how we win content providers & service providers markets...• the amount of traffic crossing...
TRANSCRIPT
Transforming Video Delivery
How We Win Content Providers & Service Providers Markets
June 2019
2ATEME © 1991-2019
2 Plans to Expand our Addressable Market
Service Provider(Satellite, Cable, Telco)
Video Headend
PrimaryDistribution
Traditional Distribution
Subscriber
Content ProviderTV Network
2 Enable new decentralized
distribution architectures for SPs
1 Enable CPs’ direct
access to consumers
OTT
Most of ATEME business today are centralized Video Headends for traditional + OTT delivery
3ATEME © 1991-2019
The Media Landscape
Studios/Broadcasters/NetworksCreated string brands in the 80’s-90’s
Service Providers (MVPDs) Historically, got the broader access to customer
SVOD or Ad-Supported VOD ServiceImpose Binge Watching as the Way to consume video
Virtual Service Providers (vMVPDs)New content or Skinny cost-effective bundlesNew
Entrants
Digital Native
Traditional Players
TV/STB native
Content ProvidersCreate/Produce/License Content
Service ProvidersAggregate/Distribute Content
4ATEME © 1991-2019
Success of SVOD Leading to New Mode of Consumption
0
20
40
60
80
100
120
140
160
2012 2013 2014 2015 2016 2017 2018
Source : Statista
Nu
mb
ero
f su
bsc
rib
ers
in m
illio
ns
Netflix Subscribers Worldwide
Netflix overtook most of traditional Service Providers on their domestic marketsWe moved from live & eyeballs counting to binge-watching & subscription
All Generations Move Away from Traditional TV
Source : NIelsen
5ATEME © 1991-2019
Content Providers Line-Up for Direct-To-Consumer OTT Services
NEW OTT Services Announced to be launched in the Coming 12-18 Months. More to Come
The new services trigger new investment = new opportunities for ATEME
6ATEME © 1991-2019
This Creates a Billion Dollar Content Race (and not every CP & SP can Afford)
Organic Catalog Growth Content Spending by Media Group
Focus on DAZN, Sports-focused Streaming Services
Source : Devoncroft
More content = more opportunities for ATEME
7ATEME © 1991-2019
Solution: Increase Monetization, Value and Focus.Virtual Programming for Targeted Ads and/or Personalized Content
• What customers look for : Virtual Programming to create ads supported linear-like experience with new content• Youtube’s Video > 100k → Added automatically to the App
• Event (eg: Royal Wedding) → Channel created with similar content. Live TV-type of experience, no VOD
Viacom Acquired Pluto TV, Ads-Supported vMPVD, for $340M
Source : Pluto TV User Interface
8ATEME © 1991-2019
Network Overload Challenge
UHD IP video will account for 22% of global IP video traffic by 2022
Exab
ytes
per
mo
nth
• The amount of traffic crossing the global internet will increase by 153% to around 356 exabytes a month by
2022, with video accounting for 82% of traffic.
• More traffic will cross the internet in 2022, than in the entire span of 1984-2016 combined. And in five years,
60% of the world’s population will be using the internet.
• IP Networks are built to absorb ~1/3 of this demand (source: Qwilt)
+29%CAGR
2017-2022
Source : CISCO VNI global IP traffic forecast 2017-2022
9ATEME © 1991-2019
5G & ATSC 3.0: Faster Data, Trials in ’19, Roll-out in ‘20
ATSC 3.0 / new DTT Broadcast standard in the US.It leverages IP connection to pass additionnal data
(UHD) and/or create business opportunities
5G: New cellular network standard for enhanced broadband access.
