Goodbye BBC Television Centre, Hello MediaCityUK

Television Centre, home to the BBC since 1960, closes its doors for the last time on March 31. This week saw the BBC wrap-up its news broadcasting from Wood Lane and the One O'Clock News  on Monday 18 March marked the first domestic TV news programme to go out from the newly redeveloped £1 billion HQ and studios at New Broadcasting House, central London. All other departments from TV Centre, including BBC Breakfast, Children’s, Sport, Radio 5 Live, Learning, and Future Media and Technology are relocating to MediaCityUK, in Salford Quays.

It will be sad to see Television Centre go – the land is due for redevelopment into offices, flats, hotels, a cinema and private TV studios – but although it was state-of-the-art when it was built, it is now not serving its purpose.

MediaCityUK, on the other hand, is a brand new, high-tech development created specifically to attract companies from the media, digital and creative industries.  The area also boasts The Lowry arts centre (Greater Manchester’s most popular cultural tourist attraction), Manchester United’s Old Trafford, Lancashire Cricket Club and the Imperial War Museum North. To date, it has attracted not only the BBC, but ITV, Satellite Information Services (SIS) the University of Salford and over 50 creative companies from composer agencies to independent production houses.

But more important than the buzzing creative environment is the fact that it’s connected to one of the most advanced, high-capacity communications networks in the world and able to satisfy the needs of the media industry.

Today’s world of high definition digital TV was unimaginable back in 1960. Digital processes, new production workflows, delivery of interactive online sites, mobile television and OTT services such as BBC iPlayer are always hungry for more bandwidth. MediaCityUK, with its purpose-built infrastructure, creative village and 20 million plus metres of optical fibre for the high speed transmission of voice, data, high and standard definition video and wireless communications services is excellently set-up to be the home of the new BBC for the digital age.

Smart TV Growth but North America Still Slow to Adopt

A recent study from NPD DisplaySearch points towards an encouraging increase in sales of connected TVs, with growth of over 15% predicted for Europe and Asia in 2012.   The picture in North America is slightly less rosy, however, with sales remaining flat at around 20% penetration. These forecasts for Europe and Asia seem reasonable, given that most large-screen TVs sold today are connected TVs.  But what’s happening  in North America?  I suspect that there are several different drivers behind the trend we’re seeing.

One opinion is that content remains king: the issue is one of how that content gets delivered to the end user.  The growth of free catch-up services in Europe helps drive the growth in smart TVs, because these services can easily be built into the TV.  Even support for paid content via the TV is growing: in the UK we’ve seen deployments from LoveFilm and Netflix, and Sky’s strategy of moving its content to other devices via Sky Go will undoubtedly pay off in time. Asia is seeing similar trends, but here, free content from the web is the main driver.  In both cases, though it’s access to free content that’s getting people hooked.

It’s a different story in the US, where you have on-demand services provided by cable operators through their set-top-boxes or through a separate device such as an Apple TV.  This means that these services are less of a differentiator for TV manufacturers, and so people are less likely to upgrade their TVs specifically for the connected TV experience.

Ease of use also plays a part, in a way that’s often overlooked: the need to switch devices.  If I have some services built in to my TV and others in a set-top-box, switching between them is more effort and inserts a mental barrier (albeit a small one) into the process of finding something to watch.  In my case, this reduces my use of iPlayer on a games console – I’m more likely to turn off my Sky box and pick up a book or use iPlayer on an iPad instead. If these services are built in to the set-top-box in American households, why will people spend the mental effort required to use them on the TV instead?

One other factor that may or may not be important is the adoption of HD TV.  Historically, North America has been at the forefront of HD adoption, with sales in Europe lagging behind.  This could mean that more European consumers are in the process of replacing their TV sets as analogue switch-off approaches, while the reasonably long replacement cycles for televisions (and the current economic climate) mean that many US consumers aren’t replacing their existing HD TV yet.  If this is correct, we may see an increase in the sales of connected TVs in North America over the next couple of years.

