Business News Holding

Blog

  • HD Video on Demand key to subscriber growth

    Move towards ever better quality of VOD content will be central to operators acquiring new subscribers

    As competition for video services continues to grow in Europe operators will offer high definition VOD as a means of standing out from the crowd.

    That’s acccording to a report from analysts ABI Research, which says the move from near-VOD to true VOD dramatically increases buy rates.

    It believes the next step will be to differentiate even further with HD VOD and greater content choice.
    The report says VOD is rapidly becoming a “must-have” feature, leading it to categorise the growth of subscriber levels in the contexts of programming and functionality.

    After remaining fairly dormant since its inception in the early 2000s, ABI Research believes this will change largely because the evolution of video consumption has prepped consumer interest for VOD services.

    This, combined with the arrival of IPTV operators that offered true VOD from the start, has raised the bar of VOD services.
    Paul Lee, ABI Research analyst, said the number of concurrent VOD streams will increase markedly over the next five years.

    “The Asia-Pacific region is poised to experience high levels of growth: from 1.66 million VOD streams in 2007 to almost 21 million in 2013,” he said.
    “And in total, the global trend toward increased usage of VOD streams will multiply tenfold throughout the years 2007 to 2013, with a compound annual growth rate of nearly 45 per cent.”

    Several companies set up their VOD offerings over the past few years with the intention of boosting future subscriber numbers.

    Cisco acquired Arroyo for its VOD solutions in August 2006, obtaining customers such as Comcast, Time Warner, and Charter.

    While Concurrent has offered one of the most successful VOD platforms for the cable industry – illustrated in 1Q 2008 when the company shipped 50,000 VOD streams, with customers including BrightHouse and Time Warner.

    “Western Europe will see the strongest surge in VOD users with the largest subscriber base and a slightly higher ARPU than North America, thereby making it the eventual leader in the market,” said Lee.

    The ABI Research report, Video on Demand and Ad Insertion Markets, provides an overview of the growth in VOD subscribers, VOD program downloads, VOD servers, and VOD-enabled CPE for CATV, DBS, DTT, and telco TV services.

  • Breakthrough claimed for live HD video transmission

    NextIO technology allows real-time video encoding at under 3Mbps – making it possible to deliver live HDTV at compression up to six times higher than current rates

    Cable, satellite and IPTV providers will be able to pack more HD video onto limited bandwidth using technology developed by NextIO and Broadcast International.

    The pair have teamed up to combine NextIO’s ExpressConnect solution and BI’s ultra-high speed video compression technology.

    In a statement released before the IPTV North America show in Chicago, the companies said that the combined technologies would “change the video distribution world” by making it possible for video providers to deliver live HDTV at compression levels four to six times higher than is currently possible.

    Conservation of limited bandwidth resources has become a critical requirement in the broadcast, cable, satellite, mobile and IPTV markets, especially as bandwidth-intensive, high-definition video becomes the industry standard.

    At the Chicago show, NextIO, specialists in virtualized I/O solutions, and Broadcast International, producers of low-bandwidth video compression software, demonstrated a real-time video encoding at under 3Mbps.

    This is compared to the MPEG 2 standard of 19.4 Mbps at which most HD video is transmitted.
    The two companies say this will enable video providers to pack more HD video onto limited bandwidth.

    In a statement released before the Chicago show, they said the NextIO technology solves one of the most important challenges encountered by high-speed HD video transmission – limited and limiting input/output (I/O) throughput.

    “The ultra-high speed connections provided by the Next/I/O’s PCI Express-based ExpressConnect solutions allow maximum and scalable data flow to the system, commensurate with the processing power of the IBM BladeCenter environment,” the statement said.

    “This input speed, combined with the unrivaled power of the underlying CPU technology, enables BI’s CodecSys video compression software to deliver encoded HD video in real-time at breakthrough rates, under 3 Mbps.”

    Rod Tiede, CEO of Broadcast International, said the technology offered an “unmatched solution” to the challenge of video compression.
    “The scalability of the NextI/O design provides us the ability to deliver a large number of high definition video inputs to our system without delays and to take full advantage of the processing capabilities of the IBM platform,” he said.
    “Our aim is to shatter the bandwidth barrier completely with our solution.”

