Bitmovin LIVE Tech Talks: Overcoming Encoding Challenges

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April 23rd
, 2020
Overcoming encoding challenges:
What’s your ideal (re)solution?
B I T M O V I N I T E C H T A L K
All rights reserved. © Bitmovin Inc 2020

Who am I?
Markus Hafellner
Product Manager
Encoding

● Market dynamics
● Increased pressure by COVID-19
● Finding the ideal (re)solution
Agenda

Market dynamics

OTT usage before the crisis
OTT platform usage as a % of surveyed
households that utilize both SVOD and AVOD
services
Top 3 AVOD services in use as a % of surveyed households
YouTube
Facebook
Broadcast
network sites
71%
46%
27%
Source(s): EY analysis, SNL Kagan
Top 3 SVOD services in use as a % of surveyed households
Amazon Prime
Netﬂix
Hulu
61%
57%
30%

● 4k content needed
to make use of all
the UHD panels
out there
● TV manufacturers
are already eager
to get people
hooked on 8k
Resolution wars
2019 2025
4k display market size
CAGR 23%
2019 2025
8k display market size
CAGR 32.9%
Source: Mordor Intelligence:
https://mordorintelligence.com/industry-reports/global-4k-display-resolution-market-industry
https://mordorintelligence.com/industry-reports/8k-market
48 billion
166 billion
3 billion
16 billion

HDR support * Source: IHS TV TV Design and Features Tracker
2015 2016 2017 2018 2019 2020
0
20
40
60
80
100
120
140
Shipments(millionsof)
SDR 4K TVs HDR Compatible 4K TVs True HDR 4k TVs
Worldwide 4K TV Shipments by SDR/HDR

● Users expect seamless high quality playback while on the go
○ Requires high quality with low bitrate
● User generated content (Instagram, TikTok, ..) that goes viral
○ Requires to adapt quickly and re-encode to save costs
■ Low impressions -> h264
■ High impressions -> HEVC/VP9
Mobile handsets

Codec support
40-50% Higher Efﬁciency
DEVICE SUPPORT FOR NEXT GENERATION CODECS

● 4k content to make use of all the UHD panels out there
○ 2019 market at 48 billion USD
○ CAGR for 2020-2025 is 23%
● TV manufacturers are already eager to get people hooked on 8k
○ 2019 market at 2.89 billion USD
○ CAGR for 2020-2025 is 33%
● Codec support way better than most content providers think
● Cost reduction + bandwidth reduction
○ More users + more trafﬁc per user
○ Solutions: VP9, Per-title, 3-pass
● Lot of clips that are not that often consumed (user generated clips)
● Consumer trends can be found from Nielsen on the slide deck
Market demands summary

Increased pressure
by COVID-19

STREAMING AUDIENCE COMPOSITION
WEEKLY VS. YEAR AGO
Weekly, Persons 2+, Total Streaming Minutes
Source: Nielsen, Custom Streaming Meter Report, Sum of Daily Streaming Minutes (Weighted), P2+,Total Day, Others calculated as the difference between total
streaming and the sum of the major 4 digital publishers

Streaming video consumption is increasing
Viewers are watching more
and are watching longer, but
data use is growing faster!

Impact on performance
Quality of service metrics suggest that video services can still cope
with the increase in load but see bandwidth related pressures

● There is extreme public pressure on content distributors to lower bandwidth
consumption while still delivering a positive experience for viewers.
● As providers see record levels of growth, they also need to ensure they are
managing costs appropriately as they scale.
Technology impact

Value driver: Time to market
● Network bandwidth limitations forces either re-encode to
preserve quality at lower bitrates or worsen viewer
experience; multi-codec solutions
● People upgrading their home cinemas as cinemas stay
closed for most of 2020
● NRL, iﬂix, Turner are examples (check graph and
anonymize)
Being adaptive in a crisis summary

Finding the ideal
(re)solution

● Devices can support more than operators offer
● Market demand for high quality streaming
● Bandwidth restrictions
● Uncertainty = stick to your core competencies
Many challenges resolution alone
can’t solve

How to deliver the
best quality

● Better codec efﬁciency allows high quality delivery
even with bandwidth limitations
● Maximum device coverage + cost savings with
minimum service fragmentation
○ Instead of having one encoder per codec run
all via the same API call
Multi-codec

● Unique architecture allows to run
with virtually unlimited compute
power
● Ready for 4k and even 8k content
● Ready for Dolby Vision (HDR10+,
PQ HDR upcoming)
UHD & HDR

● 3-pass allows
low bandwidth
delivery even for
UHD content
● Per-title
signiﬁcantly
reduces TCO
3-pass & per-title

CUSTOMER SHOWCASE - HULU JAPAN
HULU
FUTURE MAN
HULU
HANDMAID’S
TALE

How to react quickly

● Make the most from already invested capital for encoding
workﬂows
● Don’t miss out on new market developments because you
are locked in with current capabilities
● Reduce risk and increase speed by employing an iterative
approach to workﬂow change
How to react quickly and stay
competitive

● Ofﬂoad your most complex tasks to Bitmovin
● Deployment‐agnostic solution makes it easy and fast to
deploy in (and move between) different environments with
a single‐line code change on a per‐job basis:
■ Bitmovin‐hosted
■ Public cloud (i.e., bring your own
cloud/connected cloud)
■ Private cloud
■ On‐premise hardware
Deployment options

● Divide and conquer
○ Load balancing for content spikes
■ Daily business on default infrastructure
■ Catalog re-encodes via Bitmovin cloud encode
○ Load balancing for high quality workflows
■ SD & HD workflows on default infrastructure
■ UHD + HDR workflows via Bitmovin cloud
encode
Strategies to react

● Divide and conquer
○ Load balancing for critical time to market
■ Low priority assets on default infrastructure
■ High priority assets via Bitmovin cloud encode
with up to 100x realtime
○ Load balancing for new codecs
■ H264 on default infrastructure
■ Analytics and re-encode for modern codecs via
Bitmovin cloud encode
Strategies to react

CUSTOMER SHOWCASE - B B C
BBC
DYNASTIES
BBC
DOWNTON ABBEY
Distributed to partners same day for Catch Up TVDistributed in UHD and HDR

Value driver: Operational optimization
● Cloud, On-premise and hybrid deployment models
○ Ofﬂoad your most complex tasks to Bitmovin
● Resolution is less important than you might think
○ Using multi-codec solves the real challenges
○ Next gen resolutions should be coupled with next
gen codecs
Value driver: Improve viewer experience
● 4k & 8k ready with
○ HDR (Dolby Vision, HDR10(+))
○ Object-based Audio (Dolby Atmos, DTS:X)
Flexible service design summary

Recap
● Consumer quality expectations are still rising
● Bandwidth restrictions and TCO ask for lower bitrates
● Stop searching manually for the ideal resolution
● Make use of readily available technology
● Start NOW and iterate

Q&A

Thank you.

Bitmovin LIVE Tech Talks: Overcoming Encoding Challenges

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