8 NEWS & VIEWS
October 2016
Co-existence in a crowded market
BANGKOK – In an increasingly fragmented market , how can content be effectively monetised , and what are some of the key challenges facing broadcast operators in a radically changing market landscape ?
These questions , and more , were discussed at the CASBAA Thailand-in-View 2016 , held last month in Bangkok . When asked by Christopher Slaugher , CEO of CASBAA , on the finer points of managing the rapid changes in the Thai TV industry , True Corporation ’ s chief content officer , Birathon Kasemsri Na Ayudhaya , answered : “ We are constantly thinking of ‘ what ’ s next , what ’ s next , what ’ s next ?’.”
One strategy currently deployed by True is to use its newly acquired rights to the English Premier League football , to make a portion of the matches available on mobile for Bt $ 29 ( US $ 1 ) per match .
Patompong Sirachairat , COO and VP of Thai media company Mono Technology , identified piracy as the main threat to the Thai TV industry . “ In this country , people can get content anywhere and anytime for free ,” he explained . “ The pirate sites ’ ability to provide content quickly is a real obstacle for over-the-top ( OTT ) service providers .”
And creating exclusive , localised content remains a key agenda for Netflix , reported Tony Zameczkowski , VP of Business Development Asia , Netflix .
“ Netflix is working closely with our partners in Thailand ,” he said . “ We ’ re learning from them about the best sort of content to develop to serve local audiences .”
CASBAA ’ s Christopher Slaughter led some of the key discussions at the CASBAA Thailand-in-View 2016 , held in Bangkok last month .
Joe Suteestarpon , CEO of Mediaplex International , a content provider , while agreeing that local content is vital in keeping subscribers happy , stressed the equal importance of the user experience . “ By releasing new features and improving the payment process , we ensure that transactions are easier and more efficient ,” he added .
With the ubiquitous use of social media today , it is perhaps not surprising that broadcasters are increasingly integrating social media to reach out and bring in new subscribers . Social media is the first step for people to get comfortable and become familiar with programmes , suggested Alexandre Muller , managing director APAC , TV5 Monde .
Indeed , social media is today playing a role in every aspect of Sony ’ s new productions , according to Jef Lim , VP , production , Sony Pictures Television Networks , Asia . He agreed , saying : “ From content conception , production and airing , social media is an integral part of every programme today .”
Localised content will attract new viewers
1 8
developments in Asia-Pacific , focusing predominantly on South-east Asia and Australasia .
“ As operators continue to redefine their content delivery strategies , will localised content play an increasingly role ?” APB asked Simon Trudelle , senior director , product marketing , Nagra .
He responded : “ Looking at the European example , where such diversity is also the market reality , it is clear that localised content can help service providers attract new subscribers and differentiate their offerings in an increasingly competitive TV and video market .”
It must be noted however that localised content should be part of an overall strategy that also includes global content — if service providers are to diversify and reach a wider customer base .
The continued popularity of Netflix , HBO Original Series , Hollywood blockbuster movies and live sports shows nonetheless is a clear indicator that there is a big market for global content , including in Asia , Trudelle pointed out .
Having said that , he acknowledged that strategies may still differ , as the market is even now evolving in response to changing consumption patterns and customer needs .
AIMS to propagate SMPTE SD-2110 as a unifying standard for IP
1 8 as “ paving the way ” for virtualisation and increased flexibility . unprecedented approach , something that he has not witnessed everybody together , is not to focus
“ The key , in terms of bringing
in a career spanning more than on the differences we have today , 20 years . but to concentrate on the common
Cronk is also VP of core technologies at Grass Valley , a founding And the future may already be
points for the future ,” he added . member of AIMS . here , if the IP Interoperability Zone
“ Companies that have always at IBC 2016 served as an indicator . been fiercely competitive have Sponsored by AIMS and IABM , recognised the value of pushing a the IP Interoperability Zone featured demonstrations from more true standards-based approach to avoid the fragmentation we have than 30 companies , on IP interoperability based on the technol- seen all too often in our industry ,” he explained .
ogies of the AES ( Audio Engineering Society ) and the Joint Task Force
This is happening , in spite of the fact that within AIMS there on Networked Media ( JT-NM ), a are member companies that are combined initiative of AMWA ( Advanced Media Workflow Associa- conducting proprietary implementations . While there are member tion ), EBU ( European Broadcasting companies within AIMS who are Union ), SMPTE ( Society of Motion conducting proprietary IP implementations , even they acknowl- and VSF ( Video Services Forum ).
