Showing posts with label adaptive streaming. Show all posts
Showing posts with label adaptive streaming. Show all posts

Thursday, May 2, 2024

How to manage mobile video with Open RAN

Ever since the launch of 4G, video has been a thorny issue to manage for network operators. Most of them had rolled out unlimited or generous data plans, without understanding how video would affect their networks and economics. Most videos streamed to your phones use a technology called Adaptive Bit Rate (ABR), which is supposed to adapt the video’s definition (think SD, HD, 4K…) to the network conditions and your phone’s capabilities. While this implementation was supposed to provide more control in the way videos were streamed on the networks, in many cases it had a reverse effect.

 

The multiplication of streaming video services has led to ferocious competition on the commercial and technological front. While streaming services visibly compete on their pricing and content attractiveness, a more insidious technological battle has also taken place. The best way to describe it is to compare video to a gas. Video will take up as much capacity in the network as is available.

When you start a streaming app on your phone, it will assess the available bandwidth and try to deliver the highest definition video available. Smartphone vendors and streaming providers try to provide the best experience to their users, which in most cases means getting the highest bitrate available. When several users in the same cell try to stream video, they are all competing for the available bandwidth, which leads in many cases to a suboptimal experience, as some users monopolize most of the capacity while others are left with crumbs.

 

In recent years, technologies have emerged to mitigate this issue. Network slicing, for instance, when fully implemented could see dedicated slices for video streaming, which would theoretically guarantee that video streaming does not adversely impact other traffic (video conferencing, web browsing, etc…). However, it will not resolve the competition between streaming services in the same cell.

 

Open RAN offers another tool for efficiently resolving these issues. The RIC (RAN Intelligent Controller) provides for the first time the capability to visualize in near real time a cell’s congestion and to apply optimization techniques with a great level of granularity. Until Open RAN, the means of visualizing network congestion were limited in a multi-vendor environment and the means to alleviate them were broad and coarse. The RIC allows to create policies at the cell level, on a per connection basis. Algorithms allow traffic type inference and policies can be enacted to adapt the allocated bandwidth based on a variety of parameters such as signal strength, traffic type, congestion level, power consumption targets…

 

For instance, an operator or a private network for stadiums or entertainment venues could easily program their network to not allow upstream videos during a show, to protect broadcasting or intellectual property rights. This can be easily achieved by limiting the video uplink traffic while preserving voice, security and emergency traffic.

 

Another example would see a network actively dedicating deterministic capacity per connection during rush hour or based on threshold in a downtown core to guarantee that all users have access to video services with equally shared bandwidth and quality.

 

A last example could see first responder and emergency services get guaranteed high-quality access to video calls and broadcasts.

 

When properly integrated into a policy and service management framework for traffic slicing, Open RAN can be an efficient tool for adding fine grained traffic optimization rules, allowing a fairer apportioning of resource for all users, while preserving overall quality of experience.

 

Friday, March 18, 2016

For or against Adaptive Bit Rate? part V: centralized control

I have seen over the last few weeks much speculations and claims with T-Mobile's Binge On service launch and these have accelerated with yesterday's announcement of Google play and YouTube joining the service. As usual many are getting on their net neutrality battle horse using fraught assumptions and misconceptions to reject the initiative.

I have written at length about what ABR is and what are its pros and cons, you can find some extracts in the links at the end of this post. I'll try here to share my views and expose some facts to enable a more pragmatic approach.

I think we can safely assume that every actor in the mobile video delivery chain wants to enable the best user experience for users, whenever possible.
As I have written in the past, in the current state of affair, adaptive bit rate is often times corrupted in order to seize as much network bandwidth as possible, which results in devices and service providers aggressively competing for bits and bytes.
Content providers assume that highest quality of content (1080p HD video for instance) equals maximum experience for subscriber and therefore try and capture as much network resource as possible to deliver it. Browser / apps / phone manufacturers also assume that more speed equals better user experience, therefore try to commandeer as much capacity as possible. The flaw here is the assumption that the optimum is the product of many maxima self regulated by an equal and fair apportioning of resources. This shows a complete ignorance of how networks are designed, how they operate and how traffic flows through these networks.

An OTT cannot know why a user’s session downstream speed is degrading, it can just report it. Knowing why is important because it enables to make better decisions in term of the possible corrective actions that need to be undertaken to preserve the user’s experience. For instance, a reduction of bandwidth for a particular user can be the result of handover (4G to 3G or cells with different capacity), or because of congestion in a given cell or due to the distance between the phone and the antenna or whether a user enters a building, an elevator, or whether she is reaching her data cap and being throttled etc.… Reasons can be multiple and for each of them, a corrective action can have a positive or a negative effect on the user’s experience. For instance, in a video streaming scenario, you can have a group of people in a given cell streaming Netflix and others streaming YouTube. Naturally, the video streamed is in progressive download adaptive bit rate format, which means that the stream will try to increase to the highest available download bit rate to deliver the highest video definition possible. All sessions will theoretically increase the delivered definition up to the highest available or the highest delivery bit rate available, whichever comes first. In a network with much capacity, everyone ramps up to 1080p and everyone has a great user experience.

