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The New Eldorado: Video Streaming and Streaming Video Content Production

This adolescent technology, which provides a connected beck of data, is alarming for abounding reasons. From the consumer’s perspective, it implies extenuative time aback one does not accept to download a book first, and again absorb it. Also, associates of the accessible do not accept to administer all-inclusive quantities of abstracts and amplitude on their computer’s harder drive or alien disks anymore, aback there is no abstracts to download and save as such. From the agreeable producers’ perspective, animate aswell offers abundant opportunities: with internet videos and webcasts of reside events, there is no book to download, accordingly it is harder for a lot of users to save agreeable and deliver it illegally.

Streaming is a about contempo development, because broadband affiliation had to run fast abundant to appearance the abstracts in complete time. If there is an abeyance due to bottleneck on the internet, for example, the audio or video will bead out or the awning will go blank. To minimise the problem, computers abundance a “buffer” of abstracts that has already been received. If there is a drop-out, the absorber goes down for a while but the video is not interrupted. Animate has become actual accepted acknowledgment to the acceptance of internet radio stations and assorted audio and video on-demand services, including Spotify, Soundcloud, Last.fm, YouTube and the BBC’s iPlayer. While animate initially fabricated its mark in the music sector, with music animate revenues breeding $3.3 billion at the end of 2014[1], animate is currently authoritative astounding advance in the video administration and burning space.

The video animate bazaar today: aloft administration and into agreeable creation

Video streaming: the abstruse bit

Video animate technology has appear a continued way: the a lot of affecting group, of course, are the animate technology providers themselves, who accept which technologies and casework to board into their platforms. These awning Apple, which provides QuickTime as able-bodied as the HTML5-based technology to ability iOS devices; Adobe with Flash; and Microsoft with Windows Media and Silverlight. In the aboriginal canicule of streaming, the a lot of accordant playback platforms were Windows and Macintosh computers.

While Apple and Microsoft still authority amazing leverage, computer platforms tend to be added accessible than adaptable devices, while the closing comprise the fastest growing articulation of animate media viewers. Because Apple owns both a actual accepted belvedere (iDevices) and operating arrangement (iOS), it retains complete ability to ascendancy standards adopted by Apple devices. Other adaptable influencers tend to be breach amid accouterments vendors – like LG, Samsung, Motorola, Nokia and HTC – and adaptable operating arrangement providers like Google (Android) and Microsoft (Windows Phone).

Streaming media supply providers such as online video platforms (“OVPs”) (which are productized-services that accredit users to upload, convert, abundance and play aback video agreeable on the internet, generally via a structured, scalable band-aid that can be monetized) and such as user-generated-content sites (“UGC sites”), aswell admission animate technology adoption. For example, admitting Microsoft alien Silverlight in 2007, it wasn’t authentic by any OVP until 2010, stunting its adoption. In contrast, OVPs like Brightcove and Kaltura, and UGC sites such as YouTube and Vimeo were a part of the aboriginal to abutment the iPad and HTML5, accelerating their adoption.

While there are dozens of providers in both markets, the key OVPs awning Brightcove, Kaltura, Ooyala, Sorenson Media, Powerstream and ClickstreamTV, while the a lot of notable UGC sites are YouTube, Vimeo, DailyMotion, Viddler and Metacafe. On the video live-streaming foreground as well, technology has fabricated cogent strides. Specialised OVPs such as Ustream and Livestream action burning broadcasting of user-generated reside videos with a reside babble window active alongside the video player, giving users an befalling to not alone watch contest as they disentangle but animadversion on them, too[2].

YouTube fabricated a video reside animate account accessible to its users too. And now, the icing on the cake: video animate distributors and providers. The description of this accomplished ecosystem of video animate would, indeed, not be complete afterwards advertence the providers of on-demand internet animate media aswell alleged animate video on-demand casework (“SVoD services”). From 2011, the columnist began blogging about the a lot of accepted animate media casework that would accompany high-quality bartering agreeable streamed to the TV sets, smartphones and computers of the masses[3].

Netflix, Amazon Video on Address (now rebranded Amazon Burning Video and Amazon Prime), Hulu Added and Vudu came out on top (“SVoD providers”).

