Content owners are finding tough competition from
new specialty, international, classic and user produced programming
sources. At the same time, there are many new opportunities for content
distribution.
With an overwhelming amount of content,
potential customers need options to access the content they need. The
reality is that video content, be it programs or linear networks, shares a
lot of characteristics with actors in these productions; there are
thousands of them, they vary tremendously, and only a very small
percentage of them make it big. There is a lot of competition for a
relatively small amount of 'work.', yet there are still thousands upon
thousands competing for popularity. How do they all survive?
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More Available Content
Since there is far more content than there is
airtime to play it, competition between operators is fierce. The
operators have an endless stream of producers wanting to pitch them
content. The operators' dilemma is not where to get content, but
rather which content is most likely to generate and retain viewers
and/or advertising revenue. Nonetheless, there are a growing number of
opportunities and places to license content.
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Understanding The Diverse Set of Viewer Needs
Part of the answer is that people, being diverse,
require a diverse set of content to meet their needs. They require
programming reflecting a variety of languages, cultures, topics, styles,
and genres. To fulfill these needs, there are a great number of content
creators producing content to meet these varied tastes.Each one has its
niche market and is valued by that niche market. |
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Affordable Content Transport
Opportunities exist beyond the obvious
targets of major networks, cable operators and the emerging telco
operators. With the advancement of compression technology and the
increasing availability of broadband connectivity, content is becoming
easier (and more affordable) to transport and business models are
developing to take advantage of this evolution.
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The problem of course is that there has to be
enough support by way of revenue or subsidies to pay
for the production of the content. Some are funded through donations (such
as religious networks) and some are funded by governments (as is common
with many foreign networks). Others rely on good old capitalism. For these
content producers, life can be challenging. |
Broadband IPTV
It is the fear of many cable executives that
Broadband IPTV will be a significant threat to the traditional cable
model; and this fear is well founded. The idea of each individual
being able to select programming, be it files or a linear stream, and
have it played on the laptop, desktop or television of their choosing,
is an appealing scenario. There are many operators that presently
offer this service and many more that are launching systems.
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quality, and the use of proprietary systems, are
being addressed. It is only a matter of time until these systems are able
to deliver broadcast quality content with the viewing experience consumers
expect. For the content owner, opportunities exist to deliver their
content to viewers on aggregated services or independently. And many are
generating respectable revenue.
Live Content Distribution
The increasing capability to deliver content over
broadband applies to live events as well. Services now exists that enable
producers (really anyone with a camera and a broadband connection) to
deliver their content live to anyone they authorize to view it on a
desktop, laptop or even a television with the aid of a set-top-box. These
systems automatically evaluate bandwidth limitations both on the
producer's side and the viewer's side to determine the optimal settings to
generate the best viewable video quality. Additionally, the content can be
stored at its highest quality for later retrieval and viewing at this
optimum quality. One of the benefits of these services is that the
producer only pays for the bandwidth actually being used to deliver the
signal to its viewing audience. This makes it very economical and easy to
deliver live or stored content. Enterprise customers use these services to
train employees, to hold company meetings, and to otherwise distribute
information. Other applications include the live broadcast of weddings,
church services, sporting events, or other family celebrations. This is
essentially the live version of Broadband IPTV.
Digital Signage
Just as content can be delivered over broadband
to the public, it can be delivered over broadband to a specific/closed
audience. An example of this application is digital signage, which is the
display of advertisement video on a set of monitors (usually placed in
business venues). Historically content used in such "point of presence"
marketing projects was transported via satellite. With the improvements in
compression technology and the increasing availability of broadband
internet services, content can be delivered using the internet at a
reduced cost and with more reliability. Early pioneers of digital signage
systems learned that it is difficult to keep the attention of viewers if
you do not offer them some entertainment value in addition to the
marketing. Since no one wants to stare at commercials for extend periods,
digital signage operators now license content to play on their systems to
attract the viewers' attention and to entertain them (thereby making their
advertising more effective). This type of licensing opportunity may not
generate the level of revenue that a carriage agreement with an MSO would
generate, but it can provide a nice supplemental source of revenue. |
Mobile Content
A variant of Broadband IPTV is the delivery
of content to handheld devices. Companies adopting DVB-H modulation
standards or Qualcomm's MediaFlo technology (or perhaps the new mobile
standard being developed by the ATSC) use an overlay broadcast system
not unlike traditional terrestrial television. The difference is these
systems have been designed specifically to work on handheld devices
such as mobile phones and PDAs. Another option is to deliver content
to mobile phones over the Internet. In this application the mobile
device connects to the Internet and accesses a file that streams the
content to the mobile device. Access to this content can either be
free (such as with You Tube) or it can be based on a subscription
service. There are application service providers that will provide all
of the technology and services to allow the content owner to broadcast
their content on a revenue share basis (i.e. no cost to the content
owner). For content owners with the right content, revenue
opportunities exist.
Hospitality Distribution
The transport and display of content on
hospitality networks, such as those used in hotels, is another
broadcasting option for competitive operators. The bulk of the content
used by these systems is downlinked via satellite. In such systems the
amount of content that can be included is limited. For now, satellite
delivery is a cost effective method to transport such a large quantity
of data. However, not all content is required in all locations. This
niche programming can be economically delivered to hospitality systems
via broadband. It can be delivered on a linear system or on a file
basis and be available for viewing by hospitality customers at their
leisure. Once again, a new class of potential customers is created for
the content producer.
These are just some of the opportunities
that are emerging. It is safe to say that there will be more, and more
importantly, that they will continue to improve in quality and
desirability. With each improvement, more and more opportunities will
exist for content owners to license their content. The key is to find
these opportunities and to match them to the content that best suits
the opportunity. It is an arduous process, but it has its rewards. |