DigiTAG

Web Letter

August 2009

DigiTAG seeks to inform members and non-members about important developments in the digital terrestrial television market. Each month, DigiTAG distributes its web letter with news updates and further exploration of one topic.

To subscribe to the DigiTAG Web Letter, send an email to the DigiTAG Project Office.

The market for HBB services

Hybrid Broadband Broadcast (HBB) has become a new buzz phrase in the audiovisual industry. While it defines the convergence between broadcast and Internet content for a coherent experience, HBB has been used as a catch-all phrase to include the access of Internet content on a television display. Manufacturers have demonstrated confidence in the emergence of this new market that allows viewers to watch Internet video content directly on their television sets by making many products available.

Using the HDMI input, viewers can connect a device, such as Apple TV, Roku, Maxdome set-top box or even a computer, to watch Internet content on their television set. Game consoles such as the Xbox 360, Nintendo Wii, and Play Station 3 also make this possible. In addition, consumer electronics manufacturers have also begun developing Internet connected television sets such as Philips Net TV, Panasonic Viera Cast, Sony Bravia Internet Video Link, and Samsung's Internet@TV. While each of these systems is different, all share the objective of allowing viewers to access some IP content using their television sets, whether it is video content, information services, or enhanced television services.

The demand for video content from the Internet is high. Data released by ComScore showed that Internet users in the United States viewed 14.5 billion online videos in March 2009 which represented an 11% increase compared with February. Meanwhile, broadcasters have taken steps to make their content available on the Internet.  The demand for broadcaster’s content on the Internet is high as demonstrated by the success of the BBC’s on-demand portal, the IPlayer. As of December 2008, over 180 million programmes have been watched since its release in December 2007.

Questions are now beginning to arise on how to bring together the content from a broadband environment and a broadcast environment. In what ways should the different types of content interact with each other? Should the Internet content serve as a supplementary service to existing broadcast services or is it a separate service?

Issues for manufacturer

According to a study released by the Consumer Electronics Association in the United States entitled Net-Enabled Video: Early Adopters Only?, 14.5 million consumers are considering the purchase of an Internet-capable television set in the next 12 months. In another study, conducted by the Diffusion Group on behalf of Intel, 76% of the surveyed group said that having a 'widget toolbar' allowing for access to enhanced content via an Internet connection would be of value. Finding and watching an episode of a television show, proved to be the favorite application for 85% of those surveyed.

In addition, according to a new study by ABI Research, 20 million television sets offering wireless connectivity will be shipped worldwide in 2011. This segment is expected to show linear growth at least until 2014.

For many manufacturers, the ultimate aim is to ensure that the television set is used as the primary source of video consumption. The source of the video matters little, so long as the content looks good on the display. It is for this reason that manufacturers will be wary of certain content from the Internet. While some on-demand or downloaded HD content may be available, it is not yet widespread on the main sites that viewers use to access video content. Because this content has been destined for viewing on computer screens, viewers are generally aware of the quality limitations of such content. However, poor image quality can have an adverse affect on the viewer's perception of the television display.

Thus far, most manufacturers have set limits to the content that viewers can access on the Internet. Through the use of portals, manufacturers have served as de-facto gatekeepers by only providing viewers with access to content that they have previously vetted. With time, however, this may change. And, already, some manufacturers allow viewers unfettered access to the Internet.
 
In providing Internet services on television sets, manufacturers have developed similar concepts but using different technologies. Because this market segment is nascent, it is not yet clear what exactly viewers will demand. However, manufacturers will need to find a balance between the necessary competition in the market and how they differentiate their products, against the collaboration required to build a successful platform.

Issues for broadcasters

The availability of Internet video content on television sets poses new challenges for broadcasters. In a situation where a clear distinction is made between broadcast content and Internet content, broadcasters do not face a degradation of the displayed brand. However, should it be possible for viewers to overlay Internet content over a broadcast image, concerns over broadcaster branding and on-screen image integrity will emerge. Viewers may not clearly distinguish between the different sources of content which could generate confusion and weaken the broadcaster's brand value.

However, broadcasters can benefit from the availability of Internet content. Supplementary services can be made available to enhance linear broadcast content. For example, access to the broadcaster's Internet portal can provide viewers with on-demand services, further programme information, and EPGs. It is also a means for broadcasters to 'interact' with their viewers. Broadcast interest in such services has been evident in the development of such specifications the BBC's Canvas Project and HBBTV. However, broadcasters will need open ETSI standards to ensure that they can maintain control over their services.

Based on the current hybrid receivers available, the use of 'portals' by manufacturers to limit the content that viewers can access on the Internet serves an effective gatekeeper. At this stage, while a few manufacturers allow viewers to freely access the Internet, the difficulty in doing so is a form of deterrent. Manufacturer portals place an additional barrier between content providers and their viewers. They could also potentially limit the type of services broadcasters can provide depending on the rules established by the gatekeeper.

