Accenture: a four-point plan for media - Gavin Mann on how established players will survive and prosper - Digital TV Europe
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August/September 2018
Accenture: a four-point plan for media
Gavin Mann on how established players will survive and prosper
ACCENTURE SPECIAL PROMOTION
pOFC DTVE AugSep18.indd 1 31/08/2018 15:53
pXX CSG DTVE AugSep18.indd 1 29/08/2018 10:43
Digital TV Europe
August/September 2018
Contents
12
12. Broadcasting in the age of AI
Artificial intelligence is already having a profound effect on the media and TV space, but what
applications hold most promise and what challenges need to be overcome? Andy McDonald
reports.
20. The age of Android
From being an also-ran in the TV operating system space, Google’s Android TV now could be 20
set to sweep all before it, following the introduction of the service provider-friendly Operator
Tier. Stuart Thomson reports.
28. Advances in advertising
As consumers fragment across platforms, how can advertisers be sure of the value of their
investment? Adrian Pennington reports.
28
32. Accenture: a four-point plan for media
Media and entertainment businesses face an unprecedented array of challenges as big tech
companies move into content creation and distribution. To survive and prosper, established
players need to guard their core business while forging a path to unlock new revenue streams
through innovation, says Accenture’s Gavin Mann in this sponsored feature.
36 Experience counts
36
Keeping audiences engaged is key to any successful video service, but how are traditional
content providers adapting to today’s content market? Anna Tobin reports. 44
44. IBC 2018: the preview
This year’s IBC exhibition will take place at Amsterdam’s RAI from September 15-19. Digital TV
Europe takes a look at some of this year’s technologies.
Regulars
2 This month 4 News digest 42 Viewpoint 50 Technology 54 People 56 Final analysis
Visit us at www.digitaltveurope.com
1
p01 Contents DTVE AugSep18v3am.indd 1 04/09/2018 20:12
This month > Editor’s note Digital TV Europe
August/September 2018
Issue no 340
Published By:
The data issue
KNect365 TMT
Maple House
149 Tottenham Court Road
London W1T 7AD
Big data is the thread that runs through this issue of Digital TV
Europe. The control of data, its use to deliver new consumer
experiences, and its role as fuel for the global ambitions of big tech organ-
Tel: +44 (0) 20 7017 5000
isations, are key to the future of the media business.
Fax: +44 (0) 20 7017 4953
In this issue of the magazine we look at four topics in which data plays
Website: www.digitaltveurope.net
a starring role.
The first is the growing importance of artificial intelligence in media.
Editor Stuart Thomson The application of AI is seen to have the potential to revolutionise the
Tel: +44 (0) 20 7017 5314 video distribution business, but what does the application of AI mean in
Email: stuart.thomson@knect365.com practice? We look at the potential of AI to make TV more highly person-
alised than ever before through applications such as facial recognition, voice-control and the
analysis of emotions.
Contributing Editor Andy McDonald Control of data is at the core of Google’s business of delivering services to consumers global-
Tel: +44 (0) 20 7017 5293 ly, including video services through the Google Play store. Google has long coveted a stronger
Email: andrew.mcdonald@knect365.com position in the TV space, not only as a service enabler, but also as a technology provider through
its Android TV platform, and has made a number of attempts to persuade TV operators of
the advantages of its technology. Those operators have in the past been reluctant to team up
Contributors
with Google because they fear, among other things, loss of control of their consumer data and
Kate Bulkley, Kaltrina Bylykbashi, Andy Fry,
dilution of their brand. Over the last year or so, however, the introduction of the Android TV
Adrian Pennington, Adam Thomas,
Operator Tier has transformed Google’s fortunes in the TV business. In this issue, we look at
Anna Tobin
the advantages offered by this platform for service providers.
Data is of course most crucial to Google’s core advertising business. Commercial broadcast-
Correspondents ers have seen their advertising revenues come under threat from a variety of directions, includ-
France: Julien Alliot; Germany: Dieter ing the growing appeal of online content. In order to secure their future, they urgently need to
Brockmeyer; Italy: Branislav Pekic make more money from their online activity as well as from legacy broadcast operations. This
means accurate audience data. In this issue, we look at initiatives to provide better audience
measurement across digital platforms and some of the challenges faced by broadcasters in this
Commercial Director Patricia Arescy space.
Tel: +44 (0) 20 7017 5320 Data is also at the heart of delivering a personalised user experience to TV consumers that
Email: patricia.arescy@knect365.com matches what they have come to expect from online platforms such as Netflix. In this issue of
Digital TV Europe, we also look at the ways in which TV operators are trying to deliver a user
experience that serves as a differentiator and provides something that can compete with OTT
Art Director Matthew Humberstone
providers.
Finally in this issue, we take our customary annual look at some of the technologies that will
Marketing Executive Abigail Dede
be on show at the forthcoming IBC in Amsterdam, as well as providing our usual round-up of
industry news and technology developments. l
Printing Wyndeham Grange, West Sussex
To subscribe to this magazine or our
daily email newsletter please visit
digitaltveurope.net/registerhere
© 2018 Informa UK Ltd
All rights reserved
Stuart Thomson, Editor
Reproduction without permission is prohibited
stuart.thomson@knect365.com
Visit us at www.digitaltveurope.com
2
p02 Ed Note DTVE AugSep18v3am.indd 2 04/09/2018 20:04
Q&A: Steve Oetegenn, Verimatrix
Steve Oetegenn, President, talks about the benefits of cloud technology and a connected content distribution platform for content
providers and operators.
To what extent is the potential of the cloud to make content creation and • Offers improved distribution efficiency by encrypting content just
distribution more efficient still untapped? once with decryption keys and playback policies distributed separately
The cloud helps deliver a radically new economic model for the and securely via Verimatrix RightsConnex for final end-device playout.
infrastructure itself, reducing upfront hardware and software investments.
On the hardware side, operators can convert up front capital costs into • Provides higher visibility into the process on a level not available
more efficient operating costs. The software-as-a-service (SaaS) model before through automated viewership reporting and QoE analytics
exploits similar factors to cut costs by converting licenses to ongoing service based on the functionality available from Verspective Analytics.
agreements in which operators only pay for what they use.
