The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe

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The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe
June/July 2016

 The shapes of
things to come
New developments in set-top technology
The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe
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pIFC AMC DTVE JunJul16.indd 1                         25/05/2016 10:33
The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe
Digital TV Europe
          June/July 2016

          Contents                                                                                                                                                       June/July 2016

          12. Thinking outside the box                                                                                                      The shapes of
                                                                                                                                           things to come
                                                                                                                                           New developments in set-top technology
          Ultra HD, voice control, smart home functionality and the ability to monitor your blood
          pressure. The leading lights of the set-top box industry tell Andy McDonald what the next
          advances in STB technology will bring.
                                                                                                               pOFC DTVE JunJul16.indd 1                                             26/05/2016 19:45

          18. Wireless world
          Growth in the number of devices that can be used to play back video means that more demands
          than ever are being placed on domestic WiFi networks. With 4K UHD TV and VR on the way,
          the problem is only going to get worse. Stuart Thomson looks at possible solutions.
                                                                                                                                                                                  18

          24. Cloud cover
          As operators recognise the limitations of traditional in-home service provision we are starting to
          see a steady rise in cloud technology adoption. Adrian Pennington looks at the development of
          three key cloud TV applications.

                                                                                                               24
          30. ANGA COM 2016: the preview
          With ANGA COM due to kick off in Cologne on June 7, Digital TV Europe looks at some of the
          technologies on show and talks to ANGA COM managing director Peter Charissé about this
          years highlights.

          33. Cable Congress 2016: the preview
          Digital TV Europe looks ahead at some of the highlights of this year’s Cable Congress in Warsaw.
                                                                                                                                                                              30

          Regulars
          2 This month 4 News digest 34 Technology 38 People 40 Final analysis

          Visit us at www.digitaltveurope.net

                                                                                                                                                                                              1
p01 Contents DTVE JunJun16v3am.indd 1                                                                                                                                                     26/05/2016 19:58
The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe
This month > Editor’s note                                                                                                      Digital TV Europe
                                                                                                                                  June/July 2016

Issue no 326
Published By:
                                                Hub of the home
KNect365 TMT
Maple House

                                                Pay
149 Tottenham Court Road
                                                               TV operators’ investment in equipment that sits in the home
London W1T 7AD                                                 has always accounted for a huge part of their overall expendi-
Tel: +44 (0) 20 7017 5000                       ture. It is simply extremely costly to invest in the set-top boxes and gateways
Fax: +44 (0) 20 7017 4953                       that are needed to deliver video and broadband services to their subscribers.
Website: www.digitaltveurope.net                   At the same time, residential hardware remains the key touch-point in op-
                                                erators’ relationships with their customers, and few are ready to relinquish
Editor Stuart Thomson                           their role as the provider of the box – or boxes – in the home.
Tel: +44 (0) 20 7017 5314                          This month we look in detail at operators’ involvement in the home and
Email: stuart.thomson@knect365.com              the various technology-related choices they face in delivering an ever growing array of services
                                                to multiple devices.
                                                   First, to what extent does it make sense for operators to continue to use the set-top box as a
Deputy Editor Andy McDonald
                                                key tool in differentiating their services from those of competitors? Does the branded consumer
Tel: +44 (0) 20 7017 5293
                                                premises device have a value in itself as well as enabling operators to provide a measurable and
Email: andrew.mcdonald@knect365.com
                                                guarantee-able quality of service?
                                                   This issue of Digital TV Europe will look in some detail at the evolution of TV operators’
Contributing Editor                             thoughts about the set-top box, including plans to invest in next-generation devices and to deliv-
Stewart Clarke                                  er services via a wider range of low-cost streaming boxes.
                                                   Delivering content to a single set-top box is no longer enough to satisfy consumers who
Contributors                                    increasingly also want to view TV shows on their smartphones and tablets. This month we also
Kate Bulkley, Andy Fry, Adrian Pennington,      look at the issue of service providers’ involvement in consumer premises WiFi as a means of
Adam Thomas, Anna Tobin, Jesse Whittock         delivering content around the home.
                                                   As demand for the ability to consume content everywhere in the home grows, operators are
                                                expected to ensure that high-bandwidth services like 4K UHD video and virtual reality gam-
Correspondents
                                                ing can reach multiple devices wirelessly. We look at how they are tackling the need to deliver
France: Julien Alliot; Germany: Dieter
                                                high-bandwidth in-home connectivity for multiple applications – including but not limited to
Brockmeyer; Italy: Branislav Pekic
                                                video.
                                                   An alternative to investing in expensive new set-top boxes or gateways is to try to deliver as
Sales Director Patricia Arescy                  much as possible from the cloud. In this issue of Digital TV Europe we also assess the growing
Tel: +44 (0) 20 7017 5320                       importance of cloud technology in delivering mainstream TV services, focusing on three key
Email: patricia.arescy@knect365.com             applications: cloud-based DVR, targeted advertising and the overall user experience.
                                                   Also in this issue we look at all the recent key industry and technology news, preview some of
Art Director Matthew Humberstone                the technologies and conference highlights of the forthcoming ANGA COM show in Cologne,
                                                and look ahead to Cable Congress in Warsaw at the end of June. l
Publisher Tim Banham

Printing Wyndeham Grange, West Sussex

To subscribe to this magazine or our
 daily email newsletter please visit
 digitaltveurope.net/registerhere

© 2016 Informa UK Ltd
All rights reserved
                                                                                                       Stuart Thomson, Editor
Reproduction without permission is prohibited
                                                                                                       stuart.thomson@knect365.com

                                                                                                               Visit us at www.digitaltveurope.net

2
The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe
Q&A: Tor Helge Kristiansen,
                                    EVP, Principal Architect, Conax
        Tor Helge Kristiansen, EVP Principal Architect, Conax, talks about the evolution of multi-device, UHD and OTT TV content security.