More often than not, though, that particular cell cannot accommodate everyone’s stream at the highest definition at the same time. Adaptive bit rate is supposed to help there again by stepping down definition until it fits within available delivery bit rate. It unfortunately can’t work like that when we are looking at multiple sessions from multiple OTTs. Specifically, as soon as one player starts reducing its definition to meet lower bit rate delivery, that freed-up bandwidth is grabbed by other players, which can now look at increasing even more their definition. There is no incentive for content provider to reduce bandwidth fast to follow network condition, because they can become starved by their competition in the same cell.

The solution here is simple, the delivery of ABR video content has to be managed and coordinated between all providers. The only way and place to provide this coordination is in the mobile network, as close to the radio resource as possible. [...]

This and more in my upcoming Mobile Edge Computing report.


Part I:What is ABR?
Part II: For ABR
Part III:Why isn't ABR more succesful
Part IV: alernatives

Tuesday, February 2, 2016

How to Binge On?

So... you have been surprised, excited,. curious about T-Mobile US Binge On launch
The innovative service is defining new cooperative models with so-called OTT by blending existing and new media manipulation technologies.

You are maybe wondering whether it would work for you? Do you know what it would take for you to launch a similar service?
Here is a quick guide of what you might need if you are thinking along those lines.


The regulatory question

First, you probably wonder whether you can even launch such a service. Is it contravening any net neutrality rule? The answer might be hard to find. Most net neutrality provisions are vague, inaccurate or downright technologically impossible to enforce, so when launching a new service, the best one can have is an opinion.
MNOs have essentially two choices, either not innovating and launching endless minute variations of existing services or launching innovative services. The latter strategy will always have a measure of risk, but MNOs can't aspire to be disruptive without risk taking. In this case, the risk is fairly limited, provided that the service is voluntary, with easy opt in /  opt out. There are always going to be challenges - even legal - to that operating assumption, but operators have to accept that as part of the cost of innovation. In other words, if you want to create new revenues streams, you have to grow some balls and take some risks, otherwise, just be a great network and abandon ambition to sell services.


The service

For those not familiar with Binge On, here is a quick overview. Binge On allows any new or existing subscribers with a 3GB data plan or higher to stream for free videos from over 4o popular content providers including Netflix, Hulu, HBO and ESPN.
The videos are zero rated (do not count towards the subscriber's quota) and are limited to 480p definition.
The service is free.

The content

Obviously, in the case of Binge On, the more content providers with rich content sign on for the service, the richer and the more attractive the offering. T-Mobile has been very smart to entice some of the most popular video services to sign on for Binge on. Netflix and HBO have a history of limited collaboration with few network operators, but no MNO to date has been able to create such a rich list of video partnerships.
Experience proves that the key to successful video services is breadth, depth and originality of the content. In this case, T-Mobile has decided not to intervene in content selection, simply allowing some of the most popular video services to participate in the service.
Notably, Facebook, Twitter, Google, Apple and Amazon properties are missing, with YouTube claiming technical incompatibility to participate.

The technology

What does the service entails technically? The first functionality a network needs to enable such a service is to discriminate content from a participating video provider versus other services. In some cases, when traffic is not encrypted, it is just a matter of creating a rule in the DPI or web gateway engine to apply zero rating to a specific content / origin. 

Picking out Netflix traffic out of the rest of the videos is not necessarily simple, since many premium video service providers deliver their service over encrypted protocols, to avoid piracy or privacy issues. The result is certainly that there is a level of integration that is necessary for the network to unambiguously detect a video session from Netflix. 

In this case, unencrypted metadata can be used in the headers to identify the service provider and even the content. That is not all, though as conceivably, some services might not be exclusively video. If we imagine a service like Facebook being part of Binge one, the network now needs to theoretically separate browsing traffic from video. This can be achieved with traffic management platforms that are usually deploying heuristics or algorithm to segregate traffic from a same source looking at packet size, session duration, packet patterns, etc.

Now that you are able to discriminate the content from participating partners, you need to tie it to subscribers that have opted in or opted out for this service. This usually is performed in the PCRF charging function or in the EPC where the new service is created. A set of rules are assembled to associate the list of content providers with a zero-rated class of service and associate a subscriber class with these services. The subscriber class is a toggled setting in the subscriber profile that resides in the subscriber database. As a subscriber starts a HBO episode, the network detects that this service is part of Binge on and looks up whether that user is subscribed or not to the service and applies the corresponding rate code. As a result, the amount of data consumed for this session is either accumulated and deduced from the subscriber's quota or not depending on whether she is a Binge On user.

We are almost done.