But the largest untapped efficiencies come from the fact that the • Eliminates revenue leaks from premium content and provides anti-
infrastructure is virtualised so that functionality is dissociated from location, piracy protection from a trusted Verimatrix security envelope around
which opens up the ecosystem to new operational benefits not previously the entire platform.
possible. Third-party ecosystems can be connected or accessed very easily
just by relocating content using pointers. By efficiently and securely connecting a centralised content library to a
network of global video service operators, Viewthority ultimately creates
To what extent are the interests of content providers and service a collaborative and transparent environment that opens up new markets,
operators aligned in relation to the use of cloud technology to make their new viewers, and new revenue streams.
businesses more efficient?
They both share a need to streamline and secure distribution of their How central is data and analytics to the vision of a connected platform
video assets. While content providers wish to broaden and accelerate the and what benefits can this deliver to participants?
monetisation of assets, they need new tools to ensure content security, The ability to have unprecedented access to real-time data and analytics
enforce distribution windows and downstream playback policies, and obtain is a major advantage of integrating content distribution functionality
usage reporting. Video service operators, on the other hand, desire easier and into a single platform. Granular content usage, royalty reports and
faster access to compelling content, combined with a reduction in cost and consumption analytics data, delivered on a timely basis, not only increases
distribution complexity from the point of origination to the viewers. contract compliance efficiency, but also provides viewer insights, which
By centralising the content and security workflows via a common cloud enable content and services to become more compelling and engaging
platform with a single point of integration, both content providers and over time.
video service operators gain significant distribution efficiencies through As the content industry expands and fragments, it becomes harder
reduced and streamlined workflow processes. to conduct trade in the traditional way involving direct negotiation over
rights, bitrates and formats. This new approach, armed with timely and
What might a connected content distribution platform look like in streamlined reporting, provides an automated platform where content
practice and what additional benefits would it bring to content providers discovery and negotiation, as well as secure transmission, all take place
and operators? digitally.
Our new platform, called Viewthority, provides unparalleled connectivity
between content providers and video service operators. This innovative How can a connected platform deliver more efficient ways of managing
approach, delivered as a platform-as-a-service (PaaS), streamlines end-to- security and what commercial advantages could this provide to
end workflows and automates video analytics and reporting. The platform content owners and distributors alike?
is designed to reduce the cost and complexity of the current content While the cloud brings cost savings and new opportunities it also raises
delivery processes, resulting in improved competitiveness and enabling challenges, not least because of the radical changes in the workflows
new business models. and in the apparent exposure to risk. The security threat surface expands
Viewthority is an end-to-end platform built upon proven Verimatrix given the transparency and ubiquitous connectivity of the cloud, while
technologies that: for the same reasons concerns over privacy multiply.
Advanced security is imperative for this type of distribution model.
• Avoids duplicate workflows by using a common cloud platform based Content providers and operators must inherently trust that the platform
on the AWS infrastructure. is secure. Given the deep expertise Verimatrix brings as a revenue
security provider, content providers and video service operators can be
• Centralises management and control of content licensing terms, confident that Viewthority is secured with the most advanced protection
distribution windows, playback policies and business rules via a defined techniques.
rights management interface, which has been integrated with the
MediaMorph Content Value Management Platform. Visit Verimatrix at IBC, stand is 5.A59 or visit www.verimatrix.com/viewthority
p03 Verimatrix Q&A DTVE AugSep18.indd 1 31/08/2018 10:23
News > digest Digital TV Europe
August/September 2018
News digest
> 4 Corbyn calls for ‘British Digital Corporation’ > 5 Sky ups startup focus > 6 Ofcom
report highlights structural decline > 8 RTL continues VOD and drama focus
Corbyn calls for ‘British Digital Corporation’ to take on tech giants
By Stuart Thomson > is making Facebook and others public interest in particular, he
so rich.” also called for a one-off tax to
UK Labour Party leader Corbyn said the organisation, be levied on global technology
Jeremy Corbyn has used the idea of which was initially giants to fund public service
his Alternative McTaggart floated by James Harding, the media and journalism if a
Lecture at the Edinburgh former BBC director of home future government could not
International Television Festival news at the Hugh Cudlipp negotiate a longer-term funding
to endorse the idea of creating lecture earlier this year, could arrangement for media with the
a publicly owned British become the access point for web companies.
Digital Corporation (BDC) public knowledge, information “One solution to funding
– a sister organisation to the and content currently held boards could also be expanded, public interest media could
BBC that could take on Netflix in the BBC archives, the with elections by BBC staff be by tapping up the digital
and Amazon by delivering British Library and the British and local licence fee payers. All monopolies that profit from
entertainment and information Museum. boards should be representative every search, share and like we
to the public. “Imagine an expanded of the country, with a minimum make,” he said.
“A BDC could use all of iPlayer giving universal access representation for women and “A strong, self-confident
our best minds, the latest to licence fee payers for a minority groups,” Corbyn said. government could negotiate
technology and our existing product that could rival Netflix The Labour leader said with these tech giants to
public assets not only to deliver and Amazon. It would probably that empowering BBC staff create a fund, run entirely
information and entertainment sell pretty well overseas as well,” would make the corporation’s independently, to support
to rival Netflix and Amazon he said. top management more public interest media. Google
but also to harness data for the In his lecture, Corbyn also accountable. and news publishers in France
public good,” said Corbyn. called for a freeing up of the Corbyn also called for and Belgium were able to agree
“A BDC could develop new BBC from government control devolution of programme a settlement. If we can’t do
technology for online decision by having some executive BBC making to regional and national something similar here, but
making and audience-led Board members chosen by staff level within the UK with the on a more ambitious scale,
commissioning of programmes and non-executive directors by help of new regional boards. we’ll need to look at the option
and even a public social media licence fee payers. Speaking about media more of a windfall tax on the digital
platform with real privacy and “To help decentralise the broadly and about the need monopolies to create a public
public control over the data that BBC, national and regional to support journalism in the interest media fund.”
in the Czech Republic and Slovakia, DNA has filed a complaint with the
Czech Republic and has carried Viasat World’s Finland country’s commercial court over
flagship factual channels since the terms of Yle’s call for tenders
SAT> Viasat World on Skylink 2007, the first pay TV documenta- DTT> DNA & Yle DVB-T2 row for DVB-T2 distribution of its chan-
Pay TV operator M7 Group is ry channels on the platform. Epic Finnish service provider, broadcast- nels, which the service provider
to add channel provider Viasat Drama HD will be available in the er and digital-terrestrial transmis- says runs contrary to the terms of
World’s recently launched Epic Smart Basic pay TV tier on Skylink, sion services provider DNA and the the country’s procurement rules.