        What key challenges and new requirements are emerging in cable           rapidly working towards meeting these requirements, and particularly
        operators’ content security requirements?                                on the STB and TV, we now see a dramatic improvement in security
        The biggest challenge is still related to the complexity of the          levels through the introduction of new chipset designs. There is still a
        ecosystem due to a heterogeneous device market. To satisfy device        long way to go for open devices, as they currently do not provide many
        and content-hungry consumers, today operators are expected to            hardware security mechanisms that can be employed to implement
        provide a consistent and rich user experience on any device selected     a Secure Media Pipeline. MovieLabs’ ECP is a very clear signal from
        by the consumer. Smartphones, tablets and browsers are increasingly      Hollywood that security is to be taken very seriously going forward,
        vertically integrated into vendor ecosystems, while in order for an      and more important than ever for operators to choose a security
        operator to successfully deliver OTT content to such devices he          provider that can handle security from a holistic standpoint. Clearly,
        needs to cope with variances in video encoding formats, streaming        you need a lot more than just a DRM!
        formats and DRM technologies. Balancing the need for security and
        convenience of use in such a complex ecosystem is a tremendous task      How much investment should operators need to make in the area of
        for any operator.                                                        security?
                                                                                 Good content protection security is still the most important element
        What do multi-play operators need to do to secure their content and      in ensuring healthy revenue streams for operators of any size. The
        ensure customers can view it inside and outside the home?                ability to collect payment from consumers accessing your service and
        As open consumer devices are increasingly vertically integrated into     eliminating non-paying consumers’ access to the content or service
        vendor ecosystems, they also come with pre-embedded platform             is vital. While availability of good platform DRM clients limits the
        DRMs such as Widevine, PlayReady and FairPlay Streaming. Deeply          necessary investment on the device side, it is increasingly important
        integrated into the devices with decent security levels, they provide    to invest in strong, scalable security back-end solutions to cope
        operators with a good means for securely delivering OTT content to       with the complexity of addressing multiple devices with multiple
        these devices. It does however force operators into using multiple DRM   DRM options. There are an increasing number of secure and flexible
        systems in their back-end systems, creating significant complexity       solutions available from experienced security providers such as Conax
        in the overall security management of the system when ensuring           that enable operators of all sizes and varying levels of resources to start
        customers are able to view content in and out of the home.               a secure and more advanced services operation to satisfy the growing
           When using platform DRMs, the operator has little to no control of    demands of content and device-savvy consumers.
        the security level of each device being used and platform DRM options
        differ in terms of the business features offered, making it harder for   To what extent do the security requirements of pure OTT services
        operators to set up consistent service across a multitude of devices.    differ from broadcast and pay TV?
        Since the number of attack points in these complex ecosystems is         We’ve seen different policies evolve within the content industry
        increasing, it is very important to invest in a security solution that   regarding security requirements for OTT content, changing quite
        ensures holistic protection of the both the content and the service.     a bit over the last years. Six to seven years ago, many studios were
                                                                                 quite reluctant to embrace pure over-the-top content, as the market,
        To what extent are security issued around UHD TV content resolved?       business models and choice of technology were still quite immature.
        Hollywood studios have, through the MovieLabs consortium, issued            With OTT/multiscreen content consumption increasingly more
        a set of recommendations called Enhanced Content Protection.             common, the industry has become more commercially and technically
        These recommendations are now gradually becoming mandatory               mature and most operators offer TV Everywhere services. Security
        requirements for 4K and UHD as well as early release window VOD          requirements have become more standardised and we’re in a
        content. The MovieLabs ‘ECPs’ describe security mechanisms covering      transition where the latest technology trends are driven by OTT and
        a holistic security approach and mandate use of hardware based           streaming services, like 4K and virtual reality. However, as the business
        security, Secure Media Pipelines and forensic watermarking, amongst      grows, the market for hackers is also becoming more appealing. Thus,
        others. Complying with these stringent requirements means basing         the industry is far stricter on 4K requirements and hardware regarding
        devices on a new type of security architecture with significant more     security, adding a new level of security requirements compared to
        hardware security backing than historically used. The industry is        traditional broadcast and pay-TV solutions.

pXX Conax Q&A DTVE JunJul16v2st.indd 1                                                                                                                25/05/2016 11:22
The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe
News > digest                                                                                                                             Digital TV Europe
                                                                                                                                                       June/July 2016

          News digest
          > 4 EC to enable content levy on OTT players > 6 Vodafone sees progress in con-
          verged services > 8 Google to launch VR platform > 10 iPlayer loophole to close

           EC to enable content levy to be imposed on Netflix-type services
            By Stewart Clarke &                                                              contributions are imposed on             John Enser, a partner at me-
            Stuart Thomson >                                                                 services based outside the tar-       dia law firm Olswang said the
                                                                                             geted state, these will be levied     introduction of a quota for
            The European Commission                                                          only on revenues raised in that       on-demand content will be con-
            has confirmed that it will oblige                                                targeted state.                       troversial: “In an on-demand
            on-demand services such as Net-                                                     Netflix responded to the           environment, the prominence
            flix and Amazon Prime Instant                                                    Audiovisual Media Service Di-         obligation is likely to prove high-
            Video to ensure there is at least a                                              rective proposals by saying that      ly controversial and subjective –
            20% share of European content              “established in a different Mem-      it already invests in European        it will be interesting to see how
            in their catalogues. The EC has            ber State but targeting their na-     content, and that a European          this is enforced, and whether a
            also said that EU member states            tional audiences”.                    programming quota will not            ‘European works’ genre in a list
            will be able to ask on-demand                 Netflix, whose European op-        boost production in the region.       of genres will be enough.”
            services to contribute financially         erations are based in the Neth-          “Our members around the               The directive also calls for a
            to European content creation.              erlands, could therefore poten-       world love European program-          loosening up of advertising re-
               The EC in May published its             tially be obliged to contribute       ming, that’s why our investment       strictions placed on TV broad-
            revised Audiovisual Media Ser-             to domestic production in, for        in European programming,              casters, which was welcomed
            vices Directive, which contains            example, France.                      including Netflix original titles     by industry groups representing
            the new proposals.                            The EC made it clear that the      created in Europe, is growing,”       linear channels and advertisers.
               The revised directive calls for         obligations on promotion of Eu-       Netflix said. “We appreciate the         Jan Isenbart, president of
            on-demand services to “reserve             ropean works would not apply          Commission’s objective to have        sales house industry body EGTA
            at least 20% share for European            to players with “no significant       European production flourish.         said the proposals “delivered
            works in their catalogues and to           presence on the market” and in        However the proposed meas-            some much needed flexibility”,
            ensure adequate prominence of              particular, to “companies with a      ures won’t actually achieve that.”    but do not go far enough.
            such works”.                               low turnover”. In addition, states       The subscription video-on-de-         “There are still too many
               In addition, member states              may waive obligations on some         mand giant has started making         specific rules that only apply to
            will be authorised to impose               services where imposing them          a select number of originals out      linear broadcasters,” he said.
            financial contributions in the             would be “impracticable or un-        of Europe and noted that it is        “We believe that more ambition
            form of direct investments or              justified by reason of the nature     “actively looking for additional      could still ensure a more level
            levies allocated to national film          or theme of the on-demand             projects”.                            playing field, enabling the sus-
            funds to on-demand services in             audiovisual media services”.             The European Commission’s          tainable production and financ-
            their jurisdictions – and also, in            The wording of the revised         plans attracted mixed reactions       ing of original, premium Euro-
            certain circumstances, to those            directive indicates that where        elsewhere.                            pean content.”

                                                       BFMN Business and RMC. Altice         SFR Presse, SFR Sport, SFR News,      2016 football championship, and
          France                                       acquired its stake in NextRadioTV     SFR Play and SFR Family – in April.   BFM TV Paris, which will launch
                                                       last year for €670 million through    SFR Sport, an anchor TV service       in October. I24 will become an HD
          CAB > SFR media plan                         a partnership with the group’s        comprising five channels, will be     channel. SFR Play is a live and
          Altice-owned telecom and cable               founder Alan Weill, who will retain   the vehicle for SFR’s coverage        on-demand service built around
          operator SFR has completed the               a 51% stake in the group until        of the English Premier League.        SVoD offering Zive. Separately
          acquisition of Altice Media Group            2019. SFR plans to build on the       SFR News will include the existing    SFR saw its revenues drop by 6.1%
          France, which owns print titles              acquisition to create a convergent    BFM TV, BFM Business and Israeli      in the first quarter to €2.57 billion,
          L’Express and Libération as well             media and telecoms company.           i24 channels, as well as two new      with its residential revenues hit by
          as a 49% stake in NextRadioTV,               The group announced plans for         services – BFM TV Sport, which        discounting. SFR’s EBITDA also
          owner of TV channels BFM TV,                 the launch of five media services –   will launch in time for the Euro      dropped by 9% to €851 million.