Spotify moves into connected TV world with Samsung deal

Samsung announced recently that the Spotify music streaming service is now available on their smart TVs.  While Spotify already has a strong presence in the PC, tablet and smartphone markets, this is its first foray into the TV world.  So what does this mean for Spotify and for Samsung?

Both brands are very strong in their respective areas, but it’s unlikely that Spotify on its own will help Samsung to sell more TVs.  As part of an overall “connected entertainment” offering, though, Spotify is potentially a strong addition.  Exactly how strong may well depend on Spotify’s business model.

Streaming audio services on TVs are nothing new – US customers have been able to enjoy the Pandora streaming service on their TVs and set-top boxes for a couple of years already.  Given this, how will Spotify help Samsung? The most obvious answer is that Pandora is only available in the USA, so customers in Europe and elsewhere can’t use it.  Another reason is that Spotify lets you build your own playlists and select exactly which tracks to play. It seems like Spotify should have a major advantage.

As with other services that move to the TV, though, Spotify will face a challenge in building a user interface that works well on a TV screen with a TV remote.  They seem to have been successful with this on Samsung devices, but if Spotify is to become available on other TVs and set-top boxes then a lot of care needs to be taken to minimise the amount of effort needed to support a consistent user interface on many different platforms.  As services like iPlayer have found, this can be a huge challenge given the current level of market fragmentation.

The second challenge will be the business model for Spotify on connected TVs.  While the (ad-supported) PC version is free, the TV version costs £10 per month - the same price as the mobile version.  The question is therefore; how many people will be willing to pay the extra £10 a month to access this service on their TV, when other entertainment services are available for free?

Smart TVs Help TV Overtake PC For Online Video Viewing

A recent study from the NPD group in the US has revealed that the television has now overtaken the PC as the preferred device for viewing over-the-top (OTT) media. The rapid adoption of smart TVs obviously has a large part to play in this, but we’ve also seen that many smart TVs have ease-of-use problems and so the growth in smart TVs alone may not be enough to account for this trend.

Smart TVs have some obvious benefits over the PC for viewing media content – the large screen and the “lean back” user experience are pretty much essential for watching content that’s longer than a few minutes.  As a regular user of iPlayer, I much prefer to use it on the Wii (for those times when the entire family wants to watch something) or on my iPad (for when I’m the only one who wants to watch something) because they’re more convenient and comfortable to use.  While I could connect my laptop to the TV and use that, the difference in resolutions and the hassle of getting audio set up properly means I simply don’t bother.  I’d rather watch a standard-definition version of the programme easily than deal with the messing around required to watch the HD version on the big screen.

As online media services become more widely deployed through smart TVs and set-top boxes (with both YouView and Freesat doing this in the UK, and various HbbTV-based catch-up TV services available in Germany), viewing OTT content is eventually going to become just another part of the TV experience, in the same way that PVR functionality already is today.

At the same time, there’s still a long way to go – recent figures have revealed that three quarters of YouView boxes sold so far have been used to view on-demand content for more than three minutes per session.  Given that the current purchasers are by definition the early adopters, who are more likely to be familiar with catch-up TV services, this is not a very impressive set of numbers.  Seeing how these numbers grow as YouView and Freesat’s Freetime service become more widely deployed will give a good indication of how this trend will develop in the UK.

BBC scales back Red Button video ahead of connected TV service

The BBC has recently announced that they’re scaling back their use of “red button” video ahead of a wider deployment of their connected TV service.  Given the success of iPlayer, this isn’t entirely surprising.  The use of broadcast services for delivering alternative video streams is both expensive, because you have to pay for the spectrum to broadcast it, and inherently limited because there are only so many alternative streams that you can carry at any time.

The BBC’s excellent coverage of the Olympics showed the value of alternative streams, by allowing everyone to choose which Olympic events they wanted to watch.  While this is feasible as a one-off for high-profile events such as the Olympics (if you’ve got a satellite or cable subscription that can handle all of the extra channels that are needed), it doesn’t work so well in day-to-day situations because of the limited number of streams that you can carry.  Broadcasters end up having to make a choice of what alternative streams to provide - not only to fit them into the available channels, but also to maximise the use of those channels.