  • Sales advice steers consumers towards LCD HDTVs

    Survey shows retail electronics salespersons are recommending LCD HDTVs over plasma TVs at a rate of more than three to one

    A lack of knowledge among US retail salespersons regarding recent improvements in plasma technology is blamed for the high proportion of recommendations given for LCD sets.

    More than three times out of four, sales staff steer customers to a liquid-crystal display set rather than a plasma screen, according to a study by JD Power and Associates.

    Based on the results of a mystery-shopper survey it carried out, analysts suggest that shop assistants don’t really know much about the differences between LCD and plasma.

    Yet the report says that doesn’t stop them exhibiting a strong preference for LCD – a bias it suggests due to a lack of knowledge regarding recent improvements in plasma technology.

    It cites examples such as more than one-third (38%) of salespersons telling their customers that LCD sets last longer.
    Or the 37 per cent of salespersons who warned their customers that images may be permanently burned onto the screens of plasma TVs.

    Larry Wu, senior director of the technology practice at JD Power, said the longevity of plasma displays was now on par with LCDs.
    He added: “Although burn-in was once a problem with the first plasmas to hit the market, this has not been a serious issue for several years.”

    Salespeople often mentioned a plasma drawback that’s still relevant: their glossy front surface can create distracting reflections of lights and windows in the room.

    However, even with their preference for LCDs, the salespeople rarely mentioned those TVs’ advantages.
    Fewer than a quarter told customers that LCD sets are lighter and consume less power than plasma.

    The report was based on the experiences of more than 2,000 mystery shoppers during the last six months. It focused on sets 40 inches or larger, where plasmas are contenders.

    The recommendation rate for plasmas increased over the period, from 17 per cent in the first quarter to 23 per cent in the second quarter.

    “At most retail stores, large-screen television shoppers face an array of flat panel sets that all look essentially the same to the untrained eye, which is why recommendations from salespersons carry so much importance,” said Wu.

  • Good hotel? Then today's guests expect HDTV

    Demand for best quality TVs will spur global hotel sales to 9.7 million sets by 2012, with growth in Asia a major stimulus

    Hotels upgrading old CRT-TVs in guest rooms to flat-panel HDTV sets will cause global hotel TV sales to reach 9.7 million by 2012, according to research.

    A report by analysts iSuppli says that worldwide macroeconomic fundamentals suggest that the hotel market will continue growing for the next few years despite the economic woes affecting many western nations.

    It said that a greater appetite for luxury accommodation was leading to rising occupancy and increased travel rates among both business people and consumers.

    Hoteliers are noting that their guests desire more than just the standard hospitality elements that satisfied them in the past, like CRT-TVs.

    Instead they are switching to Flat Panel Display (FPD) TVs, paralleling the shift that is occurring among consumers.
    Sanju Khatri, principal analyst for projection and large-screen displays at iSuppli, said this was mostly due to increasing disposable income in the Europe/Middle East/Africa (EMEA) region,

    She said the Asian market also is becoming a hotbed of hospitality growth because of an unprecedented upsurge in business travel to the region.
    “This is mostly due to strong demand from hotels in metropolitan areas such as Shanghai, Beijing, Macau, Bangalore and Mumbai,” she said.

    Khatri said that most luxury and mid-scale hotels now are offering guests a variety of in-room entertainment options, such as high definition television (HDTV), Video on Demand (VOD) and video games.

    By offering these types of quality in-room entertainment services they are hoping to capture more in-room entertainment revenue, differentiate their brands and ensure greater guest satisfaction.

    Business guests increasingly are bringing their partners or families along with them as they travel, creating mini-vacations by extending their business stays by a few days.

    Because of this, hoteliers are adjusting their approach to suit entertainment and leisure interests rather than simply catering to a business mindset.
    “Which has prompted hoteliers to turn to larger-sized displays with higher resolutions to provide a theatre-like experience inside their hotel rooms,” said Khatri.

    iSuppli’s forecast of global hotel TV shipments will grow to 9.7 million units by 2012, managing a Compound Annual Growth Rate (CAGR) of 61.5 per cent from 894,527 units in 2007.

    The revenue growth also is expected to reach US$2.3 billion by 2012, up from US$1.1 billion in 2007.
    The Asia/Pacific region will generate the highest percentage growth for hotel TV shipments over the next few years.
    Shipments are expected to rise to 1.3 million units in 2012, increasing at a CAGR of 90 per cent from 52,031 units in 2007.

