Video on Demand (VoD)

Video on Demand

BT Vision To Launch (Finally)
As we’ve covered extensively, BT has been working on BT Vision for yonks now, perhaps struggling with some of the technical issues with the Microsoft system that they’re running.
Launching on Monday, BT Vision, BT’s new combined television and Internet service, will let customers view Freeview channels and catch up with TV shows over the past week with no monthly subscription fees.
We’ll be at the launch cover it live, so tune in on Monday.
BT will also offer “on-demand” content (films, music, TV programmes etc) for viewing on home TVs, downloadable over a broadband connection.
With BT and BSkyB enjoying joint rights to show Premiership matches, BT will provide paid access on a per-game and “season ticket” subscription basis.
Other one-off and subscription Pay TV content will be available via “add-ons,” with the service using BT Vision’s set-top, a programmable Sky+ style PVR unit capable of storing up to 80 hours of TV and set to retail for less than £100.
Viewers will be able to pause and rewind live TV and enjoy access to around 30 Freeview channels.
BT’s new TV service echoes moves made by France Telecom and Telecom Italia in Europe, and should help the UK broadband giants fend off competition from rivals such as TalkTalk who are reeling in punters with their ‘free’ broadband service.
It’s also a smart piece of a manoeuvring to counter Sky, who recently launched their own residential broadband service, as well as cable network NTL who are mustard keen to start delivering content over phone lines.
BT is set to start rolling out the service early next year, although it’s going to be a bit of a half-cocked launch with only Channel Four currently signed up for the seven-day “catch-up” service (behind the scenes, BT’s legal team are busy battling with BBC and ITV producers to negotiate a path through the minefield of rights.)
BT Vision’s Download Store will also include music content, with deals already struck with Sony BMG, MTV, Video Performance Ltd and BTPodshow.
BT Vision
29 November, 2006
UK Online Video Viewing Bites Into TV Viewing
Video sharing Websites like YouTube are starting to impact on TV viewing figures, with more people switching off and logging on.
A new survey by the BBC found that 43% of Brits who watch video on their PCs or mobiles at least once a week now spend less time on the sofa watching TV as a result.
Although online mobile viewing continues to rise – three quarters of users say they watch more online than a year ago – it’s got a long way to go before it matches the reach of TV, with only 9 per cent of the population regularly watching Net videos.
A further 13% of those questioned said they watched online occasionally, with another 10 per cent saying they expected to start in the coming year.
Not surprisingly, online and mobile video is the biggest hit with the young ‘uns, with 28 per cent of those aged 16-24 saying they watched more than once each week, while around one in ten of 25-44 year olds were Net video regulars.
However, citizens of advancing years weren’t too keen on this new fangled online video thing, with just 4 per cent of over-45s watching online.
The majority of the population still prefers to watch the old fashioned gogglebox, with two-thirds of the population shunning online TV and saying that had no intention of starting in the next 12 months.
It’s a bit of a different story in the US, where hit TV shows regularly appear on networks’ websites and through services like iTunes, although the BBC, ITV and Channel 4 will all be offering most of their shows on demand over the Internet in the next few months.
BBC report
27 November, 2006
Five Download VoD Launches With CSI
UK Broadcaster Channel Five have launched their Five Download, Video on Demand (VoD), service with US series CSI. They’ve previously offered downloads of the car show, Fifth Gear.
The new service is offering straight CSI: Crime Scene Investigation; CSI: NY and CSI: Miami.
This isn’t Just-Another-VoD-Service (JAVS), as there’s some innovation in here. CSI fans are mad keen on the programme (so we understand) and understanding this, Five is offering the episodes seven days ahead of the TV broadcast date. Fans will pay a premium price for this £2.49 vs the usual £1.49 per episode. We suspect that once hooked on receiving the content early, fans using the service will have to continue paying to stay ahead.
Engaging in some mutual back slapping Jane Lighting, Five’s Chief Executive, said: “I’m delighted that we are launching the service with CSI enabling us to offer the highest quality content to viewers with a viewing window which exceeds anything currently in the marketplace,” to which Ted Riley, Executive Managing Director, International Content Distribution, Alliance Atlantis whooped “The first-ever CSI Franchise VoD service outside the U.S., is both a thrilling proposition for U.K. fans,” adding that it “heralds the roll-out of other new media opportunities for this fantastic franchise internationally.”
One of the challenges for this service, as it is with all others – they’re competing against the same content being available on file sharing networks near-instantly available after they’ve been shown in the US – yonks before they hits the UK. Fanatical fan’s will more than likely not wait for the legitimate source and go the file-sharing route. The fact that the programmes won’t cost them anything will be incidental.
