how we win content providers & service providers markets€¦ · uhd ip video will account for...

Transforming Video Delivery

How We Win Content Providers & Service Providers Markets

June 2019

2ATEME © 1991-2019

2 Plans to Expand our Addressable Market

Service Provider(Satellite, Cable, Telco)

Video Headend

PrimaryDistribution

Traditional Distribution

Subscriber

Content ProviderTV Network

2 Enable new decentralized

distribution architectures for SPs

1 Enable CPs’ direct

access to consumers

OTT

Most of ATEME business today are centralized Video Headends for traditional + OTT delivery

3ATEME © 1991-2019

The Media Landscape

Studios/Broadcasters/NetworksCreated string brands in the 80’s-90’s

Service Providers (MVPDs) Historically, got the broader access to customer

SVOD or Ad-Supported VOD ServiceImpose Binge Watching as the Way to consume video

Virtual Service Providers (vMVPDs)New content or Skinny cost-effective bundlesNew

Entrants

Digital Native

Traditional Players

TV/STB native

Content ProvidersCreate/Produce/License Content

Service ProvidersAggregate/Distribute Content

4ATEME © 1991-2019

Success of SVOD Leading to New Mode of Consumption

0

20

40

60

80

100

120

140

160

2012 2013 2014 2015 2016 2017 2018

Source : Statista

Nu

mb

ero

f su

bsc

rib

ers

in m

illio

ns

Netflix Subscribers Worldwide

Netflix overtook most of traditional Service Providers on their domestic marketsWe moved from live & eyeballs counting to binge-watching & subscription

All Generations Move Away from Traditional TV

Source : NIelsen

5ATEME © 1991-2019

Content Providers Line-Up for Direct-To-Consumer OTT Services

NEW OTT Services Announced to be launched in the Coming 12-18 Months. More to Come

The new services trigger new investment = new opportunities for ATEME

6ATEME © 1991-2019

This Creates a Billion Dollar Content Race (and not every CP & SP can Afford)

Organic Catalog Growth Content Spending by Media Group

Focus on DAZN, Sports-focused Streaming Services

Source : Devoncroft

More content = more opportunities for ATEME

7ATEME © 1991-2019

Solution: Increase Monetization, Value and Focus.Virtual Programming for Targeted Ads and/or Personalized Content

• What customers look for : Virtual Programming to create ads supported linear-like experience with new content• Youtube’s Video > 100k → Added automatically to the App

• Event (eg: Royal Wedding) → Channel created with similar content. Live TV-type of experience, no VOD

Viacom Acquired Pluto TV, Ads-Supported vMPVD, for $340M

Source : Pluto TV User Interface

8ATEME © 1991-2019

Network Overload Challenge

UHD IP video will account for 22% of global IP video traffic by 2022

Exab

ytes

per

mo

nth

• The amount of traffic crossing the global internet will increase by 153% to around 356 exabytes a month by

2022, with video accounting for 82% of traffic.

• More traffic will cross the internet in 2022, than in the entire span of 1984-2016 combined. And in five years,

60% of the world’s population will be using the internet.

• IP Networks are built to absorb ~1/3 of this demand (source: Qwilt)

+29%CAGR

2017-2022

Source : CISCO VNI global IP traffic forecast 2017-2022

9ATEME © 1991-2019

5G & ATSC 3.0: Faster Data, Trials in ’19, Roll-out in ‘20

ATSC 3.0 / new DTT Broadcast standard in the US.It leverages IP connection to pass additionnal data

(UHD) and/or create business opportunities

5G: New cellular network standard for enhanced broadband access.

