THE BUSINESS OF DIGITAL CONTENT DELIVERY
An ITP Business Publication
NEWS BREAKERS
SAFE & SOUND
Al Jazeera’s pioneering approach to new media
Protecting multiplatform content in the digital age
TELECOM TRAILBLAZERS
How Etisalat and du are laying the foundations for media convergence VOLUME 2 ISSUE 11 NOVEMBER 2009
HIGHLY E VOLV ED ROI S T R AT EGY
The iguana is a modern-day descendant of the dinosaur, and has thrived in a variety of hostile environments for millions of years.
A HIGHLY EVOLVED STRATEGY FOR SURVIVAL Durable technology that exceeds your expectations – by years. Imagine that kind of return on your investment – and the savings that go straight to your bottom line. Irdeto creates integrated, end-to-end security solutions for any video platform, on any device. Ours is the best security record in the industry, with more piracy-free years and fewer smart card swaps than any other vendor. With 40 years of experience, no wonder more operators worldwide trust their ROI to Irdeto. Because our goal is to help you monetize your content… both the new releases and the long tail.
www.irdeto.com
CONTENT & BUSINESS MODEL PROTECTION BUSINESS SUPPORT SYSTEMS STB SOFTWARE SOLUTIONS SOFTWARE & DATACENTER SECURITY
CONTENTS
26
2 WEB HIGHLIGHTS Spot poll: Will you attend METV/ MEBS shows?; top web stories; editor’s choice: ask the expert.
6 THE BRIEFING Yahsat 1a launch delayed; Yahoo!-Maktoob deal nears completion; MENOS to expand.
12 SAFE & SOUND Conditional access vendors discuss content security beyond the STB.
26 COVER STORY: TELECOM TRAILBLAZERS Digital Broadcast speaks with telcos du and Etisalat about online video, broadband and IPTV.
40 MARKET ANALYSIS The global DTH market has been forecast to grow but will the MENA region be left behind?
ALSO IN THIS ISSUE...
21
32
36
EXCLUSIVE: AL JAZEERA
WIRED FOR SUCCESS
CODEBREAKERS
The Qatar-based news network reveals its strategies for the multiplatform world.
The IPTV World Forum MEA arrives during a flurry of recent developments for the platform.
Consumer’s ‘any device’ requirements can cause broadcasters encoding headaches.
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NOVEMBER 2009 01
DPME.COM ROUND-UP
The online home of:
MOST POPULAR STORIES
3
ETISALAT RAISES BAR FOR GCC BROADBAND UAE telco announces 30Mb/s connections in the Emirates as services commence on the telcos FTTH network. The company has set the target of full fibre coverage in the UAE by the end of 2011. digitalproductionme.com/news
READER COMMENT: “It’s nice that Etisalat is increasing its current bandwidth to support users that demand high throughput, but the prices are… too expensive for a majority of users.” Gladwyn, UAE.
4 5
Thorsteinson quits Harris Etisalat to launch GCC’s fastest broadband service du first to market with new iPhone in the UAE Regulator plans to register 200,000 .ae domains Al Jazeera Sport wins EURO rights till 2016
DATE: October 22
1 2
EDITOR’S CHOICE ASK THE EXPERT
VFX TECHNIQUES
ALSO ON THE DPME SLATE THIS MONTH...
MOVERS AND SHAKERS
Key GCC broadcast execs join the great employment merrygo-round.
SPECIAL REPORTS
GULFCOMMS ROUNDUP
News from GITEX’s telecoms strand including du, Inmarsat, Etisalat and Thuraya.
digitalproductionme.com/analysis
digitalproductionme.com/specialreports
TECHNOLOGY
HAVE YOUR SAY
PREPARING FOR 1080P
Future-proofing your production facility for 1080p/50 high definition video.
digitalproductionme.com/technology 02 NOVEMBER 2009
Suzzanne Rebello answers your queries about VFX tech and methods.
SPOT POLL DO YOU PLAN TO ATTEND THE MEBS/METV BROADCAST TRADESHOWS IN ABU DHABI?
PAPERING OVER THE CRACKS 34% Is Dubai’s live entertainment production industry starting to lose the plot?
digitalproductionme.com/haveyoursay
26% 22% 18%
Don’t know enough about either event to decide. Yes, I’m there! I’m considering it. No, I’ll save myself for CABSAT 2010.
DATE: October 22
ANALYSIS
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It’s VOD time.
Photo : Peter Muller - Getty Images VU DU TOIT
Ask your customers. Ask their kids. They want VOD, and they won’t take no for an answer. Viaccess provides a powerful range of flexible and secure solutions for user-friendly VOD services in a multi-network environment. http://www.viaccess.com
You can’t suppress a powerful question
Never stop asking 04 NOVEMBER 2009
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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 Art Editor Simon Cobon PHOTOGRAPHY Director of Photography: Sevag Davidian Chief Photographer: Nemanja Seslija Senior Photographers: Efraim Evidor, Khatuna Khutsishvili Staff Photographers:Khaled Termanini, Thanos Lazopoulos, Leila Cranswick, Ruel Pableo, Jovana Obradovic, Rajesh Raghav, Lyubov Galushko PRODUCTION & DISTRIBUTION Group Production Manager Kyle Smith Production Manager Eleanor Zwanepoel 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
WEB TV: NOW OR NEVER
I
t is difficult to identify the exact point in time when an emerging market officially becomes a developed one. When you consider the various content delivery networks, broadband, mobile TV, IPTV in the Middle East it is probably fair to say that satellite is the only fully developed platform. A number of announcements emanating from the GCC in recent months have suggested that broadband could be added to this (short) list during the next two years. Both UAE telcos have confi rmed that they will be increasing speeds and lowering prices (see cover story, pg 24) and Qtel is continuing to forge ahead with its own FTTH network. A recent report by InStat and Telegent predicted that Qatar, the UAE and Saudi Arabia would all have broadband penetration rates over 75 percent by 2014, with Qatar hitting 98.3 percent. The development of satellite broadband for those in the MENA region outside of the major cities and their FTTH networks, and the 75 percent mark begins to look achievable. The knock-on effect for content owners could be significant with channels opening up for web TV, online catch-up services, live streaming of special
events, content portals and all the associated subscription and/or advertising revenues. As the cost of broadband decreases and the total number of households with an internet service able to handle media-rich applications grows, a compelling case for online video content will develop. These opportunities have not been missed by entities outside of the region’s core broadcasters. Expect existing content services offered directly by the telcos to receive a boost. Handset manufacturers such as Nokia have already staked their claims in the local market. ADMC’s GETMO service, iTunes (for those with foreign credit cards), Xbox Live and Sony’s Playstation Network are all well-established in the local market. As the coverage and quality of broadband grows in the region, broadcasters must now play catchup in the online video market or risk missing out.
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.
Published by and Copyright © 2009 ITP Business Publishing, a division of ITP Business Publishing Group Ltd. Registered in the B.V.I. under Company Registration number 1402846.
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THE BRIEFING
GOOD MONTH YOUTUBE Online video giant YouTube has revealed its global viewing figures for the first time, claiming that daily page views exceed one billion. The monthly page view tally of 30 billion surpasses previous quantative measurements of YouTube’s reach. A total of 10 billion page views a month in the US had been calculated by comScore but this is the first time the company has revealed internal, global figures.
BAD MONTH MYSPACE The United States’ second most popular social networking site saw its market share in its domestic market fall by 55 percent year-on-year. Meanwhile, rival Facebook saw its market share grow by 194 percent during the year. MySpace is looking to reposition itself as a content provider according to Owen Van Natta, CEO, MySpace: “We’ll continue to bring more content onto the MySpace platform to help us become an important [online] content distribution platform.”
06 NOVEMBER 2009
BROADCAST BUSINESS
YAHSAT 1A LAUNCH PUSHED BACK TO 2011 Italian earthquake-hit factory delays manufacture of first satellite Yahsat’s first satellite launch has been delayed after a factory building components of the hardware was damaged in April’s earthquake in L’Aquila, Italy, Digital Broadcast can reveal. The quake claimed the lives of 308 people and also caused serious damage to the Thales Alenia Space factory. The company is part of the consortium building Yahsat 1a scheduled for launch Mohamed Yousif, CEO, Yahlive. in H2 2010.
“We have experienced some delays due to the earthquake,” said Mohamed Yousif, CEO of YahLive, the broadcast arm of Yahsat. “That has pushed back the launch of the satellite by a few months, it is now more likely to happen in early 2011 than late 2010,” claimed Yousif. Manufacturers usually provide windows for launches rather than specific dates given the complexity involved with both the construction of the hardware and the logistics of putting the satellite into orbit. “No one will know the exact launch date until nearer the time, but there won’t be any effect on the business, we are able to absorb it. These [delays] are always mitigated for. It is normal in the satellite industry,” said industry veteran Yousif.
MONTH IN NUMBERS
1170%
The 12-month audience growth of microblogging service Twitter in the US.
1.84%
The market share of Twitter among other social networking sites in the US.
PARTNERS TO EXPAND MENOS NETWORK Newtec and Arabsat confirmed plans to extend the ASBU’s MENOS content exchange network and a range of other commercial initiatives during the signing of a Memorandum of Understanding in Riyadh last month. The companies have agreed to collaborate on the development of a range of new products and services for the direct-to-home satellite television and broadband markets. The extension of the MENOS network will also see a migration of the existing service on Arabsat BADR4 satellite to the new Arabsat 5A satellite that is set to be launched in early-2010. “The signing of this MOU and purchase agreement marks another significant landmark in our growth
and ongoing commitment to our customers in the Middle East region,” said Serge Van Herck, CEO of Newtec. During the signing ceremony, Newtec will also present the IBC Innovation honour awarded to Arabsat and the ASBU for MENOS (Multimedia Exchange Network over Satellite).