The success of catch-up services on smart TVs has shown that customers will accept streamed video, and services such as the “Tagesschau” service in Germany (which provides news on demand) show the advantages of a connected approach, especially as the adoption of connected TVs grows.  The flexibility of connected TV services offer a big advantage over broadcast-based alternative video streams, and over time users will see real benefits from this through the increased availability of alternative content.

The growth of multi-screen iPlayer

As a new iPad owner, one of the biggest advantages I’ve found is the convenience it offers over a laptop – especially for casual use such as watching video online. With an almost 600% increase year-on-year in the number of requests made to iPlayer from tablets, a lot of other people seem to agree with me. For connected TVs, the numbers are even more impressive – a year-on-year increase of over 1000%.

While the majority of requests are still made from PCs, the growth in alternative ways of consuming content isn’t too surprising if you think about the TV-watching experience itself. Watching TV tends to be both casual and social; smart TVs and tablets both offer a more suitable form factor than a laptop for this kind of experience, albeit in different ways. Smart TVs and iPlayer-equipped games consoles enable on-demand viewing to be more social, while tablets offer a better multi-screen experience than laptops due to their weight and form factor.

By making iPlayer available on these devices, the BBC has been able to offer an experience that is closer to that of watching live TV, and they’re now seeing the benefits of this. It’s taken a lot of effort on the part of the BBC to make iPlayer available on so many platforms, but with other broadcasters such as ITV, Channel 4 and Sky offering multi-screen catch-up services the benefits of this strategy are becoming more and more obvious.

UK leads Europe in TV innovation

A study released by Ofcom this week has shown that the UK is Europe's most screen addicted nation.

The UK leads the way in Europe when it comes to digital innovation, particularly in the TV space, you only have to look at the success of the BBC iPlayer to see why the rest of Europe keeps a close eye on the latest UK developments. So it’s no surprise that Brits are the most screen addicted nation. However, this is just the tip of the iceberg. In 2012 the entertainment experience is set to radically change as the explosion of online content hits our screens at home and TV addicts will benefit from a media revolution that has been brewing for some time. There are thousands of connected TVs sat in UK living rooms that need to be connected to the internet to benefit from the innovative new TV services in the pipeline.

2012 will see broadcasters and TV device manufacturers launch a wealth of new TV services. But it will be a balancing act between delivering more sophisticated online interaction and the traditional TV experience for broadcasters and manufacturers alike. As the TV is increasingly positioned as the hub of the connected home, broadcasters and manufacturers need to ensure they are providing the viewing experience consumers want.

IP&TV World Forum 2011

IP&TV World Forum has been and gone again. As usual I spent some time at the show catching up on what’s new. It seems to be a year of consolidation for the industry: most of what I saw was more polished versions of products or demos that I had already seen. This isn’t a bad thing, in fact, it signals a positive shift in the industry.

In my experience, this kind of consolidation tends to indicate a move from “technology push” to “product pull” – shifting from a set of technologies looking for a problem to solve to an industry that has become more consumer-focused, concentrating on delivering products that customers really want. This is a sign of growing maturity in the market, and given the growth in connected TV services and over-the-top services marks an important step towards the mainstream for both.

HbbTV and iPlayer were well-represented at this year’s show, and these really demonstrate the two trends that we’re seeing here at ANT. The uptake of HbbTV as a standard solution for web-based TV services, and the spread of iPlayer as a service that is hugely popular with consumers, could indicate a turning point for the IPTV industry.

The BBC, YouView and Connected TV StandardsThe BBC, YouView and Connected TV Standards

Roly Keating, director of archive content at the BBC, spoke recently at the UK Digital TV Group (DTG) summit about how the company is approaching the delivery of content to multiple devices. While some reports have picked up on his comments that YouView is only one part of the BBC's strategy, I’m not sure how surprising this is. With iPlayer being rolled out on more and more devices, and with a huge library of Web-based content, the BBC can’t afford to put all their eggs in the YouView basket – either politically or in terms of their public service remit.