The big gamble taken by T-Mobile is that customers will trade unlimited quality for unlimited content. Essentially, the contract is that those who opt in Binge On will be able to stream unlimited video from participating providers at the condition that the video's definition is limited to 480p. In many cases, this is an acceptable quality for phones and tablets, as long as you do not hotspot the video to a laptop or a TV.
That limitation is the quid pro quo that T-Mobile is enforcing, allowing them to be able to have cost and service quality predictability.

That capability requires more integration between content provider and T-Mobile. 480p is an objective video display target that is usually describing a 640 x 480 pixels picture size. Videos encoded at that definition will vary in size, depending on the codec used, the number of frames per seconds and other parameters.

Most premium video providers in Binge ON are delivering them using adaptive bit rate, essentially delivering a number of possible video streams ranging from low to high definition. In this case, T-Mobile and the content provider have to limit the format up to 480p. This could be done by the content provider, of course, since it has all the formats. They could decide to send only 480p and lower versions, but that would be counter productive. The content provider does not know whether the subscriber is opted in to Binge On or not and that information that belongs to T-Mobile cannot be freely shared.
As a result, content providers are sending the video in their usual definition, leaving T-Mobile with the task to select the right format.

There are several ways to achieve that. The simplistic approach is just to limit the delivery bit rate so that the phone can never select more than 480p. This is a hazardous approach, because 480p encoding can result in bit rate delivery demand ranging from 700 to 1.5 Mbps depending on the codec being used. This is too wide to provide any guarantee by T-Mobile. Set the setting too low and some providers will never achieve 480 p. Set it too high and subscribers will have fluctuating quality with even 720 or 1080p formats.
The best way to achieve the desired result is to intercept the adaptive bit rate manifest delivered by the content provider at the establishment of the session and strip out all definitions above 480p. This guarantees that the video will never be delivered above 480p but can still fluctuate based on network's congestion. This can be achieved either with a specialized video optimization platform or in some of the more advanced EPC.

As we can see, the service is sophisticated and entails several steps. A network's capacity to deploy such a service is directly linked to its ability to link and instantiate services and network functions in an organic manner. Only the most innovative EPC, traffic detection and video management functions vendors can provide the flexibility and cost effectiveness to launch such a service.


Thursday, November 12, 2015

All you need to know about T-Mobile Binge On




Have you been wondering what is T-Mobile US doing with your video on Binge On?
Here is a small guide and analysis of the service, its technology, features and limitation.

T-Mobile announced at its Uncarrier X event on November 11 the launch of its new service Binge On. The company's CEO remarked that video is the fastest growing data service with +145% compared to 2 years ago and that consumers are increasingly watching video on mobile devices, in wireless networks and cutting the cord from their cable and satellite TV providers. Binge on was created to meet these two market trends.

I have been previewing many of the features launched with Binge on in my video monetization report and my blog posts (here and here on encryption and collaboration) over the last 4 years.


Binge On allows any new or existing subscribers with a 3GB data plan or higher to stream for free videos from a number of apps and OTT properties. Let's examine what the offer entails:

  1. Subscribers with 3GB data plans and higher are automatically opted in. They can opt out at any moment and opt back in when they want. This is a simple mechanism that allows service transparency, but more importantly underpins the claim of Net Neutral service. I have pointed out for a long time that services can be managed (prioritized, throttled, barred...) as long as subscribers opt in for these. Video optimization falls squarely in that category and T-Mobile certainly heeded my advice in that area. More on this later.
  2. Services streaming free in Binge on are: Crackle, DirecTV, Encore, ESPN, Fox Sports, Fox Sports GO, Go90, HBO GO, HBO NOW, Hulu, Major League Baseball, Movieplex, NBC Sports, Netflix, Showtime, Sling Box, Sling TV, Starz, T-Mobile TV, Univision Deportes, Ustream, Vessel, Vevo, VUDU.
  3. You still have to register / subscribe to the individual services to be able to stream free on T-Mo network.
  4. Interestingly, no Google properties (YouTube) or Facebook included yet. Discussions are apparently ongoing.
  5. These OTT video services maintain their encryption, so the content and consumer interactions are safe. 
  6. There were mentions of a mysterious "T-Mobile proprietary streaming technology and video optimization" that requires video service providers to integrate with T-Mobile. This is not transcoding and relies on adaptive bit rate optimization, ranging from throttling data to transrating, to manifest manipulation (ask video providers to enable un-encrypted manifest so that it can be edited and limited to 480p definition).
  7. Yep, video is limited at 480p definition, which T-Mobile defines as DVD quality. It's going to look good on a smartphone, ok on a tablet and bad on anything bigger / tethered.
  8. I have issue with the representation "We've optimized streaming so that you can watch 3x more video" because mostly it's: 
  9. File size per hour of streamed video per definition
    1. Inaccurate (if this is unlimited, how can unlimited be 3x what you are currently watching?); 
    2. Inexact (if they are referring to the fact that a 480p file could in average be 1/3 of the size of a 1080p file, which is close enough), they are assuming wrongly that you are only watching HD 1080p video, while most of these providers rely on adaptive bit rate, therefore varying the video definition based on the networks' conditions.
    3. Wrong since most people assume watching 3X more video means spending 3X the amount of time watching video, rather than 3X the file size.
    4. Of bad faith, since T-Mobile limited video definition so that users wouldn't kill its network. Some product manager / marketing drone decided to turn this limitation into a feature...
  10. Now in the fine prints, on the rest of the video you watch that are not part of the package, expect that "Once high-speed data allotment is reached, all usage slowed to up to 2G speeds until end of bill cycle." 2G speed? for streaming video?  like watching animated GIF? That's understandable, though, there has to be an carrot (and a stick) for providers who have not joined yet, as well as some fair usage rules for subscriber breaching their data plans - but 2G speed? come on, might as well stop the stream rather than pretend that you can stream anything on 128 kbps.
  11. More difficult to justify is the mention "service might be slowed, suspended, terminated, or restricted for misuse, abnormal use, interference with our network or ability to provide quality service to other users". So basically, there is no service level agreement for minimum quality of service. Ideally, if a video service is limited to 480p (when you are paying Netflix, etc. for 1080p or even 4K, let's remember), one should expect either guaranteed level or a minimum quality floor?
  12. Another vague and spurious rule is "Customers who use an extremely high amount of data in a bill cycle will have their data usage de-prioritized compared to other customers for that bill cycle at locations and times when competing network demands occur, resulting in relatively slower speeds. " This is not only vague and subjective, it will vary over time depending on location (with a 145% growth in 2 years, an abnormal video user today will be average tomorrow). More importantly, it goes against some of the net neutrality rules
T-Mobile innovates again with a truly new approach to video services. Unlike Google's project Fi, it is a bold strategy, relying on video optimization to provide a quality ceiling, integration with OTT content providers to enable the limitation but more importantly an endorsement of the service. It is likely that the service will be popular in terms of adoption and usage, it will be interesting to see, as its user base grows how user experience will evolve over time. At least, there is now a fixed ceiling for video, which will allow for network capacity planning, removing variability. What is the most remarkable in the launch, from my perspective is the desire to innovate and to take risks by launching a new service, even if there are some limitations (video definition, providers...) and risks (net neutrality).

Want to know more about how to launch a service like Binge on? What technology, vendors, price models...? You can find more in my video monetization reports and workshop.

Monday, June 8, 2015

Data traffic optimization feature set

Data traffic optimization in wireless networks has reached a mature stage as a technology . The innovations that have marked the years 2008 – 2012 are now slowing down and most core vendors exhibit a fairly homogeneous feature set. 

The difference comes in the implementation of these features and can yield vastly different results, depending on whether vendors are using open source or purpose-built caching or transcoding engines and whether congestion detection is based on observed or deduced parameters.

Vendors tend nowadays to differentiate on QoE measurement / management, monetization strategies including content injection, recommendation and advertising.

Here is a list of commonly implemented optimization techniques in wireless networks.
  •  TCP optimization
    • Buffer bloat management
    • Round trip time management
  • Web optimization
    • GZIP
    •  JPEG / PNG… transcoding
    • Server-side JavaScript
    • White space / comments… removal
  • Lossless optimization
    • Throttling / pacing
    • Caching
    • Adaptive bit rate manipulation
    • Manifest mediation
    • Rate capping
  • Lossy optimization
    • Frame rate reduction
    • Transcoding
      • Online
      • Offline
      • Transrating
    • Contextual optimization
      • Dynamic bit rate adaptation
      • Device targeted optimization
      • Content targeted optimization
      • Rule base optimization
      • Policy driven optimization
      • Surgical optimization / Congestion avoidance
  • Congestion detection
    • TCP parameters based
    • RAN explicit indication
    • Probe based
    • Heuristics combination based
  • Encrypted traffic management
    • Encrypted traffic analytics
    • Throttling / pacing
    • Transparent proxy
    • Explicit proxy
  • QoE measurement
    • Web
      • page size
      • page load time (total)
      • page load time (first rendering)
    • Video
      • Temporal measurements
        • Time to start
        • Duration loading
        • Duration and number of buffering interruptions
        • Changes in adaptive bit rates
        • Quantization
        • Delivery MOS
      • Spatial measurements
        • Packet loss
        • Blockiness
        • Blurriness
        • PSNR / SSIM
        • Presentation MOS


An explanation of each technology and its feature set can be obtained as part of the mobile video monetization report series or individually as a feature report or in a workshop.

Monday, October 27, 2014

HTTP 2.0, SPDY, encryption and wireless networks

I had mused, three and half years ago, at the start of this blog, that content providers might decide to encrypt and tunnel traffic in the future in order to retain control of the user experience.