Serge Van Herck, CEO Newtec.
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THE BRIEFING
PLATFORMS
YAHOO! NEARS COMPLETION OF MAKTOOB ACQUISITION Cost of Maktoob.com purchase by US giant estimated to total as much as $100 million
Yahoo! is keen to secure a foothold in the Arabic-language market and views Maktoob.com as the perfect partner.
Yahoo!’s acquisition of Arab internet portal Maktoob.com should be completed early this month, according to a figure close to the negotiations.
“We’re almost there, and the deal will be signed within the next two weeks,” said Hussein Freijeh, sales director, Maktoob.com. “There are some small technical issues holding it up, legal issues involving the splitting of the Maktoob.com entity from [its sister websites].” Following the eventual sale of Maktoob. com, the remaining Maktoob Group companies – including Souq.com, cashU.com, Araby.com, and Tahadi.com – will operate under a new entity called the Jabbar Internet Group. The value of the deal remains undisclosed, but analysts have speculated that it may be worth as much as US$100m.
Yahoo! has already announced it aims to deliver relevant Arabic-language content and services, as well as Arabic versions of Yahoo!’s popular Yahoo! Messenger and Yahoo! Mail services. Freijeh revealed that work is already underway on the Yahoo! Maktoob Arabic homepage, which will debut in the first half of next year. Maktoob.com currently has more than 16.5 million unique users in the Arab world.
LOOK WHO’S TALKING According to the World Bank there are more than 320 million Arabic speaking internet users worldwide.
QUOTE OF THE MONTH
It is increasingly the case that many of the lower [broadband] speeds offered cannot support much of what the user wants to do. KHALIFA AL SHAMSI, Senior vice president of marketing, Etisalat.
THORSTEINSON QUITS HARRIS Tim Thorsteinson has resigned his position as president of Harris Broadcast after four years in the job to “pursue other interests”. Thorsteinson’s tenure ended on October 31. The reason for the sudden nature of his departure remains undisclosed, but is evidenced by the fact Harris confirmed it was in the process of searching for a successor at the time of press. www.digitalproductionme.com
AL HURRA PARENT COMPANY LAYS OFF 100 PRODUCTION STAFF
AL JAZEERA SPORT WINS EXCLUSIVE EURO RIGHTS TILL 2016
Middle East Broadcasting Networks (MEBN), the company behind the Arabic language Al Hurra channel, has laid off almost 100 staff from its US-based operations. The channel enjoyed annual audience growth of more than 20 percent since launch according to Governor Joaquin Blaya (above).
Al Jazeera Sport has acquired the exclusive broadcast rights for the European Championships in 2012 and 2016, according to the tournament’s organiser, UEFA. The deal gives the broadcaster the Middle East and North Africa rights to both the international tournaments. NOVEMBER 2009 07
THE BRIEFING
PLATFORMS
ADMC FUNDS ONLINE PREMIUM MUSIC SERVICE Cisco’s Visual Networking Index Usage Data Source report collects information on the volume and usage of internet bandwidth from 20 ISP’s spread globally. The latest instalment reveals some surprising results about ‘internet peak time’ and the depletion of P2P traffic.
BY THE NUMBERS
RUSH HOUR
Network’s commercial arm could also run regional ad-sales business Abu Dhabi Media Company (ADMC) has invested in VEVO, a new premium music video and entertainment service, powered by YouTube. With this deal, VEVO becomes an independent and fully funded music resou rce
2100-0100
Internet prime-time usage occurs during a four hour period and represents a 17 percent rise in that location’s traffic and is significantly later than TV’ prime time of 1900-2300.
Ed Borgerding, CEO, ADMC and Imagenation Abu Dhabi.
1
25%
The amount of daily internet traffic that occurs exclusively during this prime time period.
RTW APPOINTS NEW R&D HEAD
The top one percent of broadband connections are responsible for more than 20 percent of the traffic. 08 NOVEMBER 2009
Source: Cisco VNI report 2009
1%
The percentage of total content available on the internet that is in Arabic. A new .emarat domain will be launched by the UAE TRA for Arabic users next year.
MOVERS & SHAKERS
22%
The fall (over two years) in the proportion of broadband traffic that is P2P sharing.
with Universal Music Group (UMG), Sony Music Entertainment (SME) and Abu Dhabi Media Company (ADMC) as its founding shareholders. VEVO will initially bring its premium music offerings to the United States and Canada with plans to launch at other global venues in the future. Rio Caraeff, president & CEO of VEVO stated that ADMC “brings to the venture important funding support and a team with enormous global media experience and insight”. “Consumer demand for music video entertainment is growing significantly today and is transforming the digital entertainment market and the music industry by fuelling new media business models. VEVO fits our vision and goals perfectly, as we are expanding our capabilities and continue to build the market for digital entertainment around the world,” added Edward Borgerding, CEO of ADMC.
Sound metering system developer RTW has appointed Jörg Striegel as head of research and development. Striegel comes to RTW from Hewlett Packard and Agilent Technologies where he served for more than six years as research and development project manager, leading teams focused on measurement devices and systems in the logic and protocol test department. Striegel is charged with driving innovation at RTW.
NEVION APPOINTS MEA MANAGER Suresh Akkappilly joins Nevion as sales manager for the Middle East, Africa and the Indian subcontinent. Akkappilly brings more than six years’ experience in IP networking. He has previously worked for a number of major networking companies including Tektronix and Consultronics, and as a team leader on deputation with Huawei for its Batelco MSAN project implementation and migration.
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THE BRIEFING
UAE TRA CHIEF CONFIRMS SKYPE BAN COULD BE LIFTED
The forthcoming Middle East Broadcast Solutions/ Middle East Television (MEBS/METV) industry conventions in Abu Dhabi have received a major boost with the capital’s content creation precinct twofour54 confirming its involvement as headline sponsor of both events. Twofour54 CEO Tony Orsten said the organisation’s support for the shows reinforced its “commitment to support the development of a sustainable Arab media and content creation industry”.
The UAE Telecommunications Regulatory Authority (TRA) is in discussions with the federation’s two service providers to introduce VoIP, or voiceover-internet-protocol (VoIP) services, TRA director general Mohamed al-Ghanim has revealed. Licensing issues are the reason for the ban and the authority will “upgrade our VoIP policy soon,” al-Ghanim said. “There is a tariff-fee balancing issue that we need to address as well because of subsidies,” he added.
BROADCAST BRIEFS
TWOFOUR54 NAMED HEADLINE SPONSOR OF MEBS/METV
TAMS SEEKS PERMANENT BASE IN AFRICA Dubai-based Tech Access Media Solutions (TAMS) has revealed its intention to develop a fixed presence in Africa as it looks to exploit existing content rights relationships. The media arm of the regional IT giant Tech Access was launched during the summer and is already looking to expand its geographic reach into Africa. “We are interested in the operators like MTN and Vodafone,” said Adrian Wood, general manager, TAMS. “The key issue for us to is to put the right people and resources in North and sub-Saharan Africa. It’s unrealistic to think we can continue doing everything from our base in Dubai.”
MOBILE TV MARKET MOBILE TV HAS HUGE GROWTH POTENTIAL IF HANDLED CORRECTLY: REPORT The recent Global Mobile TV Forecast to 2013 by market research firm RNCOS suggests there are a number of opportunities for mobile TV globally. The study estimates a CAGR of 46 percent between now and 2013 for mobile TV revenues. According to RNCOS this growth will create opportunities for key players including telcos, handset manufacturers and content owners.
The report concludes that despite the vast differences in the success of mobile TV launches thus far, there are some common factors in those that have done well. RNCOS identifies varied pricing models and the broad availability of handsets that support quality widescreen pictures at high data rates as the key factors for successful service launches.
QUALCOMM CHIEF CALLS FOR SMARTPHONE INNOVATION Chipset manufacturer Qualcomm has called for the mobile handset industry to pull together and take advantage of a rise in spending on mobile devices in the UAE. “On average, since April this year, spending in the UAE across all segments of the handset market has increased by about 5-7 percent, and we need
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to take advantage of that increased spending among consumers,” said Jay Srage, vice president MENA, Qualcomm. Two factors are expected to influence the adoption of smartphones in the region, one of which is the rollout of 3G networks. The second factor is services, with operators promoting more advanced solutions in the realm of media, such as video and music downloads, and location-based services.
DU PIPS ETISALAT TO UAE IPHONE RELEASE Du announced that it will make the new iPhone 3GS mobile phone available in the UAE before the beginning of November, scoring a win against rival Etisalat that announced its own release shortly afterwards. “Du and Apple have reached an agreement to bring the iPhone to the UAE by the end of October,” du said in a statement. It declined to comment on the cost for the units. NOVEMBER 2009 09
VOX POP
SAFE & SOUND New content delivery networks are expanding the scope of content protection required by broadcasters. We spoke to some of the leading CA vendors to find out how these emerging platforms are shaking up the CA business.