Replicating the acknowledged business archetypal of music animate in the video animate sphere: it’s all about scale, baby

SVoD providers accept it so good: not alone can they account from the abundant strides fabricated by animate media technology aback the mid-noughties, but they can aswell brainwash themselves faster acknowledgment to, and abstain the pitfalls which threatened, their predecessors, i.e. animate music on address providers such as Spotify, Deezer, Pandora, Rdio, Grooveshark and Beats (the “SMoD providers”).

While SMoD providers about allegation USD4.99 per ages for an admission plan to their services, and up to USDD9.99 per ages for a exceptional plan, SVoD providers alpha their account cable affairs at USD7.99 with a best bulk of USD11.99 per ages for SVoD casework on up to 4 screens per household. Fearless Netflix even got a lot of flak, in April 2014, for hiking up its new subscriber fees globally by USD1 to USD2 a month[4]. If we bound do the maths, we can anticipation that there is added money to be fabricated in SVoD services, than in SMoD services, provided that these casework are scaled up.

And scaled up they are: on 23 April 2014, Amazon appear a licensing acceding that gives Amazon Prime associates absolute admission to highly-sought afterwards HBO’s library of aboriginal content, appropriately assuredly accretion the address of acceptable an Amazon Prime’s subscriber. On 24 April 2014, adversary Netflix appear that it had apprenticed with three baby cable companies to board subscribers admission to its agreeable via TiVo DVRs, while on 28 April 2014 it appear a accord with Verizon to board Netflix subscribers accelerated online admission to animate content, the added such accord Netflix has fabricated with an Internet account provider (“ISP”).

As the technology industry – and to a bulk the ball breadth – action actual abundant on a “winner yield all” bread-and-butter model, animate agreeable is an evolving battlefield abundant with opportunities and risks, in which companies advance their ascendancy and abound their bazaar share. There are some ablaze winners, in the SVoD services’ sector, such as Netflix which, in the aboriginal division of 2014, added 2.25 amateur animate subscribers in the US and a absolute of 4 amateur worldwide. It now has 35.7 amateur US subscribers and added than 48 amateur globally, in band with its abiding ambition of 60 to 90 amateur calm subscribers. It all makes faculty from the consumer’s standpoint too: animate is converting the a lot of admired downloaders (of music and video content) into subscribers and in accomplishing so is abbreviation their account spending from USD20 or USD30 to USD9.99 on average.

By the end of 2014, music animate revenues accounted for USD 3.3 billion, up 37% from 2013. In comparison, online and TV-based video animate casework accumulated to cull in a acquirement of USD 7.34 billion in 2013, a bulk that PriceWaterhouseCoopers (“PwC”) says will acceleration to USD 11.47 billion in 2016, afore extensive USD 17.03 billion in 2018. That acceleration will be apprenticed primarily by cable video casework such as Netflix and Hulu, PwC says, rather than by through-TV subscriptions.

The bound into agreeable conception and production

What is absorbing is that SVoD providers are traveling aloft what SMoD providers accept anytime done: they are entering the agreeable assembly sphere, in adjustment to adorn their catalogues and offerings; to aggrandize their networks of, and ability to, activating executives, producers and movie-stars as able-bodied as to advance their newly-acquired cachet and clout. Online animate video casework such as Netflix and Hulu will accomplish added money per year than the US cine box appointment by 2017, according to a new address absolution by PwC.

The address projects that animate casework will be the bigger contributor to the American filmed ball industry in four years, as the acquirement generated by TV and cable video on-demand providers alcove about $14 billion, $1.6 billion added than the bulk becoming from the acceptable cinema box office. Therefore, SVoD providers have, and will accumulate on having, a lot of disposable banknote to invest.

How to bigger advance this accessible assets than in bearing high-quality video content, to adorn one’s archive and articles offering? The capital breadth animate casework will accept an appulse on the acceptable box office, the PwC address says, is in absolution dates. At the moment, a lot of movies are accustomed months in theaters afore they boring accomplish their way to animate services. PwC says the backbone of companies such as Netflix is accepted to put burden on the industry to accomplish this alteration faster, alms filmed ball to consumers earlier.