Drama service to its Skylink DTH alongside Viasat Explore, Viasat country’s public broadcaster Yle Yle had in February published and
platform from September 1. Joining History and Viasat Nature – the have become embroiled in a legal then suspended a tender for tran-
the Czech and Slovak pay TV carriage of which the deal also re- dispute that Yle says could delay sition to DVB-T2, before publishing
service will significantly extend Epic news. An Epic Drama SVOD service the transition of the Finnish digi- a new tender document in August.
Drama’s reach in the two markets. will also launch via Skylink at a date tal-terrestrial network to DVB-T2, However, DNA claims that the ten-
Skylink is the biggest DTH platform to be confirmed. enabling migration to an HD service. der favours its competitor Digita.
Visit us at www.digitaltveurope.com
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Digital TV Europe News > digest
August/September 2018
premium sports channels from
Germany Ireland Polish national commercial broad- Events
caster Polsat to its programming
OTT> EntertainTV goes OTT PROG> Virgin Media Sport line-up, giving subscribers access IBC 2018
Deutsche Telekom is due to Virgin Media in Ireland is due to to UEFA Champions League and Date: 13 - 18 September
launch its EntertainTV service for launch its new Virgin Media Sport Europa League football ahead of Venue: Rai, Amsterdam, The
customers that use other internet channel on September 18. The the kick-off the 2018-19 Champions Netherlands
providers for the first time this channel, dubbed by the pay TV League season. The cable operator W: show.ibc.org
autumn. The operator is launching provider as ‘Ireland’s new home of has added Polsat Sport Premium
EntertainTV as an OTT package for European football’ will broadcast 1 and 2 and four Polsat Sport Pre- Content Innovation Awards
iOS and Android, with details to be Irish-produced coverage of the mium pay-per-view services to its Date: 14 October
released in October. The telco said UEFA Champions League and UEFA channels line-up, making all Cham- Venue: Carlton Hotel Grand
that EntertainTV OTT users will Europa League. Virgin Media Sport pions League matches available live Salon, Cannes, France
be able to enjoy the same content will be available to all Virgin Media to its subscribers, starting with the W: contentinnovationawards.com
as its own customers. However, TV customers at no extra cost and play-offs. The Polsat Sports chan-
timeshift, restart and replay func- is due to air more than 400 live nels will be available on the Horizon MIPCOM
tions will be reserved for customers European matches this season. Go mobile advanced TV service as Date: 17 - 18 October
of the ‘classic EntertainTV package’. well as the main television screen. Venue: Palais des Festivals,
The news was announced at IFA, Robert Redeleanu, CEO of UPC Cannes, France
where Telekom also said it will Poland Poland, said that the deal would W: mipcom.com
integrate Amazon Prime content enable UPC’s customers to watch
into EntertainTV, making it “excep- PROG> UPC adds Polsat the Champions League and Europa Sportel Monaco
tionally easy” for users to search for Liberty Global-owned Polish cable League in high quality for the next Date: 22 - 24 October
Amazon series like The Grand Tour. operator UPC Poland has added three years. Venue: Grimaldi Forum, Monaco
W: sportelmonaco.com
Sky ups startup focus in Berlin and Tel Aviv Broadband World Forum
Date: 23 - 25 October
By Andy McDonald > new chapter for us and we can’t Venue: Berlin Messe, Berlin,
wait to get started and uncover Germany
Sky plans to open a new office new, innovative startups across W: tmt.knect365.com/bbwf
in Berlin and invest US$4 the regions and beyond.”
million in an Israeli VC fund in Sky Deutschland CEO TV Connect MENA
an effort to scale up its startup Carsten Schmidt added: “I look Date: 29-30 October
investments across Central and forward to us establishing more Venue: Dubai Marina, Dubai, UAE
Northern Europe and Israel. partnerships with early stage W: tmt.knect365.com/tv-con-
The Berlin office will give Sky Kevin Baxpehler and former companies by setting up our nect-mena/
a local presence among the city’s Partner at Google Ventures Berlin based office this year.”
growing startup scene and allow Europe, Eze Vidra. Sky said the Sky established its London Africa Video Forum
it to build relationships with partnership will give it more startup-focused team in 2012 and Date: 13 - 15 November
investors and entrepreneurs. access to the county’s technology opened its San Francisco office in Venue: CTICC, Cape Town,
Sky’s Berlin team will have a market, which includes a strong 2014. Since then it has invested South Africa
remit to scout for companies pool of talent in computer vision in more than 20 companies W:tmt.knect365.com/africacom/
across Germany and the Nordics, and machine learning. across the UK, US and France. africa-video-forum
extending the company’s existing “Six years on from our first Sky has invested in companies
London and San Francisco-based investment, we’re expanding our including: Roku, which powers OTTtv World Summit
startup efforts. startup activity across Europe and its Now TV streaming device; Date: 28-29 November
In Israel, Sky will invest in newly Israel,” said Emma Lloyd, group virtual reality firm Jaunt; over- Venue: Inmarsat, London
launched Tel Aviv-based venture director of business development the-top streaming platform W:tmt.knect365.com/ ot-
capital fund Remagine Ventures, and partnerships at Sky. 1Mainstream; and Drone ttv-world-summit/
which will focus specifically “Spending time in both Berlin Racing League. Sky says it
on technology, entertainment, and Tel Aviv has left us hugely invests to accelerate innovation, Mobile World Congress
data and commerce startups. impressed with the energy, identify growth and achieve cost Date: 25-28 February
The fund is managed by former dynamism and talent of both efficiencies through the adoption Venue: Barcelona, Spain
ProSiebenSat1.Media investor tech scenes. This is an exciting of new operating models. W: www.mobileworldcongress.com
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p04,06,08 DTVE News Digest AugSep18v4am.indd 5 04/09/2018 20:06
News > digest Digital TV Europe
August/September 2018
logue TV service, Antenna Akado, in package free of charge to con-
Global Wrap Portugal the south-eastern part of Moscow. verged customers for one year. TV
Lyubov Klyonova, director of sales, Total is Vodafone’s most complete
Facebook has secured exclu- PROG> Eleven’s Bundesliga said that it was important to broad- TV offering, with 120 channels and
sive free-to-air rights for cer- Eleven Sports has extended its en the offering of analogue TV, multiple on-demand services in-
tain UEFA Champions League Bundesliga rights deal in Portugal which remains the main source of cluding HBO España and AXN Now
live matches across Span- and will now broadcast live top- information for some categories of exclusively. The offer will be open
ish-speaking territories in Latin flight German football for three citizens. She said that the Antenna to subscribers to the operator’s
America from 2018-2021. The years from the 2018/19 season. The service was used by the majority Vodafone One converged service
football deal grants Facebook broadcaster previously announced of residents in the south-eastern who sign up between August 20
the rights to broadcast 32 live a two-year Portuguese agreement district. The new channels on the until September 30. Subscribers
matches each season, for three with Bundesliga in June, which analogue tier include Discovery also have the option of adding
seasons, including the final and was due to start from the 2019/20 Channel, Dom Kino, Russkiy Roman, Vodafone’s Cine pack for one year
UEFA Super Cup. India’s Via- season. The new deal brings this Trick, TNT-4, TNT-Music, Mul’t, O!, at half price and its truncated
com18 is due to launch its vid- start-date forward and adds an Doktor, and Sony Channel. football package for €5 a month.
