Like
all television networks, niche content providers such as ethnic and
religious broadcasters want to reach as many viewers as possible. For
years they have lobbied cable operators for carriage on cable distribution
systems. While cable operators have become more aware of the need and
financial benefits of broadcasting niche content, the reality is that
there is not a sufficient population in most operators' geographic
markets to justify the expense of launching niche networks. There are
exceptions |
not become significant
until they had a significant viewer base? Then even small content providers
could afford to reach their target audience.
The solution
is of course Over-the-Top IPTV (OTT). OTT is similar in operation to
Telco IPTV multicast systems except that rather than using their own
local infrastructure to transport the content, OTT systems contract
third party distribution networks (Internap Network Services, Limelight
Networks, Akamai) to transport the content |
of course (Hispanic networks,
premium services, the occasional golf channel) but for hundreds of
other cultures and enthusiasts, their particular style of programming
will not be available to them on cable systems.
Until
recently the best option for niche broadcasters to reach their audience
seemed to be Direct to Home (DTH) satellite systems. All you needed
was cash and content and you could be on the air. The problem however
was that you needed a lot of cash. DTH is very expensive |
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for ultimate delivery to
viewers via the public Internet. Granted, this capability has been
around for a number of years and early adopters such as Jump TV have
been broadcasting on OTT systems for some time, but a few recent developments
have made the model more credible.
For starters,
broadband Internet speeds are far more available than they were a few
years ago; especially in the US. An April 2009 survey by the Pew Research
Center's Internet & American Life Project |
and both the signal and the associated
cost needs to be replicated in each geographic footprint. Granted it
is a large footprint, but if you want to broadcast around the world,
you must incur the broadcast expense multiple times. DTH is also inconvenient
for the viewer. Installing a home dish is often problematic or even
impossible for some viewers. These realities have left niche broadcasters
with the daunting problem of how to distribute their content to their
target audiences economically.
If only niche broadcasters had a broadcast
platform that could deliver content most anywhere in the world. Wouldn't
it be great if they didn't need a high concentration of viewers in
a particular geographic location in order to justify the expense of
a launch? Rather, they could rely on a sprinkling of people in many
locations rather than a large number of people in a single location.
Better yet, what if the cost of the distribution was low when they
had only a small number of viewers and did |
shows 63% of adult Americans now have broadband
Internet connections at home; up from 30% in 2005. Today download speeds
of 1.5Mbps are common and provide sufficient bandwidth to deliver a
near broadcast quality signal. This provides viewers the quality they
are accustomed to for viewing on mid to small television monitors.
It isn't very sexy, but a big evolution has
been cost. It is simply much more affordable to build and operate an
OTT IPTV system than it ever has been before. Encoder companies such
as Visionary Solutions have developed very capable, reliable and extremely
affordable encoder solutions. Middleware companies have tempered their
dreams of multimillion dollar systems and now offer turnkey content
gateways for less than six figures. PeerTV offers multicast and unicast
ready set top boxes with up to 1080P decoding and an abundance of video
and audio protocols for well under $200. This abundance of |
high quality software and hardware at rates
that can be afforded by even the smallest of broadcasters has made
OTT IPTV a viable distribution option.
Broadcasters that want to keep their investment
to a minimum have the option to simply add their programming to an
existing IPTV platform. PathFinder Digital offers their "Broadband
TV Shared Services" solution that provides broadcasters the option
to launch a channel for under $4,000 of upfront cost; inclusive of
the encoder and shared content gateway. PathFinder Digital will then
operate the system, provide customer support and perform all the logistics
necessary to distribute set top boxes to viewers for a flat monthly
fee of $1,500 for the first channel and as low as $500 for additional
channels. The network is only responsible for selling set top boxes
to their viewers and for the cost of the delivery network which of
course varies with the number of set top boxes in the field. Firms
such as NeuLion and TVU Networks offer similar services where they
operate the system for a fee on behalf of the network.
Another evolution for broadcasters is the
integration of television sets with IPTV platforms pre-equipped with
STB functionality. AnySource Media (recently acquired by DivX) and
Global Digital Broadcast are developing hardware and |
software to be installed in television
sets by manufacturers that allow viewers to identify, select and access
content from virtually anywhere. The chip provides the viewer a program
guide to aid in the selection of the content and then "requests"
the program file from the content owner. The file is then streamed
from the content owner's server directly to the television set for
viewing. The beauty of these systems is that they can accept a wide
variety of audio and video protocols so most content owners will be
able to participate. And because the content is delivered over the
Internet, it can come from anywhere. A big challenge for this solution
is obtaining the agreement of television set manufacturers to include
the technology in their products. If a solution is adopted, it will
provide all television viewers a built-in option to obtain niche content
from anywhere.
Networks of any
size now have access to affordable OTT IPTV solutions which enable
them to distribute their content to their target audiences via the
Internet. Whether they install and operate their own OTT IPTV service,
lease access on a shared system, or simply make content files available
for streaming, a solution is near. And because these systems are scalable,
they can grow their solution as their viewer base increases. If you
are a niche broadcaster, you have to consider Broadband TV. |