It is amazing that wireless browsing is becoming increasingly the medium of choice for access to the internet, but the technology it relies on is still designed for fixed, high capacity, lossless, low latency networks. One would think that one would design a technology for its primary (and most challenging) use case and adapt it for more generous conditions instead of the other way around... but I am ranting again.

We are now definitely seeing this prediction accelerate since Google introduced SPDY and proposed it as default for HTTP 2.0.
While HTTP 2.0 latest draft is due to be completed this month, many players in the industry are silently but definitely committing resources to the battle.

SPDY, in its current version does not enhance and in many cases, decreases user experience in wireless networks. Its implementation of TCP lets it too dependant on round trip time, which in turns creates race conditions in lossy networks. SPDY can actually contribute to congestion rather than reduce it in wireless networks.

On one side content providers are using net neutrality arguments to further their case for the need for encryption. They are conflating security (NSA leaks...), privacy (apple cloud leaks) and net neutrality (equal, and if possible free access to networks) concerns.

On the other side, network operators, vendors are trying to argue that net neutrality does not mean not intervening, that the good of the overall users is subverted when some content providers and browser/client vendors use aggressive and predatory tactics to monopolize bandwidth in the name of QoE.

At this point, things are still fairly fluid. Google is proposing that most / all traffic be encrypted by default, while network operators are trying to introduce the concept of trusted proxies that can decrypt / encrypt under certain conditions and user's ascent.

Both these attempts are short-sighted and doomed to fail in my mind and are the result of aggressive strategies to establish market dominance.

In a perfect world, the device, network and content provider negotiate service quality based on device capabilities, subscriber data plan, network capacity and content quality. Technologies such as adaptive bit rate could have been tremendously efficient here, but the operating word in the previous sentence is "negotiate", which assumes collaboration, discovery and access to relevant information to take decisions.

 In the current state of affair, adaptive bit rate is often times corrupted in order to seize as much network bandwidth as possible, which results in devices and service providers aggressively competing for bits and bytes.
Network operators tend to either try to improve or control user experience by deploying DPI, transparent caches, pacing technology, traffic shaping engines, video transcoding, etc...

Content providers assume that highest quality of content (HD for video for instance) equals maximum experience for subscriber and therefore try and capture as much network resource as possible to deliver it. Browser / apps / phone manufacturers also assume that more speed equals better user experience, therefore try to commandeer as much capacity as possible. The flaw here is the assumption that the optimum is the product of many maxima self regulated by an equal and fair apportioning of resources. This shows a complete ignorance of how networks are designed, how they operate and how traffic flows through these networks.

This behaviour leads to a network where all resources are perpetually in contention and all end-points vie for priority and maximum resource allocation. From this perspective one can understand that there is no such thing as "net neutrality" at least not in wireless networks. When network resources are over-subscribed, decisions are taken as to who gets more capacity, priority, speed... The question becomes who should be in position to make these decisions. Right now, the laissez-faire approach to net neutrality means that the network is not managed, it is subjected to traffic. When in contention, resources are managing traffic based on obscure rules in load balancers, routers, base stations, traffic management engines... This approach is the result of lazy, surface thinking. Net neutrality should be the opposite of non intervention. Its rules should be applied equally to networks, devices / apps/browsers and content providers if what we want to enable is fair and equal access to resources.

Now, who said access to wireless should be fair and equal? Unless the networks are nationalized and become government assets, I do not see why private companies, in a competitive market couldn't manage their resources in order to optimize their utilization.

If we transport ourselves in a world where all traffic becomes encrypted overnight, networks lose the ability to manage traffic beyond allowing / stopping and fixing high level QoS metrics to specific services. That would lead to network operators being forced to charge exclusively for traffic. At this point, everyone has to pay per byte transmitted. The cost to users would become prohibitive as more and more video of higher resolution flow through the networks. It would mean also that these video providers could asphyxiate the other services... More importantly, it would mean that the user experience would become the fruit of the fight between content providers; ability to monopolize network capacity, which would go again any "net neutrality" principle. A couple of content providers could dominate not only service but the access to these service as well.

The best rationale against this scenario is commercial. Advertising is the only common business model that supports pay TV and many web services today. The only way to have an efficient, high CPM ad model in wireless is to make it relevant and contextual. The only that is going to happen is if the advertising is injected as close to the user as possible. That means collaboration. Network operators cannot provide subscriber data to third party, so they have to exploit and anonymize it themselves. Which means encryption, if needed must occur after ad insertion, which need to occur at the network edge.

The most optimally  commercially efficient model for all parties involved is through collaboration and advertising, but current battle plans show adversarial models, where obfuscation and manipulation are used to reduce opponents margin of maneuver. Complete analysis and scenario in my video monetization report here.

Tuesday, April 15, 2014

Mobile video OTT opportunity interview

This is the video interview that was shot at the Monetizing OTT conference I chaired in London last month.



