Archives For Television

A few months ago I took on a slightly expanded role at Xbox LIVE, bringing in a fresh team responsible for curating our Entertainment Apps portfolio.  This is a separate swim lane in addition to daily duties managing the Xbox LIVE Ad Platform and Product portfolio, it’s been a whirlwind few months and I’mloving it.

That’s why I’m so proud of all our teams in bringing together even more of the biggest names in TV entertainment this Fall on Xbox LIVE.  Just announced at E3 are new and expanded television and sports partnerships with NBA, NHL, ESPN and Monday Night Football joining the lineup.  Not to mention Comedy Central, Nickelodeon, and Univision all joining the mix.  Sure to have something for everyone in the house!

Congrats to the Team!

1749731173_9616916fceNote: All comments are my own and may not reflect those of my employer.  This is a living position so I retain my right to edit and note the edits below as the conversation evolves.

For years when I worked on Web video and audio technologies from Xing MPEG, to Progressive Networks and RealNetworks, Windows Media and beyond, Jan Ozer was one of the most unbiased and critical analysts of subjective video quality during his tenure at PC Magazine, and more recently at Streaming Media.com.  Jan just posted his comparison of H.264 to VP8 and his results should start to refine the conversation around the future of video formats as Adobe, Apple, Google, Microsoft and the MPEG LA  set their positions for the next decade.  But before we get into the details, a quick primer on Video codecs, their impact on the Web and beyond.

Why do Codecs Matter?

Let me start by saying no reasonably consumer should need to think about video codecs.  Video should just work and quality should be good to great depending on the screen.  But for companies whose business models depend on the economics of video, the stakes are very real as you consider cost of compression in time, hardware requirements, and licensing costs.  Nearly all video compression formats today use perceptual methods to compress video into a “lossy” form by throwing out information the human eye isn’t likely to notice – not too dissimilar to how MP3 or JPEG images work today.  These methods are governed today by patents.

The reason we can enjoy great HD video quality and streaming video over the Internet today is really due to three things:

  1. Improved methods for compressing video and audio
  2. Faster processors to crunch large volumes of math representing the video & audio
  3. General acceptance and adoption in the industry (a long way of saying the vaunted “Ecosystem” word).

But to a consumer, the real value of implied or implicit standards in video is: “Just make sure I can watch it where I want, on what I want.”  Put another way, “Make it good enough, make it work”.  That’s where things start to break down.

A Brief History of a Decade of Web Video
A decade ago, three video formats battled it out – MPEG, Windows Media, and Real Video for postage stamped video delivery.  Each was instrumental in establishing the underpinnings of delivering video over the Web.  In the past 5 years, the quick maturation of Web video disrupted the marketplace with Flash promoting VP6, a technology Adobe had licensed from a smaller company called On2. Other codecs were available for Flash, but VP6 offered a better quality and cost structures. The explosion in popularity of Web video sites such as YouTube benefited from the dual ability to create their own branded video players and experiences on top of Flash and Flash Video on basic Web servers.

Meanwhile, MPEG and other codec technologies were absorbed into the emergent H.264 video standard.  Adobe, Apple, Microsoft, and others announced support for H.264 which is managed by a patent pool and licensing group called the MPEG-LA, LLC of which many companies including my employer are a member.  MPEG LA assembles patents for most consumer electronics-based digital video in the market today including those used in DVD and Blu-Ray, satellite and cable TV and receive royalties for their work in lieu of creating and promoting their own formats.

But others continued to work on their own format. On2 continued to plug away on their video codecs with primary licensor Adobe benefiting until being acquired by Google last year for their VP8 video codec.  What is VP8 you might ask?  Google also announced intent to release VP8 as WebM – an open-source, royalty free alternative to H.264 for use in HTML5 – the next-generation standard for Web browsers.

So a decade later we have H.264 (MPEG) and WebM (VP8) vying to be the de-facto video standard for the next-generation Web browser standard and beyond. For professionals, the dimensions they will evaluate on continue to be the same: Quality, Cost, and Reach.

Quality: When is it “Good Enough”?

The key value proposition for a codec provider a decade ago was who could deliver smoother, bigger, more TV-like video over the Web.  Each company strived to show how their video was better than the competition at delivering VHS, DVD, and later HD quality at a fraction the size.  But when does the video quality become “Good Enough”?  One could argue we’re approaching these limits already.  As Jan Ozer found in his recent evaluation of H.264 and VP8:

“H.264 still offers better quality, but the difference wouldn’t be noticeable in most applications.”

Based on Jan’s first evaluation, it sounds like VP8 is “Good Enough” in terms of quality.  More studies will need to be done but on face-value, the key points of differentiation have already shifted away from video quality to other dimensions of cost and reach.

Cost: What is the definition of “Free”?

