As consumers look for new ways to access media, OTT is growing rapidly

Over-the-top (OTT) video — the delivery of video via the Internet from a source other than the network service provider — has arrived. Several factors are fueling the development of OTT video initiatives. The first is that viewers are demanding more customized access to their content. Consumers want their content anywhere, on any device, at anytime and at their convenience.

A key second component of OTT’s fast rise is an array of both streaming content providers and new receivers. These free or inexpensive components have combined to create a disruptive marketplace for cablecasters while meeting consumer needs.

In-Stat principal analyst Keith Nissen says the industry is struggling with how to maintain revenue as consumers shift to on-demand viewing. Broadcast TV ad revenue is declining, the pay-TV market no longer has much new subscriber growth, and consumers are not, or cannot, continue to pay for 200 TV channels when they watch just a handful of channels.

A New Playing Field
The industry most affected by OTT technology is cable. Is there a threat to basic cable services from OTT?

Consider these recent statistics:

• 21.4 billion online videos are viewed each month.
• 82 percent (158 million) of the U.S. Internet audience watches online videos.
• 500 minutes (more than eight hours) of online video is watched per month per average viewer.

As video content becomes more diverse and younger viewers take command of remote controls, pay-TV operators will need to adapt to these younger viewers’ demands and expectations. In addition, the FCC is going to promote a replacement to the failed CableCARD, so viewers may have new options in how they access content.

With the OTT model, consumers would rely on a broadband connection for the delivery of content. That content could consist of OTA broadcast signals; cable network programming like Disney, Turner and others; and VOD signals. This content would be accessed via devices from some new players, including Apple TV, Boxee, Google TV, Hulu and VUDU. All of these new devices make content easier than ever to find and the viewing process, perhaps, more customer friendly.

A J.D. Power and Associates survey released in October reports that consumers are more upset than ever with the high cost of pay-TV bills. In addition, cable viewers are more likely to feel ripped off than IPTV or satellite customers. Consumers prefer an à la carte solution. OTT can provide that option.

Some OTT Providers
The growing demand for OTT video is driving a litany of new players to enter the market space. In the United States, Netflix is dominant. In the first quarter of 2010, Netflix had 14 million subscribers. By the end of the year, Nissen predicts it will have 17 million subscribers. Sixty-six percent of Netflix subscribers are already using the company’s streaming service. More than half of those subscribers are streaming movies or TV episodes to their homes through devices such as Roku set-top boxes, Xbox 360 game boxes and Blu-ray players.

Also going over-the-top is DISH Network, which offers more than 180 international channels in more than 28 languages. The network announced early this year a multiyear partnership with NeuLion, an end-to-end IPTV service provider of live and on-demand international, sports and variety programming delivered via broadband. Under the agreement, certain DISH Network international channels will be distributed, using NeuLion’s IPTV service, to consumers without access to satellite TV.

Next year, look for Wal-Mart and Best Buy to promote their own online video services. Wal-Mart purchased VUDU, an on-demand video service that sells and rents movies and TV shows over the Internet. And, Best Buy and Blockbuster have teamed with online movie service Roxio CinemaNow.

The most talked about streaming provider, Hulu, launched Hulu Plus this year. This ad-supported premium subscription service costs $9.99 per month. It works across a variety of platforms, such as PCs, the iPhone, iPad, PlayStation 3 and Samsung Blu-ray players. The service boasts thousands of subscribers. And, in only six days after being released, the Hulu application for the iPhone and iPad was the most downloaded service in Apple’s App Store. In July, the U.K.’sFinancial Times reported that Hulu had been working on plans for an international launch of Hulu Plus, with the UK and Japan as target markets.

Another player, called ivi, is less familiar. The online video service expects to charge customers $4.99 per month for a package of shows from all major American networks, plus some superstations most Americans haven’t seen since the early 1990s. The startup claims it offers more content than Hulu by providing online access to every network and syndicated show seen on New York and Seattle TV screens.

Broadcast Engineering readers may recall another company’s attempt to deliver OTA programming via the Internet. In 1999, a company called iCraveTV initially delivered 17 channels of programming from both Canadian and Buffalo, NY, TV stations. It took maybe a week for the lawsuits to begin. Within weeks, iCraveTV bit the dust. Both Hulu and ivi will likely find that without some form of payments to the content owners, the legal challenges will be endless.

Delivery
There are many ways to get packetized data to consumers, and, for the most part, these will be transparent to them. Adaptive streaming, caching and torrent technology are delivery methods, and Nissen expects that all will be used. After all, consumers don’t care how the content gets to the TV.

Expect to see MPEG-4 AVC and other advanced encoding technologies to be used to reduce bandwidth needs. Nissen also doesn’t think carriers will go to measured pricing, but he does believe that content producers ultimately will partner with pay-TV service providers to deliver both pay-TV and OTT video to consumers using hybrid set-top boxes. This allows content producers to market OTT content directly to consumers while delivering it over a secure, managed pay-TV access network. This will appeal to pay-TV operators because they are also content producers, they will get paid to carry the on-demand content, and they want to remain the gatekeeper for all paid digital entertainment.

As a result, consumers will be paying for a combination of pay-TV services and paid OTT video services. The shift in spending to paid OTT video services could permit content producers to eliminate low viewership pay-TV channels from pay-TV packages. Under this model, consumer spending won’t decline, but the value of pay-TV services would rise. This would lower the dissatisfaction that consumers currently have with pay-TV services.

