Today's Top Stories
1. Cisco sells STB plant in Mexico, reaffirms commitment to Videoscape
2. TWC battling buggy app for live streaming to Apple iPad
3. Triple-play bundles to bump operator revenues $100 billion by 2016
4. CNN starts simulcasting online as TW pushes TV Everywhere play
5. Hulu owners offer buyers content access guarantees, exclusivity Editor's Corner: OTT to create bandwidth woes for IPTV operators Also Noted: Spotlight On... Mitel takes UC on the road with its 'Freedom Tour' bus
Orb launches app to live stream TV to mobile phones; Rumor has Netflix looking to Europe for next expansion and much more... News From the Fierce Network:
1. Cisco announces plans to trim workforce by 11,500, or 16%
2. Netflix's price hike has little downside
3. Hulu adds subs, makes money, struggles to find the right buyer
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OTT to create bandwidth woes for IPTV operators
A new study suggests just how popular (and disruptive) over-the-top delivery is becoming.
According to IMS Research, the increasing popularity and adoption of OTT video by consumers will create substantial challenges for telcos who provide IPTV, as bandwidth usage per household is forecast to increase 50 percent by 2016. And, said IMS Research in its Global Bandwidth Utilization Model report, telcos that are IPTV providers will struggle to adapt their networks--already at 44 percent capacity--to accommodate the onslaught of OTT video. "OTT video-capable devices are becoming ubiquitous, and within a few years all but the lowest-end televisions and Blu-ray players will include OTT video capabilities," said Paul Erickson, an analyst with IMS Research's Consumer Electronics Group. "These new devices are forecast to supplant game consoles as the dominant OTT video client over the next few years." A report earlier this month from DisplaySearch said shipments of connected TVs alone will exceed 138 million units annually by 2015. In May, Fox Broadcasting told ad buyers it would start counting online viewers as part of its TV audience and begin mirroring its ad load for online episodes of its programs. "This is what our business is becoming," said Fox's President of Ad Sales Toby Byrne. "There shouldn't be a different commercial experience by virtue of which way you choose to watch our content." 
IMS Research, meanwhile, also said pay OTT subscription services will generate a cumulative $32 billion in revenues globally over the next five years and will account for a larger part of the market than pay-per services, which enable users to rent or purchase videos on an ad hoc basis.
"What we have now is a situation where the telcos are actively seeking solutions to optimize bandwidth," said analyst John Kendall. "OTT is here to stay, and the telcos have accepted that." Telcos, said Kendall, are seeking cost effective solutions to maximize their legacy infrastructure. As telcos position themselves to meet the rapidly growing consumer OTT demand, they are reducing crosstalk across copper bonded pairs using the ITU-T G.vector standard (G.993.5), introducing software solutions to maximize network logistics and using caching in the network. In addition, Kendall said, operators are considering deploying local content delivery networks to keep their traffic local, reducing costs of bandwidth transit. "In a country with pronounced OTT content demand like the United States, average data usage by an IPTV household will rise to nearly 25 Mbps in 2015, up from the current 19 Mbps," Kendall said. "While the increase may not seem significant, IPTV households are expected to double, creating a need to address possible congestion issues." Kendall said regions with lower broadband penetration, like Eastern Europe and Latin America, are even more likely to face bandwidth issues. So, what do you think? As one popular conference title asked... OTT: Friend or Foe?--Jim Read more about: IPTV, Bandwidth Requirements, ott delivery, editor's corner
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Today's Top News 1. Cisco sells STB plant in Mexico, reaffirms commitment to Videoscape
Cisco (NASDAQ:CSCO) is selling its STB plant in Juarez, Mexico, and is shedding about 5,000 workers from its books as it strives to reach the $1 billion in cost reductions CEO John Chambers promised last May. (See related story: Cisco announces plans to trim workforce by 11,500.)
