In focus: Broadcasting. Challenges within the broadcasting industry
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1 In focus: Broadcasting Challenges within the broadcasting industry
2 Contents A new world 3 The issues broadcasters are facing 4 ICT challenges for the media sector 5 The focus has changed 6 Where we re heading 10 Is broadcasting ready to embrace the cloud? 11 How we can help 14
3 Vodafone News and views for broadcasters A new world The broadcast industry is in the middle of a big shake up. The shift to digital is changing production and revenue models, while the impact of social media is growing at an unstoppable pace. At the same time, broadcasters are gathering new insights that are critical to understanding consumer behaviour, all set against the backdrop of evolving privacy legislation, revenue models and digital rights management. In such a complex environment, the introduction of more advanced connectivity and cloud-based services is becoming the solution for broadcasters that want to rapidly adapt, innovate and collaborate for a new era. 3
4 The issues broadcasters are facing Production and digital distribution Legacy systems can t match the quality and speed of digital production, with a major impact on end-to-end workflows and time to market. The paradigm shift to digital is reducing the need for physical footage, bringing down production and data transport costs. However, more can and needs to be done to leverage collaboration and drive efficiencies. Multi-platform management and playout The proliferation of smartphones and tablets is overtaking consumption in and out of the home, making it harder to manage the development of content for multiple new platforms. Content management Digital content libraries and archives bring new opportunities to generate revenue, but huge data volumes make it a real challenge to retrieve archived data successfully without efficient metadata tagging systems. Data analytics through social engagement Social media can bring new customer insight and drive realtime audience engagement through the second screen phenomenon. This insight in real-time has the potential to unlock location-based, relevant advertising to the benefit of the consumer and broadcaster. But gathering and processing the relevant information is a complex task. Changing competitor landscape New Over-The-Top (OTT) players such as Netflix are shaking up the competitive landscape broadcasters can t ignore this global threat and need to balance it against traditional broadcasting schedules. 4
5 ICT challenges for the media sector 1. Legacy systems Existing architecture, often designed for large volumes of physical production and distribution, is becoming irrelevant as we shift to digital Legacy system costs to be rationalised to support digital models Often inefficient slowing down time to market Advances in broadcasting technology also mean legacy systems can t handle new volumes of data traffic that need to be transferred from the field 2. New technologies The pace of technological change is intense both in production but also consumption and consumer behaviours; new technologies can harness these into new revenue streams Social media can bring new customer insight but processing relevant information is complex 3. Planning for scale Digital products and services need to be hosted on platforms which have sufficient capacity to cope with demand Poor planning can lead to users experiencing a deterioration in service levels, meaning customers could be lost, specifically when consuming content on the move 4. Data insights and engagement With changing revenue models, viewer insights are crucial for establishing a competitive advantage Many media players are looking at ways to better engage with their audiences and monetise that engagement Data analytics is key to boosting both insight and meaningful engagement through content and advertising Internal use of ICT Internal use of ICT in media is changing. Greater numbers of freelancers delivering content means use of online collaboration tools and VoIP is increasing 5
6 The focus has changed... Automation of processes The entire filming process is essentially digitised, taking advantage of low-cost digital equipment and efficiencies of digital workflow. Greater collaboration across the eco-system can help speed up logistics and reduce overall production costs. For example, on-set digital editing can maximise an actor s time, set design and all other administration, reducing extra shooting days or retakes. New distribution channels Broadcasters can distribute their content to multiple devices, making their digital marketing more targeted and creating new revenue streams through new distribution channels like OTT players and social media. New standards Move to HD and 4K production potentially creates new revenue streams and provides new premium choices for customers. Direct consumer relationships Broadcasters can distribute direct to consumers and monetise back catalogues. This can now be achieved on a global scale, opening up new market opportunities. 6
7 Focus of change Content generation Commission script Buy existing script Pre-production Secure resources, studio and other locations Production Digital capture of audio/video Automated studio management systems Post-production Digital video and audio editing Computer-generated special effects Focus of change Sales & marketing Create awareness Sales through retailers, broadcasters and cinemas Distribution Logistics and warehousing Digital distribution Rights management Digital capture of audio/video Automated studio management systems 7
8 ... and it continues to change Media player take-up Broadcasters have developed online media players that enable them to raise audiences of current shows, as well as making the back catalogue available. Their challenge now: can the rest of the market match the success of BBC iplayer while also protecting ad revenues? Schedules remain Despite the rise of Video on Demand (VoD), broadcasting schedules have remained relevant. In 2012, as stated by CSMG, 95% of TV programmes were watched live or within 24 hours of broadcast. So the challenge is to find a balance between the need to embrace OTT models while maintaining traditional viewing. Emergence of OTT players OTT broadcasters have been able to offer comprehensive content platforms and are competing aggressively across a variety of channels and devices. Some households are opting for multiple subscriptions to access the wealth of unique content available from different providers. Consumer engagement Consumers have shown an appetite for social TV apps that allow them to access and get involved in shows, news and social media. They have also demanded access across multiple platforms, including PC and tablet for viewing anytime, anywhere. Revenue models Product placement advertising and pre-watch adverts have enabled advertising even if programmes are viewed on demand. Accurate profiling means they are able to target customers with highly relevant messages 8