Like many organisations, the BBC is wrestling with the problem of delivering content to multiple devices. The approach to connected TV being taken by the DTG and other industry bodies can offer significant advantages here, by bringing together standards from the web and TV in a pragmatic way: one that that brings the two worlds closer together while recognising the differences between them in business models and product lifecycles. Similarly, the BBC is in an excellent place to help shape that, work by providing concrete examples of where the gaps are today.

The BBC has a long history of involvement in standardisation, and this is another example of where they can take a leading role in standardising an approach to multi-screen delivery of connected TV services based on today’s connected TV standards.

BBC to develop permanent online archive

The BBC has been given the go-ahead to develop a permanent online archive of broadcast material. The archive will be accessed via a dedicated website and will offer content from BBC 4, Radio 4 and Radio 3. Initial content will mainly be documentaries on topics such as politics, business and travel.

The BBC may have unlocked the door to more broadcast content online, however it’s surprising that this initiative hasn’t targeted the TV as well. In my view it would be more potent for the BBC to also develop this initiative for the TV, accessed via a TV portal, it would allow viewers to access the archive TV content directly through a connected TV.

We have seen on-demand content take a leap from being an optional extra, to a ‘must have’ when it comes to what viewers expect from TV services today. In the past broadcasters have been restricted to offering limited amounts of content online, for a limited time but now the BBC have been given the all clear, others are likely to follow suite. Making this content available online is a step in the right direction but TV content in particular needs to be easily accessible on other devices as well, most notably the TV.

The long and the short of it is that, however content is made available, the viewer must be kept in mind. Viewers still want to maintain an element of the ‘traditional’ TV experience - to sit back, relax and watch. So it’s essential that the user interface of whichever device being used is intuitive. As more content is opened up to consumers this will be a key challenge for the industry to address in the next 12 months and beyond.

Humax Launches New TV Portal with ANT Galio Platform

Humax ran an over-the-air update to its HDR-FOX T2 Freeview+ HD set-top boxes in the UK over the weekend. The update included adding ANT Galio Platform to facilitate it’s new TV Portal, you can read the full announcement here.

The Portal includes a range of TV services including Flikr, BBC iPlayer, Wiki@TV and internet radio and will also be made available on Humax HD-FOX T2 set-top boxes soon. The team at Tech Radar got it’s hands on the new portal a few days early, you can read the review here.

Humax HD Fox T2: One to watch for 2011

As it nears the end of 2010, the annual ‘best of’ lists are being unveiled and Humax’s latest product enhancements haven’t gone unnoticed. The Register has picked its HD Fox T2 for its ‘The Years Best’ list and draws attention to the imminent arrival of BBC iPlayer and Sky Player to the Humax Portal. ANT has been heavily involved in the addition of both of these services to the Humax Portal which, based on the ANT Galio Platform, will be hitting the UK market very soon. Watch this space for more information in 2011.

Global growth for on-demand services

Global revenues from on demand video services are set to rise by as much as 24 per cent by the end of this year, despite the decline in TV subscriptions. This is according to new research from Informa Telecoms & Media this week.

On-demand services have enjoyed a phenomenal success in the UK this year, the BBC iPlayer received 139 million requests for TV and radio programmes last month. Not only this but viewers have been accessing the content across a wide range of platforms, including Virgin Media, Wii, PS3, computing and mobile platforms, confirming that viewers want to consume their content in more than just the traditional formats.

The majority of on-demand services still come from cable TV subscriptions (around 51%), which is expected to rise as more viewers make the switchover to digital services. However, there are likely to be changes in the platforms viewers can access on-demand content. At the recent Morgan Stanley TMT conference, ITV’s chief executive Adam Crozie, commented on its plans to create a new micropayments system, so it can sell its content across a wider range of platforms and reduce its dependence on advertising revenues.

But, to be successful in any of its target platforms, ITV will need to invest in creating popular new content. Something they are clearly keen to address, with the recent appointment of Denise O’Donoghue to lead commercial strategy at production arm ITV Studios.