Five will be charging either £1.49 or £2.49 per download which we think it pretty steep given the episodes are only available for 14 days and is restricted to one computer. If you’re impudent enough to try the content that you’ve paid for on another machine, you’ll be completely locked out of that content.
To use the service you’ll need to download and install the Five Download Manager and Player which has been provided to them by BT Media & Broadcast, but the base level technology is from Entriq. Entriq’s MediaSphere is used by other companies such as BT Vision and with download services.
As Five are using Microsoft’s DRM, the service is only available to those in the UK who run Windows XP or 2000 and browse through Microsoft Internet Explorer 6.0 and enable ActiveX. Users of Windows XP must use Windows Media Player 10 and 2K users must use Windows Media Player 9.
Microsoft has steadfastly not introduced their latest DRM on the Macintosh, so they’re excluded.
Those of you lucky/unlucky enough to not have the above, can still view the trailers (well we could on a Mac anyway).
Five download
13 October, 2006
Apple iTunes 7 Revamped With Films For US
iTunes 7 is now available for download. The indexing has been improved, as has navigation by re-organising the Library and other indexes that normally appear on the left hand side. If iTunes is linked to an account on the iTunes store, it can now download artwork for any music on your system. Searching is also easier, as both music and video can be searched by viewing the artwork and then seeing what’s available in say that album.
Gapless play is supported, but iTunes may take a while to index your music library.
Music can now easily be transferred between authorised computers (work and home PC) by plugging in an iPod, sync the iPod at home and when plugged in at work, the content is synced to the work PC FROM the iPod.
The music store now holds movies, these cost $9.99 for library content (i.e. older releases) and $14.99 for new movies (now released on the same day as the DVD release). If pre-ordered or in the 1st week of release, they’re discounted to $12.99. Content is available from Disney, Touchstone, Pixar and Miramax.
All movie and video content is now stored in 640 x 480 format.
The games available are Tetris, Mahjong and Mini Golf from Electronic Arts, Pac-Man from Namco, Cubis-2 from FlashGames, Bejewelled and Zuma from PopCap and Texas Hold’em and Vortex from Apple, each costs £3.99.
Unfortunately movies and TV shows are still only available in the US, but Apple hope to have them available in the UK in early 2007.
13 September, 2006
$15 itunes Movie Price Judged Too High By Majority Polled
According to new research from The Diffusion Group, only 14% of broadband households would be interested in an iTunes online movie download service for use on PCs or portable devices if titles were priced at $15 each. This compares to total interest of 23% at $10 per download – a 64% decline in interest when increasing the cost per title by only $5.
On the Viability of an iTunes Movie Download Service, a two-part report series produced by TDG, states that movie studios originally demanded that Apple accept a pricing scheme of around $20 per download, similar to the prices charged by current online movie services such as CinemaNow and Movielink. But according to Michael Greeson, founder and principal analyst with TDG, Apple demanded download prices of around $10 for even new titles, half that of existing services. “It would seem, then, that the two parties simply split the difference. All things equal, this appears to make sense.”
However, TDG’s research found that the net loss of demand from increasing the price from $10 to $15 is almost four times the gain in demand from lowering the price from $20 to $15. In other words, at $10 per title, demand would have been optimized yet profits would have suffered, while at $20 per title both revenue and profits would have been optimized with little loss in demand.
Speculation regarding Apple’s entry into the online movie space heated up in advance of the early August Worldwide Developers Conference, but nothing materialized. As Apple’s September 12 public launch event nears, the rumor mill is again churning and has this time attracted pundits from the mainstream business press. Of course, Apple continues to decline comment.
Regardless of whether the iTunes movie download service is announced this month or later this year, Greeson believes that the time is right for Apple to enter this market space. “Although current services such as CinemaNow and Movielink continue to languish, Apple is aware that the conditions are now suitable for extending iTunes to include full-length movie downloads. Consumer awareness has improved; video-over-broadband is now viable; studios are now making movies available for online download to DVDs; portable video platforms are improving qualitatively with each new generation; and Apple’s brand awareness and credibility are at all time highs. As well, CinemaNow and Movielink’s experience, while insightful, is of limited value to Apple, who continues to enjoy the fruits of being a market-maker in portable digital electronics and online media services.”
