❝ Traditional broadcasters have to transform and re-brand themselves as multi-platform video businesses , while
adopting new technologies and trends .❞
APB PANELLISTS
6 NEWS & VIEWS
December 2017
Traditional broadcasters facing major challenges today
by phan tien dung
The broadcast TV industry is seeing dramatic change , as broadcasting transitions into IP and multi-platform TV . The development and growth of digital video services create new challenges and opportunities for video content providers .
In Vietnam , the original total budget was already low for the broadcast field , which is now being invaded by international companies such as YouTube and Facebook . In the first half of last year , many pay-TV channels ’ ad revenue dropped dramatically .
We are continuing to see the growth of non-linear viewing , digital video consumption and over-the-top ( OTT ). However , making money from OTT in Vietnam now is not easy . Only some OTT operators can get a small fee from subscribers for special programming like famous foreign TV channels or new films . As more new OTT service operators appear trying to get more subscribers , offering content free is their first choice .
In Vietnam , 20 years ago , broadcast services were free of charge because only the government transmits TV channels . With viewers having only started to be familiar with pay-TV recently , the sudden emergence of so many free services means they do not want to pay again . In the main cities such as Hanoi , Ho Chi Minh City and Danang , the people can watch about 50-100 free TV channels via the digital terrestrial network ( DVB-T / T2 ). If the content on free channels does not satisfy viewers , they can find free video content on YouTube and Facebook .
Netflix entered the Vietnamese market in January 2016 , and has not significantly effected a major impact on the Vietnamese OTT market . Because the Internet users in Vietnam are so familiar with free services , they are not ready to pay for any content . YouTube and Facebook hold the biggest advantage because they provide all services free , and have been supporting 4K / Ultra HD ( UHD ) video for quite some time .
VTC is a national TV broadcaster in Vietnam , offering 16 TV channels . The station adopted a DVB-T digital terrestrial network in 2001 and upgraded to DVB- T2 in 2015 . VTC is the first broadcaster in Vietnam to transition to digital TV and also offer channels on other platforms such as YouTube , Facebook and Daily Motion . On June 21 this year , VTC became the first broadcaster to deploy a trial 4K / UHD channel — and it has made a big change in Vietnam ’ s TV set market .
As the forecast for broadcast revenue remains relatively gloomy , VTC is continuing to find ways to overcome all these difficulties .
In the future , traditional TV channels should be provided free of charge . We have been taking this approach since 2011 , when all our channels began to be unencrypted on the DVB-T network . Transmitting free channels means we do not have to care about the set-top box or end-user device , giving us the flexibility to adopt new standards .
Many pay-TV operators take a long time to prepare to launch 4K / UHD channel . VTC is the first to transmit a 4K / UHD channel in Vietnam which has quickly been accepted by viewers because of the availability of the receiver device .
Some broadcasters are also trying to make a gradual transition from SDI to IP . Because VTC has 16 TV channels , it will be costly to make the transition to IP . Having said that , we do already have IP-ready equipment for our headend and transmission system , and we only need to consider the production aspect .
Currently , we only use IP solutions for playout channels while maintaining SDI for production . For example , we have just deployed a new 4K / UHD channel , which is IP-based . Our own server playout , using HEVC / H . 265 , can connect directly to the multiplexer . The bandwith for uncompressed 4K / UHD is 12Gbps but it processes in only one server . Therefore , the output bandwidth of the server is about 10Mbps and we still can use the existing network system ( a Gigabit network ).
We are transmitting four kinds of media on our DVB-T2 system : 4K / UHD
❝ Traditional broadcasters have to transform and re-brand themselves as multi-platform video businesses , while
adopting new technologies and trends .❞
channel ( HEVC / H . 265 compression ); HD channels ( MPEG-4 ); SD channels ( MPEG- 4 ); and radio channels with pictures ( lowbitrate MPEG-4 ).
Some broadcasters are afraid of expanding into OTT but how do you define an OTT operator ? Any traditional broadcaster can become an OTT operator — if they adopt the mindset of a new entrant . The traditional TV system used to be very big and expensive , with SDI router , control panel , intercom and SDI monitor , among others . Today , systems should be very compact and be multi-purpose .
Recently , VTC has focused more on Facebook and our live programmes are watched by many Facebook-ers . Even though VTC is a government-owned TV station , we offer content on Facebook and YouTube to engage with young audiences through topics that resonate with them . Via these channels , we want the viewers to go back to their TV screens to get higher quality content . These same viewers can also see some Facebook comments on the TV screen .
Today , VTC can compete with any OTT service in Vietnam because we have both the content and infrastructure . The most difficult issue now is how to monetise this . Therefore , we still earn revenue on our traditional platforms and we believe we will profit from our new platforms in three or five years — it is about futureproofing the business .
Thanks to OTT , we try to bring the viewer back to TV , where the ad market remains robust and powerful . In the long run , this will go down but for now , it is ensuring the survival of traditional broadcasters .
We also transmit one free channel ( VTC10 ) in North America ( Galaxy 19 ) and
one in Europe ( Hotbird 13B ). Therefore , our channels are watched by almost all households in Vietnam and Vietnamese living abroad . In Vietnam , we are incorporating major TV manufacturers such as Samsung , LG and Sony to have our app installed on their smart TV sets before they are shipped .
The broadcast market has changed , and the traditional model for content production , investment , distribution and consumption will no longer be ade quate . Traditional broadcasters have to transform and re-brand themselves as multiplatform video businesses while adopting new technologies and trends . Although current TV revenue is still enough for us to survive , we need to make the right investments in order to safeguard our future .
Phan Tien Dung is CTO of Vietnam Digital Television ( VTC ), and is an APB panellist .
APB PANELLISTS
An illustration of VTC ’ s 4K / UHD playout software interface . |
Christopher Slaughter
CEO CASBAA
|
Graham Stephens CTO Media City Development , Malaysia |
Goh Kim Soon Senior Vice-President Broadcast Engineering Mediacorp
Shad Hashmi
Vice-President , Digital Development , Global Markets & Operations , BBC Worldwide Asia
|