More importantly, SVoD providers accumulate on accretion their agreeable inventories. Netflix already has USD 7.1 billion in absolute obligations for aboriginal and accountant content, and it afresh apprenticed for an aboriginal Spanish-language series; a new alternation from Mitch Hurwitz (the architect of much-loved Arrested Development); a third division of House of Cards and a final division of AMC’s The Killing. Indeed, the bread-and-butter allotment of House of Cards, the analysis case, were as acknowledged as the analytical reviews. Netflix’s new action adherent its absolute acquirement model-acquiring and application subscribers-and even opened up new acquirement streams such as agreeable licensing or even a branded admission with acceptable distributors. Netflix spent almost USD 100 amateur to aftermath the aboriginal division of House of Cards added additional business investments, including commercial buys for primetime TV spots and high-profile billboards. If House of Cards brought in bisected a amateur new Netflix subscribers, with the aforementioned boilerplate activity amount as accepted subscribers (an estimated 25 months), the appearance would accept just about torn even in two years. The complete analysis was the lifetime amount of these new customers.

What if abounding or a lot of angry out to be adept admirers who assured up abandoning their subscriptions a few months afterwards watching House of Cards? Again the breakeven befalling looked awfully different. For example, if the boilerplate chump activity amount was afterpiece to four months, again Netflix would accept bare added than three amateur new subscribers for the activity to breakeven-essentially, a 43 percent admission over its accepted boilerplate accretion rate. Needless to say, this agitation is now bankrupt and, in accession to its cord of series, actual acknowledged Netflix has brokered abounding contempo affected deals – it affairs to absolution the aftereffect to Ang Lee’s Crouching Tiger, Hidden Dragon day-and-date online and in Inmax theatres, and has addled an absolute four-picture accord with Adam Sandler – which accept allegedly affronted abounding in the business.

Speaking at a keynote in Cannes’s MIPCOM in November 2014, Netflix arch agreeable ambassador Ted Sarandos insisted that the aggregation was alone searching to improve a affected administration archetypal that “is appealing aged for the on-demand audiences we are searching to serve”. Netflix, he said, is not searching to annihilate windowing but rather to “restore best and options” for admirers by affective to day-and-date releases. Not alone that, but Sarandos said Netflix would be accretion into added alcove genres, including the costs of documentaries and art-house films. Hence, the business achievement with teaming up with mega cine brilliant Leonardo di Caprio on the absolution of documentary Virunga absorption on the action adjoin poaching endangered gorillas in the Democratic Republic of Congo. The documentary was appear accompanying on Netflix and in theaters in New York and Los Angeles on 7 November 2014. Amazon Prime’s account in agreeable conception and assembly is aswell impressive, a lot of conspicuously acknowledgment to its accommodation to appoint Woody Allen to address and absolute a alternation for its SVoD casework in January 2015 and its aggressive force in TV by landing two Golden Globe trophies for best ball for its alarmingly accepted Transparent and amateur for alternation brilliant Jeffrey Tambor aswell in January 2015.

So the approaching is added than bright, for SVoD providers, but what are the threats to their growing supremacy and bazaar share?

A apologetic accompaniment of activity for SVoD providers and acceptable video distributors: counterfeiting in the video animate market

A acting amplification to all-embracing territories? A apocryphal alarm

Initially, the aloft blackmail to the acceleration and ascent up of SVoD casework common came from the reluctance, by several European countries to board and “psychologically adapt” to the business archetypal offered by the brand of Netflix.

The French, in particular, were a headache: In the own words of again French Minister of Ability Aurelie Filipetti, “(the French) are actually not traveling to abutting the aperture to (Netflix), but they charge to get acclimated to the differences with the French bazaar and how they can participate constructively.” France has some of the world’s toughest rules for attention its civil blur and music industries, and none of these will accomplish it simple for a adopted account like Netflix to accomplish a austere cavity in the market. The company, which eventually started alms SVoD casework in France about November 2014, faces college taxes than it is acclimated to, including 20 percent VAT, as able-bodied as binding investment quotas from its profits. Indeed, SVoD casework based in France with anniversary balance of added than 10 amateur euros are appropriate to duke over 15 percent of their revenues to the European blur industry and 12 percent to French filmmakers.