eo-on-demand platform VOOT extra year to the agreement. Vodafone is also gifting 25GB of
in the UK in November and is additional data to contract mobile
planning 18 original series for Spain and convergent customers for
the service. Viacom18 Motion Russia September. The TV Total offering
Pictures will produce multi-lin- CAB> Vodafone TV Total means that Vodafone customers
gual, multi-genre, web series CAB> Akado adds channels Cable and mobile telecoms opera- can have the package along with
for VOOT under the Tipping Russian pay TV service provider tor Vodafone España has stepped Vodafone One with 4GB of mobile
Point Films banner. Emerging Akado has added a raft of new up its fight against incumbent rival data and 100Mbps fibre broadband
markets SVOD service Iflix is channels to the line-up of its ana- Telefónica by offering its TV Total for €52 a month.
set to launch a 24-hour news
service in all 28 of its markets
from early September. Iflix Ofcom: growing risks of structural decline in TV
News will aggregate live news
streams, clips, and linear feeds By Andy McDonald > 15% in 2017 to an average of
from international, regional and one hour 24 minutes, while
local news authorities and re- TV viewing in the UK has been 16-24s’ viewing fell by 12%
gional partners for the offering falling since 2010 but saw a to an average of one hour 40
include CNN, Al Jazeera, DW, steeper decline in 2017, with minutes. This meant that over
CGTN and CCTV 4. According the risks of structural decline 54s, who make up just 28% of
to Kagan, S&P Global Market in the industry appearing to be the UK population, accounted
Intelligence, Nigeria accounted growing. for 51% of broadcast TV viewing
for 29% of Africa’s multichan- This was one of the findings in 2017. the risks of structural decline
nel subscribers and 22.4% of of Ofcom’s Communications At the same time, Ofcom appear to be growing as viewing
its TV households at the end Market Report, a major study on said that people now watch an figures fall and online video
of 2017. The country profile how communications services average of 88 minutes of non- advertising grows,” said Ofcom.
report estimates that Nigeria’s are changing in the UK, which broadcast content on TV each “There was also a decline
multichannel market had more shines a light on how the take- day. Its recent Media Nations in pay TV revenues in 2017,
than 27 million TV households up of faster broadband and report said that 16-34 year-olds after many years of growth,
and more than 6.9 million pay connected TVs are changing watched an average of two hours indicating a challenging market
TV subscribers at the end of how people watch programmes. 39 minutes of non-broadcast for pay TV operators such as Sky
last year, up 9.1% compared The report said that nine in 10 content a day – including 59 and Virgin Media, which face
to 2016. Warner Bros. and DC people still watched broadcast minutes of YouTube – on PCs, competition from subscription
Entertainment will launch their TV every week in 2017, for phones and tablets. on-demand services like Netflix
digital subscription service, an average of three hours 23 “These changes in viewing and Amazon Prime.”
DC Universe, in the US on minutes a day. However, this behaviour present major Ofcom said total broadcaster
September 15. The service will figure was down nine minutes challenges to broadcasters. revenue was down by 4%
offer new original live-action a day compared to the previous Television advertising revenues in 2017 to £13.6 billion (€15
and animated series, older TV year, with the steepest fall fell by 7% in real terms in 2017, billion), driven by a decline in ad
series and films and a curated among children and young and while this may be largely revenue and the proportion of
selection of digital comic books. adults. Children’s viewing fell due to macro-economic factors, the licence fee attributed to TV.
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6
p04,06,08 DTVE News Digest AugSep18v4am.indd 6 04/09/2018 20:06
Q&A: Gernot Jaeger, Zattoo
Gernot Jaeger, Chief Officer, B2B TV solutions at Zattoo, talks about Zattoo’s first US customer, Hotwire Communications.
Zattoo has now entered the US market with the Florida-based operator multiscreen service. In the initial phase, focus will be on mobile devices
Hotwire Communications. What were Hotwire’s specific requirements? with iOS, Android and Windows 10 operating systems, as well as on a
We have been providing fully hosted & managed end-to-end TV solutions to browser player for PC & Mac.
telcos, cable operators and mobile network operators in Europe with great The service will then be extended to include streaming devices like
success. Our platform covers the entire TV service from ingest all the way Android TV, Amazon Fire TV and Apple TV. Along with linear Live TV and
to the applications including content protection for efficient monetization. Video on Demand in SD, HD and UHD quality, the service offers state-of-
With our scalable hosted platform - the Zattoo “TV Hub” - the operator does the-art interactive functionality such as instant restart, time shift, replay
not have to invest in hardware or software for its own TV service. TV, network DVR.
