Digital Broadcast - Feb 2010 by ITP Business Publishing

THE BUSINESS OF DIGITAL CONTENT DELIVERY

COMMERCIAL BREAKS Maximising revenues from interactive advertising apps

An ITP Business Publication

AFTER THE STORM Broadcasters to pursue postdownturn plans at CABSAT

TRAPPED IN HD Will 3D TV be a missed opportunity for Middle East broadcasters? Licensed by Dubai Media City

VOLUME 3 ISSUE 2 FEBRUARY 2010

More satellites in 2010, more capacity to let you reach farther than ever With new, more powerful, state-of-the-art satellites launching every year until 2012, the largest Arab community in the sky is growing faster than ever. In 2010 alone, two more satellites are joining our fleet. Badr 5 at 26º East will bring unrivalled capacity for the coming HDTV revolution and provide “hot” in-orbit backup for Arabsat DTH services, while Arabsat 5A at 30.5º East will provide unprecedented 100% coverage of the entire African continent. Indeed, from the Middle East to the whole of Africa—and to Europe and beyond—Arabsat now offers more reach, reliability and flexibility like never before. Join our premium neighborhood now!

www.arabsat.com

CONTENTS

4 WEB HIGHLIGHTS Spot poll: Will HD compensate for OSN’s loss of EPL?; top web stories; editor’s choice: iPad.

8 THE BRIEFING AMG CEO steps down; UAE’s TRA to push for improved telco competition; OSN goes HD.

14 SERVICE ARRAY Senior satcoms execs discuss the benefits of diversifying services.

22 COVER STORY: ANOTHER DIMENSION Digital Broadcast looks at 3D TV’s regional prospects at a time when HD is only just finding its feet.

THE MOST COMPREHENSIVE FAMILY OF DIGITAL TV MONITORING, MEASUREMENT AND ANALYSIS PRODUCTS IN THE WORLD

40 MARKET ANALYSIS Find out what consumers will and will not pay for online.

ALSO IN THIS ISSUE...

COMMERCIAL BREAKS

AFTER THE STORM

How to get the most from targeted and interactive advertising technology.

A look at some of the picks from next month’s CABSAT show in Dubai.

www.digitalproductionme.com

FEBRUARY 2010 03

DPME.COM ROUND-UP

The online home of:

VOD AD FIRM TARGETS MIDDLE EAST IN 2010 VOD advertising technology and data firm Concurrent has announced plans to trial its services with operators in the Middle East as early as this quarter. digitalproductionme.com/news

READER COMMENT: “If I were watching a VOD movie, I’d protest the presence of any advertising. Unless there is an ‘incentive’ to watch ads... Such as exchanging ad views for VOD credits.” Clyde, UAE.

Middle East should not rush 3D TV: Taj TV exec

Omnicom TBWA confirms twofour54 move

UAE telco watchdog to boost operator competition

JCC unveils first Arabic VOD educational portal

Jordan orders online press crackdown

DATE: January 28

MOST POPULAR STORIES

EDITOR’S CHOICE IN PICTURES

JOBS UNVEILS IPAD

ALSO ON THE DPME SLATE THIS MONTH... INTERVIEWS

GRAPHICALLY SPEAKING

BUCKING THE TREND

HD and SD graphics systems are becoming increasingly affordable.

MBC’s Sam Barnett reveals how the network has thrived in the downturn.

digitalproductionme.com/analysis

digitalproductionme.com/interviews

TECHNOLOGY

COMMENT

AVID NEWS CHASERS

GOOGLE’S NEXUS ONE

Saudi’s Al Ikhbariya news channel streamlines its newsroom operations. digitalproductionme.com/technology 04 FEBRUARY 2010

The point of connection: Will Nexus One’s arguably exorbitant retail price damage its chances? digitalproductionme.com/comment

Apple reveals its latest device designed to shake-up the content delivery landscape.

SPOT POLL WILL THE OSN HD ROLLOUT COMPENSATE FOR THE IMPENDING LOSS OF THE EPL?

49%

EPL will be on OSN, they’ll do a deal with AD Sports.

26%

HD will attract more subs than EPL ever did.

15% 10%

EPL wasn’t that hot. HD EPL would win out.

DATE: January 28

ANALYSIS

www.digitalproductionme.com

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COMMENT

Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP BUSINESS PUBLISHING CEO Walid Akawi Managing Director Neil Davies Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery EDITORIAL Senior Group Editor Aaron Greenwood Tel: +971 4 435 6251 email: aaron.greenwood@itp.com Deputy Editor John Parnell Tel: +971 4 435 6271 email: john.parnell@itp.com ADVERTISING Commercial Director Fred Dubery Tel: +971 4 435 6339 email: fred@itp.com Sales Manager Gavin Murphy Tel: +971 4 435 6369 email: gavin.murphy@itp.com N.American Advertising Representative Michael J. Mitchell Tel: + 1 631 673 3199 email:mjmitchell@broadcast-media.tv Japan Advertising Representative Mikio Tsuchiya Tel: + 81 354 568230 email: ua9m-tcy@asahi-net.or.jp STUDIO Group Art Editor Daniel Prescott Designer Lucy McMurray PHOTOGRAPHY Director of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographers G-nie Arambulo, Efraim Evidor, Thanos Lazopoulos Staff Photographers Isidora Bojovic, George Dipin, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav PRODUCTION & DISTRIBUTION Group Production Manager Kyle Smith Production Coordinatior Sophia White Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami CIRCULATION Head of Circulation & Database Gaurav Gulati MARKETING Head of Marketing Daniel Fewtrell ITP DIGITAL Director Peter Conmy ITP GROUP Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin

BACK TO REALITY

ext month’s CABSAT exhibition offers the broadcast industry a much needed dose of reality. The combination of Avatar and the raft of 3D TV announcements generated at the CES show in Las Vegas fuelled a frantic month of hype that made its way into the mainstream press and water cooler conversations everywhere. CABSAT presents the perfect opportunity for the region’s broadcasters to come back down to earth and turn their attentions squarely on the essential upgrades and short-term changes needed to fine tune their operations. While 3D TV deserves its place on the agenda for the industry at large, there are more pressing issues locally that need some attention. The roll out of HD channels is upon us in the Middle East. Although most of the major broadcasters have installed the majority of the infrastructure required for HD, CABSAT provides the perfect shop window for them to tie up any loose ends or upgrade HD kit purchased several years ago. CABSAT remains by far the best event for broadcasters to meet face to face with the manufacturers, developers and systems

integrators to discuss how best to execute these plans within budget and on time. The reappearance of the Satellite MENA show is also timely. The increasing number of events hosted in the Middle East is fuelling requests for DSNG services by overseas clients and the opportunity is there for local operators that can fulfil these requirements with a high quality of service. These events together with the emergence of HD will drive additional demand for capacity – for contribution and distribution – making CABSAT’s sister show the perfect time to discuss how to meet this demand in the coming year. Investments in asset management systems, digital archives, internal and external content networks and the upgrade of studio sets and production equipment to meet HD standards will keep visitors and exhibitors busy at the show.