                                                                                                                                   Visit us at www.digitaltveurope.net

          4
p04-06,08,10-11 DTVE News Digest JunJul16v5st.indd 4                                                                                                                  26/05/2016 20:02
The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe
Digital TV Europe                                                                                                                           News > digest
           June/July 2016

          SFR managed to grow its fibre base           Vivendi also revealed that Vivendi       ter. The company had 3.6 million
          by 66,000 thanks in part to migra-           Content’s new mobile-targeted            homes connected, serving 2.43           Events
          tion from DSL, but its fibre and DSL         offering Studio+, will be available      million customers, which translates
          base combined dropped by 61,000              in Latin America “in a few months”       into 2.45 million cable TV RGUs         NEM-New Europe Market
          thanks to a DSL box shortage that            thanks to a deal with Telefónica.        and 424,000 premium TV RGUs,            Date: 14-16 June
          the company said had now been re-            Vivendi holds a 0.95% stake in the       it said. Internet RGUs amounted         Venue: Hotel Dubrovnik Palace,
          solved. SFR’s fixed customer base            Spanish operator, which it views         to 475,000 and telephony RGUs           Dubrovnik, Croatia
          droped from 6.52 million to 6.29             as a strategic investment that will      to 441,000. The company aims            W: www.neweumarket.com
          million year-on-year, with ARPU              enable it to expand its content          to keep the number of connected
          dropping from €34.30 to €33.90.              distribution network, particularly in    homes stable over the year and to       Natpe Budapest
          Its fibre base increased from 1.6            Latin America. Studio+ will have 25      achieve mid-single digit revenue        Date: 27-30 June
          million to 1.88 million. Mobile sub-         mobile-specific original series avail-   growth and high single-digit EBIT-      Venue: InterContinental Hotel,
          scribers dropped from 18.14 million          able when it launches. Increased         DA growth for the year.                 Budapest, Hungary
          to 16.98 million year-on-year.               losses at Canal+ have pulled down                                                W: www.natpe.com/budapest
                                                       parent group Vivendi’s quarterly
          SAT > Canal+ losses mount                    results. Vivendi revenue was more        Ghana                                   Cable Congress
          Canal+ France lost 183,000 sub-              or less flat at €2.491 billion, down                                             Date: 28-30 June
          scriptions in the first quarter, taking      1.4% in constant currency terms.         SAT > SES in JV with K-Net              Venue: Double Tree Hotel,
          its domestic total to 8.276 million.         EBIT was down 3.6% in constant           Satellite operator SES’s media ser-     Warsaw, Poland
          The ongoing problems experienced             currency terms to €213 million,          vices arm, SES Platform Services,       W: www.cablecongress.com
          by the group in France were partly           while net income fell down by            has formed a joint venture with
          offset by a strong international             27.3% to €99 million thanks to an        Ghanaian communications technol-        IBC 2016
          performance. Overall the group               unfavourable tax impact following        ogy provider and telecom operator       Date: 9-13 September
          added 170,000 subscriptions in the           the settlement of litigation with        K-Net to bring content to Ghanaian      Venue: Rai Exhibition Centre,
          quarter, thanks to its strong show-          Liberty Media.                           homes via DTH satellite TV and dig-     Amsterdam, The Netherlands
          ing in Africa, taking its total to 15.4                                               ital-terrestrial TV. The partnership,   W: www.ibc.org
          million. The group’s revenues to-                                                     which will contract capacity from
          talled €1.328 billion for the quarter,       Germany                                  SES at 28.2° East to bring DTH          Content Innovation Awards
          down 3.1% despite a slight increase                                                   and DTT services to the country,        Date: 16 October
          in ARPU in France. The pay TV unit           CAB > Tele Columbus up                   builds on an existing relationship      Venue: Carlton Hotel, Grand
          posted an operating loss of €59              In its first results since the           between SES Platform Services           Salon, Cannes, France
          million for the quarter. Free-to-air         acquisition of Pepcom, German            and K-Net. The joint venture will       W: contentinnovationawards.
          channels in the domestic market              cable operator Tele Columbus has         use SES’s satellite capacity, K-Net’s   com
          performed better, with advertising           increased its revenues by 5% in the      teleport services and SES Platform
          revenues growing by 11.5% year-on-           first quarter on a like-for-like basis   Services’ video platform services to    MIPCOM
          year thanks to strong audiences for          to €116.1 million. EBITDA increased      offer a unified bouquet of free-to-     Date: 17-20 October
          D8 and D17. International pay TV             by 9.5% to €56.5 million. The            air and free-to-view channels from      Venue: Palais des Festivals,
          revenues increased, thanks to the            company added 12,000 internet            across West Africa, as well as some     Cannes, France
          group adding 500,000 subscrib-               revenue generating units and             international channels, to viewers      W: www.mipcom.com
          ers in Africa in the year to March.          14,000 telephony RGUs in the quar-       in the region.

      OTT TV – THE NEXT PHASE
       June 8, 4.45pm, Cologne Dorint Hotel
       Conference Room London C
       Anvato Chief Evangelist Matt Smith in conversation
       with Digital TV Europe Editor Stuart Thomson.
       Come and join us!
       Register with patricia.arescy@knect365.com

p04-06,08,10-11 DTVE News Digest JunJul16v5st.indd 5                                                                                                                    26/05/2016 20:02
The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe
News > digest                                                                                                                               Digital TV Europe
                                                                                                                                                         June/July 2016