Questions answered:
How has the mobile video market evolved in recent years?
How is OTT changing the value chain and revenue opportunity?
Role of operators in the value chain?
Biggest challenge for operators to develop their own OTT service?
Differences between US & EU markets?



Wednesday, March 19, 2014

Olympics video headache: you can start panicking now

If you have been in the industry as long as I am, you probably smile fondly every couple of years when vendors are pitching network armageddon because of a specific (usually sporting) event.

"How will you handle the spike and growth from <insert your favourite theme here>":




  • Fifa World Cup Finals
  • Superbowl
  • New year's eve 
  • Champions League finals
  • Stanley cup's final (this is hockey for those of you unfortunate souls not freezing in Canada)
  • New show on Netflix...
In some cases, you might have reacted with an indulgent smile, recognizing the ploy from the vendor to sell more capacity and secure their vacation bonus to the Bahamas on the network upgrade forced on you.

Well... I am getting report of multiple mobile network failures during the olympics as video viewers resorted to their tiny screens to cheer for their favourite team / athletes while at work / in transit / feigning interest in boring conversation with visiting in-laws.

This might be anecdotal, but evidence shows that the variance between average and busy hour in mobile video is higher than in voice, messaging and data services. 

There is a certain amount of predictability to it (it is likely that football fans will try and catch video snippets of their teams if they are not in front of their TV when the game is playing after all), but the fact that this is video has a multiplier effect on the demand.

Because of the voracious character of some of the devices, video players and content providers attitude towards quality, networks get oversubscribed much faster and longer than with other services.
Will network operators start to consider video as a separate service and manage it actively rather than suffer its unpredictable consequences? 

This and more in my new report "mobile video monetization and optimization 2014".

Tuesday, March 18, 2014

YouTube Sliced Bread: mobile indigestion?



Since 2012, YouTube has been trying to reduce dramatically the time it takes for a video to start from the moment you press play.  Flash Networks (Mobixell at the time) was among the first to detect a new proprietary implementation called sliced bread.

The matter might seem trivial, but internal research from Google show that most users find a waiting time exceeding 200ms unacceptable for short videos. 
YouTube has been developing a proprietary protocol, based on HTTP adaptive streaming DASH to decrease latency and start time for its videos.

YouTube Sliced Bread essentially compares the DASH ABR manifest with the speed and bandwidth that is available at the moment you press play and selects dynamically the closest encoding rate. Adjacent streams segments are being prepped in real time so that any change in bit rate directs a change in encoding bit rate stream dynamically. The sliced bread analogy comes in when you think as pressing play as if ordering a pre sliced loaf of bread. Only instead of getting all slices of the same size, your video player looks at the size of the connection over time and serves you slice by slice, HD 1080, 720, 360… based on what the network can support.

YouTube claims that Sliced Bread has reduced video re buffering by 40% on fixed networks. Additionally, until recently, YouTube used to download the viewing page, the CSS script and the video player for every video you click on. The company is now implementing logic to allow the player to remain from video to video, so that it does not have to be downloaded all over again. 

Furthermore, YouTube will soon start pre-loading related video content, so that if you click on a suggested video, it is already there. These “tricks” might work well in a fixed environment, where start time is paramount and video traffic volume is not relevant, but in a wireless network that is congested; these types of features would have a negative impact on the network capacity and ultimately the user experience. I have before warned about content providers' tendency to design services and technology for fixed line first.

The protocol is starting to make its appearance in mobile networks and while not yet dominating the YouTube experience, it is a perfect example of why a video service designed for the internet, to be viewed on a fixed network can have catastrophic consequences on a mobile network if not correctly adapted. This is one of the many subjects I analyse in my report "Mobile video monetization and optimization 2014".

Wednesday, March 12, 2014

PayTV vs. OTT part VII: 6 OTT Strategies

Pay TV vs. OTT:


More developments will be presented at Monetizing OTT services - London - March 24/26

enter the discount code OTT_CORE here for a 20% discount

The internet is a perfect medium for content distribution. Storage, access, distribution is inexpensive, allowing the smallest content owners and producers to offer their wares with a small starting investment. For OTT vendors, this is both an opportunity and a threat. The long tail of the content usually find its audience through social media. Specialty content is at home on  the internet, thanks to the advances made in term of search and recommendation engine. The short tail content is pushed by advertising, rather than social interaction. The type of budget necessary to launch a new content can be staggering, as illustrated in the advertisement campaigns preceding new movies and video games. Content is king in OTT and there are a few strategies put in place by the different players in this segment to secure customers and revenue.

1.     Pay-per-view, rental, on-demand

Apple’s iTunes and Amazon on demand are perfect examples of OTT services. Without subscription, any consumer with a credit card can rent and stream content to almost any screen in minutes. Revenues are generated from the transaction. They are collected by the OTT player, which then apportion it to the studio / content owner and so on. It is the literal translation of the pay TV model on the internet. Here again, the control resides in the distribution. Apple and Amazon have been successful because they have an existing customer base that they had been able to convert. This captive audience is the equivalent of the MSO’s set top box.
Brands with a smaller footprint in term of device penetration have struggled to emulate this strategy. Sony’s “Video Unlimited”, available on its PlayStation and selected devices, has struggled to reach its audience, for instance.

