Video on Demand (VoD)

Video on Demand

3 Exceed 10 million Mobile Video Plays
UK 3G operator 3, proudly trumpeted the fact that more than 10 million music videos have been watched by its customers on their mobiles since the launch of its Video Jukebox service only six months ago.
Cocking an industrial-sized snoot at all those naysayers who declared that people were more likely to poke their eyes out with a rusty nail than watch videos on phone, this represents a huge growth in the market.
Naturally, 3 are keen to build on their success and have announced a new agreement with SONY BMG Music Entertainment UK which will double the list of artists whose music videos are available for fans to download or stream onto their video mobiles.
Sony has a bumper pack of artists on its rosters, allowing 3 customers to shake their mobile booties to the likes of Destiny’s Child, Lemar, Manic Street Preachers, Natasha Bedingfield and the Zutons. And, err, Britney Spears.
Not all of these videos will be available concurrently, however, as 3 have an editorial team selecting popular content for their ‘Today on Three’ service. This normally gives users the choice of between 40-60 videos, with the video selections changing regularly. 3 told us they found customers are interested in videos that are “the latest, and then they move on”, only being interested in “what’s current.”
3’s Chief Operating Officer, Gareth Jones enthused: “Thanks to our innovative jukebox service, we’ve created a significant mobile audience for music videos in just six months. We’re offering the latest music videos, on demand, straight to your mobile, and our customers are lapping it up.”
Clive Rich, Senior Vice President, SONY BMG Music Entertainment UK also underlined their company’s support for mobile music downloads, “It’s clear now that there is huge consumer demand for mobile music and it is our policy to deliver our artists’ videos and music to their fans anyway, anyhow, anywhere – at any time. This market will continue to grow.”
We asked 3 for a breakdown of how many people were paying each time they played a video, and how many had taken advantage of the fixed price, “all you can eat”, five pounds a month deal. Surprisingly they didn’t have that information yet.
We have to admit that we were surprised by this enthusiastic uptake, but questions remain as to how many of these downloads were simply people taking advantage of the free video deals currently offered to new subscribers. We’ll have to see if they continue to download at such an enthusiastic rate once they have to start paying for it.
3
16 February, 2005
PacketVideo Ships on 17m Mobile Phones in 2004
In their 2005 “State of the Company” address just made public, PacketVideo bigged up their successes in 2004 and mulled about the future of mobile multimedia.
Clearly, 2004 was a time of happiness and joy for PacketVideo, with the company announcing that 17 million phones embedded with PacketVideo media software were shipped by top handset OEMs worldwide in 2004.
PacketVideo also helped launch five 2.5G and 3G multimedia services, including the recent Verizon V CAST video-on-demand (VOD) service in the US, and the OrangeWorld service on Orange Signature phones in 2004 and early 2005.
PacketVideo is the numero uno supplier of embedded multimedia communications software for mobile phones with more than 60 ‘design wins’ and 17 million handsets shipped in 2004.
The company’s software enables mobile phones to take digital pictures, record home movies, play back digital music and videos, and make two-way videophone calls.
PacketVideo specialises in building and ‘commercializing’ (we think that’s American for “selling”) multimedia capabilities such as VOD, music on demand (MOD) and two-way video communication and messaging.
“These much-anticipated multimedia services, made possible by the growing availability of 3G networks, are finally a reality for millions of people around the globe,” trumpeted Dr Jim Brailean, CEO of PacketVideo. He continued, “PacketVideo’s software is at the heart of delivering these new and innovative services that let customers download, play, and share streaming audio, video and live broadcasts on their mobile phones.”
Looking to the future, PacketVideo expects continued growth and technology innovation, and anticipates an increase in both lovely lolly and market share.
“We believe 2005 will be the year of multimedia services such as VOD, MOD (Movies On Demand) and two-way video telephony. We will see the multimedia technologies permeate all levels of handsets, allowing more and more consumers to take advantage of the multimedia capabilities,” enthused Brailean.
PacketVideo
16 February, 2005
DAB Brings Multimedia to Mobiles
In an announcement apparently penned by a writer playing buzzword bingo, the WorldDAB Forum promises to demonstrate “the growing synergy between DAB digital radio and mobile technologies”.