Unlike ASTC 3.0, it covers more than video

Source : TV Technology.com Source : Qorvo

More data = more or higher resolution videos (UHD) = More opportunities for ATEME

10ATEME © 1991-2019

2020

2019Win the Video Head End market and prepare expanding to CPs and SPs OTT delivery

Gross Margin expected up(shift to software)

Increasing operating profit every year

Multi-year contracts leading to increasing predictability in topline growth (+20%), with contribution from all 4 regions

2 Year Plan

S&M investments to

keep developing our

international coverage, but will

not grow as fast as the topline

R&D investments to

develop innovative

Network solutions, but will

not grow as fast as the topline


Virtual Programming & Playout

P. Baumgartner – June 2019

12ATEME © 1991-2019

Prepare Expanding to CPs and SPs OTT delivery


Video Headend

PrimaryDistribution

Traditional Distribution

SubscriberCDN

Content ProviderTV Network

CDN

2 Enable new decentralized

distribution workflow for SPs

1 Enable CPs’ direct access

to consumers

OTT

Most of ATEME business today

Playout Compression Distribution

13ATEME © 1991-2019

Playout Brings Video Contents To Live

Live Streams

Video Files

Subtitles

Playlist

Graphics

PLAYOUT

Source : ESPN User Interface

14ATEME © 1991-2019

Playout Workflows Depend On TV Channel Types

Media Management Applications

Ingest/Editing/QC

Media Management

Database

Event Store

Device Driver

Video ServerRouter

Live feeds

Master Control

Logo / Graphics Overlay

Closed Captions or

Subtitles

MEDIA ASSET MANAGER

AUTOMATION

PLAYOUT SYSTEM

Main Features

• Precise and deterministic control (timing)

• Seamless transitions between contents

• Comprehensive scheduling of media

• Easy and fast retrieval of source media.

• A high degree of control over the output

• Audio/video overlays, embellishments, titling

15ATEME © 1991-2019

From Hardware to Virtualization

1st Video Server

All-in-one BoxTITAN Playout

1990 2000 Now2010

Video Server

Graphic Inserter

Automation

Master Control

All-in-one Software

• Complex Hardware Architectures have been replaced by integrated systems

• Functionalities are moving to software and virtualization

• These changes create opportunities to deliver a unified video delivery suite• Becoming hardware agnostic

• Simplifying workflows drastically

Cart Machine


How to Manage the Video Headendsin the Cloud or On-Site

Philippe VIDAL – June 2019

17ATEME © 1991-2019

A Complete Offer for Video Flow


Video Headend

Event

ContributionPrimary

DistributionDistribution

OTT / Multiscreen

Subscriber

CDNContent Provider

TV Network

Kyrion encoders in the trucks and decoders at the TV station

TITAN is a virtualized Video Headend software covering all Live and File needs

18ATEME © 1991-2019

Network Management System In Brief

Real-time AlarmReporting

OperationalDashboard

Monitoring ATEME NMS delivers all those critical

functionsand many more

DeliveryContinuity

Scheduling

Fail-over

Notifications

Automation

19ATEME © 1991-2019

AMS Involved In Industry Shift To Software

Today, Service Providers deploy Software Converged Video Headends (Live + VOD, Box + Multiscreen), in a virtualized environment

Legacy Video Headendfor the linear distribution to the box

VOD and Multiscreenseparated infrastructure

Software Virtualized Video Headendrunning on a private cloud

=Software

Virtualized Headend

Running on

Private cloud

+ + Multi-Screen

VOD

10 years ago,Video Head Ends consisted in heterogeneous specialized hardware for each operation

Then,VOD and multiscreen were added and managed as separate operations

Legacy VHE

20ATEME © 1991-2019

AMS Enables Operational Efficiency

• Single tool to manage TITAN solutions in converging applications

• Agnostic to deployment environment and scalable

• Key player of uninterrupted channel delivery

• Focus on Channel lifecycle management

• Facilitating delivery monetization thru Scheduling

Unified user interface for real-time status and alarm monitoring


ATSC 3.0 Emergence in the US

Mickael RAULET

Director Research & Innovation

22ATEME © 1991-2019

ATEME Honored By Sinclair Broadcast Group

“ATSC 3.0 will be a huge opportunity for broadcasters specifically because of the data they will be able to collect within 3.0’s IP-based delivery system that establishes two-way communication between broadcasters and viewers.” - David Smith, chairman of the Sinclair Broadcast Group.

« Next Gen TV » is based on ATSC 3.0, the new standard for the terrestrial digital broadcasting system in the United States and Korea

Sinclair and its joint venture ONE Media announced 40 U.S. cities getting ATSC 3.0 next-generation TV by the end of 2020.