2.    Subscription VOD

Inaugurated by Netflix, it has become the reference for OTT video. A monthly subscription allows consumers to watch as many shows as they want. Success in this model relies in both the depth and the range of the catalogue. Netflix had to have headline content to attract new users and enough of a long tail to keep them there. Most SVOD strategies are monthly subscription without commitment, so they traditionally experience high churn.

3.    Free to air

YouTube is the most successful OTT player with a free-to-air strategy. Acquired by Google in 2006, the web phenomenon attracts over one billion unique users each month [2]. Monetization of this strategy has been slow. Advertising is currently the main contributor, using Google ad platform, but YouTube has recently launched premium channels, allowing any channel with over 100,000 followers to go premium for as little at .99c per month. It is not yet apparent whether that strategy will be successful.
Adult content is the second largest OTT player in this category, monetizing premium content through subscription. A small percentage of their viewership base subscribes to premium and generates close to 4.9 billion dollars revenue globally.

4.    Securing content

If content is king, content rights are the crown’s jewel. Securing content that will attract and retain consumers is the principal occupation of OTT players. Studios and content producers now have new avenues for the distribution of their content, but as traditional Pay TV weakens in viewership, it still dwarfs OTT revenues. The most popular content can spur a viewership addiction synonymous with subscription and advertising revenue. It has become necessary for the likes of Netflix to secure access to content. In 2012, Netflix lost rights of diffusion of Starz, Encore and Sony catalogues over broken negotiations. Clearly, having your core value (content) submitted to third party control and threatened on a regular basis by the whims of negotiation is not a very good strategy for long term success. Increasingly, OTT players and channels have started acquiring and producing content exclusively in order to guarantee access, control and ultimately monetization of popular content.
HBO has, for instance, developed the series “Game of Throne”, which became an overnight critical and popular success, drawing fans to the network and becoming one of the most pirated series of 2012 [4].
Netflix has secured later a deal with Disney, valued at close to $300 million per year for Disney. This deal sees Netflix get exclusive access to Disney’s movies after their theatrical release. In 2013, Netflix doubles down and sign a follow on deal for exclusive Disney content “Agents of S.H.I.E.L.D”.

5.    Favoring binge watching

Consumers buying habit have changed durably, we have seen, but their viewing habits are also undergoing transformation. With the availability of whole back catalogue seasons of a series, binge watching has become a solid trend. Many viewers, when watching a streaming TV show are increasingly watching more than one show per seating. Detecting the trend early, Netflix strategy for the release of “House of cards” has been to release the full season at once, as opposed to a fixed schedule, favored by traditional TV. Netflix has since released a survey with Harris interactive showing that 61% of Netflix series viewers are binge watchers.

6.     Costs reduction

In the same vein as Verizon, Netflix has undertaken to control its delivery network. Unlike Verizon, it is not an acquisition but organic development that sees Netflix launch its own CDN called Open Connect in 2012. Recognizing that delivering massive amounts of video over the internet can be costly and unreliable at scale, major OTT players look at controlling the end to end user experience and leverage economy of scale from a dedicated network infrastructure. Common CDNs are perfect for general purpose internet content but their business model and quality start to be stretched to their limit when it comes to massive video delivery.

Tuesday, March 11, 2014

PayTV vs. OTT VI: 5 MSO strategies

5 MSO strategies

If you haven't read the other posts in this series, you can find them here for context.
Pay TV vs. OTT:
Part I: The business models
Part II: Managed devices and services vs. OTT
Part III: CE vendors and companion screens
Part IV: Clash of the titans
Part V: Appointment vs. on-demand

More developments will be presented at Monetizing OTT services - London - March 24/26
enter the discount code OTT_CORE here for a 20% discount

There are a few strategies that have been enacted by MSOs to counter the erosion of their margin and viewership brought forward by OTT.

1.     Vertical integration

As control of the value chain shifts from distribution to content, it is only natural that some MSOs start to look upstream and concentrate channels, studio and production with distribution in order to regain a dominant position in the value circle. As an example, Comcast owns NBC Universal, which owns the MLB network (in a joint venture with MLB) and the Philadelphia Flyers. In one company you find premium content, production, channel and distribution.
This strategy allows to control the content, with either exclusive or preferential rights for distribution, which enables a captive audience and in return higher advertising revenues, as long as the content remains popular.