                                                                                                and broadband revenue offsetting      chief technology officer Alexandre
           Global Wrap                                 Poland                                   decreased voice revenues. Group       Fonseca, cited by local press, it is
                                                                                                EBITDA was PLN865 million, up         the first 4K box to be certified by
           US cable association the NCTA               SAT > Polsat growth                      3.6%. The group posted a net          Mediaroom, the Microsoft-originat-
           and leading operator Com-                   Pay TV operator Cyfrowy Polsat           profit of PLN179 million.             ed operating system now owned by
           cast have launched an all-out               had 16.532 million revenue-gen-                                                Ericsson that is used for the Meo
           assault on regulator the FCC’s              erating units at the end of March,                                             service. Meo said customers will
           plans to force cable providers              with 5.893 million customers, the        Portugal                              also be able to access 4K content
           to open up their set-top boxes              group reported. The operator grew                                              spanning nature, culture and other
           to competitors. The NCTA                    its total base of contract services      IPTV > PT launches 4K box             genres available via the Hispasat
           described the FCC’s set-top box             by 2.8% year-on-year, with its mo-       Portugal Telecom has launched a       satellite position. Meo customers
           mandate plans as “complicated               bile internet base growing by 14.7%      new 4K Ultra HD set-top box and       will have access to a dedicated 4K
           and backwards-looking” at a                 and pay TV RGUs increasing by            has unveiled plans to offer a wide    channel to watch the Euro2016
           time when the TV world was                  3.5% thanks to strong multiroom          range of 4K sport content as well     football championship, including
           moving away from a hard-                    sales and strong OTT sales. Multi-       as other 4K channels and on-de-       the opening match between France
           ware-centric world to one that              room customers grew by 9.8% to           mand content. The Altice-owned        and Hungary, as well as the quar-
           relied on apps and IP delivery.             957,952 out of a total pay TV base       operator, which provides services     ter-finals, semi-finals and final, in
           According to projections from               of 4,560,267. Cyfrowy Polsat said        under the Meo brand, has launched     4K. The operator will also offer the
           Digital TV Research, OTT                    that 18%, or 1.09 million, of its base   the MEOBox4K, enabling its            Champions League final between
           TV and video revenues in the                were now multi-play customers.           fibre cutomers to view a range of     Real Madrid and Atletico Madrid
           Asia Pacific region are set to              Cyfrowy Polsat’s revenue grew by         sports and lifestyle content, the     from Sport TV in 4K. Meo is offer-
           rocket to US$18.4 billion (e16.5            1.3% during the first quarter to         operator said. The box is based       ing on-demand nature, fashion and
           billion) over the next five years,          PLN2.284 billion (e0.5 billion), with    on a Broadcom chipset and has a       other content on-demand via its
           up from only US$5.7 billion                 stronger ad sales, equipment sales       1TB hard drive. According to Meo      fibre network.
           last year. Advertising will be
           the key revenue source for
           OTT services, bringing in over              Vodafone sees progress in converged services
           US$8.7 billion by 2021, a US$6
           billion increase on the figure              By Stuart Thomson >                                                              Vodafone plans to launch
           for last year, according to the                                                                                           the cloud-based TV service in
           research outfit. International              Vodafone had 9.4 million TV                                                   the UK and Italy this year and
           cable outfit Liberty Global has             customers at the end of its fi-                                               has designed it so that it can be
           completed the acquisition of                nancial full year, out of a total                                             ported to multiple markets.
           Caribbean operator Cable &                  of 13.4 million fixed broadband                                                  The company is also plan-
           Wireless Communications,                    customers.                                                                    ning to ensure that mobile video
           combining it with its existing                 Just over half (51%) of the                                                services are available wherever it
           LiLAC group to create what                  company’s customers took a               lephony with high-speed broad-       offers mobile voice, according to
           the company describes as the                high-speed broadband service at          band and TV on the former Ka-        chief technology officer Johan
           leading TV, broadband and tele-             the end of March.                        bel Deutschland cable network,       Wibergh.
           coms firm in Latin America and                 Vodafone said that 1.5 million        which was launched in Novem-            Speaking on an analyst call
           the Caribbean. The integration              customers had subscribed to its          ber, had attracted 54,000 cus-       on the results, Wibergh said
           of Cable & Wireless Commu-                  Vodafone One converged offer-            tomers by the end of the period.     that Vodafone would deliver
           nications means that LiLAC                  ing in Spain, which combines                Overall, Vodafone added           TV from its private cloud to
           now serves 10 million video,                mobile telephony with broad-             414,000 fixed broadband cus-         low-cost boxes. He said that the
           voice, broadband and mobile                 band and TV on the former                tomers in the course of the          product could be deployed once
           customers in over 20 coun-                  Ono network, at the end of the           year, and added 426,000 to its       and then subsequently sold “in
           tries. Discovery has taken a                quarter. The company said that,          next-generation broadband net-       many markets”.
           majority stake in FoodFood, the             combining the Ono network                works. Some 21% of the compa-           Referring to video plans for
           Indian culinary network. The                with its fibre joint build-out           ny’s revenues now come from          Vodafone’s mobile business,
           deal sees Discovery join forces             with Orange, it now reached 8.5          its fixed network activities.        Wibergh said that the com-
           with Indian foodie star Sanjeev             million premises in Spain with              Vodafone said its long-de-        pany’s goal was to have video
           Kapoor, who will be a minority              fibre or cable.                          layed UK TV offering was in          available everywhere it is pres-
           shareholder in the channel and                 Vodafone’s equivalent offer-          “field trials” with “plans to        ent that voice is available, with
           stay on as a presenter and                  ing in Germany – Vodafone Red            launch later in the current cal-     a “continuous experience” of
           ambassador.                                 One – combining mobile te-               endar year”.                         around 10Mbps.

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          6
p04-06,08,10-11 DTVE News Digest JunJul16v5st.indd 6                                                                                                                   26/05/2016 20:02
The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe
SECURING
             THE CONNECTED FUTURE

             The world of video is becoming more connected. And next-
             generation video service providers are delivering new connected
             services based on software and IP technologies.

             Now imagine a globally interconnected revenue security platform. A cloud-
             based engine that can optimize system performance, proactively
             detect threats and decrease operational costs.

             Discover how Verimatrix is defining the future of pay-TV revenue security.

             www.verimatrix.com/verspective

p07 Verimatrix DTVE JunJul16.indd 1                                                       25/05/2016 11:41
The shapes of things to come - New developments in set-top technology - June/July 2016 - Digital TV Europe
News > digest                                                                                                                                      Digital TV Europe
                                                                                                                                                                June/July 2016

          CAB > Rights sharing deal                    said that the agreement was a key          to strike a deal. The Portuguese        deal leaves MTG with no further
          Service providers Nos and Vodafone           step in ensuring that sports content       football championship is broadcast      interest in CTC or its operations. The
          have struck a deal to share their            was available to all operators. Voda-      on the Sport TV channel owned by        sale will result in MTG provisioning
          national and international sports            fone Portugal CEO Mário Vaz said           Nos and Portuguese businessman          for a total negative non-cash impact
          content. The deal is designed to en-         that the deal represented a “very          Joaquin Oliveira, although Benfican     of SEK1 billion (e0.1 billion) in its sec-
          sure that football matches based on          important and decisive” step for the       home matches have been exclusive        ond quarter financials, mostly due
          rights held by each company, as well         company as it allowed to “fulfill the      to the Benfica TV channel.              to accumulated currency changes
          as distribution rights to sports chan-       promise to bring our customers the                                                 and an adjustment to the fair value
          nels and football club channels. The         content they value”. Nos secured                                                   of the holding when compared with
          agreement will take effect from next         the rights to Benfica’s matches at         Russia                                  the value on the balance sheet as
          season, ensuring that all customers          the end of last year in a €400 mil-                                                of the end of the first quarter. MTG
          of both operators will have access to        lion deal, beating competition from        PROG > CTC sale complete                said it would use the proceeds of the
          Benfica Channel and Benfica home             Portugal Telecom/Meo. Portugal             Modern Times Group (MTG) has            deal to reduce its borrowing levels
          matches, regardless of the channel           has experienced ongoing problems           completed the sale of its 38% stake     and fund the development of its
          that transmits the matches. The              in reciprocity of sports rights. In Feb-   in Russia’s CTC Media. The Swed-        business. The sale was forced on it
          pair said that their agreement could         ruary, Meo pulled Porto Canal, the         ish-based free and pay TV group         by Russia’s media law that restricted
          be extended to other operators in            channel of the FC Port club, from          received a total of US$123 million      foreign ownership of domestic
          Portugal. Nos CEO Migual Almeida             Nos’s platform after the pair failed       (e110 million) for the stake, and the   media assets to a 20% ceiling.