As one of the US leading fiber optics telecommunications providers,
Hotwire Communications offers ISP services under their Fision brand to a What other benefits does Hotwire get from using Zattoo’s platform?
large and growing number of communities and customers along the US Hotwire Communications already serves hundreds of communities and
East Coast. Hotwire Communications was looking for a partner who gives successfully follows an impressive growth strategy. As our platform is
them freedom and flexibility to support the specific requirements arising flexible for further growth, the growing number of communities can
from their business model of serving a large number and wide variety of benefit from the state of the art Video services in the future. In order to
different communities. facilitate further growth from the central TV hub, caching servers can be
Among all the solutions they looked at, Zattoo stood out with the implemented close to the end user for efficient content distribution.
experience and scale serving millions of TV customers in Europe, as well as
with the support of a wide range of devices. A key deciding factor was the What are the next steps for Zattoo as it moves to expand globally?
rich feature set that our TV-as-a-Service platform supports out of the box. The first deployment in the US with Hotwire Communications proves that
For the market entry in the US, we have deployed a central “TV Hub” Zattoo’s TV-as-a-Service platform can be easily ported to other regions by
in the US. It is hosted in Hotwire Communications’ co-location facility in using a regional TV hub. This approach will be replicated in other regions.
Fort Lauderdale, Florida. The scalability of our proprietary technology and Early this year we have opened a representative office in Singapore
Hotwire Communications’ state-of-the-art video headend and datacenter serving as a base for expansion into the Asia Pacific region. Opening
facilities with excellent connectivity make the newly established TV Hub the Singapore marks an important milestone in our strategy to serve
ideal basis to serve additional operators in the Americas. network operators, OTT players and media companies around the globe
with our state-of-the-art, easy to deploy and cost-efficient TV-as-a-
What did Zattoo provide for Hotwire and what makes this offering Service model.
unique?
For Hotwire Communications we have been developing a feature-rich Visit Zattoo at IBC, Stand 14.G04
pXX Zattoo Q&A DTVE AugSep18.indd 1 29/08/2018 17:05
News > digest Digital TV Europe
August/September 2018
time as part of a new deal with
Sweden Switzerland UK Scottish broadcaster. The four-year
partnership will also give Scottish
IPTV> Kinnevik MTG shares IPTV> Swisscom on the up PROG> BBC voice first Virgin TV customers access to fully
Swedish conglomerate Kinnevik Incumbent telco and IPTV operator The BBC has launched its first voice regionalised versions of STV in high
has completed the distribution of Swisscom grew its TV base by experience for children, allowing definition. Virgin Media will broad-
its shares in media outfit Modern 3.7% year-on-year after adding kids to play along with their favour- cast STV in HD in all cabled STV re-
Times Group to its shareholders, 54,000 TV connections in the first ite characters via Amazon Echo gions – Glasgow, Edinburgh and
signalling its exit from ownership of six months of the year, reaching smart speakers. The BBC Kids Skill Dundee – on channel slot 103 of the
the media company. Kinnevik has a record 1.5 million TV customers has launched with three games fea- electronic programme guide.
distributed a total of 13,503,856 at the end of June. The Swiss turing CBeebies characters – Little
MTG Class B shares to its sharehold- multi-play operator said that TV and Monster’s Hide and Seek, Andy’s OTT> BrewDog taps SVOD
ers. This total includes 4,461,691 broadband connections continue Adventure Dance Party and Go Scottish craft brewery BrewDog, has
MTG Class B shares that have been to grow, with strong demand for Jetter’s Glitchy Facts. Children and launched The BrewDog Network, a
recently reclassified from MTG Class inOne bundled offerings continuing adults can access the content by curated SVOD service celebrating
A shares. Kinnevik took the decision in the second quarter. In the first asking their smart speaker to “open beer. The service will be available
to distribute its shares in MTG earlier half of the year roughly 550,000 CBeebies” and then selecting which worldwide for US$4.99 (€4.30) per
this year after the merger deal customers opted for inOne, pushing game they want to play. month, kicking off with 100 hours
between mobile telecoms player the total subscriber base for the worth of content. The service is set
Tele2 and cable operator Com Hem, offering to 1.89 million customers CAB> STV Player on Virgin to launch 14 original series includ-
when Kinnevik agreed to put into at the end of June – meaning that Virgin Media will launch Scottish ing The BrewDog Show, Are You
effect pro-competitive measures, if inOne covers 43% of all mobile commercial broadcaster STV’s Smarter Than a Drunk Person, and
required, to ensure approval of the subscriptions and 48% of fixed-line on-demand service, STV Player, a game show hosted by actress and
deal. broadband connections. on its set-top boxes for the first comedian Alison Becker.
RTL continues VOD and drama focus, rules out Endemol deal
By Andy McDonald and “We will further increase a year earlier.
Kaltrina Bylykbashi > investments in our video- For the first half of the year,
on-demand services, with a group revenue was up 2.3%
RTL announced strong Q2 and clear focus on local, exclusive to a record €3.05 billion while
H1 results as it focuses on its content, and gradually adopt reported EBITDA was up by
two main growth initiatives a hybrid model – combining 1.9% to €638 million.
– building mass-audience a free, advertising-financed RTL announced in June that
VOD services and expanding service with a premium pay it would significantly expand
FremantleMedia’s drama product,” said Habets. TV Now by offering additional
output. “First examples of our local and exclusive content.
Speaking after the company’s building strong local streaming It said that paid subscriber
quarterly results, CEO Bert earnings announcement that champions are the upcoming numbers grew 43.5% year-on-
Habets revealed to Reuters FremantleMedia is seeking massive expansion of TV Now year at the end of Q2.
that RTL has dropped out of funding for “at least 35 scripted in Germany and Videoland in In April RTL Nederland also
the race to purchase Endemol series ideas” and estimated the Netherlands.” unveiled plans to merge its ad-
Shine, commenting that “we that international drama For the second quarter, RTL funded platform RTL XL and
stepped out of the process.” productions will generate more Group’s revenue was up by its subscription VOD service,
“At Fremantle, we focus on than 20% of FremantleMedia’s 3.6% year-on-year to €1.63 Videoland, into a single platform.
expanding our scripted output total revenue in 2019. billion, mainly driven by digital Endemol Shine owners
– and we are very successful The German broadcaster and FremantleMedia. Apollo Global and Twenty-
in doing so,” he said. “We continued its business Reported EBITDA was First Century Fox put the Big
aim to grow the business development and ‘Total Video’ up 4.7% to €379 million, Brother creator up for sale in
going forward in the scripted strategy in the first half of the driven by RTL Nederland July for €2.5-4 billion. Press
and unscripted domain by year. In a rapidly changing and Groupe M6. Meanwhile, reports from earlier this year
small-and medium-sized video industry, it said growth net profit attributable to RTL suggested other interested
acquisitions.” is mainly coming from non- Group shareholders was €207 parties could include ITV,
Habets stated in RTL’s linear or streaming services. million, up from €183 million Liberty Global and Vivendi.