JOHN PARNELL Deputy Editor john.parnell@itp.com

Circulation Customer Service Tel: +971 4 435 6000 Certain images in this issue are available for purchase. Please contact itpimages @itp.com for further details or visit www.itpimages.com.

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Printed by Color Lines Printing Press Subscribe online at www.itp.com/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

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FOR THE LATEST NEWS, ANALYSIS AND REVIEWS FROM THE MIDDLE EAST CONTENT DELIVERY, MEDIA MANAGEMENT AND NEW MEDIA DISTRIBUTION BUSINESS HEAD TO DIGITALPRODUCTIONME.COM

TO SUBSCRIBE please visit www.itp.com/subscriptions FEBRUARY 2010 07

THE BRIEFING

GOOD MONTH GOOGLE Google has announced quarterly profits of US $1.97 billion after a strong performance in its online ad business during the holiday season. The results also showed a 17 percent revenue growth compared to the same period last year having taken $6.7 billion during the quarter. “Given that the global economy is still in the early days of recovery, this was an extraordinary end to the year,” said Eric Schmidt, CEO, Google adding that he was “hugely optimistic” about 2010.

BAD MONTH YAHOO! Yahoo! recorded mixed Q4 financial results, with revenues down on the same period of 2008 but improving slightly over the preceding quarters of 2009. Revenues decreased four percent from the fourth quarter of 2008 and increased 10 percent from the third quarter of 2009. “Our business has positive momentum and we feel good as we head into 2010,” said Yahoo! CEO Carol Bartz.

08 FEBRUARY 2010

BROADCAST BUSINESS

ARAB MEDIA GROUP CEO STANDS DOWN Long-serving boss resigns months after products and staff shift to DMI Abullatif Al Sayegh confirmed last month he had stepped down as CEO of the Arab Media Group (AMG) after nine years with the company. “I have been here since 2001, and I believe now I have completed nine years it is time to (move on). It is not about making more money, it is about... I have done quite enough, and I saw my role was not as effective as it used to be. I am a person who just wants to keep going and building and doing more, and right now everything is established,” Al Sayegh stated. In October 2009, state-backed rival Dubai Media Incorporated (DMI) took control of some of AMG’s products including its daily newspapers Emirates Business, Al Emarat Al Youm and its Noor Dubai Radio and TV station following a resolution from Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum. Under the resolution, the transfer

included all assets, properties, rights, liabilities and commitments while all staff also moved from AMG to DMI. Al Sayegh plans to set up a media consultancy within the UAE to help foreign media players looking to set up in the Gulf understand local demographics and sensibilities. “I believe I could be a great help to the entire region rather than just focusing on my own company,” he said adding that leaving AMG would create an opportunity for others in the team he built. Al Sayegh will be replaced by former executive director Mohammed Al Mulla.

Abdullatif Al Sayegh, former CEO of the Arab Media Group.

MONTH IN NUMBERS

6.7 billion

Google’s revenue in the last quarter of 2009

6.5 billion Yahoo’s revenue for all of 2009

CABSAT TO DEFY DOWNTURN: ORGANISERS This year’s edition of CABSAT and Satellite MENA, the Middle East’s largest annual broadcast industry exhibition, is on track to eclipse the 2009 event in terms of floorspace, claims event organiser Dubai World Trade Centre. While declining to reveal actual figures, a DWTC representative confirmed the show was “already bigger than last year”. The claim would appear to be supported by

the fact Sony, Arabsat, SmartSat and Hamresan have doubled their stand space for 2010 while other key players including AMT, Hitachi, Tek Signals, The Vitec Group and UBMS have also committed to the show. The exhibition will also welcome some big names such as Hewlett Packard (HP) and Blusens for the first time in 2010. CABSAT will run from 2-4 March. www.digitalproductionme.com

THE BRIEFING

PLATFORMS

OSN COMPLETES RE-BRAND AND EXTENDS HD OUTPUT Eight new channels including three in High Definition launch this month for new look OSN Orbit-Showtime, which has been rebranded as OSN (Orbit Showtime Network) will launch eight new channels this month, of which three will be in High Definition. The new offerings will include OSN Arabia, OSN Variety,

Food Network, BET (Black Entertainment TV), Discovery ID and OSN Movies HD, Discovery HD Showcase and Nat Geo Wild HD. The network promises that more HD channels will be available on its bouquet in the course of 2010. The HD channels will only be available on OSN’s HD receivers, which will be rolled out to its subscribers this month Marc-Antoine d’Halluin, CEO of OSN commented that the pay TV operator will deliver on its promises. “When Orbit and Showtime merged in 2009 we promised to deliver the best payTV platform in the Middle East and North

Africa. Now, in less than six months we are ready to unveil OSN, a single platform that offers even more Western and Arabic premium content than ever before on its exclusive 75 channel platform. We continue to push boundaries and lead the industry by launching the region’s first HD bouquet and the region’s first Western channel fully dubbed into Arabic.”

OSN’S BUDDING HD BOUQUET OSN will launch three new HD channels this month; OSN Movies HD, Discovery HD Showcase and Nat Geo Wild HD.

QUOTE OF THE MONTH

The Middle East should concentrate on HD. I don’t see any possibility of 3D coming to the region inside the next three years. MANAF AHAMMED, director of operations at Taj TV.

SecureMedia COO, Fred Ellis.

Caleb Weinstein.

MOTOROLA ACQUIRES DRM AND CA FIRM SECUREMEDIA

DISCOVERY LOOKS TO EXPAND MIDDLE EAST PRODUCTION

JORDAN ORDERS EXTENSION OF ONLINE MEDIA CRACKDOWN

Motorola has announced the acquisition of conditional access and digital rights management (DRM) software developer SecureMedia. Under the terms of the deal SecureMedia will be integrated into Motorola’s Home and Networks Mobility operations. The deal is expected to be finalised before the end of March.

Discovery Networks is looking for local partners as it aims to ramp up its Middle East production, a senior exec has told Digital Broadcast. Discovery is looking to broaden the range of themes covered in its Middle East content, said Caleb Weinstein, senior VP and general manager, Discovery Networks EMEA.

Jordan is to extend its Press and Publications Law to all online content including news sites and blogs, drawing criticism from media activists. Web filtering watchdog OpenNet Initiative previously referred to Jordan as a “beacon in a region of heavy Internet filtering”, this situation could now be set to change.

www.digitalproductionme.com

FEBRUARY 2010 09

THE BRIEFING

Al Jazeera Children’s Channel (JCC) and the Qatar Foundation have launched a learning website called Taalam.TV aimed at teachers and pupils. The website, which includes educational resources and videos extracted from JCC programming, is aimed at making teaching more stimulating for students.

