the role of satellite in ott

Content Delivery World 2016 - [email protected]

THE ROLE OF SATELLITE IN CONTENT DELIVERY FOR OTT SERVICES

Ben Schwarz

Content Delivery World 2016 - [email protected] 2

Agenda• Can satellite compete with CDN/IP content delivery?• Will the advent of a new generation of low-orbit

satellites help keep them relevant?• Opportunities in emerging economies for content

distribution via satellite-based services.• So does satellite have any future?


Can satellite compete with CDN/IP content delivery?

• What do you think?• I mean who would think up such question?• This morning Donald Trump was elected POTUS, so

maybe anything is now possible…• Come on seriously, what do you think I’m going to

say …?


Doh!

Source IHS/SIA 2014


Could the long tail pull satellites down?

In most markets less than 20% of

lineup makes more than 80%

of revenues

This is critical to Sat business

model

Source C. Nussli TAES


Stormy outlook in the Van Allen Belt



Why CDNs remain central to all of this


Could telecom revenue compensate?EUROCONSULT forecast for satellite capacity pricing in $ Mbps/Month

The most expensive IP transit



Will a new generation of low-orbit satellites help keep them relevant?

• Very low cost, almost “disposable”• 100’ or 1000s of mini satellites• Closer means simpler, cheaper radio– Including for consumer devices!!

• Lower latency• Crazy ideas? e.g. embedding a mini CDN cache• But space junk issue LEO (100 to 2k km)

MEO (20k km)

GSO (36k km)


https://upload.wikimedia.org/wikipedia/commons/b/b4/Comparison_satellite_navigation_orbits.svg

Source Wikipedia


A new beginning …• Focused beams• HTS seen the new sat shale oil

Source Wikipedia


Equatorial orbits are best for MEOOh that’s alright we’re Brexit anyway

Source Wikipedia


Opportunities in emerging economies for content sat distribution

• Pay TV & Pareto will continue to drive growth 😀– Astro (Malaysia) less at risk than say Canal+ (France)

• In Telecoms, opportunities exist for sat to fill gaps 😀– E.g. in rural backhaul links to remote cell tower

• But poor man’s Internet can even be almost data-less 😞– USSD: Unstructured Supplementary Service Data

• GAFA initiatives– Facebook internet.org (connectivity as a human right) 😀– Microsoft (again), Google (project Loon), …– Stratospheric balloons, drones, satellites, …


Scenario planning from ongoing ESA driven consortium

14ESA MENDHOSA consortium restricted - 2016

Healthy, wide ecosystem

GAFA-NConvergence

Premium TV

Cost-driven TV

The CDN-Broadcast marriage

Status Quo - Sat Paradise

Ad-driven global

audiences

Winner takes all UHD

Premium advertising

YouTube-

Long tail

1

2

4

3

US domination Netflix+

UGC

Sponsorship

Big Data

Innovation

Extended caching

User driven network behavior

P2P

Less bundling

Content remains King

4K

http://www.orange.com/







Show me the money

Studio Net OperatorDistrib CPECDN

Operator

Tech solution(s)

Regulator

Ad Consumer

ESA MENDHOSA consortium restricted - 2016








So is there any future for Sat?• Satellite’s Damocles sword(s) 😞

– Uplink & Latency• Despite amazing progress, convergence with terrestrial return link performance isn’t on the horizon.• However hybrid return links may make sense. 😀

– Lowering quality expectations (including on Delay)• The core business model of sat distribution requires audiences to want access

to key live channels. 😀– Evidence in developed markets is unclear,– In emerging markets no short-term risk.

• With DTH, sat has a UHD advantage 😀– E.g. launches in SEA 😀– (except over 100Mbps+ homes) 😞

16


Thank you

Benjamin Schwarz+33674787954, [email protected], twitter/Skype: nebul2


CTO innovation Consulting• Strategy consulting• International benchmarks• Service architecture• Disruptive business models• Quality of Experience• RFP/RFQ management• Innovation management

• Audit & Risk analysis• Scenario planning•Writing, PR

Video, IP services, UHD, CDN, telecoms, IPTV, streaming, …


CTO innovation Consulting customer listContent and network Operators Technology providers