Service providers prepare for the increasing demand for on demand

On-demand players such as iPlayer and 4OD have enjoyed huge success in the last couple of years; catering to viewers’ increasingly busy lifestyles, on-demand content allows people to watch what they want, when they want. But the growing popularity of broadband delivered TV has led to a large increase in the volume of data traffic and concerns over net neutrality.

This week Alcatel-Lucent Velocix and TalkTalk have been the first to announce that they are developing a new dedicated Content Delivery Network (CDN) ahead of YouView’s launch next year. The CDN built by Alcatel-Lucent Velocix will run over TalkTalk’s existing high speed IP network.

The move by Alcatel-Lucent Velocix and TalkTalk indicates another turning point in how we as an industry are working to address the evolving landscape of TV. Is the roll-out of new CDNs something that all service providers should invest in or is it just a precautionary measure?

Digital killed the video star

The Institute of Engineering and Technology announced the results of a new survey today, which indicates that vinyl, film and video tape are in decline, as British households become dedicated to digital.

We don’t think that the death of vinyl, film and video tape is something that should be wept. A new and exciting entertainment era is emerging, with television at the heart. The TV is no longer just a box in the living room that plays out programmes dictated by the broadcaster. Today’s TV experience is an opportunity to interact with an explosion of content created for the digital world. Viewers can shape their own viewing experience – whether through video-on-demand and catch up TV services, red-button features or unseen DVD style extras such as behind the scenes footage.

The traditional passive experience of TV viewing is evolving to an interactive experience, with an increasing number of online applications converging onto our TV sets and the inclusion of services such as the BBC iPlayer and Sky Player. The combination of traditional broadcast viewing mixed with new on-demand web based TV services means the possibilities for consumers are endless. What would you like to see on your TV Set-top box or iDTV?

Details of the new Wii iPlayer

Last week, Rahul Chakkara posted some details about the new iPlayer for the Wii on the BBC Internet Blog.

We tried the old Wii iPlayer (before it broke) in our household a few times, but we haven't used it much because we found the lower-than-normal framerate was uncomfortable to watch - I'm hoping the new version will do better.

Rahul mentions some technical challenges including, "limited processing power and memory available on these types of devices," which is interesting given that the Wii is far more powerful than most STBs...

I'm looking forward to trying the new version tomorrow.

Dr Rob.

Risky business

The same characteristics of the web that allow new services to be launched at the flick of a switch can also lead to services breaking at any moment. Witness the update that has broken access to iPlayer on the Wii:

“Why am I unable to view BBC iPlayer on my Nintendo Wii?

The latest Nintendo Wii software upgrade has caused BBC iPlayer to stop working. Users that have not upgraded can continue to use the BBC iPlayer website.”

The lesson here is that although technically it may be possible to launch a new service that builds on something provided by another company, if you have no commercial agreement in place with the other company to maintain compatibility with your service, an update could break it at any time and without notice. If it breaks, an awful lot of users could be pounding your help-lines or returning products as “faulty”...

I wonder how many of the vast array of mobile and TV devices with access to YouTube, Facebook, etc, have been built with commercial agreements with the service they access, and therefore can continue to work faultlessly for the lifetime of the product?

Dr Rob

BBC iPlayer fuelling IPTV growth

According to Screen Digest (as reported in today’s Guardian Unlimited), more than 1.5 billion TV shows and specialist programmes will be downloaded or streamed this year fuelled by the success of the BBC’s iPlayer service.

Screen Digest reports that the BBC’s on-demand video services, including the seven month old iPlayer service accounted for 30 per cent of UK’s free-to-web-services. Admittedly, I’m a huge fan of the BBC’s service. Trying to maintain a healthy work-life balance means that I can’t always stay up to watch Curb your Enthusiasm or the Might Boosh. With that in mind the service is a Godsend.

We are already hearing rumblings over the cost of the bandwidth for the current level of iPlayer viewership, so it will be interesting to see how it plays out if the predicted growth does indeed happen (this goes back to the net neutrality debate previously discussed).