BROADCAST BRIEFS

JCC UNVEILS VOD EDUCATIONAL PORTAL

BROADCAST BUSINESS

UAE TELCO WATCHDOG TO PUSH FOR COMPETITION New framework designed to stop ‘unfair and excessive pricing’ in UAE The UAE’s telecoms watchdog on Monday published its new regulations to ensure greater competition between operators Etisalat and du. Under the new Competition Framework, the Telecommunications Regulatory Authority (TRA) said it would crack down on any anti-competitive practices, adding that any complaints lodged by either company would be investigated. Mohamed Nasser Al Ghanim, director general of the TRA, said the move was an “important piece” for regulating the telecoms sector in the UAE in a statement posted on the TRA’s website. He added that the new regulations would help “foster growth and development of the telecom-

munication sector through the creation of sustainable, vibrant and fair competition”. The new framework policy said it was “ultimately for the benefit of consumers... by deterring entities from engaging in unfair and excessive pricing”.

2.4 billion VOD ADVERTISING FIRM SETS SIGHTS ON MIDDLE EAST Advertising technology and data specialist Concurrent has revealed it is looking to break into the Middle East this quarter and is looking for partners to trial its services. The firm offers advertising, content and audience data to enable broadcasters to offer targeted advertising. “The region is our next expansion territory, we’ll be looking for service providers to trial our solutions,” said Paul Haddad, VP and general manager of Concurrent’s Media Data and Advertising Solutions (MDAS) business.

010 FEBRUARY 2010

Mohamed Al Ghanim, director general of the UAE TRA.

The total annual revenues from transactional VOD in the US will reach by 2013. Source: Futuresource Consulting

MOVERS & SHAKERS GREG HOSKIN JUMPS SHIP TO OMNIBUS Greg Hoskin has stepped down from his position as managing director of MHz Systems to take the role of executive VP of broadcast sales at Omnibus Systems. Hoskin, who previously worked for Omnibus, will play a key role in developing the markets for the manufacturer’s iTX IT-based transmission and automation platform. “I made the decision to rejoin Omnibus because of the huge potential of the iTX platform,” said Hoskin.

RED BEE MEDIA APPOINTS NEW CTO Red Bee Media has appointed Brian Levy as director and chief technology officer. Levy was previously VP and CTO for the communications and media solutions software business at HP. “Red Bee Media has a unique fusion of integrated solutions for the changing demands of the market,” said Levy. “I am looking forward to joining the business. It is perfectly poised to take advantage of the convergence of television, video, broadcast and the internet.”

www.digitalproductionme.com

2 4 54_Intaj_Digital Studio_205x275.ai

2/3/10

12:12:25 PM

THE BRIEFING

A new report from ABI Research predicts that as 4G network deployments gather momentum, a substantial 22% of device subscription revenues will come from suites of operator-branded premium services. Furthermore, it estimates total 4G mobile consumer service revenue – including mobile Internet services – will grow rapidly to exceed $70 billion worldwide in 2014.

According to ABI Research practice director Philip Solis, “operators of 4G networks will refuse to be marginalised as ‘dumb data pipe’ service providers. Instead, they will offer suites of ‘smart services’ – some internally developed, others with partners – that will be provided over ‘smart networks’ enabled with all-IP technologies, IMS infrastructure and cloud-based storage”. Solis claimed these 4G services would be optimised to enable a proliferation of mobile devices. He also predicted the technology would ensure a range of multimedia services, including VOD and P2P video sharing, would come to the fore commercially. 012 FEBRUARY 2010

BROADCAST BRIEFS

4G MULTIMEDIA SERVICES ‘TO GENERATE $70 BN BY 2014’

GLOBAL PAY TV REVENUES TOPPED $70 BILLION IN 2009

MIDDLE EAST SHOULD NOT RUSH 3D TV: TAJ TV EXEC Developments in 3D TV in the Middle East are unlikely to begin within the next three years, according to Manaf Ahammed, director of operations, Ten Sports. With high definition services still in the fledgling stages in the region, Ahammed believes 3D ambitions should be put aside until these have been perfected. “One of the main reasons that I don’t see 3D TV in this region in the next three years is content,” said Ahammed. “Real 3D has to be shot in 3D, converting regular content is not enough.”

A new report from Euroconsult has found growth in the global satellite pay TV market remained strong in 2009 despite the economic downturn. The Satellite TV Platforms, World Survey & Prospects to 2019 report found that pay TV platforms combined currently reach 131 million subscribers and earned $70 billion revenues in 2009. “Subscriber growth in the satellite pay TV market has been robust, increasing 15 percent worldwide,” explained Pacôme Revillon, CEO of Euroconsult. “Growth in emerging digital markets has been particularly strong.”

TELECOMS MARKET UAE TO PERMIT LIMITED VOIP SERVICES IN UAE The United Arab Emirates (UAE) Telecommunications Regulatory Authority (TRA) has confirmed that a new policy to allow voice calls over the internet is being ‘implemented’, local daily Khaleej Times reported.

The news is the latest chapter to the issue of legalising VoIP in the country. In 2008, director general of the TRA, Mohamed Al Ghanim, revealed that the authority was developing a framework for VoIP providers but that there were challenges associated with it. In reaction, local ISPs Etisalat and du confirmed they were both prepared to roll-out the technology pending the TRA’s final ruling.

GOOGLE TAKES THE WRAPS OFF NEXUS ONE HANDSET Google has finally taken the wraps off its ‘iPhone killer’, known as Nexus One. As previously reported by Digital Broadcast, the smartphone handset is being manufactured by Android technology partner HTC, but with some exclusive features that exceed those available in Apple’s iPhone, according to the web giant. Google has launched a web store located at

www.google.com/phone, where customers located in the US, Great Britain, Singapore and Hong Kong, can place orders for the device. Other international markets for Nexus One will be considered throughout 2010.

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VOX POP

SERVICE ARRAY

The satcoms industry has performed particularly well during difficult economic times. Digital Broadcast asks representatives from the industry about the trend for diversifying services that has helped many operators enjoy a boom during the bust.