A contrarian viewpoint was noted in a recent article from TechCrunch. The article quoted writer and entrepreneur Paul Kedrosky, “Many people are coming to the correct conclusion that in the age of Hulu, Boxee, BitTorrent, etc., that cable TV is an overpriced relic of another entertainment age.”

Maybe so, but if you have any cable stock, keep it. The cable industry still feeds television programming to 62 million homes. And, the industry has almost 42 million broadband customers.
By Susan Anderson, Broadcast Engineering

source: http://3dcinecast.blogspot.com/2010/11/over-top-video.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MediaTechnologyIntelligence+%28Media+Technology+Intelligence%29

original post source: http://www.nxtbook.com/nxtbooks/penton/be1110/#/18

Today’s TVs can do more than most of us could have ever imagined, from displaying 3D images to connecting to the Internet. But those advances in technology have also made it more complicated for the average person shopping for a new television.

Are you having trouble telling the difference between LED and Plasma TVs? Perhaps you could use help with some of the technical terms used to describe the TVs right now.

Richard Doherty, research director for The Envisioneering Group, has his finger on the pulse of today’s latest technologies and the challenges consumers face when shopping for a new TV.

“The good news is that consumers have incredible options when it comes to buying HDTVs this season,” says Doherty. “But choosing the ideal one can get somewhat intimidating if you don’t know exactly what you are looking for and what works best in your home.”

Here is a guide to help make sure the next TV you buy is the right one for you:

Display types
Understanding what your TV will most be used for will help you decide what type of TV works best for you.

Plasma or PDP (Plasma Display Panel): These screens use a combination of phosphors and plasma gas which lights up to create an image; similar to how a fluorescent light works. Many experts consider plasma displays the better choice for home theater enthusiasts because they provide deep black levels, extremely accurate color reproduction and a wider viewing angle than most LCD sets, so almost no matter where you’re sitting in the room, you can still enjoy a natural, vivid HDTV picture. Plasma will also appeal to people who watch a lot of fast action, such as sports due to their ultra-fast response time which creates smoother, more natural motion.

LCD (Liquid-Crystal Display): This type of display uses a combination of liquid crystal cells a color filter and a fluorescent backlight unit to create the picture. LCD can produce a brighter picture which makes it a good choice for use in a bright room or areas where ambient light cannot be avoided. LCD TVs come in many sizes, ranging from 22-inch class TVs for the kitchen to 26- and 32-inch class sets for the bedroom to 42-, 47- and 55-inch class sizes for your main viewing room.

LED (LCD with LED Lighting): This type of LCD replaces fluorescent backlighting with an array of light emitting diodes (LEDs). This type of lighting enables the set to have a thinner profile (some as thin as 1 inch in depth), bright vivid picture and they are generally more energy efficient. LG offers advanced sets using Full LED backlighting which means improved contrast, a very high brightness level and a pristine picture, in an extremely thin and more energy efficient package.

Picture quality
Picture quality is a very broad term and can mean different things to different people. Here are a few key terms/features to be familiar with when buying your next TV:

Resolution: Most widescreen HDTVs will have a resolution of either 720p or 1080p. Often referred to as “Full HD”, 1080p resolution means a TV can accept and display incoming signals at full HD resolution from sources such as a BluRay Disc player. Utilizing over 2 million pixels to display the images provides the most clear and detailed picture available today.  720p resolution is also a high definition format, and can also accept the “Full HD” signals; however the picture will be displayed utilizing approximately 1 million pixels, still a stunning experience.

Refresh rate: For sports fans, a fast refresh rate (expressed in hertz or Hz) is very important. This helps to reduce motion blur no matter how fast the action gets.  Standard LED and LCD sets have a refresh rate of 60Hz and those equipped with LG TrueMotion, offer faster speeds of 120Hz, 240Hz and 480Hz. Most Plasma TVs feature 600Hz sub-field driving and are great for watching fast-action sports.

THX certification: THX, the organization that created the design and certification programs for cinemas, also has developed a program to certify picture quality. To receive this certification, TVs must undergo rigorous testing to prove that the television is able to recreate the vivid contrast, bright colors, and detail present when a movie leaves the director’s studio. Currently, LG is the only TV manufacturer in North America to have garnered 2D certification for an LED (LE8500 and LX9500) and its 3D Plasma is the first 3D TV to receive 3D Certification from THX (PX950).

Advanced features
Today’s TVs come with other incredible features and understanding everything a TV can do will certainly help steer you in the right direction when its time to buy your next TV.

3DTV: The ability to deliver HDTV’s supreme detail has been around for more than decade now, but some of the latest TVs also are 3D capable. More stations are jumping on the trend, as ESPN will broadcast a number of football games this season in 3D and more and more movies will become available on 3D Blu-ray discs. 3D is available on Plasma and LCD screens and LG’s PX950 Plasma 3D TV is the first ever 3D TV to achieve the THX certification for picture quality. With the action literally jumping off the screen, the 3D experience is great for viewing with family and friends.

Internet connectivity: Tapping into the Internet’s virtually endless options for entertainment and information no longer requires a computer. TVs with LG’s NetCast technology allow users to access some of the best media and entertainment outlets that the Web has to offer. On the best screen in your home, you can now enjoy Netflix, Yahoo!, VUDU, Cinema Now, YouTube and Picasa.

“Even with all the options out there, the tried-and-true method of going with what looks best, feels right and will last a long time, still works when picking out a TV,” Doherty says. “But it’s always best to arm yourself with some technical knowledge before making your decision.”

source: http://fatcatwebproductions.com/the_paper/1450-deciphering-technical-lingo-when-buying-new-tv