           Google Daydream virtual reality platform to launch this autumn
            By Andy McDonald >                                                                    have an ‘orientation centre’            bled apps,” said Bavor.
                                                                                                  built in and touch controls – a            “But we knew it was just a
            Internet giant Google is set to                                                       demonstration video of which            start, because there’s a limit
            launch a mobile VR platform                                                           was played to I/O attendees.            to how much you can do, how
            this autumn that will encom-                                                             In terms of apps, Bavor              immersive an experience you
            pass smartphones, a reference                                                         named a number of partners              can create with some cardboard
            design for a headset and control-                                                     that will bring immersive appli-        and with phones that were real-
            ler, and apps.                             These specs include a high per-            cations to Daydream, including          ly only meant to be phones. We
               Announcing the plans at the             formance sensor for accurate               The New York Times, Wall Street         wanted to create something that
            Google I/O developers confer-              head tracking, displays with a             Journal and CNN – “so you will          has the best attributes of Card-
            ence in Mountain View, Califor-            fast response time to minimise             be able to experience the world’s       board but is also comfortable,
            nia in May, Google’s vice-presi-           blur, and powerful mobile pro-             news like you’re actually there.”       richly interactive and far more
            dent of virtual reality Clay Bavor         cessors.                                      The Google exec added that:          immersive.”
            said that Daydream will include               “There are going to be a lot of         “Hulu, Netflix, HBO, even                  Commenting on Google’s
            “all the ingredients you need to           Daydream-ready phones,” said               IMAX are bringing their librar-         announcement, analyst group
            create incredible, immersive VR            Bavor.                                     ies to Daydream so you’ll be able       CCS Insight’s vice-president,
            experiences”.                                 “In fact Samsung, Alca-                 to watch shows and movies in a          Americas, Geoff Blaber de-
               “Over time Daydream will                tel, Asus, Huawei, HTC, LG,                virtual cinema, or an immersive         scribed Daydream as “phase
            encompass VR devices in many               Xiaomi, and ZTE all will have              3D film in a virtual IMAX thea-         two” in Google’s mobile virtual
            shapes and sizes. But today is             smartphones that are compat-               tre.”                                   reality ambitions and said “the
            about how Daydream will ena-               ible with the Daydream-ready                  The plans are set to build on        scale of Android coupled with
            ble high quality VR on Android             spec. Several will be available            the early gains Google has made         content, service, computer vi-
            smartphones,” said Bavor.                  this fall.”                                with its Cardboard VR headset,          sion and AI assets puts Google
               The latest version of Google’s             Google has developed a ref-             which it launched at Google I/O         in a strong position to become a
            mobile operating system, An-               erence design and is working               two years ago.                          leading force in virtual reality.”
            droid N, will include ‘VR Mode’,           with partners across the eco-                 “Cardboard has done some                “Google has learned a lot
            a development that is designed             system to develop headsets that            pretty amazing things. There            from the more than five million
            to offer high-quality virtual real-        will “work seamlessly with Day-            are millions of them out there          Google Cardboard devices that
            ity performance along with low             dream-ready phones” – several              in the world in all shapes and          have been shipped so far. It will
            latency.                                   of which will also be available            sizes. We’ve enabled thousands          be hoping its new Daydream
               Google has also created a set of        this autumn, said Bavor.                   of developers to build their first      reference design will help its
            phone specifications for virtual              The controller that will work           VR app and users have installed         Android partners go head-to-
            reality called ‘Daydream-ready’.           alongside these headsets will              more than 50 million VR-ena-            head with Samsung’s Gear VR.”

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          8
p04-06,08,10-11 DTVE News Digest JunJul16v5st.indd 8                                                                                                                            26/05/2016 20:02
Q&A: Dr Neale Foster, ACCESS Europe
        Dr Neale Foster, COO and VP Global Sales, ACCESS Europe talks about multiscreen TV, appealing to the right audience and the
        value of data.
        To what extent have pay TV operators overcome the challenges posed              to reach these captive social audiences and alternate revenue streams
        by seamless multiscreen TV service delivery and what do they still need         beyond the traditional TV subscription and advertising models. Players
        to do?                                                                          within the media and entertainment sectors are experimenting with
        The emergence of web-based content has transformed the TV industry              practices that include targeted advertising and using social media to
        into a multiscreen world as consumers increasingly realised the appeal          increase skinny bundle subscriptions.
        and flexibility of TV Everywhere. Most Pay TV operators have responded
        by integrating scalable, high-performance solutions to enhance the              What do operators need to make sense of the vast amount of data
        traditional content offering, drive profitability and fight churn through the   potentially available to them from digital distribution?
        support for new consumption models and today’s sophisticated display            There is a vast amount of data that operators could collect, but what
        devices.                                                                        creates the most value for them lies in aggregating and analyzing
           The next step is optimisation. In order to deliver a satisfying consumer     the right set of data to obtain actionable insights. Information about
        experience, pay TV operators should focus their efforts on these four key       consumers’ viewing habits, the devices used to access services and other
        actions: harmonising the user experience across all supported devices;          personal data that would provide relevant information to help operators
        integrating enhanced measurement offerings; driving usage, ROI and              develop personalised content catalogues, services and offerings are key
        profitability and reducing operational overheads.                               deliverables in enhancing the user experience.
                                                                                           The “Privacy by Design” debate is alive and well, so operators need to
        How far are TV operators able to differentiate their service primarily          be very careful in their data collection and analysis to avoid becoming
        around the user experience and gain new subscribers?                            intrusive. ACCESS Twine enables the TV industry to aggregate data on
        The proliferation of connected devices, most notably mobile, has fashioned      consumer habits and device usage, as well as facilitate the deployment
        a culture of constant connectivity and changed the way consumers think          of highly targeted content catalogues, personalised search and discovery
        about content consumption. Now, it all comes down to universal access           options while respecting consumer privacy.
        to personalised services, as personalisation contributes to an enhanced            Employing a standardised measurement system ensures operators
        user experience and more consumption, translating into higher customer          can use familiar metrics throughout their business – an important step
        satisfaction. To achieve this, operators need to focus on analysing the         in optimising and personalising services. This is complex to achieve in-
        right data to accurately understand consumer viewing habits and trends          house, so employing a measurement partner to flexibly pre-integrate
        and apply these insights accordingly to tailor their offerings to secure        measurement capabilities into offered solutions is the preferred option
        customer loyalty and attract new subscribers.                                   of many operators.
           For instance, by deducing from data aggregation that OTT viewers would
        watch more content if their favourite programming was automatically             What should operators prioritise in applying this data to practical uses
        synced with their mobile, providers could use automation services to            and why?
        satisfy consumers and upsell additional complementary services.                 Operators should prioritise applying data towards generating an
                                                                                        enjoyable multiscreen user experience. The proliferation of connected
        What are the challenges posed to operators by younger audiences                 devices and systems used to access content is driving an increased
        turning to social media networks and other digital platforms and how            tendency for consumer ‘switch screening’ with over 70% of online
        can pay TV operators adjust?                                                    adults in the UK using another screen while watching TV, according to
        Factors like viewing location and type of device are undergoing a dramatic      a recent IAB UK study. While the active presence of these other devices
        shift. With broadband penetration reaching over 80% in Europe and               creates risks of distracting consumers away from TV content, there
        60% in the Americas, the plethora of personal device options capable of         too are opportunities to extend viewer engagement, and a seamless
        delivering video content is moulding consumption habits, most notably           multiplatform interface is the key to giving consumers a flexible, on-
        among younger audiences as 11 to 15-year olds watch half the amount             demand option that can be optimised across all connected devices.
        of live TV per day as adults, according to a 2014 research by the UK TV            Additionally, it’s particularly important that the user experience is
        regulator Ofcom.                                                                personalised on smaller screens. With fewer content and service options
           Social media has grown to become an important source of video                able to be featured on smaller screens, it’s critical that those that are
        entertainment, prompting pay TV operators to look at alternate avenues          highlighted are the ones likely to be chosen by the consumer.

