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Video Transformation in the New Year -- Part IIt's that time of the year again, and while for some people it means Christmas shopping and planning New Year parties, for us it's all about figuring out what next year will bring in the world of video. So we've looked over our coverage over the past 12 months, and identified some important trends that we think will shape the year to come. Here are our predictions for 2017: the big trends, the direction of the market and business and technological change we expect to see over the course of the coming year.
It remains to be seen if AT&T's bid will be approved -- certainly president-elect Trump spoke out against it immediately, but he hasn't always held his positions over time. Still, the combined size of the two entities will worry regulators, and we think AT&T faces an uphill battle trying to push it through. However, should it succeed, we do anticipate it will create more pressure on other major US players to "bulk-up." Look to Verizon Communications Inc. (NYSE: VZ) and Charter Communications Inc. in particular to start exploring acquisitions in the television programming space, though probably not at the same scale.
The downside: it's not just pay-TV providers offering these slimmed-down streaming packages. Services such as PlayStation's Vue, Hulu and YouTube's live streaming services will have an impact as well, and likely take away subscribers from pay-TV providers. (See Skinny TV Bundle Competition Heats Up.)
In the US, DirecTV is probably the most aggressive in terms of offering and promoting UHD content, but we anticipate more UHD announcements from Comcast Corp. (Nasdaq: CMCSA, CMCSK) by the end of the first quarter, with others following over the course of the year. Still, we will probably not see a compelling UHD package offered in 2017 -- that is likely to appear only in 2018-2019. Outside the US, the picture will remain mixed, with China and the more developed Asian economies (e.g. South Korea, Japan) moving forward most aggressively, and Europe more carefully. Other parts of the world will adopt UHD more slowly, but UHD content will continue to grow worldwide with hundreds of channels slated for launch in the next few years.
Given that the ITU has already ratified the Hybrid Log Gamma (HLG) approach to HDR, and major broadcasters British Broadcasting Corp. (BBC) and NHK have both decided it’s the s they will use, there does seem to be momentum behind it. Several European pay-TV providers are also using the HLG approach in Phase-II trials they are running today. We do believe it will be the winning approach (in the TV sector. Digital cinema will likely use the Dolby approach.), but there is still a fair amount of negotiation and agreement required. Look out for part II of our 2017 trends round-up in coming days. That will address our expectations of shifts in the OTT space, particularly in the US, virtual reality, productive video and live streaming on social networks. — Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation |
Contentious issues that are likely to fuel lawsuits and angry blogs in the coming year.
Content producers are unhappy with the advertising approach and revenues they are getting on Facebook Watch.
OTT video usage is driving the penetration of various Internet connected devices to help view online streams on the larger TV screen.
Major Hollywood studio to trial 'virtual' movie theaters using head-mounted displays.
Network technology vendor Sandvine has found that piracy isn't only hurting network operator profits – each pirated set-top box is also using up 1TB per month in 'phantom bandwidth.'
On-the-Air Thursdays Digital Audio
ARCHIVED | December 7, 2017, 12pm EST
Orange has been one of the leading proponents of SDN and NFV. In this Telco Transformation radio show, Orange's John Isch provides some perspective on his company's NFV/SDN journey.
Special Huawei Video
Huawei Network Transformation Seminar The adoption of virtualization technology and cloud architectures by telecom network operators is now well underway but there is still a long way to go before the transition to an era of Network Functions Cloudification (NFC) is complete. |
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