Visit us at www.digitaltveurope.com
8
p04,06,08 DTVE News Digest AugSep18v4am.indd 8 04/09/2018 20:06pXX Spacecom DYVE AugSep18.indd 1 29/08/2018 10:47
Q&A: Kris Warreyn, Alpha Networks
Alpha Networks’ CEO Kris Warreyn talks about the Hubee acquisition, the smart TV market and the key challenges faced by service
providers.
Why did Alpha Networks acquire Hubee earlier this year? What are the key challenges service providers face and how is this
The acquisition of Hubee complements our value proposition and shaping their technology choices?
helps us to better address the new needs and challenges of network One of their main challenges is probably how to cope with the OTT
operators and media companies worldwide. Hubee components will platforms such as Netflix and Amazon. They can either chose to
be integrated within our portfolio of products to be showcased during compete with them, or aggregate that content within their overall
IBC. This acquisition is also strengthening our video expertise and is offering. In the first instance, they will focus on specific content and
complementing our monetisation solutions by adding the advertisement user experience to differentiate themselves. In the second instance,
driven component to our portfolio. Last but not least, this acquisition is they will be able to aggregate the different content sources and
increasing and diversifying our customer base. become the main hub for the viewers to access any content. The latter
can also be an advantage for the different OTT platform providers as it
How far does this acquisition signal a change in strategy for Alpha increases their potential subscriber base.
Networks, and what market need does this reflect? If service providers choose to compete with OTT platforms, they will
The acquisition accelerates our strategy and allows us to offer an need technology partners with a strong UX expertise, flexible enough
integrated TV platform, combining the strengths of Alpha Networks’ to anticipate new watching behaviours and capable of delivering new
back-end tucano with the user experience skills and solutions of Hubee. features fast.
This new smart TV platform is broadening our addressable market to If service providers choose to aggregate content from OTT platforms,
broadcasters, channels and other content owners. Being an end-to-end they will need a TV platform that is network and device agnostic, able
platform, it is the perfect solution for operators who want to launch a to integrate any type of content source or metadata, and display
cost-effective and reliable video service fast. different content in a unified way.
How significant is the opportunity in the smart TV market and what is What other plans and priorities do you have for the near future?
driving growth? We will integrate Hubee team and products into Alpha Networks so that
In the pay TV and OTT market, traditional TV remains the dominant we can deliver a unique value proposition to each of our customers.
screen to access content, even though user engagement is increasingly These solutions will integrate our core competences: combining content
realised through other devices. The approach of service providers is data and viewer behaviour information in a convergent platform,
now becoming more comprehensive and oriented to market standards allowing our customers to offer a personalised user experience to their
such as Android TV. This change is accelerating the improvement of different subscribers. And we will keep our focus on what gives us added
user interfaces and user experience on these devices, and we see more value: our innovative product roadmap, the quality of our services and
and more viewers switching to connected TVs as they become more our short time to market strategy.
popular in the home. Operators can benefit of this trend as it lowers their
expenditure. Come and meet Alpha Networks at IBC on stand H5.B31
pXX Alpha Networks Q&A AugSep18.indd 1 24/08/2018 17:25pXX Alpha Networks DTVE AugSep18.indd 1 29/08/2018 10:46
Technology focus > AI Digital TV Europe
August/September 2018
Broadcasting in the age of AI
Artificial intelligence is already having a profound effect on the media and TV space,
but what applications hold most promise and what challenges need to be overcome?
Andy McDonald reports.
Artificial intelligence (AI) and
machine learning
(ML) will have a profound impact on businesses
We talked to some of the leading technology
providers in this space and look at how AI and
ML is being deployed and look at the limitations
across use cases like content creation, closed
captioning, advanced metadata, and cognitive
highlight clipping. As AI and machine-learning
and working practices n the coming years, with that must be overcome for the technology to models continue to be refined, we’ll see more
the TV and broadcasting space no exception. continue to evolve. companies turn to AI as a foundational
The technology is already being used to technology for their daily operations.”
analyse and understand video content in an IBM Watson Media’s core offering is Video
automated and efficient way. While this can Data crunching Enrichment, which automatically identifies
help speed up processes like searching for complex content within a video to generate
content, putting together video clips, and IBM has a series of products and services that new, advanced metadata. This makes it easier
distributing it to the right places, how far are designed to understand and learn what is for content owners to search their video
this will encroach into the creative process of contained inside a video. IBM Watson Media libraries, deciding which content to match with
making programming and content is still to be brings IBM’s artificial intelligence offering to advertisers, and reduces the time it takes to
seen. the media and entertainment industry and is create highlights clips. The company recently
AI can also help operators and broadcasters designed to support content owners across the partnered with Fox Sports to provide an AI-
to gain a deeper understanding of their content lifecycle. powered highlight experience for the 2018
audiences, which can bring a range of benefits “Artificial intelligence is a game changer for World Cup and earlier this year created an
– from personalised recommendations the broadcasting industry,” says David Kulczar, interactive, AI-powered viewer experience for
and targeted offers to emotional response senior offering manager, IBM Watson Media. the 2018 Grammy awards.
measurement. “In a few short years, we’ve seen innovation IBM also recently launched Watson
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12
p12-14,16 AI DTVE AugSep18v3am.indd 12 04/09/2018 18:13Digital TV Europe Technology focus > AI
August/September 2018
Captioning, a service that automatically to sit through a few minutes of television Paul Shen, who refers to the shift as ‘media 4.0’
captions live video programming like weather advertisements before the programme finally – analogous with AI-led ‘industry 4.0’.