MOHAMMED AL SHAHI Senior director, du Broadcast Services. It’s very important for a broadcast services operator to offer a diverse range of services. We don’t just want to focus on satellite we also want to focus on fibre, file transfer, technologies like Signiant and BT’s MPLS transfer, we want to bring those services into the region and make our broadcasters use them and utilise them, not just our satellite services. It’s about providing the latest services to your clients and expanding your product portfolio so yes we are always looking at new product to enrich our offering. Two things drive this diversification, the technology and also the market demand. We have received a few requests from some of the top broadcasters for services that weren’t yet offered by us so we have investigated that technology and we do this in partnership with our clients and our technology partners. File transfer – whether it’s over the internet, MPLS networks, SDH fibre – this has been used in Europe and US for some time and as we are seeing more fibre links come into the region people are starting to use these services for contribution for sending live and recorded content. A lot of content is sent from the Europe and the US by tape, why not send these by file transfer. It’s more efficient and it’s more cost effective too. New technologies outside of the satellite industry drive added demand too. HD and now 3D are bringing more business for satellite operators and will bring them some growth. If an operator did not diversify its services it would miss out on a lot of the new trends. The competition would take all the business in these new areas and expand and they would be left behind with their narrow portfolio. As part of a telco we have lots of telco expertise in house that has helped us move into these new areas. This is a big advantage. We have the infrastructure, the international submarine cable systems, we have colleagues in other departments at du that will help us with other technologies whether its submarine cables or video expertise. 014 FEBRUARY 2010

www.digitalproductionme.com

VOX POP

DIVERSIFY ON DEMAND OMAR SHOTER CEO, Noorsat. Diversification has always been a sensible option for businesses to consider. It is important for satellite operators to diversify within the scope of their business to reduce the risk of depending on one market segment and a limited customer base. By providing new offerings to the market companies can achieve growth and find new ways to better utilise existing resources. This situation has always been the case in the satellite communications industry for many reasons, which are a mix of technology and the natural evolution of the business. Satellite operators are taking advantage of the growing demand for new applications and services, which will increase the utilisation of existing and planned satellite resources. The areas of providing space segment capaci-

ties for telecom, data and broadband services, have proven to be successful sources of new business. This success was possible because the expansion in these services is supported by the growth being witnessed in these various telco sectors. We have expanded our services to offer capacity for telecom services, including telephony, satellite based internet and point-to-point connections. These new services, in addition to our existing core business of providing satellite DTH TV capacity on the only two hotspots used to reach the Arab World and providing backhauling and TV feeds to the public and private Arab TV sector, have enabled us to sustain our revenue, achieve growth and offer our available satellite resources to a broader market. We are gearing up to provide HD TV transmissions and preparing other solutions required for new technology applications and a variety of uses of satellite services. This will ensure a continued diversification in the future.

These new services... have enabled us to sustain our revenue, achieve growth and offer our available satellite resources to a broader market. We are gearing up to provide HD TV transmissions and preparing solutions required for new technology applications and a variety of uses of satellite services. This will ensure a continued diversification in the future. OMAR SHOTER CEO Noorsat

SERVICE SURVEY TELCO CUSTOMERS BRINGING NEW BUSINESS

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Applications: Priorities of the Business Mobile backhaul TV/radio contrib/distrib SNG Managed network svcs Internet backbone & VOIP Non-broadcast content Mobile TV WiFi backhaul Intl voice (nonVOIP) 0%

20%

40%

60%

80%

100%

SOURCE: OOX

The World Teleport Association (WTA) surveyed executives from teleports in 12 difHigh ferent countries about the source of their revenues at present and their priorities for Low None their respective businesses in the future. At present media and entertainment comprises the largest chunk of revenue at around 34.7 percent. Terrestrial telecom service providers come in second on 17.8 percent. Enterprise, satellite carriers and government and military applications make up the rest of the pie. When you consider the priorities for the Source of Revenue by Industry future we see a swing with mobile backhaul Satellite rated as the most pertinent target for teleport Other, 2.6% Carriers, 15.2% operators beating TV and radio contribuMedia & tion and distribution into second place, even Entertainment, 34.7% though these service represent more than a Terrestrial third of current revenues. Telecom Service Other new opportunities, including manProviders, aged networks and internet backbone, also 17.8% prove popular with more than 40 percent of Civilian Govt & those questioned citing them as high priorities Enterprise, Military, 12.1% 17.5% for the coming years.

SOURCE: World Teleport Association

Th above The b graphh shows h that h the h satcoms industry i d isi increasingly i i l looking l ki to provides full services, rather than providing capacity for others to run these services from. This trend has already protected the sector from the eďŹ&#x20AC;ects of the recession. Media and entertainment still encompasses the largest chunk of revenue for teleport operators but telcos and enterprise customers are on the up.

FEBRUARY 2010 015

TECH TALK

Increasing statutory requirements, viewer expectation and geographically diverse content distribution mean that subtitling is now an integral part of modern broadcasting and content delivery, writes Sam Pemberton.

ompressed production cycles, requirements for easier global distribution and high definition are driving a shift to file-based or tapeless workflows. As broadcasters, networks and content creators switch to file-based operations the traditional captioning workflow has ceased to be a viable way of handling the growing requirement for captioning, especially as much content is now delivered across multiple formats. In file-based broadcasting, the typical subtitling workflow is to use early bound subtitles, where the subtitles are encoded into the asset stored on the server well in advance of broadcast, or may even be ingested to the server complete with subtitles. The subtitles may be created on a subtitle Estimated value of the preparation workstation, or require European dubbing and extraction and editing, for example to subtitling market. fit a version of the content that has been squeezed to fit a time-slot. A subtitler may

$650 million

016 FEBRUARY 2010

need to review a browse quality clip stored on the server or digitised video from tape, listening to audio, extracting relevant dialogue and sounds, then typing into a new subtitle file with in and out timing. Alternatively, the subtitles may be a translation of existing subtitles with relevant retiming and editing for inappropriate material. Often subtitles may not be available in advance of time of air, or need late editing, and this requires a facility for late playout. While live events, such as news or sports broadcasts, require live input from a subtitling workstation via a subtitle transmission unit, either through the use of high speed input devices such as Steno or through respeaking of dialogue or commentary, using voice recognition that is trained to the subtitlerâ&#x20AC;&#x2122;s voice, with the generated subtitles sent to air either by a voice or keyboard command, with the ability to correct misspellings or incorrectly recognised words. These early, late and live workflows require an end-to-end subtitling solution, with seamless