pXX Access Q&A DTVE JunJul16v2st.indd 2                                                                                                                    24/05/2016 19:53
News > digest                                                                                                                              Digital TV Europe
                                                                                                                                                        June/July 2016

                                                        called HBO España. HBO said its       English Premier League games           SES-5 satellite at 5° East.
          Slovakia                                      Spanish service would launch with     and those from the Champions           Viasat will also be launching a
                                                        an extensive catalogue of premium     League. There will also be coverage    new Ultra HD set-top box from
          CAB > New Horizon                             content including current series      of football from Spain and Italy.      Samsung, as well as a conditional
          Liberty Global-owned UPC Slovakia             such as Game of Thrones, True         With sports rights – and notably       access module enabling customers
          has launched the group’s advanced             Detective, Veep, Silicon Valley and   Premier League rights – increasing-    with an Ultra HD TV to see the
          TV offering Horizon. The service will         a variety of HBO movies, docu-        ly expensive, MTG has segmented        channel. The channel will initially
          offer a new user interface, internet          mentaries and other series. HBO       its offering across free and pay TV.   be available to all Viasat satellite
          TV services, seven-day catch-up TV            España will also offer new series     TV3 Sport HD launched earlier this     customers with sports channels in
          and the MyPrime video-on-demand               from other TV series providers.       year and MTG also has a dedicat-       their package. Viasat Ultra HD will
          service with 1,600 titles available.          Vodafone customers will be able       ed e-sports channel, eSportsTV.        feature selected live sport events
          UPC Slovakia already offers the               to access HBO España from their       Separately, MTG is to launch           from the UEFA Champions League
          mobile version of Horizon, Horizon            Vodafone TV service and also          the first Ultra HD channel in the      and other MTG sports rights spe-
          Go, which has been available in the           via mobile devices, tablets and       Nordic market. Viasat Ultra HD         cially produced in Ultra HD.
          country since May last year.                  computers.                            will be a premium sports offering
                                                                                              that will launch in time for the
                                                                                              autumn sports season, according        Switzerland
          Spain                                         Sweden                                to the group. MTG has teamed
                                                                                              up with satellite operator SES         CAB > UPC drops Cablecom
          CAB > HBO to launch                           SAT > Sports for MTG                  and electronics giant Samsung to       Liberty Global’s Swiss unit UPC
          HBO has struck a deal with Voda-              Modern Times Group (MTG) will         launch the channel, which will be      Cablecom is dropping the name
          fone in Spain for the launch of its           launch a new premium sports           broadcast via satellite in Sweden,     Cablecom from its brand. The com-
          planned streaming video-on-de-                channel in Sweden. The Viasat         Norway, Denmark and Finland. SES       pany said that the name change
          mand service in the country, to be            Sport Premium channel will have       will broadcast the channel via the     reflected its switch from being

           BBC iPlayer loophole to close, scope to trial pay services
            By Stuart Thomson                           viewers to watch iPlayer content                                             five years from 2017-18.
            & Jesse Whittock >                          through user verification.                                                      Other key measures in the
                                                           “The government thinks                                                    White Paper, many leaked in
            The UK government has com-                  there is a case for iPlayer to re-                                           advance of publication, include
            mitted to retaining the current             quire verification – i.e. access                                             the creation of a unitary board to
            Licence Fee model of financing              should be conditional upon ver-                                              replace the BBC Governors and
            the BBC for the coming 11-year              ification of licence fee payment                                             the BBC Trust. The BBC will be
            Charter period, while pointing              – so that individuals in other                                               responsible for appointing “at
            to a number of areas where a                countries, and those in the UK        of the next Charter period, and        least half” of the board mem-
            subscription model could be                 not paying the fee, cannot ac-        to consider whether elements           bers.
            trialled, according to the White            cess licence fee funded content       of subscription could provide             The White Paper also calls for
            Paper published in May.                     for free. The government will         a more sustainable funding             Ofcom to be made the external
               The government has said                  discuss verification and other        model in the longer term”. It          independent regulator for the
            it will “modernise the current              options with the BBC and look         said subscription would be in-         BBC, while the National Audit
            licence fee system to make it               at the best way of implementing       troduced “for additional services      Office will become the BBC’s
            fairer” including closing the               this, including through regula-       only”, and that the “BBC may           financial auditor. The remuner-
            ‘iPlayer loophole’, introducing             tions if needed. It will be up to     therefore lead further develop-        ation for BBC talent that is paid
            more flexible payment terms                 the BBC to determine whether          ments, pilots and exploration of       over £450,000 will be made
            for lower income households                 this is an appropriate means of       elements of subscription in the        public.
            and enabling the BBC to make                charging international viewers,”      second part of the Charter peri-          The BBC Executive will set
            its content portable so that UK             it said.                              od, if justified and required, in      strategy and deliver services,
            licence fee payers can access                  While rejecting a subscription     order to inform the next Charter       while Ofcom will issue licences
            iPlayer while travelling to other           model, the government said it         Review process and for potential       and regulator editorial standards
            EU member states.                           welcomed “the BBC’s commit-           wider roll-out in the next Char-       as well as regulating commer-
               The changes proposed by the              ment to develop and test some         ter.”                                  cial activity and market impact
            government could include the                form of additional subscription          The licence fee will be in-         and will monitor and review
            ability to charge international             services during the first part        creased in live with inflation for     performance.

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          10
p04-06,08,10-11 DTVE News Digest JunJul16v5st.indd 10                                                                                                                 26/05/2016 20:02
Digital TV Europe                                                                                                                                 News > digest
           June/July 2016

          solely a cable operator to a provider         com-backed Cinetrade/Teleclub for         satellite. The ONT is consolidating     al pay television distribution strate-
          of converged services including               failing to offer rights to football and   about 10 Tunisian channels in a         gy. We look forward to accelerating
          mobile entertainment communica-               ice hockey competitions to rival TV       single package aired from the 7/8°      the growth of the business through
          tions. The operator will henceforth           platforms at non-discriminatory           West position. Nôomên Elfehri,          investment in exclusive content
          be known as UPC in both Switzer-              terms. Swisscom and Cinetrade say         Tunisia’s minister of communi-          rights and supporting its develop-
          land and Austria. Liberty Global              they comply with the law and that         cation technologies and digital         ment as it expands into new territo-
          combined both country subsidiaries            the high levels of investment they        economy, said: “The launch of this      ries.” Cirkus launched in 2013, and
          under a single management team                have made in sports justify the cre-      national project is a vehicle for       ITV’s initial investment was made
          led by Eric Tveter at the end of              ation of an expanded sports offer-        Tunisia’s sovereignty in the field of   a year after.. Cirkus has launched
          2014. Separately, UPC is launching            ing via the Swisscom TV platform.         broadcasting. Viewers will be able      with Boxer and Com Hem in the
          a new infotainment programme,                 The operator said it would study          to enjoy a diversified and quality      Nordic region, and has branched
          UPC News TV, in Switzerland. The              the judgment and would appeal             line-up of Tunisian content.”           out from drama to factual with the
          magazine presented by Sandra Zot-             the fine with the Federal Adminis-                                                launch of the Curio brand.
          ti has already existed for nine years         trative Court and, if necessary, the
          in Austria and will now be broadcast          country’s Supreme Court.                  UK                                      IPTV > TalkTalk down
          weekly in both countries.                                                                                                       TalkTalk lost 14,000 TV customers
                                                                                                  OTT > ITV takes Cirkus                  in the fourth fiscal quarter, despite
          IPTV > Sports rights fine                     Tunisia                                   ITV has taken a majority stake in       bouncing back in overall reve-
          Swisscom has said it will appeal                                                        Cirkus, the best-of-British on-de-      nue-generating unit additions from
          a fine imposed on it by the Swiss             SAT > New platform                        mand service. The UK broadcaster        the cyber attack and data leak
          competition regulator for allegedly           Tunisian state broadcaster the            was already a minority shareholder,     last October. The company added
          prohibiting the fair marketing of             ONT has struck a multi-year deal          but has now upped its ownership         148,000 RGUs in the quarter to
          sports content via pay TV in the              with satellite operator Eutelsat to       level in the streaming service. Mar-    March. On-net customer additions
          country. COMCO has imposed                    broadcast a new subscription-free         tin Goswami, ITV director of pay        were flat over the quarter, but
          a fine of CHF71.8 million (e65                TV platform across North and West         and distribution, said: “Cirkus is an   TalkTalk reported its lowest ever
          million) on Swisscom and Swiss-               Africa via the Eutelsat 7 West A          important part of ITV’s internation-    quarterly churn at 1.3%.