reports and breaking news, as well as on- starts because it started later than scheduled.” TVU’s MediaMind suite of solutions delivers
demand content. This can be trained with Piksel’s vice-president of engineering Gerald its media 4.0 vision, and includes AI engines
location-specific data sets to make sure local Chao believes that there are unexplored search that recognise video content and automates its
language nuances like landmarks, sports and discovery experiences that deep metadata creation and distribution to specific platforms
teams and politicians are accurately captioned. can enable, “such as via facial recognition, and devices – like smartphones, TVs and social
“IBM Watson Media’s biggest priority is emotional context, and plot analysis, to media. In this process, TVU indexes video
enabling our customers to stay competitive enhance how media would be discovered and using metadata generated by MediaMind’s AI
in an increasingly crowded and fragmented consumed in the future”. engine, while TVU Producer creates content
media landscape,” says Kulczar. “We provide The company currently provides tech for different platforms or audience groups.
our partners with the tools they need to solutions to big-name companies like Liberty “Media 4.0 is about enabling the mass
increase workflow efficiencies and enhance Global, Sky, OSN and Channel 4, and its production of content for individual audiences
the viewer experience, all of which impact the AI and ML tools help editors to do their jobs through the automation of video production
bottom line.” more efficiently – for example by identifying and distribution. This helps media companies
UK-based Media Distillery uses AI to duplicate records, erroneous data or metadata looking to produce more content without
analyse video for what it terms ‘deep content inconsistencies. Its AI can also extract deep increasing their expenditures,” says Shen.
understanding’. Its technology is used by TV metadata from assets that would traditionally He claims that TVU Mediamind “creates a
operators such as Telenet in Belgium and require manual review and data entry. new story-centric workflow, as opposed to
helps them to optimise the user experience in Chao believes there is “plenty of headroom” a programme-centric one” and “opens the
their replay environments. They can use Media for AI and ML to be used to improve operational floodgates for how programs are produced and
Distillery to find out what is in their video efficiencies – like business intelligence, distributed”.
content, who is on screen and when, what a forecasting and cost modelling – and sees Over in Tel Aviv, a company called Minute
programme is about, or when a programme the opportunity for ML to optimise decision has developed a video optimisation technology
started and ended. planning. that automatically generates highlights from
“Our technology identifies a number of full-length videos. The company’s ‘smart video
visual and audial aspects from video, such previews’ product generates what company
as speech, faces and objects. By combining Content creation and CEO Amit Golan describes as “the most
these aspects, our technology even identifies
distribution effective five to seven-second teasers of the
the topic of the content,” says Media Distillery most interesting portion of a video,” which
CEO, Roland Sars. “TV operators currently Using AI to understand content is a powerful replaces the traditionally static thumbnail that
use our technology to solve the most pressing use of the technology, but machine learning usually acts as a placeholder for a video.
consumer frustrations in relation to watching also has the power to create and then distribute “These highlights lead to increased click-
television programs in a replay environment. video to the end-viewer. “Currently, the video through rates by an average of 300% and help
These frustrations include missing out on industry is experiencing its own sea change in
the first couple of minutes of a programme the way video content is produced, distributed Media Distillery’s technology is used by
because they were not recorded or having and consumed,” says TVU Networks CEO operators like Telenet in Belguim.
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13
p12-14,16 AI DTVE AugSep18v3am.indd 13 04/09/2018 18:13Technology focus > AI Digital TV Europe
August/September 2018
to drive consumer engagement for publishers, Make.TV is also trying to help broadcasters and applications.
which leads to additional advertising dollars,” production teams identify the right feeds for “We predict AI will have a huge impact on
claims Golan. He adds that during the World their segments. many various parts of the broadcast chain,
Cup this summer the technology was used by Make.TV CEO Andreas Jacobi says that including: natural language processing for
a partner to generate teasers and highlights in in the near future he expects workflows to be voice and speech; content understanding on
real time and resulted in “an increase of 13% of able to integrate face and object recognition, audio, video and subtitle processing; advertising
new users to the live stream”. enabling operators to automatically trigger placement; discovery and recommendations;
Wibbitz is an AI-powered video creation graphics or switch between content – for and personalisation,” says ThinkAnalyics
platform that uses patented technology to example to follow a specific cyclist or car in a founder and CTO, Peter Docherty.
analyse and summarise text-based information race, or automatically transfer segments to a “The key priorities are expanding the
into video storyboards. The company’s tech different server. product portfolio with further enhancements
selects relevant media, including videos, In the longer-term, once AI and machine to our viewer analytics and audience insight
images, GIFs and soundtracks from its learning algorithms are properly trained, solutions. These are two areas that complement
licensed media library to match the main idea he says: “We imagine whole live streams our strong content discovery heritage and help
of the text, adding text styles, transitions, and being automatically generated based on pre- customers to become more agile and better
branded elements to each scene of the video. configured rules – the operator becomes the drive their business forward.”
“Once our technology takes care of the heavy teacher, the AI/ML algorithm becomes the new Payments expert Paywizard recently
lifting in the video creation process, our users operator.” Like Dayan he believes that AI will launched an artificial intelligence-driven
are able to add their own creative touch and get still need the guidance of a trained team to be subscriber intelligence platform. Paywizard
their video out into the world in just a couple able to work efficiently. Singula is designed to let pay TV operators
of minutes,” says Wibbitz CEO Zohar Dayan. and OTT providers take a more data-driven
Although AI often carries the negative stigma approach to customer engagement by using
that it could one day replace humans altogether, Know your audience subscriber insights and AI to reduce churn,
Dayan believes that the technology will be a grow average revenue per user and acquire
complement rather than a replacement to For the viewer, recommendations are new customers.
content creators and storytellers. a prominent example of AI in action. “The notion is that you can harness data
Founded in 2011 with offices in NYC, Tel Aviv, Underpinning this are broader efforts to to predict how likely a subscriber is to churn
and Paris, the company supports video creation understand viewer sentiment – something that or how great their propensity to purchase a
for more than 400 publishers and brands, a host of companies are helping operators and package is, but what makes Paywizard Singula
helping them to increase audience engagement content providers with. so unique and powerful is that it allows
operators to accurately identify the best action
to take next in real time – in other words,
“As AI and ML models continue to be determine what activity or interaction will work
to keep that customer happy, on-board and
refined, we’ll see more companies turn to AI positive about their experience,” says Paywizard
as a foundational technology for their daily CEO, Bhavesh Vaghela. “This action could be
to offer a timely promotion, an informative
operations.” communication, or even the decision to do
David Kulczar, IBM Watson Media nothing, depending on the recommendations
provided within the Paywizard Singula
and ad revenues across desktop, mobile, and ThinkAnalytics has a background in platform.”