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TECH TALK

int integration into a broad range of automation, As broadcasters, workflow and video server systems and supwo networks and content port for numerous file types and formats. po Often content needs to be repurposed for O creators switch to filebroadcast or for web and mobile formats, bro based operations the which may require that the content is also wh traditional captioning edited down or squeezed to fit a particular edi time-slot or to remove unsuitable material. tim workflow has ceased If subtitles have previously been created to be a viable way of and encoded into the video, these must be extracted using Apple Final Cut Pro or similar. extra handling the growing When this is done, an Edit Decision List (EDL) is requirement for capcreated, which describes the edits, detailing the create tioning. or frame reference of a cut or squeeze. time code c Using a file-based subtitle and caption data Usin processor, subtitles can be extracted from the asprocess SAM PEMBERTON, set to a file and can then be edited as appropriate, CEO, Softel referencing the EDL, using a subtitle preparation referen workstation. Itâ&#x20AC;&#x2122;s important to select software worksta designed to make creating and editing subtitles as designe efficient as possible. Look for features to quickly efficien reformat subtitles or change in/out times, and reforma adapt ssubtitles to different frame rates at the click of a button. The preparation software should allow files created for one format of playout, such as DVB, to be exported in other formats like DVD or Blu-ray bitmaps. Also useful are pre-definable house styles that include quality control measures such as reading speed, along with the ability to review subtitles at any stage, either before committing them to the file or after, via a browse quality clip simulating burntin subtitles. The number of hours of subOnce the required edits have titled or dubbed content shown been made, the subtitle file is reon European TV stations. inserted into the original or edited video asset, using the file-based subtitle and caption data processing software. If content is to be repurposed for the web or mobile, these platforms can be handled by transcoding the video to the required output format then either burning in for mobile or adding a suitable subtitle file (for example DFXP or SAMI) to the asset for web playout. Integration with video servers and workflow systems for early bound workflows Seamless integration with video servers and workflow systems is vital for efficient file-based subtitling workflow. Integrating with the video server ensures that native file formats including key variants such as 436M tracks in MXF files are Sam Pemberton, CEO, Softel.

408,320 hours

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fully supported, as well as making job processing more efficient by using built-in APIs and interfaces. Subtitle processing can usually be performed against native browse quality clips, saving time, while final encoding should be faster than realtime, so for example an hour long program can be processed in a matter of minutes. By integrating with workflow systems, subtitle processing jobs can be made not only more efficient through increased automation, but can also be closely aligned and prioritised with the broadcast schedule. The subtitling solution should offer different methods to automate job processing: where the product is used manually in a post production environment, jobs can be submitted in batches for efficiency. At a higher level, it should also feature a flexible Software Development Kit (SDK), providing an extensible interface that allows integration with virtually any automation or workflow system. At the core of an integrated subtitling solution, a sophisticated subtitle transmission unit can play a pivotal role and become more a master caption management platform, driving off-line caption insertion (early binding), identification and playout of late and/or near live caption files and switching of live input. With the right blend of integrated technologies and expertise, multi-lingual subtitling in file-based workflows can be made more efficient and cost-effective. Sam Pemberton is CEO of Softel.

FEBRUARY 2010 017

OPINION

GOING GLOBAL

Until the region is generating significantly higher levels of content for the international market, the Middle East broadcast sector needs to consider what else it can offer the global industry.

ndia has established itself as one of the most successful destinations for outsourcing of all kinds. In the media and broadcast industry the country has enjoyed a vast amount of animation and post-production work from clients all over the world. While the Middle East may struggle to offer a lower price than competitors in India it could perhaps offer clients more value. The region has the distribution capabilities, the technical facilities and a vibrant advertising industry to offer broadcasters all the services they might need in one place affording them greater control of each stage along the chain. Other destinations – not just in India but across Asia and East Europe too – are also competing for outsourcing work from the big Hollywood studios and other high-profile candidates. The Middle East needs to think about what else it can do to differentiate itself. One option would be to carve a niche for itself within the wider content industry. There are two clear areas that the Middle East could excel at. The obvious one is Arabic content, but its appeal outside the region is limited to a relatively modest number of Arabic speakers in other parts of the world. The other possibility is the mobile content business. Qtel and the Qatar Science and Technology Park (QSTP) recently agreed to work together to 018 FEBRUARY 2010

MIXED FORTUNES DVB-H services have suffered varying fortunes from one market to the next. The Middle East could be in a strong position to discover what works and what doesn’t.

90,000 Number of DVB-H subscribers in Austria in Feb 2009.

13.7 million Number of subscribers to free DMB services in South Korea.

create what they have termed a “mobile innovation ecosystem for the MENA region”. There is no reason why mobile content generation should not form part of that ecosystem. The Middle East has had a healthy mobile content business for several years with video increasingly becoming a component of these offerings. The impending DVB-H network in the UAE will only encourage this development. The country recently passed the 200 percent penetration barrier for mobile connections highlighting the appetite for all things wireless. With further investment from the broadcast industry, there is no reason why the region can not make its mark in developing new formats and contentbased marketing strategies. Consumers in the GCC are renowned earlyadopters when it comes to consumer technology making it likely that any content that is produced for mobile TV platforms will not go to waste. With the development of content comes the requisite distribution and marketing models required to connect it to the consumer. Many mobile TV services in other regions for example, have been unable to generate any significant information on consumer behaviour because uptake and usage were too low. If DVB-H and other mobile video services can gain traction they would provide the industry as a whole with valuable information on how to enjoy any success with the platform.

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INTERVIEW

STRONG SIGNALS With the Satellite MENA event making its return next month Digital Broadcast speaks to Michele Magnifichi, president of satellite service provider M-Three SatCom to gauge the industry’s fortunes after a tumultuous 2009. What is the scope of M-Three SatCom’s operations and services? We provide a range of services for the broadcasting sector. Through our teleport in Milan we have capacity on Hotbird and Eurobird 9. We provide DTH capacity as well as contribution services. We also offer DSNG services in SD and HD for live events in Italy and most parts of Europe. What is the background of the business? We founded M-Three SatCom in 2004 with our services on the Hotbird platform, then in 2006 we added the DSNG services. We had been doing some integration work at this time but then in 2008 we formalised it as a distinct operation within the business. We have been distributing Thomson/GV since March 2009, so we are still in our first year as an official distributor. Who are some of your clients and did this customer base change during 2009? We work with regional and international broadcasters such as BBC and the EBU and we also have a systems integration business – hardware integration – so we provide our customers with a turnkey solution for the digitisation of channels or headends. We are a distributor of Thomson/Grass Valley equipment and we can integrate RF parts also. What portion of your business is represented by the systems integration activities versus the traditional satellite services? We derive about 60 percent of our business from permanent satellite services, 15 percent from the DSNG and about 25 percent from the systems integration business. Has having the systems integration business

020 FEBRUARY 2010

M-THREE SATCOM Technical and uplink area, 24/7 monitoring, full redundancy DVB platform, SD and HD channel management Uplink station operating on Hotbird 8 (13°E), Eurobird 9 (9°E), W3a (7°E), W1 (10°E), EB4 (4°E), AB1 (12.5°W) Fibre access nodes throughout Italy and Europe, PoPs in Milan, Venice, Rome, Bari and several others Full HD TV uplink quality available Equipment supply and systems integration; partnerships with several major manufacturers

helped during the economic downturn? Yes absolutely, diversification is very important. The permanent satellite service segment of the business is very strong. Our agreement with Hotbird is a long term contract and the capacity we have on that platform allows us to secure a significant part of our revenue each year. We are now trying to establish three parts to the business. Having the ability to integrate means we have been able to attract some new and regular customers. For example, last year we provided all the system for the distribution of the (sounds like) digital bouquet for one of the national broadcasters in Italy, Telecom Italia Media. This has been a very important deal for us. Who have you been working with in the Middle East? We have signed some customers in Lebanon and Saudi Arabia for VSAT services. But this is not our main focus for the Middle East. We want to go into the region market and compete on price for the provision of the live coverage of events in Italy and surrounding countries including France and Austria to Middle East broadcasters. This includes coverage of sports, news and also large concerts. What will you be looking to show-off at CABSAT and how does this affect your plans for the region in the next 12 months? We will be co-exhibiting at CABSAT with one of our partners Elber – which manufactures microwave bridges – and so a big part of our goal at the show will be to educate the market about what we can do in terms of digitalisation. Our partner companies are well established in the Middle East and we are confident we can expand our turnover in this part of the business.