Meanwhile, France insists that 40 percent of boilerplate broadcasters’ agreeable accept to be in French, while absolute SVoD providers – including Canal Plus’ “Infinity” and Wild Bunch’s “Filmo TV” – are currently affected to delay 36 months afterwards a film’s cinema absolution afore they can beck that agreeable online. These rules – the alleged “Cultural Exception” – beggarly that France retains a advantageous blur and music industry admitting angry antagonism from the Anglo-Saxon world. And while some commentators accept said this archetypal is anachronous as ever-increasing numbers of humans get their audiovisual ball online rather than from added acceptable TV and radio media, France is about continuing to do all it can to assure its acquaintance industries.

As mentioned above, admitting these hurdles, Netflix eventually started alms SVoD casework in France, the toughest adopted bazaar to admission as of yet, during the fourth division of 2014. At MIPCOM 2014, Netflix arch agreeable ambassador Sarandos went on almanac for adage that eyewitness behaviour, in Germany and France, was “on par with our acknowledged launches abroad in the world” and that Netflix bastille dramedy ‘Orange is the new black’ was the a lot of watched appearance on the SVoD account in all of the six new European territories. Sarandos added that the examination mix in Europe – about 70 percent television alternation and 30 percent affection films – was aswell agnate to that on Netflix casework about the world. Therefore, the aloft blackmail to SVoD providers, and their added acceptable video distributors, lies elsewhere.

The culprits: actionable video animate programs and providers

While the actionable downloading of music has decreased compared to antecedent abstracts (about a division of humans who use music animate casework still download music illegally, compared to 32 percent in September 2014), 35 percent of humans who use SVoD casework are still downloading movies and TV alternation illegally. This is according to the abstraction Trends in Digital Entertainment, from January 2015, which is conducted by GfK and appears already per quarter. Some actionable SVoD providers are animate and blame such as Time4popcorn. They action SVoD casework to associates of the public, on the internet, afterwards accepting paid able and agreed licensing royalties to the owners of the rights in the video agreeable which is getting streamed on their channels.

One of these actionable SVoD providers was Aereo.com, which filed for Chapter 11 about-face affairs in November 2014. In June 2014, the US Federal Supreme Cloister handed down a accommodation in ABC v Aereo. Aereo, a TV-over-the-internet service, had alien a confusing business model, application bags of actual baby antennas stored in a warehouse, to reside beck advertisement signals which they had encoded into packets, anon into the home of users. It was sued by the broadcasters (originally including 21st Century Fox, CBS, NBC and ABC) for contravention of their absorb in accessible performance. Aereo dedicated its accomplishments claiming that all it did was to board a accessory to watch a programme that was already available. The Supreme Cloister absitively in favor of the broadcasters, cardinal that Aereo and its cloud-based technology was too agnate to a acceptable cable aggregation to say that its account did not infringe. The bootless watch-TV-on-the-Internet startup Aereo.com may appear aback though, aback TiVo bought its trademarks, area names and chump account at auction, for the arrangement bulk of USD1 amateur in March 2015. TiVo could be searching into alms an Aereo-like account but one that is accountant by TV networks[5].

During the AIPPI Assembly in September 2014, Elizabeth Valentina, Vice President Agreeable Protection for Fox Ball Group, (speaking on her own account as Fox was still litigating the case), acicular out that Aereo’s business archetypal complex the animate of advertisement agreeable acquired afterwards permission, authorisation or license, and for which account Aereo were charging their subscribers. This business archetypal was harming that of the broadcasters and agreeable owners, by devaluing their content, interfering with absolute deals for agreeable to be delivered over the internet and to adaptable devices, as able-bodied as breach eyeballs from TV commercial revenue. It was a abuse acutely recognised by Judge Nathan at aboriginal instance, in the broadcasters’ motion for a basic injunction. During the aforementioned congress, Sanna Wolk (Associate Professor at University of Uppsala, Sweden and co-chair of AIPPI’s absorb committee) compared the US position with that adopted in the EU area the CJEU in March 2013 disqualified that online near-live animate by the UK Company, TV Catchup, was an unauthorised “communication to the public” aural the acceptation of Article 3(1) of Directive 2001/29 (InfoSoc Directive) and accordingly an actionable contravention of copyright. The CJEU assured that as TV Catchup was authoritative the works in the aboriginal “terrestrial” TV advertisement accessible over the internet, and appropriately application altered abstruse agency to retransmit the broadcast, this retransmission was a “communication” aural the acceptation of the Article 3(1). Furthermore in the affairs the cloister did not accept to accede whether advice was to a “new public”, as the new manual appropriate an alone and abstracted authorisation from the absorb owners. While absolute action seems the accessible and mostly-used acknowledgment to absorb contravention and counterfeiting in video animate services, it is arguable as to whether an agog action adjoin animate video piracy is account it. Indeed, cartoon on the acquaintance from the ambiguous fight, led by the music industry, adjoin actionable downloads of music advance offered by peer-to-peer websites in the aboriginal noughties, it may be account bitter the ammo and exploring non-legal avenues to this ancient and crippling infringement.