social media. Its partners include Reuters, personalised recommendations and uses AI The Paywizard Singula launch comes
Forbes, Bloomberg, and The Weather Channel. and machine learning to power services like shortly after the company partnered with the
“By partnering with Wibbitz, The Weather this and natural language voice discovery. EPCC data science unit at the University of
Channel has been able to pair their hyper- AI is at the heart of ThinkAnalytics’ big data Edinburgh to develop advanced predictive
localisation capabilities with our video creation analytics platform for the TV space, which lets models of consumer behaviour and automated
technology, and redefine this experience on a its clients analyse data in real time to help them processes, a move that will help develop
digital screen through digital media network boost engagement or drive decisions about Paywizard’s AI-driven capabilities. The initial
LocalNow,” says Dayan. content buying, pricing, and promotions. project will see a team of data scientists working
Elsewhere, Make.TV is integrating AI into ThinkAnalytics’ customer base includes alongside Paywizard’s internal business
its Live Video Cloud solution, which it will the BBC, Liberty Global, Proximus, Cox, intelligence team to deliver the new enhanced
debut at IBC this year. The offering is designed Rogers, Sky, and Swisscom. Earlier this year functionalities, with Paywizard looking to
to let broadcasters and publishers acquire, it also partnered with Indian pay TV and expand its internal team with University of
curate, route and distribute local live video OTT provider Tata Sky to power personalised Edinburgh graduates.
sources from and to any destination. However, content recommendations across connected With a focus purely on sentiment, New York-
acquiring content is only the first step and devices – initially on Tata Sky’s mobile and PC based Canvs claims to be the industry standard
Visit us at www.digitaltveurope.com
14
p12-14,16 AI DTVE AugSep18v3am.indd 14 04/09/2018 18:13Q&A: Andy Shenkler, Deluxe
Andy Shenkler, Chief Product Officer at Deluxe, talks about the challenges faced by media companies in managing the content supply
chain and the benefits of using a cloud-based platform.
What are the main challenges faced by media companies in managing more of our customers and partners continue to migrate their operations
the content supply chain? to the cloud, we’re seeing a rapid increase in efficiency and reliability.
The biggest challenge is standardised information: with the growing
number of content creators, there is less consistency with how content, What is the target market for this technology and what are its key
and its related data, is represented or shared between entities. Even differentiators?
something as simple as a basic title hierarchy to describe a piece of content Our goal was to create a platform that creators and distributors of all sizes
can change materially between organisations. It can be challenging to could use. It’s flexible and modular so that a customer can use one piece of
have to support so many different “standards”. The goal is to create an it and leave the rest, or take advantage of the full end-to-end ecosystem.
orthogonal dataset (a structure that will allow everyone to describe their But, the real power lies in the fact that every aspect of the platform is
data in their own way) that will also allow for frictionless distribution and a integrated, so the more aspects you leverage the easier it gets to use.
consistent user experience across platforms. There are a lot of companies leveraging the cloud, but Deluxe One is
Why is this so critical? Because when content is organised it can be unique in that it’s built on the back of the largest content supply chain in
automated, ultimately leading to a faster time to market and the ability to the world. Deluxe is the only provider with a true end-to-end capability
monetise content in new ways, which becomes even more important as from lens to living room, and now we’ve made that capability more
broadcasters compete for audiences everywhere at an increasing speed. accessible and scalable than ever before.
In contrast to a traditional MAM or DAM system, Deluxe One enables an
What is Deluxe One and how can it aid content companies to meet their
entire ecosystem from creation to consumption. Leveraging deep system
needs?
logic on the backend, Deluxe One creates clean set of assets upstream with
Deluxe One is a cloud-based platform that brings together our Hollywood-
robust metadata speeding up the creation of downstream deliverables by
tested, end-to-end products and services - from content acquisition and
reducing redundancy and wasted resources.
title and asset management, to localisation, distribution, and through to
consumer experiences of OTT / linear playout.
What use case can you highlight to illustrate Deluxe One’s benefits?
Deluxe One organises your content and connects it, unifying a
We’ve found that one of the most exciting things about Deluxe One is its
traditionally fragmented content supply chain. A window into your
ability to allow for easy global expansion into new markets. When moving
content, Deluxe One provides interconnectivity and transparency to
into a new territory with legal requirements, Deluxe One can take on the
manage assets, process orders, orchestrate workflows, and connect to an
burden of distribution agreements and eliminate the need for a large
ecosystem of content creators, distributors, and vendors.
operations team to sort through the various requirements.
What are the main benefits of using a cloud-based platform in delivering After syncing with their library, OTTs find that Deluxe One can manage
a unified supply chain? all their assets and provide distribution services directly in-app, simplifying
As new technologies continue to emerge, and with the pace of consumer localization, packaging and delivery while providing title tracking to
demand not slowing, the cloud allows us to constantly upgrade our tech coordinate release windows across different markets and devices to
and also scale up and down as capacity needs change. By shifting away maximise monetisation.
from on-premise infrastructure, we’re able to invest in the future of the For MVPDs, Deluxe One can help reduce the time and costs associated
industry versus just meeting today’s current demands. with content management. MVPDs work with hundreds of different
The cloud not only helps decrease time to market, but also allows us content owners and providers, seemingly countless files, and processing
to offer our customers flexible and more predictable cost models. We’re those files individually can be an expensive process. Deluxe One can ingest
no longer held captive to long lead times of infrastructure acquisition or assets from all your content providers and provide a view into everything
capacity constraints. We’re able to rapidly scale up infrastructure in order to at once through our title library, with automated processing, and provide
support our clients’ peaks, as well as increase capacity for managing new visibility into where everything is at any given time.
and emerging large format files like UHD and 4K. What once took days or
weeks to procure can now emerge in a matter of minutes. As more and Come and visit Deluxe at IBC on stand H7.C49
pXX Deluxe Q&A AugSep18.indd 1 29/08/2018 10:16You can also read