2.    Multiscreen

This strategy allows MSOs to offer a portion of the live and on-demand TV programming available to mobile devices (smartphones, Tablets, Phablets…) and hybrid devices (hybrid set top boxes, video game consoles, PCs,  smart TVs…). In this context, while the medium of delivery is still the internet, it is not a true OTT play. To access the content, the user must authenticate herself as a MSO subscriber. This strategy enables MSOs to “spill out” of the traditional TV screen and to offer programming on a growing medium that is favored by younger generations. Verizon’s FiOS is, for instance available on cable, internet, on ipad, on LG, Samsung TVs and on Xbox and Playstations. This strategy is one of retention, where, recognizing that consumers want to watch in a more flexible manner, it is made available on a variety of new devices, included in the regular subscription. This is about keeping people loyal to the MSO programming, countering pure OTT by offering an OTT-like experience. The strategy has not proven to increase revenue, as it is usually included in the regular subscription. It is used to reduce churn and increase loyalty.

3.    Social TV

As Facebook, Twitter, LinkedIn and other social media become part of our daily life, new usage patterns have emerged. Social TV is such a trend, where content success relies on recommendations, likes and sponsoring.
Popular content can, in days become viral and amass millions of views. Psy, a South Korean rapper became an overnight internet celebrity, with over a billion views in six months on its YouTube channel with the release of “Gangnam style”. The virality effect is hard to predict or influence, but live TV, particularly sports and game shows are well suited for audience social interaction. By creating interactivity, content becomes simultaneously more popular and more “sticky”, as consumers watch more and longer shows when there is an emotional connection. MSOs have started to try and integrate apps for social networks in their managed devices in order to reinforce this engagement with users. The lack of standards across platforms has hindered this integration to date and Social TV remains more an experiment than a service at this stage. The strategy relies on the assumption that engagement drives viewership, which drives revenue.

4.    Going OTT

If you can’t beat them, join them. There are a couple of sub strategies here. The first one is to create a web site to serve content exclusively over the internet. For instance, Hulu plus, the joint venture between Comcast (NBC Universal), Disney and News corp. (Fox) allows its customers to watch ad-sponsored current and back catalogue TV show for a monthly subscription.
A second strategy is to package a channel as an internet content provider. For instance, it was announced in October 2013 that Comcast is launching a new plan for cord-cutters and cord-nevers, offering Xfinity Streampix, HBO and HBO Go together with broadband for $39.99. A US Comcast customer will be able to watch HBO over the web on their broadband subscription without having to be a cable customer. The FCC (US regulators) mandates that premium channels have to be bundled with basic broadcast, so that's in it as well, but this is a clear tipping point moment. For the first time HBO is going head to head with Netflix, going pure OTT. The implications are profound and it is a floodgate moment. On one hand, Netflix has now more subscribers than HBO, which prompts Comcast to start the self cannibalization. If you are losing subscribers, you might as well lose them to yourself and a friendly content provider rather than a competitor.
Verizon’s Redbox instant is another example of a Netflix me-too strategy relying on monthly subscription.

5.    Cost reduction

The last strategy implemented lately has been about creating the infrastructure necessary to deliver a massive amount of video, securely with high quality. While MSOs have traditionally relied on third party infrastructure, Verizon has recently innovated with the acquisition of EdgeCast in January 2014. By purchasing the CDN, the MSO will be able to reduce its delivery costs, while controlling user experience and offering wholesale service to other MSOs and OTT alike.

Monday, May 27, 2013

All bytes are not created equal...



Recent discussions with a number of my clients have brought to light a fundamental misconception. Mobile video is not data. It is not a different use case of data or a particular form of data, it is just a different service. The sooner network operators will understand that they cannot count, measure, control video the same way as browsing data, the sooner they will have a chance to integrate the value chain of delivering video.

Deep packet inspection engines count bytes, categorize traffic per protocol, bearer, URL, throttle and prioritize data flow based on rules that are video-myopic. Their concern is of Quality of Service (QoS) not Quality of Experience (QoE). Policy and charging engines decide meter and limit traffic in real-time based on the incomplete picture painted by DPIs and other network elements.

Not understanding whether traffic is video (or assuming it is video just based on the URL) can prove itself catastrophic for the user experience and their bill. How can traffic management engine instantiate video charging and prioritization rules if they cannot differentiate between download, progressive download, adaptive bit rate? How can they decide what is the appropriate bandwidth for a service if they do not understand what is the encoding of the video, what are the available bit rates, if it is HD or SD, what is the user expectation?

Content providers naturally push a content of the highest quality that the network can afford, smartphone and tablets try and grab as much network capacity available at the establishment of a session to guarantee user experience, often at the detriment of other connections / devices. It is wrong to assume that the quality of experience in video is the result of a harmonious negotiation between content, device and networks.
It is actually quite the opposite, each party pulling in their direction with conflicting priorities.
User experience suffers as a result and we have started to see instances of users complaining or churning due to bad video experience.

All bytes are not created equal. Video weighs heavier and has a larger emotional attachment than email or browsing services when it comes to the user's experience of a network's quality. This is one of the subjects I will be presenting at Informa's Mobile Video Global Summit in Berlin, next week.