Unlike ASTC 3.0, it covers more than video
Source : TV Technology.com Source : Qorvo
More data = more or higher resolution videos (UHD) = More opportunities for ATEME
10ATEME © 1991-2019
2020
2019Win the Video Head End market and prepare expanding to CPs and SPs OTT delivery
Gross Margin expected up(shift to software)
Increasing operating profit every year
Multi-year contracts leading to increasing predictability in topline growth (+20%), with contribution from all 4 regions
2 Year Plan
S&M investments to
keep developing our
international coverage, but will
not grow as fast as the topline
R&D investments to
develop innovative
Network solutions, but will
not grow as fast as the topline
Transforming Video Delivery
Virtual Programming & Playout
P. Baumgartner – June 2019
12ATEME © 1991-2019
Prepare Expanding to CPs and SPs OTT delivery
Service Provider(Satellite, Cable, Telco)
Video Headend
PrimaryDistribution
Traditional Distribution
SubscriberCDN
Content ProviderTV Network
CDN
2 Enable new decentralized
distribution workflow for SPs
1 Enable CPs’ direct access
to consumers
OTT
Most of ATEME business today
Playout Compression Distribution
13ATEME © 1991-2019
Playout Brings Video Contents To Live
Live Streams
Video Files
Subtitles
Playlist
Graphics
PLAYOUT
Source : ESPN User Interface
14ATEME © 1991-2019
Playout Workflows Depend On TV Channel Types
Media Management Applications
Ingest/Editing/QC
Media Management
Database
Event Store
Device Driver
Video ServerRouter
Live feeds
Master Control
Logo / Graphics Overlay
Closed Captions or
Subtitles
MEDIA ASSET MANAGER
AUTOMATION
PLAYOUT SYSTEM
Main Features
• Precise and deterministic control (timing)
• Seamless transitions between contents
• Comprehensive scheduling of media
• Easy and fast retrieval of source media.
• A high degree of control over the output
• Audio/video overlays, embellishments, titling
15ATEME © 1991-2019
From Hardware to Virtualization
1st Video Server
All-in-one BoxTITAN Playout
1990 2000 Now2010
Video Server
Graphic Inserter
Automation
Master Control
All-in-one Software
• Complex Hardware Architectures have been replaced by integrated systems
• Functionalities are moving to software and virtualization
• These changes create opportunities to deliver a unified video delivery suite• Becoming hardware agnostic
• Simplifying workflows drastically
Cart Machine
Transforming Video Delivery
How to Manage the Video Headendsin the Cloud or On-Site
Philippe VIDAL – June 2019
17ATEME © 1991-2019
A Complete Offer for Video Flow
Service Provider(Satellite, Cable, Telco)
Video Headend
Event
ContributionPrimary
DistributionDistribution
OTT / Multiscreen
Subscriber
CDNContent Provider
TV Network
Kyrion encoders in the trucks and decoders at the TV station
TITAN is a virtualized Video Headend software covering all Live and File needs
18ATEME © 1991-2019
Network Management System In Brief
Real-time AlarmReporting
OperationalDashboard
Monitoring ATEME NMS delivers all those critical
functionsand many more
DeliveryContinuity
Scheduling
Fail-over
Notifications
Automation
19ATEME © 1991-2019
AMS Involved In Industry Shift To Software
Today, Service Providers deploy Software Converged Video Headends (Live + VOD, Box + Multiscreen), in a virtualized environment
Legacy Video Headendfor the linear distribution to the box
VOD and Multiscreenseparated infrastructure
Software Virtualized Video Headendrunning on a private cloud
=Software
Virtualized Headend
Running on
Private cloud
+ + Multi-Screen
VOD
10 years ago,Video Head Ends consisted in heterogeneous specialized hardware for each operation
Then,VOD and multiscreen were added and managed as separate operations
Legacy VHE
20ATEME © 1991-2019
AMS Enables Operational Efficiency
• Single tool to manage TITAN solutions in converging applications
• Agnostic to deployment environment and scalable
• Key player of uninterrupted channel delivery
• Focus on Channel lifecycle management
• Facilitating delivery monetization thru Scheduling
Unified user interface for real-time status and alarm monitoring
Transforming Video Delivery
ATSC 3.0 Emergence in the US
Mickael RAULET
Director Research & Innovation
22ATEME © 1991-2019
ATEME Honored By Sinclair Broadcast Group
“ATSC 3.0 will be a huge opportunity for broadcasters specifically because of the data they will be able to collect within 3.0’s IP-based delivery system that establishes two-way communication between broadcasters and viewers.” - David Smith, chairman of the Sinclair Broadcast Group.
« Next Gen TV » is based on ATSC 3.0, the new standard for the terrestrial digital broadcasting system in the United States and Korea
Sinclair and its joint venture ONE Media announced 40 U.S. cities getting ATSC 3.0 next-generation TV by the end of 2020.
