InternationalTelecommunicationUnion

Drivers for new digital television services

Peter Walop (ITU expert)

Agenda

Topics

1. Video based services

2. Technology changes

3. Consumer changes

4. Regulatory changes

2

1. Video based servicesWide scope of video based services

QoS1 Managed QoS1 Unmanaged

Traditional

TV

Networks

Hybrid

Delivery

Networks

Integrated

Delivery

Networks =

IP

DTTB/Sat

Linear TV❶

Linear

DTTBCable

VOD

Inter-net

❷

IPTV/HFC

❹ ❺

4G / 5G

❻

Linear

MTV

VOD

3G/4G

❸

Semi

interactive -

teletext

Smart

TV/HbbTV

T-DMB in Korea

OTT – Netflix or

Hulu

LTE-eMBMS – KT

in Korea

Telecom or

Cable operators

Fixed & Portable

Mobile (all modes)

Reception mode:

1 Picture quality &

service availability

Linear & VOD

Linear & VOD

Video service type:

Linear TV/Video

Video on Demand

IRT field trial /

FeMBMS

3

Internet

Linear & VOD

1. Video based servicesDrivers

Telecom Media

Consumer

Devices &

Internet of

Things

Converged

Services

1. Technological changes2.

Consu

mer

changes

3.

Regula

tory

changes

4. Social & Economic changes

Video

based

services

4

2. Technology changesCapacity gap approaching in a further maturing OTT market

• UHD video delivery is the key driver of demand for more bandwidth• OTT video consumption to grow further from current 20% (of all video

consumption)(1)

• Bandwidth in the fixed local loop can be increased:o VDSL2/Vectoring, DOCSIS 3.1, Fibre (XG PON/NG PON2)

• CDN datacentre deployment and processor capacity the limiting factors

5

Source: ITU

UHDTV 2 (8K)

50 Mbps H.265/HEVC

91 Mbps H.264

UHDTV 1 (4K)

25-35 Mbps H.265/HEVC

HD

7.5 Mbps H.264

SD 2

Mbps

• For flat panel TV sets

• Varying terrestrial systems

• Varying framerates

• Varying powers/distances

1080

2160

4320

1920 3840 7680

Source: Computer Architecture: A Quantitative Approach (2017)

3.5%/yr

(1) Digital UK and RTL Germany research showed 80% of viewing is live and recorded TV, via traditional delivery (2017)

2. Technology changesCapacity gap on terrestrial platforms is already there

6

8 MHz

DVB-T(1)

MPEG2

SD(S2)

SD(S3)

SD(S4)

SD(S5)

SD(S6)

DVB-T MPEG4

DVB-T2(2)

MPEG4

SD

SD

SD

SD

SD

SD

SD

SD

SD

SD

SD (S12)

DVB-T2 HEVC

SD(S1)

SD(S1)

HD(S3)

HD(S2)

HD(S1)

HD(S2)

HD(S3)

HD(S4)

HD(S5)

HD(S6)

HD(S1)

DVB-T MPEG4

HD

HD

HD

HD

HD

HD

HD

HD

HD

HD

HD (S12)

HD(S1)

4K (S1)

DVB-T2 HEVC

8K

DVB-T2 HEVC

(1) Net bit rate: 24 Mbit/s (64QAM, CR 2/3)(2) Net bit rate: 40 Mbit/s (256 QAM, CR 2/3)

Capacity gap

LTE eMBMS has similar transport

efficiency(Shannon limit!)

For flat panels at home

(not for mobile)

IRT field test (5G FeMBMS) – to replace terrestrial

broadcasting

3. Consumer changesVOD and TV anywhere and anytime

Source: OOYALA Global Video Index Q1 2018, adapted

7

New video (redistribution) servicesMobile video consumption share (1)

Source: Sling Media, adapted

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Jul-

13

Sep-1

3

Nov-1

3

Jan-1

4

Mar-

14

May-1

4

Jul-

14

Sep-1

4

Nov-1

4

Jan-1

5

Mar-

15

May-1

5

Jul-

15

Sep-1

5

Nov-1

5

Jan-1

6

Mar-

16

May-1

6

Jul-

16

Sep-1

6

Nov-1

6

Jan-1

7

Mar-

17

May-1

7

Jul-

17

Sep-1

7

Nov-1

7

Jan-1

8

On phones On tablets On phones + tablets

3rd party STB Slingbox

Encrypted Pay-TV

services (from DTH or Cable)

Home WiFi Router

Smart TV-set + Sling App

Internet

Home Premises

Smart phone or

table + Sling App(anywhere)

Decrypted

services

(1) Share of plays on all IP connected devices

3. Consumer changesMobile VOD is complementary to live TV

8

Video Minutes per Session per Device Type

Source: OOYALA Global Video Index Q2 2017, adapted

• Mobile VOD seems not to cannibalise TV revenues:o Only idle time is used (when

on the move) o TV is long-form and mobile is

short-form videoo 4/8K (UHDTV) viewing not on

mobiles

• However, mobile VOD viewing may change viewing habits also at home

• Media-meshing between mobile VOD and live TV forms an opportunity

3. Consumer changesConsumer’s appetite for mobile TV seems limited

9

• Technology is not the limiting factor any longer• Demand for linear TV on mobiles is not distinct, it is subset of premium live

content• For this “spikey demand” LTE eMBMS seems a better solution

4. Regulatory changesEco-system access also important for connected TV sets

• Recent eco-system dispute:o Sep 2017: Google pulled

YouTube access from Amazon’s Echo Show (= smart speaker)

o Dec 2017: Amazon not selling Google’s Chromecast and Home products

• Securing access to TV apps can be critical, however:o Competition is fierceo Standardisation helpsSource: Statista, Strategy Analytics, 2016

20.98%

12.40%

5.56%5.54%5.56%4.59%

32.30%

Smart TV setsOthers

Changhong

Vizio

Panasonic

AOC/TP

Skyworth

Hisense

Sony

TCL

LG

Samsung20%

35%

16%

14%

15%

Dongles

Others

Roku

Amazon Fire TV

Chromecast

Apple TV

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4. Regulatory changesNet neutrality for audio-visual services is challenging

• AV zero-rating offerings are currently attracting regulatory attention:o Offerings can constitute a violation

of net neutrality ruleso Rulings in US and Europe vary

• The 2012 - KT/Samsung -dispute may repeat itself in the future:o Mature production of 4/8K content

and serviceso Connected 4/8K TV sets will

accelerate broadband demand

Source: T-Mobile

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Source: ITU

4. Regulatory changesLocal AV content requirements also for OTT

• AV content requirements should be (as much as possible) technology-neutral

• Regulating non-linear services poses two challenges:o No natural capacity constrainto More viewer’s control over content

• In EU regulatory cornerstone = AV Media Service Directive (AVMSD)

• AVMSD currently under review:o Includes now social media serviceso Advertising rules more relaxed (20% rule only

between 07:00-23:00)o Relaxing of product placement & sponsoring rules

(by self-regulation)o VOD SPs to provide at least 30% local content

Source: European Council

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