TEAMWORK IS KEY GRAHAM KILL CEO, Irdeto. It’s difficult to grant the title of the ‘most secure’ to one single platform as the level of security is a combination of the nature of the network and the conditional access (CA) that is applied to it. The level of security required is not solely determined by the platform in use, mainly because different platforms require different – but often equally complex – methodologies to implement and maintain security in the fi rst place. One-way distribution networks like satellite and terrestrial, for instance, require the highest possible level of security technology plus the capability to make over-the-air changes where needed from the head-end. Networks that allow bi-directional traffic, like cable or IP, enable security technologies that use frequent online checks and updates. We may not see much piracy on IP platforms but this is due to the fact that the pirating of them is not commercially attractive as they do not hold the premium content or the large subscriber bases that we see elsewhere. The actual challenge is to keep the platform secure enough at all times to ensure no one can make a viable business model out of piracy. One of the biggest threats we see in the pay TV industry, for instance, is control word sharing piracy. In this instance, pirates steal the ever012 NOVEMBER 2009
We see some requirements from the studios about content protection when contracts are negotiated with broadcasters. There is not much studio involvement afterwards. GRAHAM KILL CEO, Irdeto.
changing control word (or scrambling key) that is passed between the smart card and the set-top box and re-transmitted over a network to other client devices. The key here is breaking the pirate’s business model, thus reducing the value in hacking devices/content in the fi rst place. The best way to do this is to deploy over-theair card swaps to instantaneously put a stop to any illegal activity, which is the approach taken by Irdeto. Physical card swaps are considerably more costly and aren’t as effective as mitigating a pirate attack in progress. Operators and security providers should also work closely with local law enforcement to quickly catch and prosecute pirates. We see some requirements from the studios about content protection when contracts are negotiated with broadcasters. There is not much studio involvement afterwards. Internet video sharing sites use watermarking technologies to identify the original source of uploaded material. This has created advertising opportunities for uploaded content. Creators of content have leveraged the knowledge that a particular piece of content has been uploaded as a means of creating advertising opportunities around the content when it is viewed. The online video advertising revenue takes the edge off the problem. www.digitalproductionme.com
VOX POP
LESS STICK, MORE CARROT GRAHAM TURNER VP strategic marketing, Nagravision.
FIGHT IT, DON’T POLICE IT ANDREW PONS Marketing manager, Latens.
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CAUGHT RED-HANDED Conditional access developers are increasingly asked to combat piracy on traditional and new media platforms. A report by market research firm In-Stat has found that digital watermarking technologies are becoming increasingly popular. The technique enables rights owners to track the source of rights-protected material that finds its way on to video upload websites. Unfortunately, the technology can only be used to act against offenders rather than offering any pre-emptive protection against revenue loss.
14 billion
The number of videos downloaded over broadband connections in the US.
85%
The percentage of those videos that are downloaded illegally.
$2.5 billion SOURCE: In-Stat
Technically, IP is more secure, but it also depends on the security technology deployed, there are some weak technologies out there which are making piracy easier than it should be. Also, as a two way network IP allows for more active monitoring of the distributed content. It should not really matter what the distribution platform is, if there is an appropriate anti-piracy strategy and robust conditional access solution in place, any TV distribution platform can be secured. Nothing is 100 percent secure, every signal has some level of vulnerability at some point. The key is the robustness of the security system in place, how recoverable the security of the content is and how difficult it is to distribute once it is hacked. The key to the business is to minimise the financial effect of any piracy to the operator.
Currently, the industry is playing an active policing role with companies such as AAA, but some of the technology operators invest in such as watermarking is not only expensive but effective too late in the chain as the value of the content has already been lost. It is important that the industry looks to and invests in future advancements and technologies that will help prevent piracy rather than police it. Internet video sharing sites could take a more proactive instead of reactive approach to policing the content posted on their own site. Many of these sites remove content when asked to by the rights owner. However, by adapting technology available today, and investing in more effective content monitoring solutions, the video sharing sites should be able to vet content before it is put on their sites. The content creators and studios face a difficult task, as it is almost impossible for them to actively monitor their whole content chain.
DIGITAL WATERMARKEING
All forms of content distribution can be pirated. The real question is what is the balance between cost of protection and the level of protection afforded? The inherent two-way nature of IPTV connections means that there are a variety of techniques which can be used to help protect the content, and it is therefore possible to reduce (not remove) the amount of security hardware compared to what is needed for a one-way satellite system. Th is means that for an IPTV system, essentially the same level of security can be provided as for a satellite system, but at somewhat lower cost. Some of the problems being faced by the industry now are related to problems with
legacy set top boxes, which allow pirates access to signals enabling them to compromise broadcasts. Expensive though it would be, replacing these legacy boxes with more modern, better protected boxes would help to reduce certain forms of piracy. Unfortunately, the content industry’s support tends to be in the form of a stick, threatening to punish broadcasters that may be suffering piracy, rather than necessarily helping them in their efforts to track down the perpetrators. Often these people operate on a world-wide basis, which can make it more difficult for one broadcaster to achieve any success in defeating the pirates. The challenge is the sheer quantity of copyrighted content which needs to be protected, and to be protected it fi rst needs to be detected on video sharing sites. Blockbuster video is now being provided to some sites so that they can compare what is on their site with that master material, and look for matches and so detect illegal copies. However enterprising pirates have been making slight alterations, such as posting material upside down so that the comparison algorithms fail to detect a match.
The revenue from subscriptions and advertising that would be recouped if the most frequent P2P users migrated to legal sources. NOVEMBER 2009 013
REGIONAL PROJECTS
BROADCAST BROKERS A number of done deals and upcoming projects have been announced by the region’s broadcasters and telco operators in recent months. Digital Broadcast showcases some of the top deals, installations and tenders of the past few months. UAE
YAHSAT BUILDS EARTH STATION FROM GROUND UP upcoming fleet. So far the facility is on It is 18 months now since UAE-based sateltarget to go online in time for the company’s lite operator Yahsat announced that it had first satellite launch in early-2011. secured $1.2 billion in financing to begin putting it plans into operation. Yahsat must complete the earth Following a string of announcestation before the Q1 2011 launch ments regarding the company’s busiof its first satellite. ness operations, opportunities are now arising for technology vendors. Last month, the company revealed a $46 million deal with ViaSat to provide infrastructure for its satellite broadband service YahClick. Yahsat is constructing a brand new ground station to support its
The Bahrain government is investing in HD broadcast infrastructure.
SAUDI ARABIA SAUDI TV MAKES MAJOR INVESTMENTS The state broadcaster is in the process of a major upgrade of radio and TV production infrastructure as well as archiving and transmission facilities. The Ministry of Culture and Information (MOCI) is also migrating its facilities to HD and initiating a digital terrestrial network. With TV and radio production facilities in seven of the country’s 13 provinces,
014 NOVEMBER 2009
the objective is to have a comprehensive, albeit smaller operation in each of the 13. “We already have facilities in a number of locations,” explains Dr. Riyadh Najm (pictured), assistant deputy minister for engineering at KSA’s MOCI. “Our plan is to build a model HD production facility with one TV studio, one radio studio and editing facilities in each of the other main provinces plus Tawuk, Hail, Jazan, Baha, Najran, Arar and Joaf.”
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REGIONAL PROJECTS
QATAR AL JAZEERA SPORTS UNDERGOES EXPANSION Al Jazeera Sports announced its intention to launch seven new TV channels – including two in HD – as well as two radio stations in July of this year. Now the network has officially released the tender for the installation of a complete SD/HD news studio, 11 editing suites and a presentation room. The studio will include four sets that can be used simultaneously, according to the tender, which also includes requirements for five HD/SD digital cameras with complete camera support and robotics facilities. Al Jazeera Sports has the broadcast rights
to a number of high-profile sporting events including the UEFA Champions League and European Championships, which it recently secured until 2016.
SYRIA STATE TV NEWSROOM UPGRADES TO TAPELESS WORKFLOW State broadcaster Syrian TV recently upgraded its newsroom facility to a tapeless workflow. The installation was part of a wider revamp at the network. The broadcaster opted for a VSN newsroom solution with Miranda graphics, Evertz multiviewers and a raft or production equipment from Sony. The $7 million project was carried out by Qatar-headquartered systems integrator Salam Media Cast. The new facility, which went live in September, has been designed for maximum flexibility to allow easy upgrade and expansion.
BAHRAIN BRTC GOES AUTOMATIC The Bahrain Radio and Television Corporation (BRTC) recently upgraded to an automated playout system with the option for HD transmission in the future as and when required. The investment included an Omneon Spectrum server with an initial capacity of 600 hours, Pebble Beach automation, a BTS traffic management system and graphics by Miranda. BRTC announced in July that it lpanned to overhaul its branding and content lineup as it looked to increase its audience share domestically and across the region as whole. It also issued a tender earlier in the year for DVB-T transmission equipment signalling its intent to follow the same digital terrestrial path as neighbouring KSA.
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IRAQ MOBISION STRENGTHENS DVB-H NETWORK The region’s first DVB-H service went live in the country earlier this year. Since then there has been a continued effort to reinforce and expand the coverage of the network itself. Last month the company revealed it had deployed five Atlas DVB-H gap filler units. Further investment in transmission infrastructure could be likely with plans to
expand the reach of the service in other parts of the country, revealed by Mobision. Jad Atallah, technical VP, Mobision.
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OPINION
TV’S NEW REALITY T Technology has boosted creative options, opened new delivery platforms and enabled interactivity. Despite this, it is entertainment value that is the driving force behind successful broadcasting, writes Caleb Weinstein. here’s no doubting the impact of new technology on traditional media. These platforms have evolved and transformed themselves while taking advantage of the plethora of new opportunities technology presents in reaching their target markets. And rightly so, for consumers no longer want to be silent bystanders; they want to be involved, participate and feel as though the medium really touches their lives. This changing landscape has opened up a new world of possibilities for broadcasters in particular, who now have the opportunity to introduce larger than life content to viewers with excellent visual quality and outstanding sound through high definition technology. While mobile phones and the Internet offer new viewing platforms for TV content, they’re also redirecting the way we communicate with our viewers, providing for instant programme feedback via SMS and increased interactivity through online sites. We’ve noticed, for example, Discovery viewers actively pursue behind the scenes footage from our shows, question and answer sessions with our hosts and discussion forums with other viewers, where they debate the latest episodes. These new media channels are critical in sustaining the viewing experience and actually work handin-hand with the broadcast content and not against it, as was initially feared.