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COVER STORY

ANOTHER DIMENSION HD looks set to take hold in the Middle East in 2010, but with 3D networks being announced last month in other markets, should the region try to play catch-up or consolidate its HD offerings? Digital Broadcast reports. 022 FEBRUARY 2010

ast month Avatar cemented its box office success by becoming the biggest selling movie of all time overtaking Titanicâ&#x20AC;&#x2122;s 12year record of US $1.242bn. The opportunity to spread the 3D message against the big, bold, blue backdrop of Avatar has proven impossible for others to resist. The annual Consumer Electronics Show (CES) in Las Vegas last month was dominated by a raft of 3D stories and innovations that triggered a mass of mainstream press coverage discussing 3D TV and its seemingly imminent arrival. Pay TV operator Sky in the UK and a consortium consisting of Sony, Discovery Communications and IMAX in the US both declared plans for 3D services this year, although other sectors of the industry are far more non-committal to the format and are

quick to highlight the numerous challenges that lie in its path. Meanwhile in the Middle East, it appears that HD services are finally finding traction with the recently re-branded Orbit Showtime Network (OSN) expanding its HD channel offering and the promise of more HD channels in the region from several other operators including Al Jazeera, Rotana and Abu Dhabi Media Company. If HD infrastructure investment is about to see a serious spike, you could be forgiven for glancing at the 3D developments in other markets and wondering whether full-HD is still an adequate level for broadcast facilities to attain when looking to complete an upgrade. Should the Middle East jump on the 3D bandwagon and start investing now, is the seemingly www.digitalproductionme.com

COVER STORY

endless transition now advanced enough to allow this next phase of development and ultimately, do consumers really want 3D TV or are they simply blinded by the Avatar effect? This month, Discovery HD launches on OSN. Discovery has been at the forefront of HD broadcasting for several years, says Caleb Weinstein, senior vice president and general manager of Emerging Markets, Discovery Networks EMEA. “This was a huge innovation that our founder and chairman John Hendricks led with the introduction of Discovery HD Theatre in the US back in 2002,” says Weinstein. “He captured what HD is about for consumers and the Discovery brand; delivering quality programming and bringing audiences something that is new and amazing. “There is a different HD culture at Discovery that I saw for myself when I joined last year. We don’t talk about whether our programming is in HD, we talk about whether it was shot in Gold, Silver or Bronze standard HD. We have a more advanced perspective than the rest of the industry out there,” claims Weinstein. Discovery has moved on from its early forays into HD broadcasting offering a number of its other branded channels in HD in other markets. However, Weinstein does not believe the Middle East is quite at this stage yet. “This is certainly the next step but it will be driven by market demand. Right now, we have to meet the needs of our distributors. Typically the main brands such as the Discovery HD showcase channel come first. These are channels that the operators can launch their HD platforms from. This

is what OSN is looking to do in the Middle East and what MultiChoice South Africa did late last year,” says Weinstein, adding that the early days of HD deployment also fulfil an important role in demonstrating the capabilities of HD to consumers and offer encouragement to subscribe to the services. “The development of the Discovery HD Showcase was driven by consumer interest. We also have to look at what the distributors are offering. For us, it is consumer first with everything that we do and what we were seeing was that consumers wanted something to demonstrate the power of HD in a new and distinct way,” claims Weinstein. Discovery Network’s parent company may have announced its move to develop a 24/7 3D TV network in the US, but is there a substantial market for 3D broadcasting outside the United States? “Absolutely. We’re currently evaluating the potential of 3D globally. The CES announcement created a lot of interest in 3D and we’re now in the process of gauging this interest around the world and working out how best to serve it for our distributors. “In the same way that we innovated in the HD arena, Discovery is really looking to innovate 3D TV in the same way. We are, and have always been, a leader in HD and we feel that our programming lends itself very well to 3D so we will be able to capture the power of the 3D experience for consumers,” claims Weinstein. With HD services still in the early stages of development in the Middle East, some may argue that broadcasters should be thinking about 3D now. But with the technology relying heavily on an established, underlying HD infrastructure (for

…There is still a lot of value to be had for HD platforms. So, although we are in the first stages of 3D TV and it is very exciting, HD is here now, its very powerful and consumers are demanding it. CALEB WEINSTEIN Senior vice president and general manager of Emerging Markets, Discovery Networks EMEA

3D DEMOGRAPHICS THE AGE DIVIDE Ipsos MediaCT’s recent MOTION study has identified a skew in interest for 3D video viewing among people in the 18-34 age group, with TV screen and PCs the preferred viewing medium. When asked how interested they are in viewing 3D video on various devices 58 percent of 18-24 years olds said they were extremely or very interested in watching 3D on a TV with 49 percent of 25-34 year olds giving the same answer. Just 18 percent of the over 55s indicated a desire for 3D content on the TV screen. Interest in 3D on mobile phones and MP4 players drops off in all age groups with 27 percent of 18-24 year olds indicating an interest and only one percent of the over 55s keen to see 3D on a mobile device.

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SOURCE: Ipsos MediaCT

On your TV On your PC

On your MP3 player/iPod

On your mobile phone or Smartphone

4OTAL

3D Video Viewing Interest - Percentage Extremely/Very Interested (October 2009)

FEBRUARY 2010 023

COVER STORY

Research firm In-Stat has estimated that the European market for Ultra-Hi Definition (UHD) nudge five percent in 2021 jumping to 28.2 percent in 2025. UHD – sometimes referred to as Super Hi-Vision – will offer viewers 4k and 8k resolutions (3840 x 2160 and 7680 x 4320 respectively) and a 22.2 multichannel surround sound in three dimensions (via ceiling mounted speakers pointing down). This resolution represents an improvement of between four and sixteen times the quality of Blu-ray and full 1080p HDTV. Broadcasters will start offering UHD content in 2017, according to the report. Early UHD work is being carried out by NHK in Japan with the format expected to develop earlier in the AsiaPacific region with Japan in particular leading the way. The report also suggests that high resolution digital cinema could play an important role in exposing the public to high resolution content and developing demand for the same experience in the home.