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p04-06,08,10-11 DTVE News Digest JunJul16v5st.indd 11                                                                                                                       26/05/2016 20:02
Technology focus > Advanced set-top boxes                                                                                             Digital TV Europe
                                                                                                                                                   June/July 2016

          Ultra HD, voice control, smart home functionality and the ability to monitor your blood
          pressure. The leading lights of the set-top box industry tell Andy McDonald what the
          next advances in STB technology will bring.

          Thinking outside
                 the box
                                                                                                                  IPTV operator Post Luxembourg announced
                                                              Over-the-top and into 4K                            it would launch a 4K set-top from Netgem,

          The set-top                           b o x
                                                market is
          at a pivotal point in its history with shifts in
                                                              Many of the developments that we are seeing
                                                              in the set-top box market today rest around
                                                                                                                  the STB N7900. Last year, France’s SFR also
                                                                                                                  launched La Box Fibre Zive de SFR, a 4K Ultra
                                                                                                                  HD gateway that runs on its fibre network.
          technology posing existential questions about       cloud functionality, the integration of over-the-      “4K is being used as a way to market the
          what role these devices will play in years to       top services, sophisticated search and discovery    services and the boxes, and get people onto
          come.                                               features, and the addition of 4K.                   premium packages, but there isn’t actually a
             The rise of the streaming device market has         According to Ovum, 4K Ultra HD set-top           lot of 4K content out there, especially for linear
          led some to hint at a light-touch, cloud-focused    adoption in Europe will climb rapidly in the        broadcast,” says de Renesse.
          future where the set-top will be reduced            coming years as a proportion of overall DTT,           Technicolor’s chief technology officer,
          to a dongle hidden behind the TV. Others            DTH, IPTV and cable set-top box sales. In 2015,     connected home, Jon Walkenhorst agrees
          claim that the advent of IoT and smart home         4K UHD capability was present in just 1.02%         that while there is 4K awareness among its
          technology will start to change the basic role of   of the 39.36 million set-tops sold in Europe.       customers, there is not “radical adoption” of
          the set-top box.                                    This will rise to 27.62% of 41.70 million units     the technology yet. He puts this down to a
             However, against a backdrop of continued         sold in 2020, according to the research firm.       lack of original content and the bandwidth
          consolidation amongst the set-top box makers           “I think we’re seeing a lot of changes around    requirements needed to deliver Ultra HD.
          themselves, recent moves by some of the             4K. Now a lot of pay TV operators are pushing          “These technologies tend to be more IP
          biggest operators in the TV space hint at the       4K set-top boxes, so there’s a new generation       video-based and less QAM-based. DSL today
          continuation of high-end, sophisticated device      of boxes coming in since the beginning of           is typically not enough bandwidth to deliver
          deployments.                                        the year or the end of last year, especially in     those. So I think we’re going to see 4K and
             Sky's next-generation entertainment service,     Europe," says Ovum practice leader, consumer        Ultra HD become more ubiquitous as IP
          Sky Q, represents a ground-up rebuild of Sky's      technology, Ronan de Renesse.                       delivery becomes more ubiquitous,” says
          set-top offering. Meanwhile, Liberty Global            “What’s interesting is that most of them tend    Walkenhorst.
          CEO Mike Fries announced on the company's           to be on IPTV – so IPTV-type set-top boxes or          Technicolor works with major operators
          Q1 earnings that its next-generation set-top        hybrid IPTV set-top boxes rather than maybe         including Telefónica and in France it provides
          platform, dubbed ‘project Eos’, would be            satellite or cable," he adds, acknowledging Sky     Canal+ Group’s compact, 4K-compatible,
          “faster” and “provide more functionality than       Q with its 4K functionality as an exception.        over-the-top box, the Cube S. “We’re seeing
          today’s Horizon box” – all for a cheaper price.        Recent launch news seems to bear this theory     our skipper box and our zapper boxes become
             But away from these headline-grabbing            out. In May Portugal Telecom launched a new         smaller, almost to the point of the size of a deck
          developments, what are the broader future           4K Ultra HD set-top box, the MEOBox4K, for          of cards,” says Walkenhorst.
          trends that are taking hold of this space and       fibre customers. In March, Vodafone Spain              He claims that, informed by devices like
          what changes should we expect in the long-          officially launched a new 4K UHD set-top            Roku and Google’s Chromecast, customers are
          term?                                               aimed at its XDSL base, while a month earlier       now looking for little boxes that will slot easily

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          12
p12-14,16 STBs DTVE JunJul16v5st.indd 12                                                                                                                        26/05/2016 18:05
Digital TV Europe                                                                         Technology focus > Advanced set-top boxes
           June/July 2016