9 Focus of change Focus of change Content acquisition & formatting In-house external production Digital ingestion and encoding of content Ad selling Sell advertising space Scheduling Ordering of TV programmes Ad insertion Live production Capturing of live footage Editing on fly/character generation Transmission to playout facilities Playout & transmission Mixing live programming, pre-recorded and ads Broadcast over terrestrial, cable, or satellite network Focus of change Rights managed Digital asset management platforms Sales & marketing Sell licence fees and subscriptions Create awareness Manage audience participation Operation of interactive services such as online/ phone/sms competitions Measurement Monitor and analyse viewing figures Analyse metrics (eg: engagement via social media) 9
10 Where we re heading Many of the production and broadcasting challenges will be solved in the future by end-to-end digital workflows and the use of IP file transfer networks. These are the key benefits broadcasters will see: streamlining the processes around digital workflows from end-to-end can enable broadcasters to collaborate on and deliver significant volumes of content across many platforms to multiple devices in real time improvements in collaboration and post-production will also save time and costs of producing shows secure fast file transfer will be at the centre of this revolution, achieved through the adoption of IP file transfer networks and use of software-accelerated file transfer packages 10
11 Vodafone News In focus: and Broadcasting views for broadcasters Is broadcasting ready to embrace the cloud? Multi-platform content management will be achieved through cloud services The use of IP file transfer networks opens up new creative possibilities, particularly with live production. Footage transmitted through fibre and mobile uplink can be automatically ingested digitally, allowing reporters to broadcast live from the field by transmitting over mobile networks instead of costly satellite connections. Cloudbased editing suites are also becoming economically viable. Editors can work on content on a private cloud, minimising bandwidth usage and making it cost-effective and secure to work anywhere. Andrew Halliwell, Head of Media, Gaming and Technology, Vodafone UK Broadcast and secure archiving of content can be achieved quickly and efficiently through the cloud, satisfying the need for multi-platform content delivery solutions. Transcoding in the cloud will increasingly be the de facto solution for broadcasters that want to scale quickly in line with demand. Multiple jobs can be carried out simultaneously without increasing fixed costs through provisioning of dedicated servers. Content delivery through the cloud allows broadcasters to integrate both linear and non-linear playout seamlessly within the digital workflow, leading to greater efficiency and scalability. Andrew continues: Transcoding of content needs to be carried out for each platform and device it s delivered to. But the number of transcoding jobs increases as the number of platforms and devices grows, so server capacity can t keep up with this growth. Broadcasters require a cloud solution that can meet future demand especially as non-linear consumption increases. 11
12 Vodafone News In focus: and Broadcasting views for broadcasters Is broadcasting ready to embrace the cloud? Connectivity Distribution of content through mobile and fixed line networks can address new bandwidth issues associated with multiplatform delivery and live digital production. Cloud and hosting Data centres connected to high bandwidth fixed and mobile networks can enable transcoding for virtual production team and workflow partners. This can also make archived footage accessible for multiplatform playout. One of the factors that makes the cloud model appealing the enormous bandwidth and storage capacity consumed by video is also holding it back. For larger operations in particular, the general cloud conundrum is the fact that data has to be uploaded and stored within it, consuming bandwidth in the process. E&T Magazine, May 2012 Broadcast media is a late convert to cloud computing, but it is proving to be an enthusiastic one. The benefits are especially timely for an industry undergoing a transformation as it embraces the concept of TV Everywhere at the same time as migration to IP networks for transmission. E&T magazine, May Personal cloud entertainment platform (PCEP) vendors such as Google, Apple and others are building opportunities for content creators and their partners to rethink how they invest in locating, nurturing and producing content that will gain a major advantage over competitors. Gartner, 2013
13 Is broadcasting ready to embrace the cloud? Traditional broadcasters are adapting NBC is already using cloud-based editing software to produce content without having to relocate an entire content editing team including at the 2014 Winter Olympics. The BBC has switched to cloud transcoding for on-demand content, reducing the time required for broadcast content to be available on demand from up to 10 hours down to 20 minutes. Cloud reaching new heights Cloud computing solutions appeared as the sixth hottest trend on the latest Devoncroft Big Broadcast Survey (BBS) of 2013, up from its debut on the list at seventh place back in What respondents say is important to the future of their business. Multi-platform content delivery (broadcast web, mobile etc) File-based / tapeless workflows IP networking & content delivery Transition to HDTV operations lmprovements in video compression efficiency Cloud computing/ cloud-based services Video on demand Move to automated workflows Targeted advertising Centralised operations (playout, transmission etc) Analog switch-off Transition to 3Gbps (1080p) operations Transition to 5.1 channel audio 3DTV Outsourced operations (playout, transmission etc) Reduction in carbon emissions/ other green initiatives 13 The 2013 BBS Broadcast Industry Global Trend Index
14 How we can help We ve worked extensively with the UK broadcasting industry over the years. Our expert team manages the needs of over 50,000 users across 75 of the UK s largest media and broadcasting companies. We help them to meet their challenges with an innovative range of connectivity and cloud and hosting solutions that help with production, multiplatform management and end-to-end digital workflows. Arrange a visit to our Customer Experience Centre in Newbury through your Account Manager or call us on
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