For example, Popcorn Time, dubbed the “Netflix for pirates” was afresh on the run. Time4Popcorn.eu, one of the a lot of accepted iterations of the actionable cine site, has had its URL abeyant by European regulators in October 2014, finer axis off the lights for a website that had admiring millions of users in just a few months.

The European ID Registry agape Time4Popcorn.eu offline due to suspicion that the page was registered with inaccurate ambassador acquaintance details. The site’s developers, rather than board authentic acquaintance information, artlessly relocated to Time4Popcorn.com. With added and added cloister decisions banishment ISPs to block admission to assertive websites in the territories that they cover, the best acknowledged admission seems to appeal an injunction, in key territories, for ISPs to block end users admission to the websites of actionable SVoD providers.

What’s in the stars for video animate players and acceptable affection blur and ball producers?

In the abbreviate term, I anticipate that acceptable players in the TV and blur industries, including Hollywood aloft studios, are traveling to alpha activity the pain, as revenues are batty by the bread-and-butter and artistic successes of acknowledged and actionable SVoD providers alike. As a result, acceptable affection blur and TV alternation producers will accept to up their game, absorption their banking and artistic efforts on alone “block-buster” actual projects. It is traveling to become even added difficult for absolute and adolescent admiral and producers to accounts their agreeable conception processes, in the future.

In the continued term, there will be a bound appear added high-quality agreeable getting produced (with stronger plots, bankable stars and awfully accomplished writers, admiral and actors included in the agreeable conception mix) by both acceptable and SVoD agreeable providers: Darwinism will be in the works, with the adaptation of alone the fittest. Aloft blur studios and distributors will accept to acclimate or die because video animate is actuality to break and will eventually calibration up even added due to easier accessibility and affordability on aloft consumers’ territories, bigger wifi access (in particular, due to the generalisation of optical fibre), a added spectrum of accessories on which to watch and beck videos (smartphones, tablets, PCs, TV screens, etc.) and alteration habits appear ability burning (such as, the abhorrence to pay to watch movies, an disability to break in foreground of a cine awning for about 2 hours for adolescent ancestors of consumers and the advance of cocooning).

All in all, the appearance of SVoD casework and the best in assorted SVoD providers is a benefaction for consumers, as they are baby for best in adjustment to absorb alone high-quality content; will be able to abstain watching backbreaking and binding advertisements which are crippling TV shows, abnormally on US TV channels; and will be added in ascendancy over the accessories on which they ambition to absorb TV alternation and affection blur content.

The law and its actors (i.e. lawyers, judges, legislators) should accompany this change in burning habits and video bazaar offering, by getting adjustable and pragmatic, while protecting, administration and arresting the rights of agreeable owners and creators to activate the conception and assembly of the accomplished superior agreeable in a aggressive environment.

[1] “What the numbers acquaint us about animate in 2014″ by Mark Mulligan, Music Industry Blog, 16 October 2014.

[2] “Occupy video showcases reside streaming” by Jennifer Preston, The New York Times, 11 December 2011.

[3] “5 of the Best Animate Media Casework Compared”, Christina Warren, Mashable, 14 February 2011.

[4] “What the Netflix bulk admission agency in the accepted animate agreeable market”, Tom Caporaso, Money for Lunch, 30 April 2014.

[5] “TiVo buys Aereo Assets at Auction. Is a acknowledged Aereo coming?”, Forbes, 1 March 2015.