024 FEBRUARY 2010

CLEARLY DEFINED FUTURE

DON’T FORGET ULTRA HIGH DEFINITION

3D TV dominated the headlines at the recent CES show in Las Vegas. The announcement of several 3D channels could bring the technology to the home.

consumers and broadcasters alike) it may not be wise or indeed possible to make the move from SD to 3D without all the stages in between. “I think HD is the natural step in the evolution,” says Weinstein. “It is hard to buy a TV today that is not HD enabled and we’re not at the same level of penetration for 3D. This means there is still a lot of value to be had for HD platforms. So, although we are in the first stages of 3D TV and it is very exciting, HD is here now, its very powerful and consumers are demanding it. We are meeting that demand now and we hope to do the same for 3D. Although it is important to note we are still at an early stage.” The case for 3D is undeniably strong but this cannot overrule the realities on the ground in the Middle East. “The Middle East should concentrate on HD. I don’t see any possibility of 3D coming to the region inside the next three i years,” says Manaf y Ahammed, director of A operations at Taj TV. o “People have already invested in LCD TVs. i At A the moment to get a full f HD-enabled screen you y have to pay at least US U $1000 and what do the t public get for that? There aren’t enough HD H channels here and Blu-ray discs are very B

expensive, so there are very few options facilitating HD content,” he adds. With talk of HD infrastructure and production stretching back for several years (The Dubai World Cup horse racing event was filmed in HD way back in 2004), why has it taken until 2010 for a meaningful number of HD channels to aggregate? Ahammed suggests it is purely an issue of economics. “I feel the broadcasters have been calculating the revenue they will get from HD and how quickly they are going to get a return on their investment. They need to figure out how much they can recoup from offering an HD channel and what adjustments it may need for the subscription fee,” says Ahammed. “If the public are not interested in paying extra for an HD signal, the broadcasters will wait. Once that figure comes to a significant level, and the operators see some serious revenue to be had, then the transition will happen very quickly.” Ahammed believes that this switch is likely to be limited to pay TV platforms, with cable based services able to offer superior quality. FTA operators are also unlikely to recoup the cost of HD broadcasting from ad sources alone. “There is also the issue of receivers. Pay TV companies can provide their customers with HD enabled set top boxes (STB). A FTA channel can only broadcast to the HD subscribers plus those FTA viewers who have purchased HD STBs themselves,” says Ahammed. “Where the general public is concerned, setting aside those who are more tech-savvy, HD simply www.digitalproductionme.com

COVER STORY

means a better picture, that’s all. They don’t think According to Ahammed, the cost of the Philips about the need for bandwidth, they are not aware screen was a staggering $14,000 – price that is of the need for a different STB. The costs add up, almost totally prohibitive. the HD screen itself, the new STB, the monthly There is also one crucial difference between HD subscription fee… Consumers and broadcasters are and 3D content. of the same mindset with HD, until they see some “There is a legacy issue with 3D material. For value in it they won’t make the leap.” example, you can take an old movie and convert it Ahammed also paints a realistic picture to HD, but 3D conversion is not as successof 3D’s short-term prospects in the ful. Although 3D effects can be created Middle East. from 2D content, to get real 3D it has “The problem is that 3D is still to be filmed that way. Converted The percentage of in the process of evolution. It is content is far inferior.” screens sold in 2015 that not convenient to watch a 3D TV For this reason, 3D movies and will 3D enabled, accord- entertainment channels will be at the moment because of the ing to Futuresource glasses. Philips produced a 3D unable to rely on existing content. Consulting. display that did not require glasses Given this harsh reality, Ahammed but it was dependant on you sitting at suggests live events will be key for 3D. a specific position from the screen. The “When you add it all up there are issues technology is not perfected yet. It would be wiser with cost, content and technology. ESPN will to wait until a finished, convenient version of 3D TV show the World Cup in 3D and I have no doubts it is developed before we pursue it and in the meanwill be amazing,” says Ahammed. “But it doesn’t time we can go ahead and work on developing HD.” mean everything has to be 3D from now on. CinThe problems with 3D TV are threefold; cost, emas have enjoyed a lot of success with 3D films content and technology. but people are still flocking to see movies in 2D.”

30 %

ESPN will show the World Cup in 3D and I have no doubts it will be amazing. But it doesn’t mean everything has to be 3D from now on. MANAF AHAMMED Director of operations, Taj TV

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TECH FOCUS

COMMERCIAL BREAKS

Interactivity, targeting and on demand platforms have contributed to the growing complexity of the TV advertising landscape. Although new revenue streams have been created, tapping into these requires broadcasters to invest time and money. Digital Broadcast investigates.

randed content, series sponsorship, product placement, call to action, interactivity, targeted advertising… the list of options for advertisers is growing all the time. Broadcasters that rely on advertising are now being asked to provide a lot more for their clients than a prominent 30 second ad spot. “The handling of ad sales became much more complex,” says Dr. Siamak Tadjiky, vice president broadcast management systems, S4M. “This is due to several factors. For example, nowadays there are many competing platforms growing in importance. Given the current economic situation, broadcasters are forced to make as much money as possible out of the available air time. All of this makes the handling of ad sales more challenging than it was a decade before,” adds Tadjiky. This added complexity brings with it the need for new skills and technology to enable broadcasters to provide the new opportunities that advertisers are demanding. “On one hand, with the advanced technology available today, it is much easier to guide the audience than it was compared to ten years ago,” claims Saad Mouneimne, VP Middle East & Asia, never.no. “At the same time, ad sales that were traditionally destined for the broadcaster are now being divided among other platforms. Now broadcasters have to attract both the advertisers and the consumer by offering top-notch, effective technology. Today, most people are connected in some shape or form during a large part of their day, which creates huge potential to cleverly engage these users, but it is far more complicated.” Several developments have enabled these new

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FEBRUARY 2010 027

TECH FOCUS

VOD DRIVES ADVANCED AD MARKET A recent report by In-Stat found that the market for advanced advertising is already growing dramatically in response to the shifting landscape evidenced in both the online video market and the pay TV world. In-Stat predicts that the advanced video advertising market will be worth US $5 billion by 2013. As well as the emergence of significant online content services such as Hulu, the study expects pay TV operators to embrace new forms of advertising. “The online VOD industry has the early lead for delivering advanced video advertising, but the pay TV industry is moving quickly and will surpass broadband VOD by 2012,” says Gerry Kaufhold, In-Stat analyst. “Because pay TV services deliver qualified, repeatable audiences, we expect them to be able to negotiate higher CPM fees than online services.” 028 FEBRUARY 2010

technologies to emerge. The popularity of SMS messages has done much in terms of allowing viewers to sign-up to a campaign but it is two-way communication, regardless of the infrastructure underlying it, that has had the biggest effect on the inventory available to those looking to spend their ad dollars. “Yes, the possibility to interact through a simple SMS response to an ad is very effective. Feedback in return for free samples gets viewers involved and allows advertisers to target these potential customers directly,” says Mouneimne. “Two-way communication between consumers and advertisers is now more tailored to individual requirements. This trend will continue to spread to the Middle East, thanks to the technology now widely available. Broadcasters can integrate interactivity into their routine advertising schemes. Interactivity is key in regions with large cultural diversity, allowing advertisers to better target the consumer’s specific needs.” With budgets for technology infrastructure suffering as a result of the downturn, any investment broadcasters make will be expected to offer fast and attractive rates of return. With spot advertising being the mainstay for FTA channels for so long, technical heads have to be sure that the outlay will recover its own cost. “Broadcasters are convinced it’s worth it,” says

