs in STB manufacture are not the best use of Africa‟s resources. Perhaps training to create the applications and services that will run on the STBs (in Africa and the rest of the World) would be a more future proof use of investment, and simply buy the boxes from one of the many large volume suppliers in Asia.
Simon Drinkwater, LimeLight and John Schalkwyk, BCXRole of Content Delivery Networks in IPTVand OTT TV
Key Points• CDNs are the hidden work horse of service delivery over the internet• Without Limelight OTT TV is not possible• BCX has licensed Limelight‟s technology to create a regional CDN, linked to Limelight‟s global CDN• Enables Limelight to deliver both globally and locally
Jacek and Marek Dziembowski, AntfarmWhy Local is better for Content DeliverNetworks
CDN elevator pitch – Introduction• What exactly is a CDN, why is it necessary?• A simple definition • A CDN is a network solution designed specifically to address the challenges of serving content across bandwidth constrained network topologies e.g. Internetworks, private & public WANs.• Internetworks have bottlenecks • Internetworks are by design, inefficient at transporting high bandwidth or large volumes of content – bottlenecks occur at locations of high traffic concentration e.g. long distance backhaul links, ISP peering points etc.• Content distribution • A CDN can overcome bottlenecks by distributing content to the Internetwork edge or by offloading traffic from congested locations within a network.• Sample CDN performance metrics • Fast response / low latency • Reduced connection time • Reduced buffering (streamed media) • Highest quality content is served (for adaptive streaming)
Industry perspectives – logistics analogy*• Global logistics: Internet global logistics: oil tankers, container ships, global CDNs aircrafts Regional Logistics: Internet regional logistics: Trains, freight, local aircraft, National / local CDNs (inter/intra national couriers. ISP) Local Logistics: Intranet logistics: Couriers (door-to-door deliveries), In-corporate, private CDNs the postman, mail, newspapers etc *reference to JetStream, http://www.jet-stream.com
Industry perspectives – why local is lekker?• Why a local CDN?• Closer to end users, improved CDN performance • Improved quality of adaptive video streams • Lower latency / faster response / connection times • Reduced buffering• Ability to overcome capacity constraints / bottlenecks • Geographic distribution of nodes (inter & intra ISP)• Higher Capacity • On-net within the ISP network (Intra-ISP) • Off-net across ISPs (Inter-ISP) • Reduce peering traffic between ISPs• Operational cost savings • Intra-ISP: traffic is offloaded from expensive WAN / backhaul links • Inter-ISP: ISP peering traffic cost savings• Closer to clients • Enterprise / private CDN integration
Antfarm perspective – backgroundWho is Antfarm?• A brief history• Take to market: • Streaming media service provision • Using Antfarm local CDN and /or integration to global CDNs • Streaming media systems integrator• Current service specialization / product offering: • 24 x 7 live streaming (Internet radio, video etc) • Live event-based streaming i.e. webcasts • Provision & integration of streaming media solutions (encoding solutions, enterprise CDNs etc)
Antfarm perspective – CDN relevance• Antfarm legacy CDN:• History • Purpose built in partnership with Internet Solutions • NetApp-based appliances using Cisco WCCP for redirection• Benefits derived: • Adoption of a new business model (uncapped streaming) • Captured radio streaming market • Improved experience for end users (no capping)• Challenges encountered: • Vendor lock-in as a result of proprietary technology (inability to adapt to changes in codecs / formats etc) • Limited upgrade path • Vendor dissolution (stream caching capability) • Peering issue with SAIX
Antfarm perspective – CDN relevance• Antfarm current CDN:• Description: • Inter & Intra-ISP architecture • Scalable architecture – metro / satellite node model • server based architecture – less expensive, generic H/W & best of breed media application servers • format agnostic • Purpose built in fulfilment of Antfarm services e.g. live streaming, webcasts etc.• Benefits derived: • Ability to absorb „flash crowds‟ / peaks of high demand • Ease of integration to global CDNs • Ease of upgrade (vendor agnostic) • Ease of scalability (new nodes in Africa, in country)
Antfarm perspective – CDN relevance• Relevance of a local CDN to Antfarm?• Assumes the Distribution role in the 5 step live stream workflow• Used for local* content distribution in fulfilment of streaming media service offerings: • Provision of permanent, live streaming services • Capacity / performance to serve the local market • Progressive billing model facilitates cost-effective local streaming media distribution • Service flexibility / adaptability (specific client requirements) • Supports event-based live webcasts • Ability to absorb high capacity webcasts (via Intra & Inter-ISP distributed architecture) • Custom integration solutions • Enterprise / private CDNs * Antfarm CDN includes an international footprint
Key Points• Antfarm started in 2000, recognizing the need for CDNs very early on• They‟ve created a business in Africa focused on delivering a range of services on top of their local CDN for radio stations and businesses• They‟re starting to see TV channels also following the model of the radio stations in broadcasting online• Provides a great example of the need for a complete wrap of services in helping businesses and broadcasters deliver their content with a great experience online.
