Press kit - IBC 2011
European Cable TV companies face a golden opportunity to become a Central Hub for all content
The world of video delivery is changing fast: IPTV and DVB now have a new competitor in Over-The-Top delivery (OTT). OTT is radically changing the value chain - content owners now have a direct connection to consumers. OTT is delivering what IPTV promised – high quality and interactive television services through IP connections.
What strategy should European cable TV operators adopt? The future will not be black and white. Linear TV broadcasts are best suited for traditional DVB delivery, while OTT offers such ease-of-use, interactivity, cost and variety that consumers will find hard to resist.
The question is not about inventing a killer application, but a killer cocktail consisting of DVB for traditional TV and OTT/IP delivery for other interactive services. Cable is most suitable for high bandwidth TV services and OTT/IP delivery is best for interactive services. The winners will be those who are able to adjust and offer both cable and OTT delivery. European cable TV operators are ideally positioned to provide consumers both traditional broadcast and OTT services on a market that is splintered along country, language, technology and historical lines because they have two very valuable assets - bandwidth and consumer’s trust.
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VOD to more users without expensive investments?
The demand for video on-demand (VOD) and catch-up services has skyrocketed in just a few years. For cable TV operators, VOD services are a double edged sword – while they can be a lucrative revenue stream, they also require lots of bandwidth because each user typically needs their own unicast stream.
However, there is an ingenious way to significantly improve bandwidth efficiency and provide VOD services to a much larger number of users with current cable networks. This can be achieved by combing innovations from Over-the-top (OTT) technology to digital television services. Between broadcast digital television and OTT on-demand video exists a market for guaranteed high-quality on-demand video. In principle, both OTT and digital TV technologies can be utilized to implement such services.
Adaptive streaming is one of the key innovations OTT has introduced. OTT services are delivered over unmanaged, heterogeneous networks, and therefore the delivery technology must adapt to changing delivery conditions. VOD services in cable networks face a similar problem. The required bandwidth changes considerably with time causing non-uniform daily and weekly loads. The cable operators need to perform costly network upgrades to handle peak loads, resulting in unused network capacity.
This excess bandwidth, combined with the fact that there is ample storage and network capacity available in modern set top boxes and integrated digital televisions, can be utilized to provide VOD services efficiently in cable networks. Simulations show that the number of served subscribers can be increased manifold when compared to traditional VOD transport, leading to lower capital investment costs and better service for consumers.
At IBC 2011, Teleste, the European market leader in HFC networks, presents the Teleste MyCast multi-screen service platform and the Teleste Luminato headend for cable TV and IPTV delivery. Both products enable operators to take advantage of the change and become a central hub for all video content. In addition, the company’s latest achievements in network equipment development are also recognised as Teleste’s new AC9000 Intelligent Fibre Optic Node has been added to the
CSI 2011 Product of the Year Award's shortlist.