One challenge faced by today’s online movie download services that will still haunt Apple is the fact that movie downloads are still being viewing on the PC or portable devices – scenarios that do not reflect the video consumption behavior of the majority of US consumers. Connecting these services to the living room TV (either directly via a broadband-enabled set-top box or indirectly via a digital media adapter) is imperative to expanding the online movie market beyond the earliest of early adopters and to helping move Apple into the living room (the primary battleground for future-thinking PC and CE vendors).
For these reasons, TDG commissioned a June 2006 consumer study to evaluate consumer interest in and price sensitivity toward two types of Apple iTunes-branded online movie services – the first involving movie downloads to the PC and portable devices and the second involving movie downloads to a iTunes-branded set-top box or digital media adapter connected to the primary home TV. Researchers examined consumer receptivity to both of these scenarios across a variety of prices points, identified the core group of consumers most likely to adopt these services, and profiled this segment across a number of characteristics.
Both of these reports are now available for purchase on TDG’s Website..
6 September, 2006
BT Vision Buys From BT/Entriq
BT Media and Broadcast the business to business outfit within BT’s Global services division has announced an alliance with Entriq.
It’s a change for BT Media and Broadcast (BT M&B), who’ve in the past received coverage at Digital Lifestyles for their efforts to offload their satellite TV interests to have some positive news to announce.
The BT Media and Broadcast/Entriq combination has already landed an important customer in the shape of BT Vision, who as well as planning to roll out of a ipTV customer proposition to the home at the end of this year, have a live ‘download to own service’ at www.downloadstore.bt.com.
Barry Bonnett BT M&B’s CEO, aware that some cynics may think BT signing with BT rather convenient, noted that the tender was “highly competitive,” and that, “BT Vision recognised the quality of service and cost effectiveness of our overall network based capability.”
Entriq, who are in the business of developing and managing Pay Media infrastructure, is part of the South African publishing and media conglomerate Naspers. Naspers, as well as having the successful consumer TV platform Multichoice in South Africa, has technology interests that include the Conditional Access company Irdeto.
Headquartered in San Diego, California, Entriq have offices dotted around the world and have a host of existing big name broadcast customers that includes MTV Networks, NBC Universal and the UK’s Channel 4 television.
29 August, 2006
Tiscali Take Over HomeChoice
HomeChoice have agreed to be taken over ISP Tiscali in exchange for 11.5% of their new owner.
The tenacity of HomeChoice has always impressed us. They’ve been going for years and have just refused to give up. Getting started in the days when Video on Demand meant asking to rent a video from your local video rental shop, they’ve been through quite a number of investment rounds, some so severe that the investors ended up with nothing.
Never hitting big numbers, the writing has been on the wall for them, what with Sky getting into broadband, NTL re-enlivining themselves with Virgin mobile and BT Vision on the horizon.
HomeChoice has been settled on around 45,000 subscribers for quite a while now as they’ve been restricted to operating within London and some areas to its north. They just haven’t had the investment available to unbundle anymore exchanges beyond the 145 they have to spread their service. Their original expansion was hampered by the huge cost BT used to charge them for the Visionstream service they needed to run the service.
The last murmur about HomeChoice was that Sky was casting their eye in their direction, but we suspect that this was floated by the company itself to try and flush potential suitors out of the wood work.
As to why Tiscali has bought them …
It’s likely that Tiscali feels they need to move fast to avoid becoming sidelined by the other companies putting themselves forward as the Big Boys in the ISP/IPTV/Phone market.
By buying HomeChoice they’ll start with something they can build on, rather than having to start from scratch, giving them a time advantage. This is made very real by gaining 145 unbundled exchanges within London taking Tiscali to a total of 330 country-wide.
Homechoice has also spent quite a lot of effort in the last year building up their content relationships, creating niche programming.
As to the backend iron that HomeChoice is using to power the VOD – it may be that is getting a bit long in the tooth these days.
Don’t forget Tiscali don’t actually have to put their hands in their pockets either, just swap stock.
HomeChoice
Tiscali
14 August, 2006
MovieLink To Burn to DVD?
Movielink, a service which delivers films over the Internet, will soon be offering the ability to burn the downloaded films to DVD, complete with DRM protection, reports ZDNet.
It is understood that Sonic Solutions has been working with Movielink to provide the last link in the chain that has held many consumers back from using the service.
People like the idea of being able to take the films down, but as very few people have the PC in their lounge, don’t cherish sitting in front of the PC for 2+ hours to watch the film. As the films are delivered now, it’s not possible to transfer the films DVD, for fear that those naught consumers might copy the disc.
