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coverstory_cover story 21/05/2015 18:35 Page 1 large number of our service provider customers have now added catch-up to existing SVoD services rather than transactional VoD,” notes Jon Haley, VP, marketing and business development, Edgeware. “These are anywhere from two hours to 30 days catch-up services. These catch-up services often require an “A services. Subscription VoD is not working for traditional providers essentially because of the poor content quality: old content, notpremium content. On the other hand, SVoD is facing new players launching competitive services on the market.” Tom Lattie, VP of market management and development, video products, Harmonic, accepts that on-demand consumption is on the rise both with OTT and pay providers. “In addition to the success of OTT players such as Netflix, Amazon, and many others, we’re also seeing growth on the part of broadcasters and other content providers as they scale up the complexity and throughput of their workflows to offer their assets in many more versions across many more outlets.” Nick Walters, CEO and founder at Hopster, says that in the world of dedicated Supply and demand additional subscription or are bundled for free with premium subscriptions, which are normally sports-based packages.” “Generally the trend is to offer longer catch-up windows or even cloud-based, personal DVR recordings and we have some customers that enable their subs to keep shows for up to one year. This generates an increasing long-tail of viewing which puts both the origin server and the CDN under immense pressure to access large storage archives at high speed and to efficiently cache and deliver large levels of unicast traffic,” he says. “Most of our customers have apps for tablets and mobiles but apps for connected TVs are less common. Right now we are seeing a strong demand for replacement of ads during playback of catch-up and other cloud DVR recordings in order to provide new revenue sources for broadcasters and content owners as an incentive to grant catch-up licences.” PACE. Damien Lucas, CTO and cofounder of Anevia, suggests that the growth of premium VoD services of the type available five to 10 years ago in IPTV or cable is slowing down essentially as a result of the content price and the prices subs are willing to pay. “Nowadays, catch-up becomes the most demanded service but viewers/customers are not necessarily willing to pay a premium for a quality guaranteed service. Catch-up is seen now as a commodity. On the other hand, subs are willing to pay for a bundle of non-linear 14 EUROMEDIA Consumers are increasingly accessing their desired content at a time of their choosing and on a range of devices, often from dedicated OTT providers. Is this set to be the dominant model for VoD consumption? What other options are there for fulfilling consumer demand for content and what obstacles may be hampering the development of transactional VoD? Colin Mann investigates. OTT providers, you definitely see people prepared to pay. “In fact, the real innovation and product differentiation is coming from stand-alone OTT providers. Netflix, Hopster, Vessel, Crunchyroll and YouTube - that’s where the exciting stuff is happening. People bundling into existing services isn’t a bad thing to do, but it’s not the emerging model.” AVAILABILITY. Ben Gidley, director, multiscreen solutions, Irdeto, suggests that for the consumer, the crucial factors are content availability and a seamless experience across a range of devices. “They expect video on demand to be integrated into the offering as part of the content they purchase from their operator, not as a separate service. However, we also see the emergence of other business models, especially with new entrant OTT providers. For example, Advertising Funded Video on Demand (AVoD) is a free-to-air ad-funded service with quality content. Going forward we will see a mixture of these patterns, catch-up content as well as films and box sets will stay popular with consumers, however, the AVoD model is winning at the moment.” According to Simon Trudelle, senior product marketing manager, NAGRA, it is indeed the approach taken so far, but it will likely evolve over time. “A number of service providers (including Numericable in France, a NAGRA customer) have started enriching their services with