Jeff Tyre, director of product marketing, RGB Networks. “Having said that, they’re being very deliberate in rolling out advanced advertising applications and taking their time to get it right the first time. “From an equipment standpoint, there’s also a desire to keep the number of components down to keep both costs and complexity manageable. As a result ‘all-in-one’ products – which combine ad splicing, overlay and other video processing applications – are seen as ideal for reducing the cost and simplifying the implementation of advanced advertising techniques. Additional components such as advertising servers and character generators are required, but broadcasters and pay TV operators typically have them already,” says Tyre. S4M’s Tadjiky says that the needs of advertisers will vary from campaign to campaign and the infrastructure that the broadcasters invest in should reflect this. “A very important issue is the provision for even more flexibility. Customers want to be able to act independently. They want to develop applications or let third party companies do so, and they want to customise sales systems themselves,” something he says S4M looks to address. In addition to the technology required to support targeted and interactive advertising, there is also an increased demand for accurate data on

The extra revenues gained from advanced advertising have provided good returns on the investment required to operate them.

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TECH FOCUS

Up until now the response and the measurement of the effectiveness of an ad campaign has been done through panelbased measurementâ&#x20AC;Ś This is by no means anywhere close to the reality, but it is the best effort today in the industry. PAUL HADDAD VP and general manager of Media Data and Advertising Solutions (MDAS), Concurrent.

which this targeting can be accurately â&#x20AC;&#x201C; and usefully â&#x20AC;&#x201C; based on. â&#x20AC;&#x153;Up until now the response and the measurement of the effectiveness of an ad campaign has been done through panel-based measurement,â&#x20AC;? says Paul Haddad, VP and general manager of Media Data and Advertising Solutions (MDAS) at video and data management services provider, Concurrent. â&#x20AC;&#x153;In the US, these samples are typically 30,000-40,000 households for a population of 300 million. The results are by no means anywhere close to the reality, but it is the best effort today in the industry. â&#x20AC;&#x153;The advertisers are now asking for much more detail. Who watched what? How often? How effective was it? They also want to know how much money to spend on TV, how much do they migrate to mobile and online advertising in the next few years. Thatâ&#x20AC;&#x2122;s why they want to see a lot more data about campaign effectiveness,â&#x20AC;? says Haddad. According to Haddad advertisers are also looking for an improvement in the methods used to gather this information. â&#x20AC;&#x153;As well as better quality, advertisers also want to know more. At the moment most of the

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FEBRUARY 2010 029

TECH FOCUS

In-home technology such as PVRs, coupled with the spread of two-way networks have enabled interactive and targeted advertsing to take a hold.

INTERACTIVE AD MARKET WORTH $4 BILLION IN US ALONE BY 2014 Research and consulting firm Parks Associates has predicted that the growth of US addressable, interactive advertising revenue will exceed $4 billion, accounting for around 12 percent of all pay TV revenues. “Major U.S. cable television operators, direct broadcast satellite (DBS) TV providers, and telcos have identified advanced advertising as a key revenue opportunity moving

forward,” says Heather Way, research analyst, Parks Associates. “In the short term, the digital TV operators will continue to ramp up their investment in advanced advertising solutions as a pre-emptive move to sustain their ad revenues. In the long term, the investment serves to grow the advertising business segment versus subscriptions.”

US ADDRESSABLE, INTERACTIVE TV ADVERTISING REVENUE(2010-2014)

(in millions)

Addressable, Interactive Ad Revenue

$5000

$0 2010

030 FEBRUARY 2010

2014

advertisers focus on the subscriber data only, it’s important to collect content data to go with this information,” says Haddad. “What does an individual viewer watch? How many people watch one specific programme? Which area do they live in? What kind of people are they in terms demographics? You have to focus on the content, when you marry these two kinds of data then you have a very beautiful picture of the relationship between the subscriber and the content.” Haddad believes that even this level of information can be built on to inform broadcasters and operators about how their viewers are consuming their services. Concurrent has an 80 percent market share for all data services in North America’s VOD market, a sector Haddad believes can yield valuable information for broadcasters and advertisers alike. “It’s important to know about the operational side, the performance. When a subscriber watches a movie using on demand you may wish to know whether they watched it in one sitting or in chunks? In SD or HD? You can also get information about whether the VOD content come when it was requested or if the session failed. “The final element is the advertising data. Does a viewer watch the ads or change channel? How many turn the ad off half way through and how www.digitalproductionme.com

TECH FOCUS

many click on the request for more information? This is real information about campaign effectiveness. So instead of only knowing what a viewer watched, we now have all this additional information that can advertisers use to provide more efficient advertising for all parties,â&#x20AC;? explains Haddad. This data has implications for the advertisers who can now fine tune their spending. Broadcasters can raise CPMs by anything

This trend [interactivity] will continue to spread to the Middle East... Broadcasters can integrate interactivity into their routine advertising schemes. Interactivity is key in regions with large cultural diversity, allowing advertisers to better target the consumerâ&#x20AC;&#x2122;s specific need. SAAD MOUNEIMNE VP Middle East & Asia, never.no.

Saad Mouneimne.

from a factor of two to a factor eight, depending on the level of targeting and interactivity, according to Haddad, but what does the viewer gain? â&#x20AC;&#x153;Advanced targeting techniques mean that the ads themselves will become more relevant to individual viewers,â&#x20AC;? says RGBâ&#x20AC;&#x2122;s Tyre. â&#x20AC;&#x153;For example, locally relevant information can be added to nationally broadcast ads. In this scenario, the addresses of local outlets of a national retailer can be sent to specific geographies.â&#x20AC;? This could mean that viewers in the Middle East can receive adverts specific to their nation rather than the frequently Egyptian and Saudi focused ads shown across the satellite footprint today. This kind of information can unsettle some viewers, creating questions over security. Haddad claims that Concurrentâ&#x20AC;&#x2122;s combination of automatically swapping the MAC address of a STB with an arbitrary identifier effectively camouflaging the identity of that subscriber. â&#x20AC;&#x153;Anything related to data that is collected at a user level, is filtered for privacy, in order to meet privacy regulations. We have no visibility to the account information or who owns that STB. Our systems filter that out,â&#x20AC;? assures Haddad.

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