Picture and Television Engineers )
edge that the industry collectively Simultaneously , Belgian public has to adopt an interoperable approach or a common standard . with the EBU , also showcased a
broadcaster VRT , in conjunction
The unifying standard , Cronk live IP TV production workflow , believes , will be SMPTE SD-2110 , based on the ongoing work of which all companies , including the LiveIP Project . A collaboration those currently working on their between the VRT , EBU and a group own standards , are supporting . of broadcast technology partners ,
SMPTE SD-2110 prescribes how the objective of the LiveIP Project to use IP in live production , as well is to build and operate a Live TV
production studio with state-ofthe-art IP-based and IT-centric hardware and software .
IP is not a replacement for existing SDI infrastructure ; rather , it represents a solution for the broadcast industry to move forward , a conference session at the IBC 2016 Conference concluded .
Felix Poulin , senior engineer and project manager , Media Production Technologies , EBU , and who was part of the panel , said : “ The big drivers at this moment are broadcasters who are building a new facility as they need to be proactive in understanding what type of technologies they should approach .”
He also highlighted the important role organisations such as AIMS are playing , in bringing together diverse organisations to create a level of convergence and collaboration , so as to provide a better understanding of IP for broadcasters .
And even for broadcasters who may not have a big rebuild to come for a number of years yet , start now with an IP proof-of-concept , so that staff can begin to learn and become familiar and comfortable with the technology .
What the IP Interoperability
“ With the growing availability of content and multiscreen devices , consumers are increasingly expecting content on their own terms , and overthe-top ( OTT ) TV is an enabler for that ,” he continued . “ This can be seen as a challenge for service providers , who risk seeing some of their subscribers trading down their full packages for cheaper propositions .”
The end-goal , Trudelle advised , is to offer the best value for money to every customer segment .
He added that better segmentation of the market would allow service providers to grow their revenues , thus leading to a higher market penetration of pay-TV services , and thereby deter consumers from “ shoddy ” pirate services , particularly in Asia .
And while the power of choice has shifted inexorably towards the consumer , fixed content packages are unlikely to go away just yet .
Citing the example of OTT TVoD ( transactional-video-ondemand ), Trudelle explained : “ The initial thinking was that OTT TVoD would put the power in the hands of the consumer , with a pay-per-view model offering full flexibility .
“ However , experience shows that consumers in Asia , and worldwide in fact , are usually hesitant to pay for every piece of content they consume , as they perceive their total monthly bill to be then higher than it should be , pushing down consumption and revenues in the end .”
Another key takeaway from the The Pay-TV Innovation Landscape in Asia-Pacific report is the importance of ensuring that content is delivered across all screens — from smartphones to big-screen TV sets — in order to win and keep subscribers .
And this is where enabler technologies come in , as Trudelle concluded : “ This implies leveraging IP and hybrid networks , as well as cloud technology and infrastructure , to drive rapid innovation and smart operations .”
❝ It is clear that localised content can help service providers attract new subscribers and differentiate their offerings in an increasingly competitive TV and video market .❞
— Simon Trudelle , Senior Director , Product Marketing , Nagra
Zone has demonstrated , Cronk added , is that broadcast IP can happen today , even if a natural conservatism pervades across the broadcast industry . “ Broadcasters will have different tolerance levels when it comes to being at the leading edge of technology innovation .
“ That ’ s understandable but if you start learning now , you will be able to find out for yourself the challenges involved , and gain that comfort [ to launch IP-based systems ].
“ Even if you are still doing SD today , the potential to just go IP , instead of doing HD-SDI , is there . In the process , you save a whole bunch of money while getting a lot more capabilities .”
And while only about 10 % of AIMS ’ current membership comprises broadcasters , Cronk invites broadcasters to come forward to be part of AIMS .
“ When broadcasters join AIMS , there are so many companies who have these broadcasters as their customers . They can then influence other companies to go on this common roadmap ,” he detailed .
“ The more people who support a common standard , the more choices broadcasters will have .
This helps in pricing , in selection capabilities — and broadcasters are then able to select best-of-breed solutions .”
Another key aim for AIMS — no pun intended — is to be more involved in Asia , and to generally increase outreach across the region , by being present , for example , at regional trade shows such as BroadcastAsia and Inter BEE .
Cronk elaborated : “ We have in Asia right now six members in Japan and one in China , and we want to be very forward in how we reach countries in Asia .
“ We feel that it is important to bring AIMS ’ international message to Asia in local languages .
“ When we have enough members in certain countries , we form what we call a marketing subgroup ; for instance , there is an AIMS Japan marketing working group . AIMS then helps fund marketing activities that are conducted in Japanese .
“ We want to do this in Mandarin and other languages as well , so that we can reach a critical mass in terms of AIMS membership ,” he concluded .
— Additional reporting by Josephine Tan