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These new media channels are critical in sustaining the viewing experience and actually work hand-in-hand with the broadcast content and not against it, as was initially feared. CALEB WEINSTEIN Senior vice president and general manager, emerging markets - EMEA, Discovery Networks.
Advances in broadcast technology specifically are facilitating radical new approaches in gathering content, further heightening this experience. Mini cameras and destructible cameras mean we can take viewers closer to the action than ever before. Added to this is the growing phenomenon of citizen journalism. Viewers are taking quality footage as eyewitnesses, complementing the professional footage we use for particular shows. This has worked incredibly well on series like Destroyed in Seconds and Untamed and Uncut, and speaks to the absolute interactivity TV is able to offer audiences. Interactivity has been long been a buzzword synonymous with the future of TV. Developments such as Internet applications for digital TVs, TV on demand and 3D TV are not far off, with some manufacturers claiming we could see such devices being introduced as early as next year. While that may be the case, the true power of TV – the very essence of the medium – lies in its entertainment value. Content still has to remain relevant. It still has to offer viewers captivating programmes complete with compelling stories and spectacular cinematography in order to offer value. These are the cornerstones of Discovery’s broadcast philosophy. For without this, all the new technology in the world means nothing. Caleb Weinstein is the senior vice president and general manager, emerging markets - EMEA, Discovery Networks.
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INTERVIEW
SHOWING THE WAY Two new events Middle East Broadcast Solutions (MEBS) and Middle East TV (METV), take place in Abu Dhabi this month in conjunction with twofour54. Neil Manwaring and Dominic McGill, managing director and chairman (respectively) of organiser Nexus Global Events discuss the shows’ impact on the broadcast market. Has the recent flurry of media activity in Abu Dhabi added to interest in the shows from international markets? Neil Manwaring: The international market has been very excited by the recent developments across the MENA region. Abu Dhabi’s structured investment in the industry has been a positive move in a very challenging year and – crucially – it is being driven by industry experts. The general feeling is that Abu Dhabi is not about smoke and mirrors or real estate development, this is a market that will drive the broadcast industry forward. Who will be exhibiting at the shows? NM: The confirmed exhibitors to date include twofour54, United Broadcast Media Solutions, Associated Press, Al Dafrah Group, ABS Networks, CMS Dubai, Transtel Communication, ABC Marketing & Distribution, Eclipse, IBS Décor, Nautel, wTVision, MediaPro Middle East and Arab States Broadcasting Union (ASBU). What areas of the industry do you expect the exhibitors to focus on? NM: HD and whether or not the telco providers can support the infrastructure necessary to support it are key topics at the moment. Archiving is also going to be high on the agenda. How has the Middle East broadcast and media sector coped with the economic slowdown? NM: I think they’ve reacted in the same way as most of the world, they’ve had to take a breath, look around them and assess the situation but in general
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I think the region is fairing a lot better than other parts of the world. Broadcasters need to outsource studio time, minimise overheads, take advantage of the regions facilities and adopt the model currently being applied in Abu Dhabi, where you can take a smaller office and utilise state of the art facilities in the region for a fraction of the costs.
The general feeling is that Abu Dhabi is not about smoke and mirrors or real estate development, this is a market that will drive the broadcast industry forward. NEIL MANWARING Managing director, Nexus Global Events.
What format will the METV content market take? Dominic McGill: We will look to adopt some of the proven formats used by the larger international events, but we also realise this region has some very unique nuances and they need to be addressed in isolation, so we will look to promote Arabic TV content producers to the international market and again, we are not expecting to do everything in one year, but we are encouraging young Arab content producers to use METV as their platform into the industry. What kind of deals do you foresee at METV, international buyers, international sellers, regional deals only or broader mix? DM: I think this year will see a lot of regional activity. We know there are four government funded trips being planned, in anticipation of future support for the events, so we don’t think it will be long before we see a flurry of international participation at the event. There are some key announcements planned for the event and that will certainly support the growth of the industry. We are pleased companies have chosen to use the event for their announcements. This proves the event has already attracted international attention from content buyers.
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CASE STUDY
Last month witnessed the UK’s biggest-ever online pay per view TV event. The Perform Group picked up the rights to an England international football match and pieced together the distribution, production, billing and marketing required to monetise its purchase, just weeks before the game itself.
F
ollowing the collapse of the Irish pay TV company Setanta, the broadcast rights to a number of sporting events have lapsed and been offered to the market once more. One such set of rights included the recent World Cup qualifying match between England and Ukraine, which Setanta had offered to football agency Kentaro. After being offered to a number of traditional broadcasters the license to show the match was snapped up by digital media house, The Perform Group, which specialises in covering live events and managing online video delivery and monetisation for third-party clients.
THE BRIEF Broadcast match footage, commentary and pre- and post-match coverage over the internet to the widest possible UK audience. Despite only having a few weeks to prepare the service, the content would be expected to reach the same standard as mainstream broadcasters. It was likely from the outset that the broadcast would become the largest online pay-perview event ever staged in the UK.
THE BUSINESS MODEL A dedicated website was set up to handle subscriptions via the PayPal online payment 020 NOVEMBER 2009
system. An initial price of US$8 rose to $19 as the matchday approached. Free broadcasts were offered to customers who opened accounts with partnering online retailers and a number of newspapers also carried the footage on their own websites.
THE TECHNOLOGY
KIT LIST HIGHLIGHTS PRE PRODUCTION Avid Media Composer and Newscutter for features and interviews Adobe After Effects for titles and stings
LIVE MATCH PRODUCTION Pixel Power Clarity 300 for match and presentation GFX EVS LSM for playback during analysis
Additional gallery and studio facilities rented from Input Media, London. Transmission and encoding equipment is under non-disclosure.
The Perform Group handles 15,000 live events a year and has experience of high-profi le football matches having picked up the rights to UEFA Cup games in 2008. The scale of the national interest in the England football team elevated the profi le of this particular broadcast. The company used Pixel Power’s Clarity graphics generator together with a number of high-grade production tools from Avid, EVS and Adobe to maintain the same viewing experience as would be expected on traditional TV (see kit list).
THE RESULT A customer survey carried out by The Perform Group after the match found that 87 percent of the 500,000 viewers felt that the picture quality was satisfactory or better. The same percentage indicated that they felt they had received value for money and 89 percent signalled their intention to buy access to another online sports event in the future. www.digitalproductionme.com
AL JAZEERA 2.0
NEWS BREAKERS Qatar-based Al Jazeera Network is fast developing a reputation for not only developing advanced mobile media services but also leveraging the technology in breaking news environments. Aaron Greenwood caught up with three senior executives charged with shaping the broadcaster’s new media fortunes.
Al Jazeera has fast developed a reputation for developing leading-edge mobile TV services. Was it difficult to encourage the organisation to embrace the shift when these services were first conceived? Messaoui: We’ve been developing our mobile TV service for the past two to three years. We believe the future of news lies in mobile and that cellular networks will provide the access point to this big cloud of content, which users will be able to access on-demand. We create and produce content that must be available for access from any mobile device. Users also need to be provided the ability to interact with this content. Mobile TV viewers are unique in the sense that they’re generally early adopters who are hugely enthusiastic about interacting with the content. You recently launched a new mobile TV service in conjunction with Mobiclip. How was this service conceived? Mustafa: We have video-on-demand services designed for various levels of handset sophistication. We appreciate that the technology is far more sophisticated these days than what it was even two to three years ago, and the possibilities are far greater in terms of sophisticated delivery approaches. We’re not a technology company, so we partner with key specialists in this area. For live streaming on the iPhone platform we’ve partnered with LiveStation. Mobiclip, which is an expert at the chipset level, has supported our rollout of services for Symbian and Windows Mobile platforms. The service is available worldwide, except in www.digitalproductionme.com
MOEED AHMAD Supervisor, Internet Media, New Media Section, Al Jazeera Network Responsibilities: Managing Al Jazeera’s social interaction initiatives, including Facebook, YouTube and Twitter. Monitoring public interaction with the services the network offers.
SAFDAR MUSTAFA Head of Mobile Media Unit, New Media – Technology Division, Al Jazeera Network Responsibilities: Overseeing the implementation of mobile content platforms and services and planning for future implementation strategies.