$6.7B 2018 REVENUE

191 TELEVISION STATIONS

607 CHANNELS

89 US MARKETS

23ATEME © 1991-2019

ATSC 3.0 – Goals & Guidelines

Better Spectrum Efficiency - Higher Quality - TV/Mobile Convergence - Content protection - Personalization

Source : ATSC/Magid’s Nicole Meighan

24ATEME © 1991-2019

All Kind of Customers Get Excited About ATSC3.0

Most consumers are willing to pay to access a range of their favorite features

Source : ATSC/Magid’s Nicole Meighan

25ATEME © 1991-2019

ATSC 3.0 - Redesigned from Ground Up to Address Goals

Screen is a web page

HTML5

EnhancedTransmission

EnhancedProtocols

Enhancedaudio/video

Interactive Content

UHD & HD multicast & HDR

Immersive audio

Content protection

Internet protocols

Similar to DVB-T2

Software

Videos and sounds

Stream and Files

Bits over the air

26ATEME © 1991-2019

ATSC 3.0 & Video Compression

BIT

RA

TE0

10

00

10

01

11

…

H264 HEVCMPEG-2

1993 2003 2013 2018

AV1

2020 2020

MPEG-5

EVC

VVC

Video Codec with Associated Bitrate Savings (at Same Video Quality)

27ATEME © 1991-2019

Typical ATSC 3.0 Ecosystem

Broadcaster

ATSC3.0 SFN

GatewayATSC3.0 demod

OTTTimeshifting

Recording

EncoderHEVC/SHVCMPEG-H 3D

AC-4

AWARNemergency Alert

PackagerMPEG-DASH

ROUTE == multicast

SchedulerSFN Synchronization

PLP allocation

Modulator

Modulator

OTT playerDASH

ATSC3.0 receiverATSC3.0 demod

HTML5.0 applications

Internet service personalization

Live

IPSDI

28ATEME © 1991-2019

ATCS 3.0 Uses Scalable Encoding

* Source: ATSC3.0 conference presentation of the Video chairman subgroup

• Guaranteed “lower quality” (1080p) signal for robust reach / mobility• Enhanced 4K when possible• Leverages Scalable High-Efficiency Video Codec (SHVC)

High loss channel

Low loss channel

29ATEME © 1991-2019

ATSC 3.0 Buffalo Channel SharingCurrent status with ATSC 1.0 Channel Sharing

Multiplexer

Station 1

ATSC1.0

Multiplexer

Station 2

ATSC1.0

Multiplexer

Station 3

ATSC1.0

1 HD + 3 SD

1 HD + 2 SD

1 HD + 5 SD

1 HD + 2 SD

1 HD + 3 SD

1 HD + 4 SD

1 HD + 3 SD

1 HD + 3 SD

1 HD + 4 SD

WPXJ

30ATEME © 1991-2019

ATSC3.0 Buffalo Channel Sharing1st step towards ATSC 3.0:- Redistribution of the Channel Distribution

Multiplexer

Station 1

ATSC3.0

Multiplexer

Station 2

ATSC1.0

Multiplexer

Station 3

ATSC1.0

1 HD + 3 SD

1 HD + 2 SD

1 HD + 5 SD

1 HD + 2 SD

1 HD + 3 SD

1 HD + 5 SD

3 HD + 10 SD

2 HD + 2 SD

1 HD + 8 SD

WPXJ

31ATEME © 1991-2019

Dynamic Ad Insertion – DAI

AD insertionATSC3.0

Modulation

ROUTESLS/SLT signaling

ATSC1.0 Transport stream with

SCTE35 triggers

DASH+

Xlinks

S&T

Ad insertion -http

Ad server


Video Compression Leadership

June 2019

35ATEME © 1991-2019

What is Video Compression and Why it Matters

• Compression is a Must. Video is 80% of the internet traffic*.

• The encoding technology is key

• ITU (Geneva) defines international standards MPEG-2 (1992), MPEG-4 (2003), HEVC (2013).