But the STB sale to Taiwan's Foxconn Technology Group raises a couple of questions: Is it a sign that set-top boxes are being pushed into irrelevance, or is Cisco simply exiting a business it no longer sees as part of its core? Either way, the sale, which is expected to close in October, unloads an operation Cisco acquired when it bought Scientific Atlanta in 2006. In a press release, Cisco said the deal "brings Cisco's video equipment manufacturing in line with the company's overall strategy of partnering with world-class contract manufacturers to deliver the highest-quality products to customers." Or, as Cisco's EVP and COO Gary Moore said, "Today's announcement further simplifies and consolidates Cisco's manufacturing operations." The company has worked with Foxconn for years, Moore said, and he called it "a strong strategic fit with Cisco's long-term goals." "We remain fully committed to our service provider customers and partners, and will continue investing in existing and new video platforms, including set-top-boxes, as part of our Videoscape vision," he said. Videoscape is Cisco's vision of TV for the future, bringing together digital TV and online content with social media and communications applications to create an immersive home and mobile video entertainment experience. Although Videoscape includes a set-top box and will help pay-TV operators stay relevant in a consumer space that is rapidly evolving to demand more over-the-top content, it is equally about merging the video flow into a single, high-quality stream--with Cisco at the helm. For more:
- see this release
- check out FierceEnterpriseCommunications' take Related articles:
Cisco unveils its vision of TV of the future
Cisco buys Inlet Technologies for $95M to support Videoscape push
Bloomberg: Cisco to cut 10,000 jobs this year
Analyst: Cisco could trim 5,000 jobs by August
Analyst: Cisco will have to lower prices to achieve turnaround Read more about: Videoscape, Set-top box, Cisco
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2. TWC battling buggy app for live streaming to Apple iPad
When Time Warner Cable (NYSE:TWC) rolled out an app in March that allowed subscribers to live stream about three dozen of its channels to Apple's (NASDAQ:AAPL) iPad, it received rave reviews, but it is struggling with a revised version of the app released earlier this month. The new version, which, in addition to streaming about 100 of TWC's channels, included more features like a remote DVR manager and grid guide, has been buggy to the point that it prompted the company to blog about it. "We've identified a number of frankly aggravating issues that have presented themselves only in a live environment," wrote TWC's Jeff Simmermon. The issues in question--the app crashing after the iPad resumes from sleep or lock, the HD filter returning incomplete results, guide listings overlaying other guide listings, the device selector sliding off-screen or disappearing, and in-guide recording indicators that are not appearing--should be fixed, Simmermon said, by the end of the month. "We've also discovered an intermittent quality issue with our live streaming that we are working to fix right now. This problem is independent of the release 2.0 code bugs, and will be fixed very, very soon," said Simmermon. For more:
- see this post Special Report: The best and worst iPad TV apps Related articles:
Time Warner Cable launching live TV to Apple's iPad
Video: Time Warner Cable's live TV to the iPad app
TW Cable, Cablevision iPad plays push content-owners' buttons, and that's good
Will TWC's live TV to the iPad app be shut down by lawsuits? Read more about: live streaming, Time Warner Cable, apple ipad
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3. Triple-play bundles to bump operator revenues $100 billion by 2016
Increased competition between pay-TV operators for subscribers, combined with the increasing popularity of OTT-delivered video, is driving operators to offer more attractive deals on triple-play and quad-play bundled packages in an effort to keep existing subscribers and lure new ones. A study from Digital TV Research forecasts that by 2016 more than 25 percent of TV households worldwide will have triple-play services, including broadband, telephony and television, helping to grow triple-play revenues to $170 billion by 2016, nearly $100 billion more than the 2010 total. U.S. operators should expect to see $39 billion of the additional revenues, with Japan up by $9 billion and China increasing by $8 billion. Rapid expansion means that Asia Pacific's triple-play subs will represent 58 percent of that total by 2016, up from 35 percent in 2010. Of the 291 million additional subscribers, 147 million will be in China alone, followed by an additional 24 million in the U.S., 18 million more in India and 13 million extra in Russia. China will supply 44 percent of global 3P subs by 2016. "The 2016 3P penetration doesn't sound too impressive until you realize that this represents 387 million homes, up from 96 million at end-2010," said report author Simon Murray. "Rivalry for pay-TV and broadband subscribers has never been so fierce--and it's going to get even more competitive. Operators are pushing their bundled packages hard to attract new subscribers and to retain existing ones." The lowered prices for bundles, Murray said, will mean increased overall ARPU for operators but lower revenues from the component parts: TV, broadband and telephony. As a result, operators will reduce TV channel choices and will be more reluctant to pay carriage fees for basic channels, impacting revenue streams for content providers. For more:
- see this release Related article:
Europeans prefer triple play, but complain about QoS Read more about: Service Bundles, ott delivery, pay-tv
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4. CNN starts simulcasting online as TW pushes TV Everywhere play
Time Warner (NYSE:TWX) is making its CNN and HLN news channels available online to Comcast (NASDAQ:CMCS), Dish Network (NASDAQ:DISH) and Verizon (NYSE:VZ) subscribers, as the company looks to expand its TV Everywhere efforts.  |
| CNN (pictured) and HLN news channels are available via simulcast starting today. |
The programs will be simulcast, with full ad loads, starting today and can be accessed on CNN's website and on Apple's (NASDAQ: AAPL) iPad, iPod touch and iPhone. Time Warner said it will add other mobile devices in coming months. Time Warner earlier this year added 1,400 hours of programming to its web-based HBO service, HBO Go. That programming also is accessible only to authenticated subscribers of select pay-TV operators, like Charter Communications and DirecTV (NASDAQ: DTV). Time Warner and other media players are hoping to push their TV Everywhere initiatives further this year after a fitful start. Disputes between content owners and operators, however, over the breadth of digital rights available have slowed the efforts. Also at issue: How to count online viewers to help set ad rates. "We're trying to lead by example. We're trying to show that it works," Andy Heller, vice chairman of Time Warner's Turner Broadcasting, where he is helping to coordinate the company's TV Everywhere offerings, told the Wall Street Journal. "If we don't give consumers those options, you run the risk of seeing the potential for cord cutting." For more:
- see this Wall Street Journal article Related articles:
Comcast exec: Networks need to move video onto multiple platforms
Study: PCs nearly as popular as TVs for movie watching
Avail-TVN plans summer trials for TV Everywhere service
AT&T expands TV Everywhere play with Turner Network deal
Cox launching TV Everywhere initiative with help from thePlatform
Research: TV Everywhere will be (nearly) everywhere by mid-2011 Read more about: Time Warner, Apple, TV Everywhere
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5. Hulu owners offer buyers content access guarantees, exclusivity
Potential buyers of Hulu will be guaranteed five years of access to shows from owners News Corp, (NASDAQ: NWSA), Disney (NYSE: DIS) and Comcast's (NASDAQ:CMCSA) NBCUniversal, according to a published report, including possible exclusivity to content for two years. Bloomberg reported that Hulu, which has been for sale since last month, has spoken with about a dozen potential buyers, including AT&T (NYSE: T), Google (NASDAQ:GOOG), Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ:MSFT). A stumbling block to the sale, as it was when Hulu weighed a potential IPO in 2010, was the site's continued access to the content that's driven it to nearly 1 million paid users and revenues that are projected to reach $500 million this year. Pundits questioned Hulu's potential success with an IPO, worrying that any of its three media owners could cut off access to popular shows or reserve advertising space for themselves, cutting off a major source of Hulu revenue. The IPO quietly was dropped in December 2010. A guarantee of access to content would make a Hulu significantly more appealing, especially to Microsoft and Amazon, which, Bloomberg cited sources as saying, were unlikely to pursue a buy without it. Earlier this month, at the Allen & Co. conference in Sun Valley, Idaho, Disney CEO Bob Iger said the partners were committed to selling Hulu. For more:
- see this Bloomberg article Related articles:
Hulu adds subs, makes money, struggles to find the right buyer
Report: Netflix not interested in buying Hulu
Disney CEO confirms owners 'committed to selling' Hulu
Pairing Google with Hulu gives studios a strong alternative to Netflix
Report: Hulu CEO Jason Kilar currently without contract
Hulu on the auction block? An Apple-branded TV in the fall? And an iPad in every box? Ah, rumors
Reports: Hulu is for sale Read more about: Hulu, Acquisitions, content deals
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Also NotedSPOTLIGHT ON... Mitel takes UC on the road with its 'Freedom Tour' bus  Unified communications specialist Mitel has come up with a unique way to talk about UC: It's bringing the technology to customers aboard a tour bus that's hitting the road in the United States and Canada this summer through Sept. 9. FierceEnterpriseCommunications dropped by for a look at one of the Mitel Freedom Tour's stops, next to Gillette Stadium near Boston, Mass.