YACINE MESSAOUI Manager of Technology and Future Media Department, Al Jazeera Network Responsibilities: In addition to managing Al Jazeera’s New Media division, Messaoui is responsible for corporate IT services, global connectivity and fibre and satellite contributions and distributions between various remote locations.
some countries which have certain restrictions. For example, in Malaysia Mobiclip is not included. As Al Jazeera, our intention is to be available in as many markets as possible worldwide. What kinds of services are available to mobile TV subscribers? Mustafa: The Al Jazeera mobile interface provides users with three options: Al Jazeera English or Arabic live streaming services, as well as video-ondemand, which includes news bulletins produced four times a day for English-language subscribers. We’ve redesigned the traditional television interface for mobile viewing screens, so there are features like a bigger and more legible news ticker. We’re also looking to develop content specifically for mobile distribution. Al Jazeera is also developing a reputation for its journalists putting mobile handsets to good use in the field... Mustafa: We’re the only news broadcaster in the region to be using mobile video uploads on such a large scale. We’ve deployed an Al Jazeera reports application, which allows journalists to send video reports direct to the broadcast playout centre. We recommend a high-end handset equipped with a decent camera. The software provides the journos with a number of very useful features, including geotagging the footage, and even some basic in-phone editing. We’ve managed to report on developing situations on the ground which wouldn’t have been possible with more traditional forms of technology. For example, we recently had a situation where NOVEMBER 2009 021
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one of our photo-journos, who was very famous for the footage he shot in Fallujah during the Iraq War, was visiting Chad. While he was there, he witnessed a car bomb explode and he instantly recorded the video to his phone, and because he was close to the hotel, he could access the Wi-Fi connection. The video was broadcast live on Al Jazeera Arabic literally within minutes of the explosion occurring. But isn’t it challenging sourcing network resources in some of these countries? Mustafa: Wi-Fi and 3G services are available in many more locations than most people realise, which makes the platform ideal for breaking news scenarios. It also opens up many more possibilities for us in terms of the applications we can develop for our journalists. Ahmad: Part of our role is evangelising these technologies in the newsroom and convincing the journalists of their benefits in the field. What sort of value-add opportunities do you think mobile apps offer news organisations such as Al Jazeera? Ahmad: Mobile footage is perfectly suited to online distribution. Since most handsets are also now equipped with GPS applications, we’re encouraging our journos to log their locations with each report so we can map them online using Google Maps. This works brilliantly for reporters working in remote locations and it really adds depth to the coverage itself. Messaoui: The footage is also uploaded to our YouTube channel, which increases the circulation of each report. Given the largely unreliable nature of mobile networks in this part of the world, have you built much latency into your mobile upload service? Mustafa: We have built a certain amount of redundancy into it to guard against weak or unstable connections. If a signal drops out mid-upload for example, it will continue on once the connection is re-established. Messaoui: Most of the news hotspots, particularly in Africa, suffer from poor connectivity. But that has to be taken into consideration when developing an application such as this, to ensure it’s as easy to use as possible. In confl ict areas such as warzones, the technology must be easy to use. Mustafa: When the conflict in Gaza was happening earlier this year most of the mobile telecoms net022 NOVEMBER 2009
works were destroyed. Yet, we were receiving video footage from viewers via sites like YouTube. Do you think mobile handset video uploads can ultimately complement or even rival satellite newsgathering systems? Ahmad: Absolutely. Even before we began implementing this system, I spoke to our engineers and the cost comparison between mobile and DSNG uploads was staggering. Even when roaming, mobile uploads via telecoms networks is the far cheaper method. Mustafa: If you look at how satellite phone video footage has evolved, video from a mobile handset is probably now where satellite was 10 years ago, which is incredible, given the latter basically relies on cheap consumer hardware. Cameras are improving, mobiles are improving and so is the network coverage. Ahmad: In terms of store-and-forward technology, we’re almost there. Give it another year, and the quality will be more than acceptable for broadcast and online distribution. Messaoui: Absolutely. From a cost perspective, we definitely see the quality of BGAN systems improving. If you require a decent image, you are still going to have to cover the cost of establishing a satellite uplink. So we view mobile uploads as complementary to the mainstream technologies rather than a replacement. However, hopefully soon network speeds will improve substanstially. How has the internet changed the way broadcast organisations approach news reporting? Mustafa: As a broadcast media organisation we have to think a little bit outside the box. As Moeed mentioned, the web creates unrivalled opportunities to approach news reporting from completely new perspectives. We conducted a trial during the South African elections in 2008, where we had crews filming on the street, and we used a mobile phone to shoot behind-the-scenes footage of the crew in action, which was put up on the web. We trialled a similar initiative in Pakistan during the recent conflict in Swat Valley, whereby the journo in question used their mobile to shoot and upload still images of the fighting to the web. Al Jazeera is perceived as less commercially oriented than rivals such as CNN. Is www.digitalproductionme.com
AL JAZEERA 2.0
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commercialising these types of services a major priority at the moment? Messaoui: The primary concern of Al Jazeera is expanding its reach globally. But in saying that, in certain markets we have launched premium services which users have to pay for. Mustafa: Our aim is to make the mobile services as accessible as possible. However, in some areas where network streaming costs are prohibitive, we will charge a small fee to recoup the cost of providing these services. If you look at the mobile website we don’t charge for that but there are advertising applications built-in.
From a cost perspective, we definitely see the quality of BGAN systems improving. If you require a decent image, you are still going to have to cover the cost of establishing a satellite uplink. So we view mobile uploads as complementary to the mainstream technologies. YACINE MESSAOUI, Manager of Technology and Future Media Department, Al Jazeera Network.
What are the biggest markets for your mobile services in terms of audience numbers? Mustafa: The United States is our biggest market by far. In fact, it’s twice as large in terms of audience numbers compared with our second largest market, which is Africa. Messaoui: The popularity of the mobile TV service in the US is mirrored by the popularity of Al Jazeera English among Americans. Ahmad: Our web content is also popular in the US. Do you think that’s because carriage deals are hard to establish in the US? Ahmad: Possibly. But in saying that, the US has always provided the highest traffic figures for our English-language website. It’s probably more likely a case that internet penetration in the US is massive compared to some of our other markets. Messaoui: I think it’s also the content we provide. There is definitely a place for Al Jazeera content in the US because we present the news from a different angle to what the American public is arguably used to. Do you think that we’ll ever get to the point whereby mobile- and online-based services will
replace traditional linear news broadcasting? Mustafa: I can definitely envisage a day when an Android phone will allow you to interact with a live stream or access other live footage or broadcasts. When that day comes we want to be ready and have the metadata prepared to provide these types of services. Ahmad: Ideally, we want to create a news community, whereby our viewers and users play an integral role in stimulating content creation and ongoing debate about existing content. From the technology perspective, there are many barriers to achieving this. Mustafa: You see glimpses of this already though. When journalists were expelled from Iran during the most recent elections, the vast majority of footage that came out of the country was shot by civilians using camera phones. Twitter, Facebook and YouTube proved vital in this scenario, and as a news organisation looking forward you definitely can’t exclude them. Messaoui: Children who were born in the last 10 years have different perspectives on technology and the way it impacts daily life. Communications technology is transforming society at a remarkable pace and I believe we are at the tip of the iceberg in terms of how social media and platforms will impact the way we report and distribute the news to future generations. Mustafa: I agree entirely. The younger generation perceives news differently to the rest of us. They want news to come to them – they don’t want to have to go looking for it. Messaoui: I don’t believe many news broadcasters recognise the extent of the challenges that lie before them. As an organisation, we’re working towards developing solutions. But we really have to reconsider the ways we deliver news. Broadcast manufacturers must also be aware of these issues.
COMMON CAUSES Al Jazeera Network has been one of the first major television broadcasters to embrace the Creative Commons platform for sharing copyrighted resources in a not-for-profit environment. During the recent conflict in Gaza, the broadcaster provided rival news organisations access to on-location footage shot by its crews in the disputed territory. “The Gaza War was our first trial of the system as Al Jazeera was one of the few English speaking channels
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on the ground,” explains Ahmad. “Usually in a situation like this a commercial news broadcaster would sell their content to other broadcasters at a very high premium. But what we did was release the raw footage on the condition that other broadcasters could use it but they had to attribute it to Al Jazeera. “Ultimately, it was hugely important in raising the profile of Al Jazeera in markets and among consumers who may not have previously been familiar with the network.”
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COVER STORY
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COVER STORY
TELCO TRAILBLAZERS The UAE telecoms industry is in a state of flux. As infrastructure investments begin to pay dividends the region’s media owners are armed with an arsenal of new delivery platforms. Digital Broadcast speaks to the three most significant players in the UAE, du, Etisalat and Yahsat.
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lobally, there is little debate that countries like South Korea and Hong Kong are leading the way in terms of internet connectivity, broadband speeds, mobile TV and IPTV penetration rates. The infrastructure in place has provided a full spectrum of opportunities for content owners to provide high-quality services across a range of platforms. The Middle East has been accused of lagging behind rival markets when considering the above criteria, particularly broadband connectivity. While some have pointed to the GCC nations’ massive mobile penetrations (routinely above 100 percent and in the case of the UAE, 200 percent) the cost, speed and penetration of broadband services have provided little cheer. Over the past 12 months however, the UAE has benefited from the launch of numerous new services and network upgrades that will advance its infrastructure towards the standards enjoyed in other regions, by media players and consumers alike. Perhaps the most contentious telecoms issue in the Middle East is broadband access. Limited coverage due to the challenges of installing infrastructure together with the very high access cost for consumers (admittedly, in comparison to developed markets) has limited the uptake of broadband services. Etisalat has completed the rollout of its fibre to the home (FTTH) network to 700,000 homes in Abu Dhabi, with the rest of the UAE to be covered by the end of 2011. “We want to develop the UAE as one of the best connected countries worldwide so that it can offer the best services for the business community and consumers,” says Khalifa Al Shamsi, senior vice www.digitalproductionme.com
president of marketing, Etisalat. “The simplest measure of the quality of a broadband network is the speed. Last month, we announced the availability of 30MB/s internet speeds, which is the fastest connection in the region.” For the previous four years the UAE’s incumbent telco has been challenged by newcomer, du. Many have questioned exactly how competitive the market has become since du’s arrival. However, there are signs that this competition could widen. “When du launched it bought the network assets from TECOM in Dubai, primarily in the Media, Internet and Studio City complexes,” explains Farid Faraidooni, EVP commercial, du. “As a result our broadband availability in Abu Dhabi is very limited. It is not reasonable for us to go and dig the streets up and make major investments in infrastructure when there is a simpler solution – to share Etisalat’s network infrastructure.” So what does the prospect of network sharing say about the level of competition in the UAE? “The competition comes at the service layer, networks sharing does not mean that one will squeeze the other or one will be uncompetitive,” affirms Faraidooni. “We are only talking about the sharing of the physical network sites. We already share mobile network infrastructure. This co-operation will not at all limit our competitiveness at the service layer. This is how it should be, the competition should occur in the services and applications that are offered to customers,” adds Faraidooni. The proposition of network sharing at a national level in the Emirates could prove to be a turning point, offering consumers throughout the country the choice of either operator. It is difficult to imagine any of this making a significant difference
IPTV could be right for one place but it won’t be good for another. FTTH is an interesting approach but satellite has always remained resilient and always finds a way to adapt to the market. MOHAMED YOUSIF CEO, YahLive. NOVEMBER 2009 027
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IPHONE RACE HEATS UP IN UAE
Du recently announced that it would be the first operator to bring the iPhone 3GS to the UAE market, with Etisalat following shortly after. The significance of the iPhone reaches beyond that of other handset releases given the effect it has had on mobile media usage. “We have made sure that we have a simple data plan,” says du’s Faraidooni. “The next step is to put together the content. We have to make sure our plan suits the vast majority of our customers and is easy to use throughout. Once these fundamentals are established we will begin to look at the next layer, the services and applications. “It’s too early to name any specific partners but we have begun to talk to the TV networks, studios, content creators, aggregators and providers,” he added.