          into the TV, with the value-add coming from                                                         taking off in set-top boxes. Why do you have
          the addition of features like apps.            The advent of IoT                                    to use a remote control? Sometimes for just
             “If we look at a traditional MSO, they’re                                                        flipping up through channels, it’s the easiest
          looking at boxes that they can place [in]      The evolution of the Internet of Things (IoT) is     way,” says Humax commercial director,
          numerous [places] around the house. For        something that promises to take the traditional      Graham North.
          example, if you have a consumer with three     set-top box into new territory – though this is         Humax is a global set-top box provider and
          TVs in North America, versus a consumer with   territory that is already being explored by major    its customers include DirecTV in the US. In the
          one TV in Europe, you’re more concerned with   tech companies like Amazon.                          UK it makes boxes for the Freeview and Freesat
          how do I get those boxes to connect.”                      The e-retailer’s Echo hands-free         platforms, as well as a 4K-compatible YouView
             He says that the “much broader                                 speaker and Alexa Voice           box that it provides as the high-end TV option
          question” that certain operators are                               Service technology already       for operator BT. Discussing the firm’s current
          looking at is how to apply multi-                                  let consumers in the US          strategy, North says “we used to just be [about
          node, multi-repeater technologies                                  play music, access news          the] set-top box but now we have gateway teams
          and how to extend wireless                                         and weather reports, order a     and we have teams looking at new technology
          connectivity. He also foresees a move                              pizza or even turn on lights     like IoT, so we’re moving into new areas.”
          to more immersive, interaction-                                    as part of a smart home             At recent trade events the firm has
          based experiences. “If you can walk                                system. Apple is reportedly      demonstrated a complete IoT service, with
          into a room and say ‘turn on the TV’                               looking to develop a similar     cameras and apps. “We can offer a complete
          or ‘tell me what the temperature is’…                              device using its Siri voice      white label package to an operator,” says North,
          that could come from the box [with]                                assistant technology, and the    describing a cloud-hosted IoT solution that
          the box as an IoT hub or controller.”                              potential has not been lost on   “works quite seamlessly with the set-top-box”.
                                                                             traditional set-top makers.         Describing the real-world implications of
                                                                                “We’ve all seen what          this kind of offering, North gives the example
          An Arris design (left), Sky Q (above)                              Amazon’s trying to do with       of someone ringing the doorbell while you are
          and Amazon Echo (right) represent                                  Echo, initially in the States.   watching TV. “It pauses your TV, brings up a
          new directions for CPE devices.                                    We see that type of technology   picture of someone on the doorstep.” Another

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                                                                                                                                                        13
p12-14,16 STBs DTVE JunJul16v5st.indd 13                                                                                                                  26/05/2016 18:05
Technology focus > Advanced set-top boxes                                                                                                     Digital TV Europe
                                                                                                                                                           June/July 2016

          application is using the camera and TV link-up          of the Reference Design Kit (RDK). Originally             “We focused on set-tops, next was RDK
          as a sophisticated baby monitor, he says.               conceived as a common framework for                    Broadband and now that community is trying
              Arris’ chief technology officer, customer           operators to power set-top boxes, the focus of         to figure out the software profile for the next
          premises equipment, Charles Cheevers,                   the software bundle has since broadened out.           connected devices in the home. That’s the
          agrees that connectivity is key to the future of           Driven by a roadmap determined by a                 multi-year journey,” says Steve Heeb, president
          the set-top box. “I have a 10-year view that the        community of more than 275 companies, the              and general manager of RDK Management.
          set-top doesn’t disappear all together, because         initial RDK-V (video) software for STBs has               While RDK for the set-top has won big
          it’s never going to disappear. But one thing that       recently been supplemented with a new RDK              backing from the likes of Comcast and Liberty
          could happen is that every room has a wireless          software solution available for broadband              Global, Heeb says it is RDK-B deployments,
          device in it, and the wireless device could be          gateways called RDK-B (broadband).                     rather than RDK-V, that are tracking ahead
          something as unobtrusive as possible.”
              With better WiFi and Bluetooth connectivity,
          Cheevers sees the potential of the set-top box           Roku’s Now TV box reflects industry shifts
          as an “IoT hub” that could have implications
          that extend into health, wellbeing and medical           Sky is gearing up to launch a new Roku-powered        market, as well as bring increased appeal to the
          applications. [If] someone is sent home from             Now TV box later summer that will give users          current Now TV market,” says Ferrone.
          hospital he is typically sitting in front of the TV,”    access to live linear TV channels for the first          The new iteration of Now TV box speaks to
          says Cheevers, explaining that a set-top could           time, alongside on-demand content.                    the continued evolution of viewing habits – a
          interact with the censor on medical devices to              The new device, which the companies first          wave of change that Roku will also continue to
          do tasks like monitor blood pressure.                    announced back in January, will further a             benefit from in markets outside of the UK.
                                                                   partnership that dates back to 2013 – when Sky           “Broadcast standards are quite geographically
                                                                   launched its first Now TV box and inadvertently       specific. This will be a box designed for the UK
          Gateway to the future                                    kick-started Roku’s operator partnership              market but there are several other markets
                                                                   programme.                                            that use standards and technologies not so
          For many industry-watchers it is the gateway,               Roku’s vice-president of pay TV, Andrew            dissimilar from the UK,” says Ferrone. “Roku is a
          not the set-top box that will take centre stage          Ferrone, says that the new Now TV box marks           globally scalable platform, so certainly it’s been
          in this brave new world of smart-home                    an evolution of the product, which was last           designed with that in mind.”
          capabilities. For Technicolor’s Walkenhorst,             upgraded in 2015, offering a revamped user               Indeed, the US-based company is already
          as intelligence moves toward the gateway, a              interface and a “leap forwards” in terms of           making in-roads in markets like Australia, where
          certain level of commoditisation will take place         search and discovery.                                 Telstra partnered with Roku last year to offer
          in the set-top box space.                                   Adding in linear channels also recognises the      its streaming service and player, Telstra TV, to
             “What we’re seeing more [of] is requests to           “importance of free-to-air in the UK market”,         consumers.
          enhance the gateway and less to enhance the              and the “positioning of the Now TV service as            In the US, Time Warner Cable started trialling
          set-top box,” he says. “We’re seeing set-top             a viable pay TV option”, according to Ferrone.        TWC TV in late 2015, offering its pay TV service,
          boxes becoming less and less advanced and                   Since the launch of its standalone over-the-       unbundled from its traditional set-top box,
          we’re seeing our gateways becoming more                  top offering, Sky has been keen to stress that        through Roku streaming devices. Charter and
          advanced – more radios, more capabilities,               Now TV is not cannibalistic to its core business.     Comcast have since followed suit with Roku
          more memory, more CPU capabilities.”                     At the recent TV Connect conference in London,        apps for their respective Spectrum and Xfinity
             At the recent TV Connect conference,                  Sky’s director of business development and            TV services.
          Deutsche Telekom’s UK head of business                   partnerships, Emma Lloyd, said that 90% of               “Consumer behaviour is undeniable. Roku
          development, Jon Carter, predicted that IoT will         Now TV users had never considered a Sky               streamed 5.5 billion hours last year – that was up
          disrupt “where value is, how it’s captured and           service before – a statistic also cited by Ferrone.   from three billion hours the year before and so
          the relationship you have with your customer”               However, by bringing together linear free-         with change comes challenges, but with change
          and said that from later this year its Speedport         to-air channels – watched, if research is to be       comes opportunities as well,” says Ferrone. “The
          router will have smart home capabilities built           believed, by an ageing viewing population – with      market never stops changing. What we try to do
          in – paving the way for its use in applications          the on-demand Roku channels favoured by               is enable operators to bridge that gap to this
          like energy management and security.                     millennial viewers, Sky is likely to appeal to a      new streaming world by providing them with the
             “Our view is actually it’s the router [that] is       wider audience with its new box.                      platform for distribution, driving engagement
          the most natural and most obvious place in                  “I don’t know if I can quite comment on            and ultimately driving monetisation through
          terms of providing the level of quality of service       shifting demographics, but certainly we think         advanced services.”
          in terms of consistency of experience for the            that it will have an appeal to a broader
          customer,” said Carter, who dismissed the
          smart TV as not having enough “headroom” to                  Roku’s box for Now TV
          be used as a smart hub.                                      addresses changing
             The increased promise of the gateway can                        viewer habits.
          be seen elsewhere in the development path

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p12-14,16 STBs DTVE JunJul16v5st.indd 14                                                                                                                                 26/05/2016 18:05
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