 Take the tour
More news from Fierce: > The BBC is launching icons for BBC News and the BBC iPlayer on the BlackBerry PlayBook. New users who purchase the tablet device now will find the icons, known as shortcuts, are pre-installed. Existing users will be shown a software update notification on their status ribbon or can access the update at any time from the Software Updates item in the Settings Menu. Article > Orb Networks this week rolled out its Orb Live app, which enables users to stream premium online TV shows, sports, movies and more to their iPhone or Android devices. Article > Netflix will be rolling out its third international front as early as the first quarter of 2012, according to published reports. The company is rumored to be looking at launching in Spain and in the U.K. Article > Research In Motion, the Canadian firm behind the BlackBerry smartphone, may be jumping into the over-the-top set-top box market. A report in NerdbBerry.net said the company will roll out a box similar to Apple TV this fall. Article > Facebook users have been inundated with VOD offerings of late, as Hollywood looks longingly at the over 750 million active users the site has, many of them Baby Boomers and other adults who have adopted the technology as their own. Now, Doctor Who will be available to users in exchange for Facebook credits (available in any online game and on the payments tab in Facebook). Another fan favorite, Top Gear, which already has 12 million Facebook fans, also will soon be available on the site, according to published reports. Article > With more than 23 million customers, Netflix apparently isn't too concerned about losing some of them. The company decided Tuesday to bump its price for a combined streaming and DVD-by-mail offering 60 percent. Article > It may now be more expensive to subscribe to Netflix, but the company is working to make sure you still have plenty of options to stream online. Netflix renewed its licensing agreement withNBCUniversal. Article And finally... A Pennsylvania woman was arrested for texting the word "jerk" to her former boyfriend. Article > eBook: Path to 4G In this eBook we will explore the current state of 4G deployments in the U.S., the role of devices in attracting consumers and more. Download this new eBook brought to you by FierceWireless. > New eBook: Building a Better Backhaul Network This eBook from FierceWireless we will look at how operators are designing better backhaul networks and planning ahead for the next round of capacity constraints. Click here to download today. > eBook: OTT Delivery: An Online Video Revolution That Changed TV Forever This eBook from FierceOnlineVideo, will look at which segment stands to benefit the most from this new delivery vehicle, and which stands to lose, as the nascent video revolution marches forward.Click here to download today. > New Fierce eBook: Cashing in on the Cloud Services Opportunity This eBook from FierceTelecom we will explore the trends, benefits and challenges service providers have in building a profitable cloud service business.Click here to download today. > New Fierce eBook: Realizing Mobile Video's Promise This eBook from FierceMobileContent will look at some of the technologies necessary to deliver a quality mobile video experience as well as delve into the various business models necessary for making this a reality. Click here to download today. > Report Ranks IPTV Set-top Box & Middleware Vendors by Customer Size
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> Vice President, Technology & Engineering – Muve Music, Cricket Communications You will be responsible for the technical stability and scale of the Muve Music service as you analyze available technologies and recommend system architectures for the platform, cloud and client applications. This involves leading an integrated technology organization from concept to high volume deployment. Learn More. > Telecommunications Director, Experian Consumer Direct, Irvine, CA The Telecommunications Director will be the primary point of contact for all voice related systems in the organization. This will include PBX systems, Voice Mail, Call Management Servers, CTI, Call Recording, IVR, Witness Call recording, VoIP technologies, Cell Phones, PDA's and Carrier Services. This role will support multiple Telephony systems in separate locations... Learn more. > Need a job? Need to hire? Visit FierceWirelessJobs |
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