MBC was one of the first broadcasters to take advantage of Etisalat’s online video platform. More than 10 million videos were viewed during Ramadan.
to broadband penetration in the UAE without a dramatic change in the pricing structure. “Broadband is something that we are very keen to develop. The next stage, however, is to look at making it more competitively priced so that it offers more value,” admits Faraidooni. “Once there is scale in broadband availability, through the sharing of facilities and infrastructure that will allow us to extend the reach of our broadband services. We are talking to the UAE Telecommunications Regulatory Authority (TRA), Etisalat and other industry players on how we can encourage the spread of broadband in the country. Once that scale is available I think you will see a revolution in pricing structures,” claims Faraidooni. “We provide 24MB/s over fibre, which is something we are proud of. We were the first to reach that speed and we have many customers who are enjoying that service at home, but the prices must come down.” According to Faraidooni, the negotiations over network sharing (held under the supervision of the TRA) are already advanced and he expects the culmination of these and the resulting “price revolution” to take place in early-2010. These sentiments are shared by Etisalat, which will be lowering broadband prices as well as upgrading speeds for its customers over the coming months. “As more FTTH is deployed, this will be complemented by a reduction of the current broadband prices and an increase in speeds for
certain subscribers. This is at the core of our strategy,” claims Al Shamsi. “It is increasingly the case that many of the lower speeds offered cannot support much of what the user wants to do. For example, the gaming community or heavy multimedia users have little to gain from a 256Kb/s connection. They need a higher speed and this is what we are focusing on.” Al Shamsi claims that the network technology in place is as advanced as any in the world, but he does acknowledge that this alone is not enough. “The focus must be on the customer and the technology must only be a tool,” he explains. “Telco operators in any market become successful when they stop looking at what the technology can do, and start thinking about what the customer actually wants and how the technology can deliver that.” This is the point at which services, applications and content of all forms increase in value and begin to differentiate one operator from another. These can take the form of branded content portals and online video services often tied up with a user’s mobile account, linking their wireless and fi xed line services. The final component of these triple play packages is of course the TV service. Etisalat already has its own branded TV channels on its eVision TV service as well as via its online video portal, which is also used by MBC and Dubai TV. “The major broadcasters in the region have shown a lot of interest in the online platform already. There were 10 million videos viewed during www.digitalproductionme.com
COVER STORY
Ramadan on the sites, which reflects the hunger in this market for online video to be delivered not just to this region but beyond to Arab nationals in other countries of the world,” Al Shamsi points out. “We are positioning the company to have a big say in the development of future services including content. We can now use our presence in 18 countries to work with broadcasters, networks and aggregators on the content side. It can be a difficult position to be in when you are a single operator, because of the limitations on the size of the opportunity. Right now we are talking about 18 countries covering 1.6 billion users, that gives Etisalat more negotiating power. We also have the ability to exploit rights across our own infrastructure on a number of platforms, which puts us in a strong position.” In the past three months, it has been these TV services – the most visible aspect of the bundle – that have seen the most development in the UAE. Etisalat’s eVision service has been adding content, including HD channels. In the UAE, it now competes successfully with the region’s big two pan-Arab pay TV networks.
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We are talking to the UAE Telecommunications Regulatory Authority (TRA), Etisalat and other industry players on how we can encourage the spread of broadband… Once that scale is available I think you will see a revolution in the prices. FARID FARAIDOONI EVP commercial, du.
In early September, du switched its IPTV services to the Microsoft Mediaroom platform, upgrading the existing basic, linear service to a fully interactive, true IPTV service with PVR set top boxes and access to the region’s, albeit limited, HD channels. “There are more than 10,000 customers on the new platform already and the migration of existing customers is in full swing and should be completed by the end of this year,” says Faraidooni. “We launched the new IPTV service in early-September. There is a tremendous difference between the old and new platforms, the PVR and HD capabilities being the big incentives.” The competitive edge in TV services that du has arguably now gained, has not gone unnoticed by Etisalat it would seem. “We have completed ten IPTV trials using our own experts in the market and a large number of focus groups to tell us exactly what customers want,” claims Al Shamsi. “We want to use an open system that enables market intelligence and will allow developers to pitch in and contribute. Enabling third-party development is the valuable lesson of the iPhone story.”
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COVER STORY
It is increasingly the case that many of the lower speeds offered cannot support much of what the user wants to do. For example, the gaming community or heavy multimedia users have little to gain from a 256Kb/s connection. They need a higher speed and this is what we are focusing on. KHALIFA AL SHAMSI Senior vice president of marketing, Etisalat.
While IPTV services look set to continue their growth in the UAE the region at large is unlikely to be able to ween itself off satellite as the primary platform for TV delivery. Given this fact and the increasing demand for capacity from broadcasters looking to roll out HD channels, the timing of Yahsat’s arrival in the satellite operator market appears very timely. YahLive – the company’s broadcast service arm – recently appointed former Arabsat CCO Mohamed Yousif as its CEO. With competition from established satellite players and the increasing penetration of IPTV, is Yousif confident that there is room for a new entrant? “Any new entry to the market has to offer something extra and different,” says Yousif. “It could be a nice technological feature, it could be they are having issues with their current provider, it could be the way you conduct business… something that lures clients to use that new operator.” “There is no one-fits-all solution, I am a firm believer in that. IPTV could be right for one location but it won’t be good for another. FTTH is an interesting approach but satellite has always remained resilient and always finds a way to adapt to the market. Many people said when cellular telecoms arrived that satellite telephony would die. Instead, satellite is used by the networks for cellular backhauling. This industry always evolves to change.” YahLive will have 23 transponders on Yahsat’s 1a hardware scheduled for launch in early-2011. The satellite will be positioned at 52.5 east, outside the hotspots filled by the likes of Nilesat and Arabsat. “We will have to do something to differentiate ourselves in the eyes of the public so more and more consumers will buy a new dish or add a new feed to their existing antenna so that they can watch channels on 52.5 east,” admits Yousif. The answer to this could lie in HD content with YahLive’s clean slate offering it an opportunity
to comfortably host as many HD channels as the region is likely to produce in the immediate future. “One SD transponder will take 10-15 channels, in HD you can fit four, perhaps five. There is likely to be a lot of demand for bandwidth as more and more broadcasters switch to HD. It will put a lot of strain on capacity, even though there is a lot of new space in the pipeline,” claims Yousif. “The number of channels on YahLive is not that important, people would point a dish at Yahsat 1a even if there was one channel they wanted to see. What viewers are interested in is the type of content. If you have the content that people want to watch they will do what is necessary to watch channels on YahLive. We are focusing on bringing in quality channels on SD and HD.” There could be a simpler selling point for the new entry however – lower prices. “Businesses do not just look at cost alone. They consider the overall value they receive for the service they are provided with. During the economic slowdown everyone is looking at how they can save money and how they can get more for their dollars, and so that is one approach that we are focusing on now,” says Yousif. The developments in the UAE over the past year and those scheduled for the next, have accelerated the country to the forefront of the telecommunications race in the Middle East. The opportunities for broadcasters and content owners are stacking up: mobile TV, online video, interactive advertising, VOD… The challenge now is to monetise these new offerings quickly and efficiently. “The competition in the UAE has pushed both operators to provide the latest technologies and projects with competitive pricing. This has not ceased,” says Faraidooni. “Competition in services and pricing is improving and we are all seeing the benefits. It’s good for this industry, its good for consumers and its good for the economy.”
ETISALAT HARD AT WORK WITH SOFT AT HOME Etisalat announced last month it that has acquired a 16.6 percent stake in SoftAtHome, the digital home networking initiative founded by Orange, Thomson and Sagem Communications. Etisalat is using the SoftAtHome Operating Platform (SOP) to power its range of home gateways that combine VOD, DVR and IPTV functionality with broadband access, internet TV and multiplatform digital storage and content consumption.
030 NOVEMBER 2009
“Fixed telephone lines have been used so far as a static, dumb pipe that customers don’t use until the phone actually rings. What we will see now is the phone line together with a media hub becoming the centrepoint of the home,” says Etisalat’s Al Shamsi. “You can browse audio or video content, listen to internet radio, watch YouTube on your TV or have your own applications for checking prayer times, monitoring your stocks or the weather.”
www.digitalproductionme.com
EVENT PREVIEW
WIRED FOR SUCCESS
This month’s IPTV World Forum Middle East and Africa comes at a time when the body of evidence in favour of IPTV’s future success in the region is greater than ever. Digital Broadcast presents the supporting facts and highlights some the shows features in 2009.