Yet the development of open standards for unmanaged Internet TV services has been slow. At this stage, work is just beginning within the DVB Project while the Open IPTV Forum has only recently published a first version of its specification in January. Yet, despite the lack of standardization, viewers have been able to access video content on the Internet, albeit from different vendor-specific sources. The speed of Internet content development has surpassed that of standardization organization.

The lack of standardization has been highlighted by the BBC when it noted that it must support 14 different video formats and four different Digital Rights Management (DRM) formats to ensure that its online 'catch-up TV' service, the iPlayer, will work across different Internet and mobile platforms. With such a scenario, the BBC's desire for the use of a single specification to access its content can be better understood and perhaps explains its instigation of the Canvas Project.

However, manufacturers and competing broadcasters have been critical of the BBC's role in developing a standard rather than providing the necessary broadcast requirements and then allowing manufacturers to develop the compatible devices. Rather, manufacturers will want to participate in the development of such standards in order to ensure that their technical concerns are taken into consideration.  A common profile for interactivity, content security, the delivery, and consumption of content will be necessary.

Viewers will increasingly access content from the Internet and find means for watching it on their television displays. This bodes well for the development of hybrid services that can combine both broadcasting and Internet TV. Hybrid broadband and broadcast services present new opportunities for both manufacturers and broadcasters but they must be willing to take up the challenge.

 

Source: Natalie Mouyal, DigiTAG Project Office

About DigiTAG

DigiTAG aims to encourage and facilitate the implementation and introduction of digital terrestrial television services using the Digital Video Broadcasting Project's Standard (DVB-T). It has some 60 members from broadcasting, network operators, regulatory, and manufacturing organisations throughout Europe and beyond.
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DTT NEWS ROUND-UP

For access to the full articles archive, please go to DigiTAG News

Spain - Government approves launch of pay-DTT services

The Spanish government has issued a Royal Decree allowing for the introduction of pay services on the DTT platform. It justified its action by noting that the launch of pay DTT services is necessary and urgent.

According to the government, pay-DTT services can provide an impetus for the DTT platform in the six month period leading up to the completion of analogue switch-off. In addition, pay-DTT services can provide new business opportunities for broadcasters and provide viewers with a wider range of television options.

Source: El Pais

Denmark - Boxer announces pay-DTT services available from 1 November

The pay-DTT operator Boxer has announced its service offering in Denmark. A total of 25 television programme services are available in a combination of different packages.

To increase choice, viewers can freely select which television services they would like to receive. Depending on the service package, viewers will not be imposed television services.

Source: Boxer Denmark announcement

Latvia - DTT services officially launched in Riga

The first phase of the DTT service launch has been officially completed. Viewers within a 70km radius of the capital city Riga can now access DTT services.

The further roll-out of DTT services will take place later in the year.

Source: Lattelecom announcement


Slovakia - Towercom to operate DTT platform

The Telecommunications Office (TU SR) has announced that the broadcast network operator Towercom has been allocated two DTT platform licenses. Towercom already holds a license to operate two DTT multiplexes in Bulgaria.

The first license is for the operation of one multiplex providing viewers with free-to-air access to public service broadcasting while the second license is for the operation of two commercial multiplexes. While the public service multiplex must use the DVB-T standard, it is possible for the platform operator to opt for the DVB-T2 standard for the two commercial multiplexes.

Source: TU SR website

United Kingdom - First stage of ASO completed in south west Wales

The analogue channel BBC Two has been switched off in south Wales. The process will be completed on 16 September when all analogue channels are switched off.

Switch-off took place at the Preseli transmitter group. While the main transmitter site already provided digital services, the 26,000 viewers using the relay transmitters can access DTT services for the first time.

Source: Digital UK

Romania - TV1 and TV2 granted DTT broadcast licenses

The National Audiovisual Council (CNA) has granted DTT licenses to two services, TVR 1 and TVR 2, of the public service broadcaster. Initially, the public service broadcaster had requested licenses for 11 of its services.

The CNA has also given its approval to the government's strategy for the digital transition. However, it added an amendment calling for the inclusion of the procedure for nominating the DTT multiplex operator. According to the CNA, the frequency regulator, ANCOM, should nominate the multiplex operator rather than having the broadcasters do so.

Source: Hot News

New Zealand - Government opens consultation on digital dividend

The government has opened a consultation on the allocation of the digital dividend following the completion of digital switchover. The consultation is open until 30 September.

As part of the consultation, the government is seeking feedback on its proposals to allocate:
- One-third of the UHF band for nationwide DTT services;
- One-third of the UHF band for DTT coverage in urban areas and broadband wireless services in rural areas; and,
- One-third of the UHF band for new uses such as mobile telecom services using the frequencies 694-806 MHz.

Source: Ministry of Culture website

Portugal - Anacom publishes results of consultation on digital dividend

The communications regulator Anacom has published the results of its consultation on the use of the digital dividend. It received responses from 17 organisations including broadcasters, telecom operators, pay-television operators, and technology firms.

All of the respondents agreed that the digital dividend should be used to reduce the "digital divide" in Portugal as well as contribute to the nation's wealth.

Source: Anacom website