Being able to burn films to DVD is second nature for anyone using file sharing services, you know, the ones where the film companies don’t make any money from the films being downloaded, so it would seem quite reasonable to offer the same service to the people who are willing to pay for the films, wouldn’t it.
Sonic Solutions signed a similar deal with video CoDec company DivX back on 20 June to use Sonic’s AuthorScript disc-burning engine, although it was unclear if DRM would be transfered to the burnt disc.
The Movielink service, is limited to only US user, who own Windows-based machine and is a joint venture between Paramount, Sony Pictures, Universal and Warner Brothers.
MovieLink If you’re outside the US, don’t bother clicking, you won’t see anything of interest.
17 July, 2006
Nokia Trials Mobile TV With TeliaSonera Sweden
Nokia has announced a partnership with TeliaSonera Sweden to trial a complete DVB-H system, using Nokia’s Nordic know-how, their Mobile Broadcast System 3.0 and Nokia N92 mobile TV devices.
Currently being wired up by teams of studious, white-coated boffins at the Nokia facility in Kista, Stockholm, the system will be hosted and managed by the Nokia team and will allow TeliaSonera Sweden to serve up a veritable feast of mobile television.
The test system is set to debut over Gothenburg and Stockholm from early August until the end of the year.
“Nokia is very pleased to be working so closely with TeliaSonera Sweden in this new area of DVB-H based mobile TV. We believe strongly in the capability of this technology as well as in the mobile TV service, and we are looking forward to verify the full potential of mobile TV together with TeliaSonera Sweden,” purred Jan Lindgren, Vice President, Networks, Nokia.
Anders Bruse, Senior VP, Products and Services at TeliaSonera, joined in the PR love-in, adding that the DVB-H technology trial should “give them a better understanding of their customers’ expectations.”
About the technology
DVB-H lets punters on the move download high quality terrestrial digital broadcasts on their mobiles, and also offers tempting business opportunities for mobile service providers, content and broadcast companies, infrastructure and handset manufacturers.
Feedback from several mobile TV pilots has proved promising, with a trial last year in Oxford, England finding that 83% of the pilot participants were chuffed with the service provided.
Nokia
19 June, 2006
Freeview TV Homes Exceed Analogue For First Time
We wouldn’t normally bore you with tales of how many more percent of the UK population have joined the Digital TV-owning army, but this one is a significant one.
For the first time, the number of households having the BBC-backed Free-to-Air service, Freeview, has exceeded their analogue cousins. Nearly 7.1m have Freeview and 6.4m are still analogue only.
Freeview will also be pretty pleased that for the third successive quarter their sales have exceeded the 1 million mark, achieving 1.2m between January and March, up 40% over the same period last year.
Digital satellite is still the Digital Daddy, with 7.7m homes subscribing to Sky and the remaining 645,000 receiving free-to-view satellite.
There would have been relief at the recently-merged UK cable companies when they saw that there’d been an increase in the number of subscribers. The gain for NTL is only 5,000 subscribers in real terms as the additional new now-digital 70,000 digital cable subscribers were laid off against the 65,000 analogue subscribers who switched. These figures relate to the pre-merged companies.
Interestingly there still around 500,000 analogue subscribers out of the 3.3m total cable subscriber-base. Changing these has got to be a priority if NTL want to start making the returns they need from subscribers.
TV over ADSL First
For the first time Ofcom has reported separate figures for TV over ADSL services. Currently this is only London-focused HomeChoice, but they will be joined in short order by other IPTV companies like BT Vision. HomeChoice gained at a rate of 21.4% over the same period in 2005, ending with 48,545 subscribers.
Breaking down Sky’s figures
There’s some interest to be had comparing Sky’s Q4, 2005 figures with Q1 2006 – a couple of surprises lie in there.
Churn (number of subscribers leaving the service) is up to 11.4% over 10.6% and ARPU (Average Revenue Per User) is down £5 to £392 from £397. This doesn’t sound like a lot until you look at it in terms of income loss – over £38m.
On the positive front there was a gain of 87,000 households, with multi-room households gain 84,000 and Sky+ users up 149,000, now hitting 1,430,000.
Additional TV Sets – Ongoing problems
Ofcom are estimating that 38% of Freeview sales are intended to secondary TV sets which will start to allay a lot of fears.
The big hurdle for the UK digital switch-over gang is the replacement of the non-primary TV set, the bedroom TV & video, little Johnny’s TV and the spare that the babysitter uses. When the analogue-broadcast lights go off is when these people start to yell.
Ofcom UK Digital TV Q1 2006 report (PDF)
8 June, 2006