Reading between the acronyms and industry double-speak, let us translate. DABsters are getting pretty darn excited about the future and in our view, rightly so. The possibilities of using the data segment of DAB (Digital Audio Broadcasting) to economically send out data to large groups of people has a huge potential.
Following the tremendous growth of DAB digital radios in UK homes (over a million units sold), and sales of audio products growing across Europe, the telecom industry is looking to get a slice of the action.
With the ability of DAB chips to be integrated into new mobiles (or added by software tweaking to existing handsets), telecom operators are being enticed with the prospect of increasing their ARPU (that’s ‘Average Revenue Per User’ to normal people).
And what better way to get their ARPU soaring than by developing DMB (Digital Multimedia Broadcasting) technology to use the DAB platform?
Within the industry they discuss such things as “early investment offering operators the opportunity to position themselves strategically and gain a market advantage for the future” as well as enthusing about “DAB offering audio and video streaming over DAB based on both MPEG 2 transport streams and IP”.
Or to put it another way, the new technology will allow telecom providers to transmit television, video and data to mobile devices alongside existing DAB radio services and charge punters for the privilege.
The market is large. There’s already a well established DAB network infrastructure reaching 80% of Europe, with over 600 DAB services capable of reaching 330 million people in 40 countries.
LG Electronics has already launched the first DMB mobile and several countries in Europe are already lining up to start DMB trials as early as Q2 2005.
The technology sounds great. When we hear more, we’ll attempt to translate it into English again.
If you fancy a weekend talking in acronyms, pop along to the World DAB forum, Hall 5, Stands M42 – M56 at 3GSM 2005, February 14 – 17 in Cannes.
WorldDAB Forum (PDF file)
8 February, 2005
HomeChoice VoD Hits 15,000 Subs, Reach Doubles to 2.4m
Video Networks Ltd (VNL) has announced that it’s broadband and Video on Demand (VoD) service, HomeChoice, now has 15,000 subscribers, since its relaunch in last September.
Eight in ten of their customers have also signed up to the company’s ‘triple play’ package that consists of broadband-delivered TV, broadband and voice calls.
It’s also taking this opportunity to announce that it’s going to be doubling the number of homes it can reach to 2.4 million in London and the Stevenage area, up from 1.2 million.
The VoD component of HomeChoice lets subscribers choose from over 1,000 movies, over 3000 music videos and hundreds of hit TV series, all available to watch exactly when you want.
“The concept of broadband delivered TV and VoD is very new to the entertainment-buying public and to already have 20 per cent market share of new DSL subscribers in our coverage area so soon after our launch is a great achievement. This gives us the confidence to significantly expand our network”, said Roger Lynch, Chairman and CEO VNL Ltd.
VNL initially made inroads into launching its phase 2 footprint in December 2004 when it enabled five new exchanges, including Stevenage – its first exchange outside of the M25. By ‘unbundling’ the exchange, called LLU (Local Loop Unbundling) in the trade, Homechoice is able to provide customers with a 6.5Mbit connection. 2.5Mb are used for TV and VoD delivery, and up to 4Mbit for Internet connection.
The company’s major marketing push for the re-launched HomeChoice service began in September 2004. During Q4 of 2004, VNL was responsible for one in five new DSL net additions in its initial launch footprint of 1.2 million homes.
The company has continued to build on what it offer its subscribers. In August last year, HomeChoice signed a retail deal with BSkyB enabling its subscribers to watch Sky Sports and selected Sky Movies channels on the service. It has also added telephony to its offering, and is about to launch a music download service that will allow HomeChoice customers to buy downloadable music tracks as they appear on screen. It also plans to double the speed of its broadband service from February, at no extra cost: 512Kbps will raise to 1Mb, 1Mbps to 2Mbps, and 2Mbps to 4Mbps.
HomeChoice
27 January, 2005
Music Download Giant Napster Considers Film Service
Napster, one of the largest players in music downloads, is considering offering a film download service. The new service would sit alongside its music offering and help to give the company a competitive edge over its rivals. The technology is already in place to download movies, so the same service model could easily apply to films, television programmes and video games, now that broadband connection speeds are getting faster and more prevalent.
