InternationalTelecommunicationUnion
Drivers for new digital television services
Peter Walop (ITU expert)
Agenda
Topics
1. Video based services
2. Technology changes
3. Consumer changes
4. Regulatory changes
2
1. Video based servicesWide scope of video based services
QoS1 Managed QoS1 Unmanaged
Traditional
TV
Networks
Hybrid
Delivery
Networks
Integrated
Delivery
Networks =
IP
DTTB/Sat
Linear TV❶
Linear
DTTBCable
VOD
Inter-net
❷
IPTV/HFC
❹ ❺
4G / 5G
❻
Linear
MTV
VOD
3G/4G
❸
Semi
interactive -
teletext
Smart
TV/HbbTV
T-DMB in Korea
OTT – Netflix or
Hulu
LTE-eMBMS – KT
in Korea
Telecom or
Cable operators
Fixed & Portable
Mobile (all modes)
Reception mode:
1 Picture quality &
service availability
Linear & VOD
Linear & VOD
Video service type:
Linear TV/Video
Video on Demand
IRT field trial /
FeMBMS
3
Internet
Linear & VOD
1. Video based servicesDrivers
Telecom Media
Consumer
Devices &
Internet of
Things
Converged
Services
1. Technological changes2.
Consu
mer
changes
3.
Regula
tory
changes
4. Social & Economic changes
Video
based
services
4
2. Technology changesCapacity gap approaching in a further maturing OTT market
• UHD video delivery is the key driver of demand for more bandwidth• OTT video consumption to grow further from current 20% (of all video
consumption)(1)
• Bandwidth in the fixed local loop can be increased:o VDSL2/Vectoring, DOCSIS 3.1, Fibre (XG PON/NG PON2)
• CDN datacentre deployment and processor capacity the limiting factors
5
Source: ITU
UHDTV 2 (8K)
50 Mbps H.265/HEVC
91 Mbps H.264
UHDTV 1 (4K)
25-35 Mbps H.265/HEVC
HD
7.5 Mbps H.264
SD 2
Mbps
• For flat panel TV sets
• Varying terrestrial systems
• Varying framerates
• Varying powers/distances
1080
2160
4320
1920 3840 7680
Source: Computer Architecture: A Quantitative Approach (2017)
3.5%/yr
(1) Digital UK and RTL Germany research showed 80% of viewing is live and recorded TV, via traditional delivery (2017)
2. Technology changesCapacity gap on terrestrial platforms is already there
6
8 MHz
DVB-T(1)
MPEG2
SD(S2)
SD(S3)
SD(S4)
SD(S5)
SD(S6)
DVB-T MPEG4
DVB-T2(2)
MPEG4
SD
SD
SD
SD
SD
SD
SD
SD
SD
SD
SD (S12)
DVB-T2 HEVC
SD(S1)
SD(S1)
HD(S3)
HD(S2)
HD(S1)
HD(S2)
HD(S3)
HD(S4)
HD(S5)
HD(S6)
HD(S1)
DVB-T MPEG4
HD
HD
HD
HD
HD
HD
HD
HD
HD
HD
HD (S12)
HD(S1)
4K (S1)
DVB-T2 HEVC
8K
DVB-T2 HEVC
(1) Net bit rate: 24 Mbit/s (64QAM, CR 2/3)(2) Net bit rate: 40 Mbit/s (256 QAM, CR 2/3)
Capacity gap
LTE eMBMS has similar transport
efficiency(Shannon limit!)
For flat panels at home
(not for mobile)
IRT field test (5G FeMBMS) – to replace terrestrial
broadcasting
3. Consumer changesVOD and TV anywhere and anytime
Source: OOYALA Global Video Index Q1 2018, adapted
7
New video (redistribution) servicesMobile video consumption share (1)
Source: Sling Media, adapted
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Jul-
13
Sep-1
3
Nov-1
3
Jan-1
4
Mar-
14
May-1
4
Jul-
14
Sep-1
4
Nov-1
4
Jan-1
5
Mar-
15
May-1
5
Jul-
15
Sep-1
5
Nov-1
5
Jan-1
6
Mar-
16
May-1
6
Jul-
16
Sep-1
6
Nov-1
6
Jan-1
7
Mar-
17
May-1
7
Jul-
17
Sep-1
7
Nov-1
7
Jan-1
8
On phones On tablets On phones + tablets
3rd party STB Slingbox
Encrypted Pay-TV
services (from DTH or Cable)
Home WiFi Router
Smart TV-set + Sling App
Internet
Home Premises
Smart phone or
table + Sling App(anywhere)
Decrypted
services
(1) Share of plays on all IP connected devices
3. Consumer changesMobile VOD is complementary to live TV
8
Video Minutes per Session per Device Type
Source: OOYALA Global Video Index Q2 2017, adapted
• Mobile VOD seems not to cannibalise TV revenues:o Only idle time is used (when
on the move) o TV is long-form and mobile is
short-form videoo 4/8K (UHDTV) viewing not on
mobiles
• However, mobile VOD viewing may change viewing habits also at home
• Media-meshing between mobile VOD and live TV forms an opportunity
3. Consumer changesConsumer’s appetite for mobile TV seems limited
9
• Technology is not the limiting factor any longer• Demand for linear TV on mobiles is not distinct, it is subset of premium live
content• For this “spikey demand” LTE eMBMS seems a better solution
4. Regulatory changesEco-system access also important for connected TV sets
• Recent eco-system dispute:o Sep 2017: Google pulled
YouTube access from Amazon’s Echo Show (= smart speaker)
o Dec 2017: Amazon not selling Google’s Chromecast and Home products
• Securing access to TV apps can be critical, however:o Competition is fierceo Standardisation helpsSource: Statista, Strategy Analytics, 2016
20.98%
12.40%
5.56%5.54%5.56%4.59%
32.30%
Smart TV setsOthers
Changhong
Vizio
Panasonic
AOC/TP
Skyworth
Hisense
Sony
TCL
LG
Samsung20%
35%
16%
14%
15%
Dongles
Others
Roku
Amazon Fire TV
Chromecast
Apple TV
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4. Regulatory changesNet neutrality for audio-visual services is challenging
• AV zero-rating offerings are currently attracting regulatory attention:o Offerings can constitute a violation
of net neutrality ruleso Rulings in US and Europe vary
• The 2012 - KT/Samsung -dispute may repeat itself in the future:o Mature production of 4/8K content
and serviceso Connected 4/8K TV sets will
accelerate broadband demand
Source: T-Mobile
11
Source: ITU
4. Regulatory changesLocal AV content requirements also for OTT
• AV content requirements should be (as much as possible) technology-neutral
• Regulating non-linear services poses two challenges:o No natural capacity constrainto More viewer’s control over content
• In EU regulatory cornerstone = AV Media Service Directive (AVMSD)
• AVMSD currently under review:o Includes now social media serviceso Advertising rules more relaxed (20% rule only
between 07:00-23:00)o Relaxing of product placement & sponsoring rules
(by self-regulation)o VOD SPs to provide at least 30% local content
Source: European Council
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