• An intelligent encoder (e.g. including objects tracking algorithms) requires less bitrate for the same video quality (or generates a better video quality at a given bitrate).

• The decoder is passive (2 decoders would always display the same video). No innovation there.

Whatever the network (cable, internet, satellite, terrestrial), digital video has to be compressed 500x typically

Uncompressed HD Video

~ 2 Gbits/s

Encoder

CompressedHD Video

~ 4 Mbits/s

Decoder

* Cisco Visual Networking Index

36ATEME © 1991-2019

Video Growth DriversContinued Demand for High Efficiency Compression

Content Explosion

DelinearizationMore channels, more content

Monetization Opportunities

Multiplication of distribution formats

New Distribution Models

Multiscreen, OTT

Ultra HD Television

4K, HDR, WCG, HFR

Video content in global Internet traffic :

2017

75%

2019

80%

2020

84%

Source : Cisco

37ATEME © 1991-2019

30% density increase without network or

decoder/STB upgrade

QAM reclamation enabling new services

ATEME’s research team is working to help

define the next MPEG video compression

standard

Close partnership with

Reduce the required bandwidth for main-

screen & OTT HD

Reduce the solution’s TCO

1st to market with a production -ready

HEVC solution

Deploying HEVC projects with Tier1 clients worldwide

Transforming Video Delivery, Reducing Distribution Costs

The only compression vendor part of

AV1, the royalty free codec, will be released in 2018 and supported

by TITAN

TITAN supports all international video compression standardsRecent involvement of ATEME R&D and deployment successes include:

MPEG2 (1992) H264 (2003) HEVC (2013) AV1 (2018)H.266/VVC (2020)

MPEG5/EVC (2021)AV2 (202?)

38ATEME © 1991-2019

AV1: Open, Fast and Royalty-Free Video Codec

• Problem Statement: HEVC royalties Delays deployment due to complex licensing pools

• An Alternative Raised: AV1 (AOM Video codec 1)• Supported by Alliance for Open Media (AOM)

• AOM was founded by Silicon Valley Tech companies, ATEME is active member

Royalties are cumulative

H.264/AVC HEVC

Number of Patent Pool

13*, plus a dozen individual IP holders

Need agreements with all of them

Names MPEG LA MPEG LA HEVC AdvanceVelos Media,

Technicolor & othersDevice

Royalties$0.10 to $0.20/unit $0.20/unit $0 to $1.95/unit To negotiate individually

Cap $9.75M/year $25M/year $40M/year No cap

Content Royalties

$0.10/subscriber < 1M$0.02/title

None None To negotiate individually

Cap $9.75M/year 0 0 No cap

40ATEME © 1991-2019

H.266/VVC: Versatile Video Coding

• VVC: Next ITU/MPEG video codec

• Goal: 50% bitrate reduction compared to HEVC

• Use-cases: • Broadcast (same as MPEG-2, AVC and HEVC)

• Low delay interactive communication

• Virtual Reality

• Internet of Things

• ETA: October 2020 (7 years after HEVC)

• Will be a new international standard

42ATEME © 1991-2019

MPEG-5/EVC: Essential Video Coding

• EVC: New MPEG video codec competing with AV1

• Goal: Royalty friendly and/or free

• Efficiency: comparable to HEVC• Baseline (royalty-free): 20% less efficient than HEVC

• Main (royalty-friendly): 25% more efficient than HEVC

• Use-cases: • Web

• Broadcast (same as MPEG-2, AVC and HEVC)

• ETA: January 2020

• Will be a new MPEG standard

43ATEME © 1991-2019

Latest Tech News / Others Trends We Monitor

Dec. 1st, 2018 :NHK launched the first 8K channel in the world with a broadcast of “2001: A Space Odyssey.”NHK to broadcast 2020 Olympic Games in 8K.

Numerous Content/Service Providers launch 5G trial5G promises higher quality/faster delivery of entertainmentMay accelerate cord-cutting effect and enable more app-type bundles to succeed


Thank You !

June 2019

how we win content providers & service providers markets€¦ · uhd ip video will account for...

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