$6.7B 2018 REVENUE
191 TELEVISION STATIONS
607 CHANNELS
89 US MARKETS
23ATEME © 1991-2019
ATSC 3.0 – Goals & Guidelines
Better Spectrum Efficiency - Higher Quality - TV/Mobile Convergence - Content protection - Personalization
Source : ATSC/Magid’s Nicole Meighan
24ATEME © 1991-2019
All Kind of Customers Get Excited About ATSC3.0
Most consumers are willing to pay to access a range of their favorite features
Source : ATSC/Magid’s Nicole Meighan
25ATEME © 1991-2019
ATSC 3.0 - Redesigned from Ground Up to Address Goals
Screen is a web page
HTML5
EnhancedTransmission
EnhancedProtocols
Enhancedaudio/video
Interactive Content
UHD & HD multicast & HDR
Immersive audio
Content protection
Internet protocols
Similar to DVB-T2
Software
Videos and sounds
Stream and Files
Bits over the air
26ATEME © 1991-2019
ATSC 3.0 & Video Compression
BIT
RA
TE0
10
00
10
01
11
…
H264 HEVCMPEG-2
1993 2003 2013 2018
AV1
2020 2020
MPEG-5
EVC
VVC
Video Codec with Associated Bitrate Savings (at Same Video Quality)
27ATEME © 1991-2019
Typical ATSC 3.0 Ecosystem
Broadcaster
ATSC3.0 SFN
GatewayATSC3.0 demod
OTTTimeshifting
Recording
EncoderHEVC/SHVCMPEG-H 3D
AC-4
AWARNemergency Alert
PackagerMPEG-DASH
ROUTE == multicast
SchedulerSFN Synchronization
PLP allocation
Modulator
Modulator
OTT playerDASH
ATSC3.0 receiverATSC3.0 demod
HTML5.0 applications
Internet service personalization
Live
IPSDI
28ATEME © 1991-2019
ATCS 3.0 Uses Scalable Encoding
* Source: ATSC3.0 conference presentation of the Video chairman subgroup
• Guaranteed “lower quality” (1080p) signal for robust reach / mobility• Enhanced 4K when possible• Leverages Scalable High-Efficiency Video Codec (SHVC)
High loss channel
Low loss channel
29ATEME © 1991-2019
ATSC 3.0 Buffalo Channel SharingCurrent status with ATSC 1.0 Channel Sharing
Multiplexer
Station 1
ATSC1.0
Multiplexer
Station 2
ATSC1.0
Multiplexer
Station 3
ATSC1.0
1 HD + 3 SD
1 HD + 2 SD
1 HD + 5 SD
1 HD + 2 SD
1 HD + 3 SD
1 HD + 4 SD
1 HD + 3 SD
1 HD + 3 SD
1 HD + 4 SD
WPXJ
30ATEME © 1991-2019
ATSC3.0 Buffalo Channel Sharing1st step towards ATSC 3.0:- Redistribution of the Channel Distribution
Multiplexer
Station 1
ATSC3.0
Multiplexer
Station 2
ATSC1.0
Multiplexer
Station 3
ATSC1.0
1 HD + 3 SD
1 HD + 2 SD
1 HD + 5 SD
1 HD + 2 SD
1 HD + 3 SD
1 HD + 5 SD
3 HD + 10 SD
2 HD + 2 SD
1 HD + 8 SD
WPXJ
31ATEME © 1991-2019
Dynamic Ad Insertion – DAI
AD insertionATSC3.0
Modulation
ROUTESLS/SLT signaling
ATSC1.0 Transport stream with
SCTE35 triggers
DASH+
Xlinks
S&T
Ad insertion -http
Ad server
32ATEME © 1991-2019
Santa Barbara Ad-insertion NAB Plugfest
33ATEME © 1991-2019
ATSC 3.0: More to Come
ATSC is Being Proposed Worldwide
Transforming Video Delivery
Video Compression Leadership
June 2019
35ATEME © 1991-2019
What is Video Compression and Why it Matters
• Compression is a Must. Video is 80% of the internet traffic*.
• The encoding technology is key
• ITU (Geneva) defines international standards MPEG-2 (1992), MPEG-4 (2003), HEVC (2013).