In a move targeted at the younger video-game generation, Napster won’t be the first company to enter the legal movie download market. In the US, MovieLink and CinemaNow are already offering a service to a growing customer base in America. Films on these sites start at around $2.99 (£1.59 Euro 2.29). However, similar to the music industry five years ago, the film industry is struggling to keep piracy at bay with technologies that allow movies to be downloaded quickly and in full to users with high-speed Internet connections. The Motion Picture Association of America has already filed lawsuits against pirates and is cracking down on distribution networks such as eDonkey and BitTorrent.
Regardless, legal film downloads will be a winner and are the future – just like audio downloads. Since broadband, film downloads have surged considerably, and around one in four people online have now downloaded a film, according to the MPAA. Such statistics have encouraged Napster and others to keep an eye on the market.
Since Christmas, Napster UK has reduced the price of its entire music catalogue of over 1 million tracks by 20 per cent. In response to record sales, the more aggressive pricing strategy will mean that full albums now cost £7.95 (US$14.89 Euro 11.43), while individual tracks cost 79p (US$1.48 Euro 1.14) when bought by Napster subscribers or purchased with Napster Pre-Paid Cards and Online Music Vouchers. Pricing for movies has yet to be announced, but it’s obvious they’ll have to be a lot cheaper than the latest DVDs for the service to takeoff.
Napster – UK
Napster – USA
MPAA
25 January, 2005
HomeChoice Doubles Broadband Speeds, Free
Video Networks Ltd (VNL), who run the UK VOD service, HomeChoice, will be doubling the speed of their broadband service from 1st February, at no extra cost.
512Kbps will raise to 1Mb, 1Mbps to 2Mbps and 2Mbps to 4Mbps.
Last week the two UK cable companies, ntl and Telewest, announced they would be offering Video on Demand (VoD) in the UK over their existing connections. They both offer broadband services at a range of speeds, but they are generally distinct from the TV services which are available at extra cost, except from occasional special offer bundles.
Currently ntl offer “broadband” at 300Kbps (arguable if this is broadband), 750Kb and 1.5Mbps (£37.99/month (~€57.50, ~$75). Telewest offer broadband only services (blueyonder) between 256Kbps and 4Mbps, with the top package being £50/month (~€72, ~$94). As these prices don’t include the TV services, they also won’t include VoD, when it gets rolled out.
The HomeChoice offering is delivered over a telephone line and includes the TV service; VoD; free evening and weekend phone calls; as well as higher speed broadband connections with their base level service now being 1Mbps. Their 4Mbps service is priced at #45/month (~€65, ~$85).
Roger Lynch, Chairman & CEO, Video Networks Ltd. said: “Video Networks is constantly looking for ways it can enhance its current suite of services to continue to provide a superb customer experience.”
It’s taken long enough for competition to arrive in the UK, but it finally appears to be taking root. For the UK consumer, this is all good news, as competing providers clamour to offer better deals to woo subscribers.
HomeChoice is currently available to over 1.4 million homes around London. VNL have stated that they want to expand their offering beyond London, although details are not yet public.
Existing HomeChoice customers will be notified of the automatic speed upgrades from 24th January via direct mail.
HomeChoice
24 January, 2005
TiVo effect, TV still doesn’t know what to do
In a long line of articles where TV execs try to ponder how to stop losing sleep and preserve their once comfortable lives, Meg James in the LA Times covers the impact of PVR’s, in particular TiVo, and how the TV industry is still trying to adjust to its impact.
It’s warming to see that there are still articles coming out, with quotes from TiVo users such as, “Once you’ve used one, you can’t imagine life without TiVo,” as Charlie Flint of Marina del Rey, California did. It’s somewhat reassuring that the impact is still as great for new users as it was when TiVo was first introduced.
One thing that doesn’t get mentioned in connection with this, and this is something that TV people should have sympathy with, is that ad breaks, do exactly that, break up the programme. Interrupting its flow.