T
he IPTV World Forum’s MEA edition has carved a solid reputation for bringing together operators and the vendors that underpin their services. There may still be only a limited number of rollouts in the region owing to the large investment required to put the underlying infrastructure in place. Even the largest implementations in the region remain relatively modest. This year’s IPTV show comes at a time when the Middle East is on the brink of stepping into a new era of telecommunications with a number of FTTx networks in Saudi Arabia, UAE and Qatar set to go live or expand. The recent announcement by the government of Algeria that it was committed to developing a terrestrial based delivery network for its citizens is another sign of the public and private sectors commitment to fast-track the development of telecommunications infrastructure throughout the region. All of these developments heighten the need for open dialogue between the companies involved in the IPTV chain. 032 NOVEMBER 2009
There needs to be a strong business case proposed and a proper ecosystem created. All the stakeholders must be involved in this process and everyone has to be happy with their share at the end of the day. IHAB GHATTAS Assistant president Middle East region, Huawei.
“When events like the IPTV World Forum have a specific target and issues to tackle and they bring all the stakeholders together, they can prove very effective at finding the compromises and solutions to these problems,” says Ihab Ghattas, assistant president Middle East region, Huawei. “Obviously there is a lot to talk about when it comes to IPTV from the network infrastructure through to the content. The content is obviously essential. The operators need to secure the programming and show the media that they can complement the existing broadcast industry rather than simply compete with it,” adds Ghattas. The need for extensive and costly infrastructure and the telecoms expertise required to manage networks means the balance of power between content owner and TV operator shifts. Although the content owners retain their power, the investment made by the telcos – who also double-up as the service operator – means the traditional model for revenue sharing and licence fees is altered. “There needs to be a strong business case prowww.digitalproductionme.com
EVENT PREVIEW
400,000
MIDDLE EAST AND AFRICA IPTV SUBSCRIBER NUMBERS
300,000 200,000
201 0
201 1
201 2
201 0
201 1
201 2
9 20 0
8 20 0
20 07
100,000
120 million MEA IPTV SERVICE REVENUE (US$)
90 million 60 million
8
9
20 0
20 0
20 07
30 million
STEADY GROWTH FORECAST FOR IPTV IN THE MEA Service availability appears to be the only stumbling block for IPTV services in the Middle East and Africa with steady growth in both subscriber numbers and revenues anticipated between 2007 and 2012.
posed and a proper ecosystem must be created. All the stakeholders must be involved in this process and everyone has to be happy with their share at the end of the day,” says Ghattas. Th is process does not have to be completed through guess work or deduction however, explains Ghattas. “There are other deployments in the world – PCCW in Hong Kong for example – that have achieved success and scale. Any operator that wants to launch something like this needs to look at the experience of others and ensure that they don’t repeat their mistakes. It would be foolish not to look at case studies from other regions.” The IPTV show is not just about opportunities for nationwide rollouts. Enterprise, education and hospitality markets generate substantial revenues for a number of IPTV technology vendors. Deployments on the scale of individual property developments or university campuses are also gaining traction. Ericsson’s network at King Abdullah Economic City (KAEC) will enable a www.digitalproductionme.com
number of services and connectivity options. These networks may not be installed exclusively for the purpose of IPTV. However, it still creates the opportunities for IPTV application and service developers with the enterprises, hotels and residential areas at KAEC. With Saudi Arabian mobile network operator Mobily having expressed an interest in IPTV services, the Kingdom could join the region’s other IPTV-enabled countries. ADMC adopted such a system last year to provide its editorial and production staff access to a number of satellite TV channels via their desktops using Anevia’s Flamingo DVB-to-IP gateway. UK-based IPTV equipment manufacturer Exterity specialises in exploiting IP networks for a number of industries including the broadcast sector. The company counts a number of major networks among its clients in the UK. It opened a regional sales office in Dubai 18 months ago with the aim of taking advantage of the fibre infrastructure being installed across the GCC and beyond.
INDIAN OPERATORS FLOCK TO SHOW
500,000
INDIA IN FOCUS This year’s IPTV World Forum MEA will feature a conference stream dedicated to the Indian market. A number of the country’s major operators have signed up to speak at the conference including Reliance Communications and Bharti Airtel, which has 108 million mobile subscribers in India and has now begun offering both DTH and IPTV services. A report by market research firm IDC at the end of 2007 estimated that India will have 966,000 subscribers by 2012 with a CAGR of 156.8 percent. These forecasts are now far too low with a number of Indian operators accelerating the growth of the platform. The Smart Digivision service alone is to be offered in 54 cities to an estimated 3 million households, according to Air Ties, the manufacturer signed up to provide STBs for the service. A number of firms including Latens and UT Starcom have also established research facilities in India in the past two years.
Reliance Communications president, Anil Ambani.
NOVEMBER 2009 033
EVENT PREVIEW
The Mobile TV Middle East conference will once again be co-located with the IPTV World Forum. A mix of technology vendors and operators from various markets will share their experiences. The UAE Telecommunications Regulatory Authority (TRA) announced last month that it had granted a ten-year DVB-H licence to the Emirates Mobile Television Corporation (EMTC), a consortium comprised of UAE telcos du and Etisalat, Dubai Media Inc., Abu Dhabi Media Company, Emirates Communications and Technologies Company (a subsidiary of TECOM) and FTA TV giant MBC.
034 NOVEMBER 2009
DVB-H COVERAGE EXPANDS
MOBILE TV RECEIVES MIDDLE EAST BOOST
PRODUCT AND SERVICE SHOW HIGHLIGHTS SEACHANGE AdPulse
BRIDGE TECHNOLOGIES microVB Bridge Technologies will demonstrate a miniaturised remote monitoring tool for IPTV applications. The microVB can be delivered to customers in the mail and self installed, removing the need for costly technician visits. Once installed, the microVB can automatically locate an appropriate server and begins monitoring the quality of the signal received by the set top box. The device reports on quality of experience parameters, allowing remote monitoring and analytics for troubleshooting.
One of the concerns regarding VOD content and PVR services is the loss of advertising revenue. Even if ads are inserted as re-rolls to a piece of VOD content there was previously no way to ensure that these adverts remained timely and relevant. SeaChange has developed the AdPulse system to address this issue and to ensure that VOD ad revenue is maximised through a number of other features. AdPulse keeps the content and the ads separate until playout allows each commercial to be inserted with the appropriate show at this point. This allows a refresh of the ads, up to date targeting of fitting content, geographic targeting and suitable advertising for the time of day. The system also monitors viewing data for each advert allowing advertisers to assess the reach and effectiveness with more ease and accuracy.
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PRODUCT FOCUS
CODEBREAKERS The increasing diversity in delivery platforms may be offering broadcasters and pro-active telcos routes to additional revenues but they also add a new level of complexity for broadcast engineers, not least when it comes to encoding. Digital Broadcast looks at some of the encoding conundrums and the latest products developed to solve them.
T
here are two challenges facing broadcasters and their encoding workflows. The first is the result of the ever-expanding (or splintering) body of devices, formats and bandwidths being used to view video content today. The fact that broadcasters, telcos and other content suppliers are increasingly offering this content simultaneously, only serves to further complicate the process. Advances in video compression standards have also placed additional pressure on the encoding technology devel-
Other compression algorithms may come along with similar or even greater compression efficiency, but the broad proliferation and adoption of MPEG-4 in consumerpremises devices such as set-top boxes firmly entrench it. BRIAN STEVENSON Director of product management, Digital Rapids.
opers to keep up with their client’s needs. “The transition to MPEG-4 has significant implications as it has been adopted more widely than any video compression standard in history,” says Peter Maag, senior VP marketing and business development, HaiVision. Maag believes that the transition from MPEG-2 to MPEG-4 has created the opportunity for those committed to the market to forge ahead. The improvement in compression that is delivered by MPEG-4 is paying dividends for broadcasters pursuing HD. Despite the benefits of the new format, broadcasters are still required to handle larger volumes of data than previously, data which must be handled through the entire chain from content creation, encoding, transmission and storage.
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PRODUCT FOCUS
DIGITAL RAPIDS StreamZHD
AAC, AMR, MPEG Layer 2 Video encoding bit rate: 56Kb/s up to 1.485Gb/s (uncompressed); exact minimum and maximum varies by video codec Notes: Encodes for both live and on-demand applications; simultaneous encoding to multiple formats, logo branding, DRM/CA support, forensic watermarking, ad insertion markers, automated file delivery. www.digital-rapids.com
“I don’t think HD is sapping broadcasters, but it is challenging those outside of the broadcast industry, such as networked video users in the enterprise sector,” says Maag. “Broadcasters are used to controlling large bandwidths. Enterprises, on the other hand, need to keep stream bandwidths below 10 Mb/s for effective deployment of internal training videos, digital signage, broadcasting video to desktops or whatever application they are using.” The benefit of MPEG-4’s (H.264) near universal adoption is clear. The challenge now, says Maag, is for encoding technology to serve numerous consumption formats, so that broadcasters can keep up with the diversity of platforms that their audiences now demand.
“Encoding manufacturers must offer technology that serves a variety of consumers and their platform of choice, at different bandwidths, simultaneously. Encoders must address the highest common denominator in quality and performance, and at the same time serve those with less bandwidth,” says Maag. This sounds like a simple enough task for the industry to address, but the reality is far from it. “The variety of consumers is the main challenge for broadcasters,” claims Maag. “Offering systems that can simultaneously serve diverse users is the main challenge for encoder manufacturers today.” This trend has been developing for several years according to Digital Rapids’ director of product management, Brian Stevenson.