• An intelligent encoder (e.g. including objects tracking algorithms) requires less bitrate for the same video quality (or generates a better video quality at a given bitrate).
• The decoder is passive (2 decoders would always display the same video). No innovation there.
Whatever the network (cable, internet, satellite, terrestrial), digital video has to be compressed 500x typically
Uncompressed HD Video
~ 2 Gbits/s
Encoder
CompressedHD Video
~ 4 Mbits/s
Decoder
* Cisco Visual Networking Index
36ATEME © 1991-2019
Video Growth DriversContinued Demand for High Efficiency Compression
Content Explosion
DelinearizationMore channels, more content
Monetization Opportunities
Multiplication of distribution formats
New Distribution Models
Multiscreen, OTT
Ultra HD Television
4K, HDR, WCG, HFR
Video content in global Internet traffic :
2017
75%
2019
80%
2020
84%
Source : Cisco
37ATEME © 1991-2019
30% density increase without network or
decoder/STB upgrade
QAM reclamation enabling new services
ATEME’s research team is working to help
define the next MPEG video compression
standard
Close partnership with
Reduce the required bandwidth for main-
screen & OTT HD
Reduce the solution’s TCO
1st to market with a production -ready
HEVC solution
Deploying HEVC projects with Tier1 clients worldwide
Transforming Video Delivery, Reducing Distribution Costs
The only compression vendor part of
AV1, the royalty free codec, will be released in 2018 and supported
by TITAN
TITAN supports all international video compression standardsRecent involvement of ATEME R&D and deployment successes include:
MPEG2 (1992) H264 (2003) HEVC (2013) AV1 (2018)H.266/VVC (2020)
MPEG5/EVC (2021)AV2 (202?)
38ATEME © 1991-2019
AV1: Open, Fast and Royalty-Free Video Codec
• Problem Statement: HEVC royalties Delays deployment due to complex licensing pools
• An Alternative Raised: AV1 (AOM Video codec 1)• Supported by Alliance for Open Media (AOM)
• AOM was founded by Silicon Valley Tech companies, ATEME is active member
Royalties are cumulative
H.264/AVC HEVC
Number of Patent Pool
13*, plus a dozen individual IP holders
Need agreements with all of them
Names MPEG LA MPEG LA HEVC AdvanceVelos Media,
Technicolor & othersDevice
Royalties$0.10 to $0.20/unit $0.20/unit $0 to $1.95/unit To negotiate individually
Cap $9.75M/year $25M/year $40M/year No cap
Content Royalties
$0.10/subscriber < 1M$0.02/title
None None To negotiate individually
Cap $9.75M/year 0 0 No cap
39ATEME © 1991-2019
AV1 Subjective Performance: Better than HEVC
HEVC AV1
40ATEME © 1991-2019
H.266/VVC: Versatile Video Coding
• VVC: Next ITU/MPEG video codec
• Goal: 50% bitrate reduction compared to HEVC
• Use-cases: • Broadcast (same as MPEG-2, AVC and HEVC)
• Low delay interactive communication
• Virtual Reality
• Internet of Things
• ETA: October 2020 (7 years after HEVC)
• Will be a new international standard
41ATEME © 1991-2019
VVC vs AV1 vs HEVC: 50% Gain Reached
UHD content (Book)
42ATEME © 1991-2019
MPEG-5/EVC: Essential Video Coding
• EVC: New MPEG video codec competing with AV1
• Goal: Royalty friendly and/or free
• Efficiency: comparable to HEVC• Baseline (royalty-free): 20% less efficient than HEVC
• Main (royalty-friendly): 25% more efficient than HEVC
• Use-cases: • Web
• Broadcast (same as MPEG-2, AVC and HEVC)
• ETA: January 2020
• Will be a new MPEG standard
43ATEME © 1991-2019
Latest Tech News / Others Trends We Monitor
Dec. 1st, 2018 :NHK launched the first 8K channel in the world with a broadcast of “2001: A Space Odyssey.”NHK to broadcast 2020 Olympic Games in 8K.
Numerous Content/Service Providers launch 5G trial5G promises higher quality/faster delivery of entertainmentMay accelerate cord-cutting effect and enable more app-type bundles to succeed
Transforming Video Delivery
Thank You !
June 2019