This has been more than amply proven in the UK where The Simpsons have moved from commercial-free BBC2 to the advertiser-supported Channel 4.
Previously used to watching the show from beginning to end, without interruption. When watching the show, on TiVo of course, the story is interrupted by having to skip through the adverts.
Interestingly the exact opposite of the programmes sponsor desired intention is achieved. I have now come to resent the Pizza chain, as they are associated with interrupting my viewing pleasure.
One of the reasons that articles like this continue to make press is that estimated figures coming out of research houses and banks make worrying reading for the TV, and therefore the entertainment world.
By 2010, half the US households with TV sets are expected also to have digital recorders, according to a recent Smith Barney report. The tipping point could come as early as 2007, the report said, when the television industry may lose as much as $7.6 billion — or about 10% of its annual ad revenue — as advertisers seek other ways of reaching consumers.
A number of alternatives are suggested including pay-per-play, product placement in shows.
In one, viewers would pay $1 to see an episode of a show On Demand, “much as music fans do when they download a song from Apple Computer Inc.’s iTunes music store,” appearing to forget that the iTunes users don’t pay another $1 when they listen to the song the following week, as would be that case with a VOD show.
It’s gratifying that Meg James ends the article with a wise quote from her interviewee, one that the TV industry should be listening to, “I’m now trying stuff that I never would have watched before. I’ll give it a shot and set the TiVo, then watch the show later … when nothing else is on,” TiVo-user Flint said. “I’m watching probably 50% more TV than I used to.
LA Times – Looking for New Ways to Make Viewers Pay
TiVo
21 January, 2005
ntl On Demand Brings VOD to Glasgow
Today ntl turned on its much-anticipated Video On Demand (VOD) service in Glasgow.
Accessible to all Glaswegian ntl subscribers who have the digital TV service, it features free and paid for content including advertiser-free children’s programmes, a ‘Pick of the Week’ option showing a selection of top shows from the previous seven days, a film service, a music video jukebox service, and adult content.
No new equipment is needed at the subscriber’s house, as the software in their current Set Top Box (STB) is automatically updated.
The content is accessed either by pressing the On Demand button on the remote control or by pressing the Red button while watching one of the promotional channels.
The Pick of the Week channel will be provided by the BBC in a six month initial trial. The editorial decision of what is included will rest with the BBC, and it’s expected that a range of shows will be available, including favourites (not ours) such as Eastenders. Each show will be available for seven days from its transmission and it’ll be free to access.
The viewer will have the option to pay for content too, giving then 24 hours access to the content. The cost of the items will be added to their monthly bill.
The film service is supplied by FilmFlex, a separate company run by On Demand Management in a joint venture with Sony and Disney, with “Hundreds of titles, current and classic” films available from 50p to £2. Out of general interest, On Demand applied for the FilmFlex trade mark back in September 2004.
Over 30 hours of Children’s advertiser-free programming is on offer for 20p-50p. Music videos can also be paid for (range 20p-£1.50) with over 35 hours available.
The high price ticket at £7 and largest number of hours of content (over 50) available goes to the Adult content supplied by Playboy.
Coincidentally, Glasgow was also the city chosen to launch ntl’s digital TV service back in May 2000. We imagine that the number of subscribers is manageably low (we did ask for actual numbers but, “this isn’t broken out”), giving ntl a chance to observe the performance of the system and gather feedback, before spreading it around the UK.
ntl are saying they plan to roll it out regionally over the UK during the next two years and all of their 1.4 million Digital TV customers will be able to receive the service. When we asked about the number of non-digital customers, we were told it was in the single percentage figures, possibly as low as 2-3%. Although asked, they decided to keep the order of the planned rollout cities to themselves.
In a statement Simon Duffy, Chief Executive Officer of ntl, said, “VOD is TV the way it’s meant to be.”