    In the EMEA region, a much larger hotel TV market than the Asia Pacific, shipments will rise to 3.0 million units in 2012, increasing at a CAGR of 72 per cent from 199,470 units in 2007.

    By 2012, EMEA will surpass North America as the world’s largest region for hotel TV shipments.
    When the US switches to a digital TV service February 2009, iSuppli expects to see more hoteliers-including lower-end lodging-to adopt HD service and flat-panel displays.

  • Motorola sues former executive now with Apple


    Motorola has sued a former executive for allegedly violating a non-compete agreement and threatening to reveal its trade secrets by taking a job with Apple’s iPhone division, the mobile phone maker said in a lawsuit.

    Michael Fenger accepted “millions of dollars in cash, restricted stock units, and stock options” in exchange for agreeing not to join a competitor for two years after leaving Motorola, where he oversaw mobile devices in Europe, the Middle East and Africa, the lawsuit said.

    According to the lawsuit filed in Illinois last week he took the iPhone job on March 31, less than a month after leaving Motorola.
    Fenger, who now serves as vice president of global iPhone sales, also employed two high-level Motorola employees who have access to Motorola’s trade secrets and customer relationships, the suit said.

    An Apple spokeswoman said the company had no comment on the lawsuit. Fenger could not be reached for comment.
    Motorola, based in the Chicago suburb of Schaumburg, is asking the Cook County court to stop Fenger from working for Apple for two years and to bar him from soliciting or hiring Motorola employees or disclosing Motorola’s confidential information.
    It is demanding damages and repayment of stock options given to him in exchange for signing the non-compete agreement.

  • Sony Ericsson cuts jobs as demand falls for its smartphones

    Plummeting demand for its high-end smartphones and inflation eroding margins for inexpensive mobile phones leads to job cuts

    The world’s fifth-placed handset maker is to shed 2,000 jobs as the company reports a Q2 operating loss of US$3.17 million.
    Sony Ericsson a drop in net income from US$347.6 million a year ago to US$9.48 million, while sales slumped 9.4 per cent to US$4.4 billion.

    Unit sales in the quarter reached 24.4 million, down from 24.9 million units a year ago.
    The closely watched average selling price per unit was US$183. A year ago, Sony Ericsson’s average price per unit was US$197.50.

    The joint venture between Sony and Ericsson AB also forecast further bad news in the third quarter.
    “Challenging market conditions are expected to prevail this quarter,” the company said in a statement.

    Sony Ericsson said the 2,000 job cuts among the company’s 11,900 employees will save US$474 million annually.
    The July 18 results marked the second consecutive quarter that Sony Ericsson has issued a profit warning before issuing quarterly results.

    A little more than a year ago, Sony Ericsson was the number four handset maker, pushing Motorola for the number 3 spot.
    Since then, however, the company has fallen to fifth while LG Electronics has taken over the fourth spot.

    Dick Komiyama, CEO of Sony Ericsson, said: “We are aligning our operations and resources worldwide to meet an increasingly competitive business environment and to help restore our capability for profitable growth.”

    Sony Ericsson is the second of the world’s handset makers to announce its quarterly results since research firm Gartner slashed its forecast for the mobile phone market to between 10 per cent and 11 per cent growth from a May estimate of 10 per cent and 15 per cent.
    In 2007, mobile phone growth margins were 16 per cent.

    Finnish mobile phone maker Nokia issued second quarter results earlier this week that were in line with analyst predictions.
    LG Electronics will announce its second quarter results on July 21, followed by Samsung on July 25 and Motorola on July 31.

  • New head to take BBC HD mainstream

    The UK’s BBC has named a new controller of its HD channel briefed with attracting more viewers and increasing content

    Danielle Nagler has been named as the new head of BBC HD replacing Seetha Kumar who is moving to a new senior role within the corporation.

    Kumar, who has led the channel since its trial stages, will move to another, as yet to be announced, “senior role” in the corporation.

    A BBC statement said Nagler’s priorities are to “focus on growing the channel by driving consumer take-up, working with in-house and independent producers to increase HD programming, and leading preparations for BBC HD’s launch on Freeview”.

    Speaking after her appointment was announced, Nagler said it was a “critical time” for the channel and the technology – and for people making programmes.
    She said it was up to the BBC to help both audiences and the wider industry make the transition to HD.