Torsten Hoffmann, Global Media ConsultUnderstanding Worldwide Case Studies in 3D
Popular Science, February 1962:
48 years later: Telegraph, March 13th 2010
Movie Theatres• 22,000 screens worldwide (Jan 2011) (g)3D Television• 87% of owners are happy (a)• Growth per quarter 100%+ (b)• Prices of 3DTVs drop by up to 10% per month ( c)• 160 million units shipped in 2015 ( c)• 15 million units in USA by 2012 (f)Science• Viewers are more “attentive and immersed” (d)• 15% higher retention for advertisement is higher (e)Sources: (a) Cable & Telecommunications Association for Marketing (b) DisplaySearch ( c) iSupply (d) MindLab (e)James Stewart OCE (f) Futuresource Consulting (g) Digdia
900 million devices by 2014
3D TV Channels• Only a few dozen 3D Channels today• 100 3DTV Channels by 2014 (a)• Sport is a major driver (NBA finals, Wimbledon,Football)Few dozen VODPlatforms• Premium Prices• Heavy Usage• Embedded on TVs (LG, Samsung)Sources: (a) InStat
According to Al Caudullo at 3DGuy.tv there have been about 90 movies from the 1950s till2000, and since 2005 till present over 100 more.Upcoming 3D Titles (many Sequels and Remakes):Resident Evil: Afterlife, Happy Feet, Ice Age Sequel, Madagaskar 3, Star Trek 2, Tintin(S.Spielberg), Superman, Cats&Dogs 2, Fantastic Four, Spider Man 6, Titanic 3D (Remake),Wild 3D (IMAX), Jillians Travels, Quantum Quest (NASA), Safety Geeks (series), "The Legendof the Guardians“, Bulletproof (series), Starfish Cove, David Attenboroughs Flying Monsters,TT3D, Gnomeo and Juliet, music performances, and ALL major sport events including NBA,Football, Darts, Tennis, Golf, …
More Movies are in the pipeline. Rumors include:Men in Black 3, Beowulf, the Little Prince (series), The Invention ofHugo Cabret (Martin Scorsese), Don Quixote 3D, Montreux JazzFestival, Coronation Street, Arabia, dozens of music concerts andsummer movie festivals, Winx Club (series), Burning Man 3D, DriveAngry & A Very Harold & Kumar Christmas 3D, Texas Chain SawMassacre, Sher Khan, Napoleon 3D, MaeNok (Horror), Pororo - thelittle penguin, Ghost Hotel, Dark Truths, Final Destination 4, GreenLatern by Sony Imageworks, Cirque du Soleil, A Fast Parade,Abraham Lincoln: Vampire Hunter, The Avengers in New Mexico,The Croods by Dreamworks Animation 2013, Underworld 4, Homageto Homer , MotorStorm Apocalypse 3D, Saga about Raakvile,Carnival in Rio de Janeiro, Ubisoft is developing 3D feature films forthree of their most popular franchises: Ghost Recon, Splinter Celland Assassin‟s Creed
Production Companies are switching to 3D“3D is becoming a predominant mode of production according to asurvey of film, TV, commercial and corporate media productionprofessionals. Indeed, the survey Media Services, a leadingentertainment accounting, payroll, crew booking and softwareproviders [sic], revealed that nearly half of houses say that theirbusiness will focus on 3D film and 3D TV production in the nextfive years.”
Our s3D Movie Portfolio for 2011
Our Non-Fiction s3D titles
Key Points• Though the glasses are a pain, when the content is compelling, it transforms the experience• 3D pricing is around HD pricing – its hard to add a premium at the moment as the market is in development• Diversity in consumption is the key factor to understand o Not all viewers will watch 3D (ever) o However, enough in the industry think there will be a significant audience, where producing 3D content will give their content an edge in the competitive market of viewers attention.
Wild Earth, Graham WallingtonBroadcasting in 3D – the PracticalRealities of 3D
Where is WildEarth?• 3DTV channel• Non-linear production and licensing• Internet: o iPad o Roku o Web (wildearth.tv) o Re-distribution (Ustream, YouTube, DailyMotion, Justin.tv and Livestream)
Getting out of Africa!• IP from Djuma to London• The long fat pipe• Window sizes and lost packets• Wireless networks• The satellite solution
London to the world• Cloud Based Master Control• Hosted Master Control• UDP, the proxy and the decoder• Client head-ends• A global IP footprint (less opex more capex)
3D on the Internet• YouTube and wildearth.tv• Cinemizers• iTunes• Connected TV and OTT
Economics of LIVE streaming• Bandwidth costs are plummeting• Video advertising is growing• In-stream advertising = revolution. Why?• Birth of the ad platform
Some examples• AfriCam (1998 – 2001) o JPEG refresh = page views = banners with low bandwidth = profits o 56kbps stream for $5.99/month x 2000 subs = insolvent!• Hornby Island eagles (2005) o 55,000 concurrent viewers o Huge bandwidth bill = massive losses!• Lily the bear (2010) o 50,000 concurrent viewer peak o 8,000 concurrent average for 2.5 months o $15,000 profit• Decorah Eagles (2011) – one of 100 eagle nest cams. Why this one? o 187 million views o 150,000 concurrent viewer peak o 100,000 concurrent average o Massive profits!
What‟s next?• The next Decorah eagles will make a fortune: o 100,000+ concurrent LIVE viewers o A $2.50 CPM per 1,000 overlays o An overlay every 60 seconds o That‟s $250.00 per minute revenue!! o With $16.00 per minute bandwidth costs. o You do the math …• Google buys Hulu. Why?
Key Points• Content is critical to whether 3D matters• Combining live, 3D and „over the top‟ creates compelling and unique experiences for specific content types, e.g. Nature• Graham quoted gross revenues from some events of nearly $500k (given their specific platform)• Clear we‟ve barely scratched the surface of the enormity of the changes new TV technologies, networks, platforms and business models will unleash