Telewest also launched a VOD service today, Homechoice have offered VOD in London and KIT have also been providing VOD in Kingston-upon-Hull for a number of years. ntl
On Demand management
18 January, 2005
European Networked and Electronic Media (NEM) initiative launches
How Europeans receive their digital entertainment in the future could change, following an event in Nice last week. At the launch of the bold and ambitious Networked and Electronic Media (NEM) initiative, the European Commission (EC) announced their intention to form an integrated, interoperable platform. Its broad scope stretches from the way media is created, through each of the stages of its distribution, to its playback.
The EC want its citizens to be able to locate the content they desire and have it delivered seamlessly, when on the move, at home or at work, no matter who supplies the devices, network, content, or content protection scheme.
With interconnectivity as its goal, it is fortunate that over 120 experts were there to share the vision and hear pledges of active support from companies such as Nokia, Intel, Philips, Alcatel, France Telecom, Thomson and Telefonica.
It might initially appear to be surprising that companies in direct competition are keen to work together, but again and again speakers stated they could not see incompatible, stand-alone solutions working. A long-term strategy for the evolution and convergence of technologies and services would be required.
The EC is being pragmatic in its approach. They have identified that many standards bodies have, and continue to, define standards in the areas that NEM encompasses, but recognise that some of these standards overlap. The NEM approach is to take a serious look at what’s available and what’s in the pipeline, pick out the best, integrate them together and identify where the gaps are. Where it finds holes, it will develop standards to fill them.
While the global access to content is not a unique idea, what is significant is that such a large and powerful organisation has stated its desire for it to be fully open and interoperable – not restricting the consumers choice at any stage in the process.
This is bound to please, if not surprise, many individuals and user organisations who feel that the wishes of the holder of rights to content are normally considered over and above those of the consumer. Following the keynote earlier in the week of EC Director João Da Silva, they now know they have a supporter within the higher echelons of the European Commission.
Many feel that the most difficult and challenging area for the EC will be to identify a solution for interoperating Digital Rights Management (DRM) schemes. Currently DRM solutions are incompatible – locking certain types of purchased content, making them unplayable on all platforms.
With the potential of having a percentage of every media transaction that takes place globally, the prize for being the supplier of the world’s dominant DRM scheme is huge. This leads the companies who feel they have a chance in controlling it to not be very open to sharing.
Although entertainment is an obvious first step, it will encompass the remote provisions of healthcare, energy efficiency and control of the Smart Home. The over-arching initiative amalgamates the work of many currently running research projects that the EC has been funding for a number of years.
The NEM is a ten-year project, which in the everything-immediately age we live in, might seem like a lifetime away, but it’s important to remember that the digital delivery of media stretches a long way into the future. Decisions made and solutions selected now will have far reaching consequences.
This piece was featured on the BBC Web site.
7 December, 2004
Microsoft TV Attracts Older People To The Web
Microsoft is hoping its Web-based TV service will attract ageing users to surf the Internet, read e-mail and view digital photos – all without a computer. In what initially seems like a shot in the foot, Microsoft’s research indicates that the untapped market potential for older users is in excess of 40 million – a sizable figure even for the king of software.
As well as the older generation, Microsoft is also targeting first-time Web users, particularly in developing economies where the Internet is out of many people’s reach because of the cost of a PC. The major benefit of being able to view photos and read e-mail on your TV is that most people already own a TV, thus eliminating the prohibitive cost of a PC, as well as the hassle of installing and learning how to use it. Sitting in front of a TV is also usually a heck of a lot more comfortable than a computer.
“Our average user is 57 years old,” said Andy Sheldon, senior director of product marketing for MSN TV. “These people are getting to the age where they don’t want to deal with complicated ways of connecting to the Web.”
The service comes via a MSN TV 2 unit set-top box, bringing e-mail and the Internet to the TV. It includes a wireless keyboard and remote control and costs $199, in addition to a subscription fee, which costs around $22 per month. MSN TV 2 also includes a 56Kbit/s phone modem, as well as an Ethernet jack for connecting to an existing network or broadband connection. Of course, there’s also e-mail and instant messaging accounts and access to 200 radio stations and video clips. Viewers can also browse Web pages or even digital photos stored on memory cards.
MSN TV 2 is probably ideal for those who have yet to take their first step onto the Internet, but anyone interested in a home networking device can get more for their money
.
22 November, 2004