    “At the moment there are 10m HD-ready sets in the UK but only a minority are actually used for HD viewing.
    “It’s clear there’s lots of work to do to open up the enormous viewing potential HD can offer for audiences.
    “BBC HD tries to offer viewers the best of the BBC’s HD programmes, so I’ve got the fantastic job of cherry-picking from all the BBC channels to create the best possible showcase for HD content.”

    Although far from the finished product, the BBC HD channel, the UK’s first free-to-air HD channel, continues to build both audience and approval ratings.
    It will also take a place on the digital terrestrial network from the autumn of 2009; DVB-T2 tests have already commenced by the BBC in Guildford.

    Nagler, who most recently worked as head of the director general’s office, joined the BBC in 1996 as a journalism trainee.

    She will report to Simon Nelson, controller of multiplatform and portfolio, who said: “HD is a central part of our broadcasting future with huge potential to grow on cable, satellite and in the future on Freeview.
    “I’m confident that in Danielle’s hands, the channel will make the transition to become a mainstream choice for our audiences.”

    Nagler will take up her position on July 21.

  • New Zealand warms to HDTV

    Sports mad Kiwis quick to sign up for new Freeview HD service

    Just three months after going live in New Zealand, the free-to-air digital television and radio service Freeview has reported an impressive response to its new high def offering.

    Since its launch in April, 7,594 HD enabled homes have taken the Freeview HD service
    Steve Browning, Freeview’s general manager, admitted that he hadn’t expected uptake to be “quite this fast”.

    He said plans were already in place to produce a Freeview PVR.
    “And with the recent launch of Sony BRAVIA V and W series digital TVs with Freeview HD built in we are seeing the different options available to access free digital TV growing,” he said.

    In general terms, a total of 123,903 receivers had been sold by the end of June, which roughly equates to 8 per cent of New Zealand homes having access to the service.

    Freeview are fully expecting adoption to increase further when the Olympics kick off, with the service offering “24/7 coverage” in HD.

  • HD coverage lures anglers

    Soaring ratings for high definition fishing programmes leads Outdoor Channel to add to schedule

    To those not converted to fishing, just the prospect of watching the sport on TV – let alone in high def – would be enough to have them rushing for the remote control.

    Yet for converts – and there are millions out there – fishing programmes in HD are a huge draw.
    The Outdoor Channel, which claims to be America’s leader in outdoor TV, has announced that ratings for the network’s Friday night fishing block increased 77 per cent over the first half of 2008.

    The bulk of programming found in this segment is shot and aired in high-def.
    It includes shows such as Ultimate Match Fishing, Legends of Rod and Reel and In-Fisherman Television.

    Spurred on by its angling success, the channel will be adding in The Catch: Costa Rica and Fly Fishing the World – both captured in high definition – in Q3.

  • Ad targetting to US teens expected to boom

    Smartphone ownership among American teens will mushroom beyond current 20 per cent – presenting massive opportunities for ad targetting

    Research shows that American teenagers have at their disposal an estimated US$200 billion annually in discretionary spending.
    The marketing agency Fuse recently interviewed execs from companies like Sony, MTV Networks, Yahoo and Nokia to get their take on what the future of technology will look like for the teen market.

    Among the conclusions was that the mobile phone in the US will supplant the PC in terms of popularity for teenagers.
    While currently only 20 per cent of US youngsters own a smartphone, both mobile and content companies are certain this rate will rise dramatically.

    Bill Carter, a partner at Fuse, presenting his findings at this year’s YPulse Mashup convention in San Fransisco, said smartphones like the iPhone are just the beginning for multi-functional devices.
    “Uses of mobile devices will expand to include all kinds of bar code applications and prepaid debit card payment methods,” he said.

    This prediction is a large part of the reason why geographic ad targeting to teens is expected to increase dramatically in coming years.

    Currently, providers analyse about 4 billion Protocol addresses to provide what is called street-level targeting to consumers.

    Companies can then reach teens directly via their phone with ads and info on nearby places to go like nightspots.

    “When you combine this new technology with teens giving their permission to market to them, the growth could be exponential,” said Carter.

    He predicts that teens will end up buying subscription based music services, a lot like the cable TV model.

    Carter also feels that other tech platforms will actually save not kill TV networks.
    The analog-to-digital conversion will allow teens to watch live TV on their smartphones.
    This will then in turn help the TV networks to target their programming to specific audiences, which will maintain the cost of advertising.
    What it boils down to is “the device is inconsequential compared to the content,” he said.