Light Reading

Mobile Video's Time Is Now

Kaps Korner
Kaps Korner
Kaps Korner
1/12/2012
50%
50%

10:30 AM -- LAS VEGAS -- 2012 International CES -- Write it down, bookmark it, do whatever you need to draw a line in the virtual sand: 2012 will be the year that mobile video emerges as a major force moving producers, service providers and the world's biggest business brands delivering viewable content.

Anywhere you looked at CES this year there was proof that mobile video was not just the next big thing, but the big thing that was happening now. From cellular providers angling to get consumers using high-speed data on as many devices as possible to back-end gear suppliers looking to ease the distribution channels, to content providers looking for Web-based outlets, mobile video was a main topic of interest. And the good news is, it should mean a bigger economic pie with pieces for everyone, up and down the entire mobile-video food chain.

To be sure, there are still headaches and barriers to consumption that must be eliminated -- like ESPN's weird gymnastics of cable-service authentication necessary to watch games on mobile devices. And there are still some exclusive rights, like Verizon's exclusive NFL contract for mobile, that inhibit widespread adoption by tying mobile consumption to a single provider or platform. But that's normal for early-days adoption. When cable started out, it offered mostly reruns and the big question was whether it would attract advertisers. Now look at cable. All growed up and has eaten broadcast's breakfast, lunch and dinner. Web video will follow a similar path, perhaps more complementary than destructive. But it's not a future idea. It's here. Now.

For cellular carriers like AT&T and Verizon Wireless, mobile video is the answer when the question is "why do I need a 4G link in my phone or tablet?" At AT&T's developer summit here on Monday there was the usual announcement of an assortment of new smartphones -- but what really stood out were some video-dedicated devices, like gaming-centric platforms from Sony and the Samsung Note, a phone/tablet hybrid whose 5-inch fat-boy screen is clearly not there just to make text messages look better. (See AT&T Promises Superfast 'Blended 4G'.)

Intel's Inside Track
You couldn't miss the message about mobile video at Intel CEO Paul Otellini's keynote speech Tuesday afternoon. Otellini harped frequently on video capabilities of the company's "reference designs" for phones, tablets and the new lean ultrabook laptops, with one of the latter's cool features being an origami-like folding trick that lets you turn the thin PC into a tablet perfectly angled for video viewing -- "even if the guy in front of you puts his seat back," Otellini said.

Light Reading regulars of course know all about the gymnastics necessary on the back end to make that video stream available to all kinds of devices, and Cisco was here talking about the latest tweaks to its Videoscape system, designed to make life easier for the service provider. But perhaps what was most telling was the talk and attitude being shown by the entities who control the content -- mainly the big media companies -- who now seem to be falling over themselves trying to find ways to get over-the-top video over the market-acceptance hump. (See Cisco's Videoscape Stresses Cloud Control.)

"If Web video was touted in 2010 and came to fruition in 2011, in 2012 it's now part of the plan," said Scot McLernon, chief revenue officer for YuMe, which provides ad-serving tools for mobile video outlets. According to McLernon and other participants on a mobile-video panel Tuesday, it's no longer a question of if or when advertising will come to mobile video. Now it's simply a question of how much.

"If you name an area [of business] or name a major advertiser, they're probably already doing something with us or with Hulu or with others," McLernon said. "They just have to decide how much it makes sense for them to spend."

The big sticking point in the past -- whether or not entities like major motion picture houses were willing to put their top content out online -- is also quickly becoming moot, as working models like Hulu, YuMe and others sign up customers with real money to spend. The extra income also makes worries like security and concerns about piracy recede in importance, as (like Apple did with iTunes) enough people pay for content to keep the creators happy.

"The more money I bring to the table, the less worries I hear about from Paramount about security," said Emil Rensing, chief digital officer at Epix, the "next-generation multiplatform premium entertainment channel, video-on-demand, and online service" whose EpixHD service brings top-end movies from Paramount, Lionsgate and MGM to the Internet and mobile devices. "When they start worrying about those things I say, 'did you see the check I brought in? I think we're good, guys.'"

And it's not just the big companies who are making a few more bucks off their blockbuster movies so you can watch it on an iPad in the tub. Web-only players, both small and large, are finding paying audiences for their work, either through syndicators like YuMe or just tapping their own audiences, like the recently famous $5 video that netted comedian Louis CK a profit in the six figures.

"There's an incredible amount of opportunity [for content creators] at all kinds of price points," said David Gale, executive vice president at MTV's MTVX division. "The Louis CK thing rang a big bell. It shows that creative people can continue to push the envelope."

"I don't know what content creators need to get paid, but we're writing some pretty substantial checks," said YuMe's McLernon, who said the company has more than 600 providers who use its service. "That's a lot more outlets for consumers to find that content," he said.

— Paul Kapustka, who knows content when he sees it, is editor in chief of Mobile Sports Report. Special to Light Reading.

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
kelliott14
50%
50%
kelliott14,
User Rank: Light Beer
12/5/2012 | 5:45:37 PM
re: Mobile Video's Time Is Now


Great insight Paul and completely agree. According to media analysts Nielsen, 30 million people watched video on their mobile phones in 2011. As numbers like this only grow, how will service providers cope with the increase in demand & the strain this places on their networks? Video viewership is largely responsible for congestion. When I'm watching mobile video, I expect a certain level of quality. How important will it be for providers to understand their networks & allow for a better user experience? Thanks.

kaps
50%
50%
kaps,
User Rank: Light Beer
12/5/2012 | 5:45:27 PM
re: Mobile Video's Time Is Now


@kelliott14, I think it's safe to say that video transport is the no. 1 concern of every mobile provider out there right now. Verizon is doing a bunch of gymnastics after finding out in 2011 that different devices behave differently on the client side, so they are busy "optimizing" video for each handset... a messy problem that you are bound to hear more about.


My guess is that you will start to see some of this become an asset -- as in higher prices for better guaranteed delivery of video. It's going to cause some net neutrality headaches but basically there is no way around this, as people ask for more video the networks are going to get overloaded so price differentiation is the only way out.


I would say that all the big carriers basically "get it" about the need to optimize for video. Now will they actually perform under stress? That's something for LR Mobile to keep a close eye on.

kaps
50%
50%
kaps,
User Rank: Light Beer
12/5/2012 | 5:45:27 PM
re: Mobile Video's Time Is Now


@kelliott14, I think it's safe to say that video transport is the no. 1 concern of every mobile provider out there right now. Verizon is doing a bunch of gymnastics after finding out in 2011 that different devices behave differently on the client side, so they are busy "optimizing" video for each handset... a messy problem that you are bound to hear more about.


My guess is that you will start to see some of this become an asset -- as in higher prices for better guaranteed delivery of video. It's going to cause some net neutrality headaches but basically there is no way around this, as people ask for more video the networks are going to get overloaded so price differentiation is the only way out.


I would say that all the big carriers basically "get it" about the need to optimize for video. Now will they actually perform under stress? That's something for LR Mobile to keep a close eye on.

More Blogs from Kaps Korner
7:00 AM What prevents more companies from building seamless networks made of stitched-together hot spots?
6:00 AM With nearly ubiquitous Wi-Fi, industry folks and academics are looking to unlicensed spectrum to expand broadband's reach and cut down on its costs
12:30 PM Here's what you need to know if you have a mobile device or a connected laptop
11:15 AM Gig.U says it has received replies to its RFI from major vendors and service providers. Are university-led gigabit networks sounding less far-fetched?
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?