HARMONIC Electra 8000
porting DolbyE inputs for transcode into Dolby Digital and Dolby Digital Plus, as well as native encode in Dolby Digital and Dolby Digital Plus. Video encoding bit rate: Ranges between 0.3 – 20Mb/s depending on codec Notes: The first 1RU encoder with multi-resolution, multi-standards, multi-service and multi-channel capabilities, according to the manufacturer. www.harmonicinc.com
Supported video codecs: MPEG-2 MP@ML (1 to 15Mb/s) / MPEG-2 MP@HL (2 to 24 Mb/s) / MPEG-4 AVC MP@L3 (0.3 to 8 Mb/s) / MPEG-4 AVC HP@L4 (1 to 20 Mb/s) Supported audio codecs: MPEG-1 Layer II, Dolby Digital (AC-3), AAC, HE AAC (v1 and v2) native encoding AC-3 and AAC/HE AAC pass-through Optional audio encoding module supwww.digitalproductionme.com
GRAPHIC DETAIL
Supported video codecs: H.264 (MPEG-4 Part 10, AVC), MPEG-2, VC-1, On2 VP6, MPEG-1, DVCPRO HD, Avid DNxHD, H.263, MPEG-4 Part 2, uncompressed (container formats for on-demand content include QuickTime, AVI, MXF, GXF, LXF, 3GPP, MPEG Transport Stream and more) Supported audio codecs: Dolby Digital (AC-3) and Digital Plus, AAC-LC, HE-
THE ELEMENTAL SERVER This year’s IBC saw the inventor of the Graphics Processor Unit, (GPU) Nvidia, participate for the first time. The company was demonstrating what it could offer the broadcast community on several fronts. Partnering with Elemental Technologies – a US-based start-up – the company’s stand offered demonstrations of the soon to be released Elemental Server. The most significant difference between it and its competitors is that it is based on multiple GPU processors, rather than CPU processors, which the manufacturer argues provides it with an edge over traditional encoder products. According to Elemental, the product can simultaneously transcode eight HD, four 1920 x 1080 or 32 480x270 video in real time. As a result, one 2RU Elemental server can perform the same tasks as seven CPUonly servers. The subsequent savings in power and cost could prove particularly beneficial given the current focus on energy efficiency and the squeeze on operating expenditure resulting from the economic slowdown. The Elemental Server could also prove a good choice for OB or SNG vehicles, where both space and heat output are major considerations. NOVEMBER 2009 037
PRODUCT FOCUS
Broadcasters are used to controlling large bandwidths at this point. Enterprises, on the other hand, need to keep stream bandwidths below 10 Mbps for effective deployment of internal training videos, digital signage, broadcasting video to desktops or whatever application they are using. PETER MAAG Senior VP marketing and business development, HaiVision.
“There has been considerable interest in the ability to reach all three screens in a single encoder since we first introduced this capability many years ago,” says Stevenson. “Even providers primarily focused on reaching television sets through STBs are choosing to offer content for additional devices. This means they can reach the broadest viewing audience possible and increase average revenue per user (ARPU) in the process.” Stevenson believes the arrival of MPEG-4 has aided this multi-format approach for broadcasters as much as it has the proliferation of HD services. “Enabling HD services has been the main incentive for the move to MPEG-4, but it is not the only motivation – it also enables SD services to expand the number of channels offered, as well as delivery over new networks such as IPTV,” he explains. “It offers considerable bandwidth savings over previous technologies such as MPEG-2 for
the same level of visual quality. Other compression algorithms may come along with similar or even greater efficiency, but the broad adoption of MPEG-4 in set-top boxes firmly entrench it.” The benefits of MPEG-4 for broadcasters and consumers are clear, as are the complications it has created for encoder manufacturers. “The growing number of viewing devices is accompanied by an increase in the number of encoding formats and the parameters required for the best presentation quality and device compatibility,” says Stevenson. “It is not enough for an encoding system to be able to output just a full-resolution and proxy version,” claims Stevenson. “The quality, performance and efficiency of the encoders and surrounding workflow have a significant impact on productivity, costs, the viewer experience and the timely availability of content.”
HAIVISION MAKITO
Video encoding bit rate: HD (150 kb/s - 15Mb/s), SD (150kb/s – 8Mb/s) Notes: HiLo Streaming and built-in downscaling to convert HD down to SD. Equipped with FEC and AES Encryption. www.haivision.com
Supported video codecs: H.264 (MPEG 4 AVC part 10) Supported audio codecs: MPEG 2 AAC
FORWARD PLANNING SOFTWARE VS. HARDWARE Digital Rapids’ Brian Stevenson suggests some points to consider when deciding between a hardware or software encoding solution. For an encoding system to ingest content from a live or tape-based source it must have at least a basic hardware component to interface to analogue or SDI sources, but pre-compression image processing and the actual compression itself may be performed in hardware or software. Systems that rely solely on hardware compression tend to be limited in the breadth of encoding formats they support. The overall number of formats available may be quite limited (sometimes even just one). Even where the hardware supports multiple formats, it may only be able to do one at any given time, requiring reconfiguration to switch formats. Furthermore, while compression formats such as
038 NOVEMBER 2009
MPEG-2 are relatively mature, newer formats such as H.264 are still evolving, and new compression formats continue to emerge. While most hardwarecentric encoders are firmware-upgradeable with certain extensions of existing formats, more dramatic extensions or completely new formats may require new hardware. As such, these hardware-centric encoders are not well-suited to multi-platform, multiformat applications. Systems that combine hardware and software in a common computing platform offer greater flexibility in the breadth and upgradeability of supported compression formats, as enhancements and extensions can be applied through software updates.
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NEW! Telecoms HR Summit - the perfect platform for the HR team of telecoms operators and vendors to exchange knowledge, share experiences and gain best practice strategies 2500+ attendees – gathered for you to meet & network with the leaders of Middle Eastern telecoms in one place 75+ visionary speakers including 42 operators - 32 at CxO level - learn first-hand from the those driving the industry forward 120+ exhibitors – see, touch & experience the latest technologies that will take your business to the next level 9+ hours of networking time – built into the days to ensure you cannot fail to meet new profitable business partnerships 90+ operator companies – whatever your interest, there is a represented contact for you – mobile, fixed, ISP and altnets
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Learn from the visionary insights of 75+ speakers including 45 operators - 32 at CxO level. Confirmed speakers include:
Saad Al Barrack, Group Managing Director and CEO, ZAIN
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Mohammed Al Ghanim, Director General, TRA, UAE
Ross Cormack, CEO, Nawras Oman
Osman Sultan, CEO, du, UAE
Najeeb AlAwadi, CEO, Viva Kuwait
Samer Salameh, CEO, Alfa Telecom Lebanon
Nayla Khawam, CEO, Jordan Telecom Group
Abdul Aziz Al-Tamami, COO, Mobily, Saudi Arabi
Marwan Zawaydeh, CEO, Vtel Holdings
Kamal Shehadi Chairman, TRA Republic of Lebanon
Alan Horne, Director General, TRA Bahrain
Sturt Eastwood, Director – Fixed Line Business, Vodafone Qatar
Ismael Fikree, COO, Zain KSA
Sami Hinedi, Group CEO, wi-tribe
Hatem Dowidar, Mothilal de Silva, Ahmed CEO, Group Chief Ossama, Vodafone Egypt Strategy Officer, Managing Dialog Telekom, Director, Sri Lanka TE Egypt
Andrew Hanna, Group General Manager, Consulting and Strategy, Batelco
Philippe Vogeleer, Chief Strategy Officer, Orange Jordan
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informa telecoms & media
DATA
MIDDLE EAST PAY TV HOUSEHOLD FORECAST (2008/2014)
1500
2008 2014
Channels
1200 900 600 300
UA E
Alg eria Bah rain Egy pt Ku wa it Leb ano n Mo roc co Qa Sau tar di A rab ia
0
DATA
SOURCE: Informa Telecoms
SKY’S THE LIMIT
The global DTH market is on the rise but will the MENA region be left behind as pay TV services stumble?
T
he global DTH satellite market will be worth more than US$100 billion by 2018, according to a new study conducted by market research fi rm NSR. The report examines 10 regional markets as well as the global overview. The results show great disparities from region-to-region with Western Europe, North America and East Asia leading the way in terms of revenues, subscribers and channel numbers. By the end of 2008, the world’s 99 DTH operators were generating $65 billion in subscriber revenue, according to the study. Th is figure will rise steadily, eventually passing the $100 billion mark by 2018. The number of channels available on DTH platforms will also increase from its estimated present level of 13,875 to in excess of 21,000 by 2018. Th is equates to compound annual growth rate of 4.6 percent. NSR also found a trend for increasing average revenue per user (ARPU), with more basic DTH packages contributing a diminishing portion of total revenue each year. The trend is the result of high-value services such as HD content, DVR capabilities and on-demand libraries.
040 NOVEMBER 2009
GLOBAL DTH FORECAST
99
Number of DTH operators globally
13,800
Number of DTH channels worldwide
$65 billion
The total subscriber revenue from DTH services in 2008
SOURCE: NSR
According to figures released by Informa earlier this year, the MENA’s three pan-regional services will grow their total subscriber base by 50 percent from 2008 to 2014 (if Orbit and Showtime are considered separately, given that the data set includes pre-merger information). The NSR report suggests that the number of DTH subscribers worldwide will grow from 114 million to 209 million by 2018 comparing favourably with the regional estimates from the Informa study. The nations with the highest growth in the number of pay TV subscriptions (households) are the UAE (84 percent), Qatar (63 percent) and Bahrain (50 percent). Despite these healthy gains on current figures, these three markets are account for less than one tenth of the overall subscriber base meaning that they generate a smaller volume of revenue for the respective operators. A growing proportion of these pay TV subscriptions are also accessed via cable and IPTV platforms such as Etisalat’s eVision, the largest such service in the region by a factor of four. Until telcos are able to offer these services on a larger scale – and with their own content – it is likely that DTH will be usurped as the MENA’s top delivery platform for pay TV services. www.digitalproductionme.com
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