In the past two years, the industry has seen rapid adoption of H.264 as an HD-ready alternative for consumer electronics and web-based experiences.  Many articles have been written regarding the pros/cons of the H.264 licensing terms which I won’t rehash here.  What’s different is Google’s approach.  With WebM they look to provide a free,royalty free route for licensing WebM and offering it up as a part of HTML5.

Reach: The Three Waves of Adoption

Next, you have industry adoption/reach.  Generally speaking, video formats seen three waves of adoption:

  1. Client Software – PC and/or Mac, new video formats today are first tested and proven for encoding, playback, and distribution via software encode/decode.  This is why certain video formats today eat up so much CPU – they run in software only.
  2. Servers & Solutions – Again, an offshoot of software, but here we see enhancements such as ability to deliver live content as well as on-demand from a server-type solution.  Integration partnerships ramp, solution providers and integration specialists for industries from video distribution to advertising support and you start to see Content Delivery Networks (CDNs) adopt the format en masse.
  3. Hardware Adoption – The last step is burning the format into silicon and/or enabling special software at the hardware level to accelerate at each point in the value chain: Creation/encoding, Distribution, and Client Playback.  This is the point at which you see everything from mobile phones to set-tops able to reasonably play back a format. Five years ago, a newer PC
    p
    laying H.264 video would have pegged the processor; today’s latest smartphones can play it without issue. This because the device includes dedicated circuitry to decode the video while being conscious of things such as battery life.

Each of these waves are increasingly essential for any provider to play in.  The latter represents maturity.  Google has announced new hardware partnerships for Google TV that will offer hardware accelerated support for WebM “later”.  H.264 is further along in its maturity and adoption curve.

Where the Players and Lining Up

If you look across the landscape, the top players here are Adobe, Microsoft, Apple, Google and MPEG LA – and each has expressed their opinion on the matter.  So where do they stand?

Adobe – has announced they will support VP8/WebM in an undated future release of Flash Player.

Microsoft – will support choice of formats in Internet Explorer 9 and Silverlight .  Dean Hachamovitch recently posted the official response:

“When it comes to video and HTML5, we’re all in. In its HTML5 support, IE9 will support playback of H.264 video as well as VP8 video when the user has installed a VP8 codec on Windows.”

The Silverlight team also recently affirmed their position in a recent blog post.

Apple – So where does this leave Apple?  Steve Jobs recently responded to a customer mail noting:

“All video codecs are covered by patents. A patent pool is being assembled to go after Theora and other “open source” codecs now. Unfortunately, just because something is open source, it doesn’t mean or guarantee that it doesn’t infringe on others patents. An open standard is different from being royalty free or open source.”

Google – pretty clear considering they’re behind VP8/WebM and use H.264 today.  Some in the industry ask will Google force all YouTube video to WebM, putting pressure on Apple and others to follow?

MPEG LA – MPEG LA is reportedly investigating VP8/WebM in the interest of building a patent pool.

For those of us in the industry, more interesting times ahead, but this script feels a little like a Bill Murray film where we’re the weather man. Will hardware vendors be fast or slow to adopt VP8?  Will industry professionals adopt one or both, or wait and see?

What do you think?  Feel free to post here or email me at sean at seanalexander.com (fixing the at).

Update (05/23/11 7:30pm) – PC Magazine’s David Murphy also has a good recap though I think he’s oversimplifying the number of profiles that would be used in real-world use.

Photo: Fight for your Mind, by just.Luc on Flickr via Creative Commons license.

It’s been quiet in here, but something worth noting – Engadget’s review of the Ceton 4-tuner cable tuner.  In short, “What it really comes down to is that we love the InfiniTV 4.”

At $400, it’s steep, but cheap at $100/tuner.

http://hd.engadget.com/2010/03/30/ceton-infinitv-4-cablecard-tuner-review/

Now I just need 4 TV shows I want to watch at the same time.

For years, industry pundits have claimed that Cablecard is dead.  Cablecard, which enables consumers to get local and premium HD cable television programming directly into TV’s and Media Center PC’s via a digital cable tuner. It seemed poised to unlock consumers from the underpowered, much maligned cable boxes many rent from their cable provider and often loathe today. Yet the reality is there are only 443k 3rd party Cablecard devices in service (4 of those in my own house) and it’s clear the situation is going to get worse before it gets better.  Now the new Genachowski-run FCC is stepping in:

New FCC Requests Comment on Video Device Innovation

As Sean Portnoy details in his writeup (with tip of the hat to Ars Technica’s deeper dive) there’s reason to pause and discuss as the FCC is asking for comment.  I used to be a big supporter of Cablecard but am increasingly of the opinion they’re right.  Cablecard has lacked mass adoption due to death by a thousand cuts, a bureaucratically devised solution to end a monopolistic stranglehold on innovation in the living room.  The main reasons as I see it include:

  • Cable never wanted it.  The Cablecard requirement was foisted on the cable industry by the FCC as a part of the Telecommunications  Act of 1996.  They dragged their feet until the last possible moment when after many requested and approved delays over 11 years, on July 1, 2007 Cablecard went live.
  • Set-Top Boxes are more Profitable when they’re Clunky. There’s a reason why the performance and graphics of your cable box look nearly the same over the past 15 years – in short their costs for each set-top have gone down astronomically while delivering effectively a 1990′s-level user experience. If you analyze SEC filings from major operators, you’ll find that their CapEx has actually reduced over the past 5 years thanks in part to cable box rental being a cash cow.  The longer you can keep the hardware in-market, the more profitable it is.
  • Not enough Competition to drive innovation. New entrants such as Verizon and AT&T offer more substantial capabilities as a means of differentiating their offering, but their main challenge today is footprint. It’s expensive to wire a new municipality with competing offerings.  Some estimates put the costs as high as $600/household.

The Consumer Cablecard Experience

So what about the consumer experience today for Cablecard?  How bad is it really? Admittedly the below in aggregate paints a worst-case scenario however roadblocks to consumer adoption abound:

  • No Video On-Demand or Interactive Services. Cablecard finally started showing up about the same time large operators started rolling out their on-demand services which don’t work with Cablecard.  By it’s nature, Cablecard is a one-way device and can’t talk to interactive services. Integrated services like Twitter and Facebook via your Cablecard are impossible.
  • It’s Physical. Cablecard requires you have a credit-card sized unit plugged into your TV/TiVo/Tuner. First generation required one card per tuner.  In many cases, you need a “truck roll” in order to get the hardware or go stand in a long line at your local cable office.  Not customer-friendly.
  • Few Supporting Devices. Until just recently, the qualifications required to get a device certified for Cablecard support were challenging. Take PCs for example – until just a few months ago, OEM Windows PCs had to be pre-certified as ready for Cablecard for the hardware to work until last month.  As for HDTV sets, in the increasingly commoditized HDTV set industry, what manufacturer in their right mind would increase their costs and certification requirements by adding Cablecard tuner support?
  • PC Cablecard certified Tuners are costly and hard to find. Because of the PC qualification restriction, even if you did have a qualifying PC, you had to know the right place to find a tuner – often on Sony or Dell’s site. The ATI Digital Cable Tuner product that is well known and respected (I use two) has apparently all but disappeared.  Other Cablecard-certified PC tuners are hard to find- the most promising from a Kirkland, WA startup, Ceton won’t be available until 2010 and a 2-tuner offering likely around the $300 mark.  No wonder there are only 14 3rd Party certified devices for Cablecard 
  • Setup is too Complicated. Setup requires you have possession of the physical card, you need to seat it in the device, call the cable provider, offering up a long series of IDs and wait for the data to download, sometimes up to an hour.  Diagnostics require technical training on part of cable provider’s staff.
  • Rental Fees. Cable operators introduced cablecards for free, then started charging a monthly rental fee.  In some cases, the cost for two cable cards is comparable to the cost of renting an HD DVR from the cable operator.

The Future (and recommendations to the FCC)

And the future doesn’t appear to be much brighter.  The interactive support needed for Video On Demand or Interactive services has been slow to materialize – July 1st 2009′s agreed-upon deadline came and went and Panasonic continues to be the only TV manufacturer to have support for the platform.  Ok, so what if you don’t care about getting “Premium” channels such as HBO or Showtime and just want to record Discovery Channel or ESPN? More economical solutions such as the SiliconDust HDHomeRun (which I also really like) in many regions can now only pick up local TV signals.  Here in the Seattle area, as of December 8th, all non-local stations are encrypted by Comcast.  Reports are Verizon’s FioS will still let you tune but for how long?  It’s clear concern among content providers over piracy of their unencrypted HD content is a top driver of this behavior.

So what would I do if I were at the FCC working through this issue?  Here’s a quick scorecard cheat sheet for consumer perspective for starters:

Platform Supports Top Pain Point
QAM/ATSC Local Digital TV/HDTV channel tuning via Cable, no hardware required from Cable provider Cable operators starting to encypt previously available cable channels 
(e.g. ESPN, SyFy) with FCC approval

Cablecard
Basic and Premium Stations
(e.g. HBO, Showtime) with hardware from your provider
Complicated Setup & high cost product adoption; No VOD/Interactive features

Cablecard +
Tru2way
Interactive Services with hardware from your provider Delayed rollout, only one TV in-market supports;
No PC support

 

  • Simplify the Offerings.  The fact that these solutions are so confusing and hard to understand is a root issue – build one solution and market it.
  • Drop the Cablecard Hardware Requirement.  Strong encryption exists today in software. The need for a rented piece of hardware is a dinosaur in the age of online services such as Xbox LIVE.
  • Incentivize operators to reboot and innovate. Today’s cable networks are a hodge-podge of mis-matched technology some have described as “Protection through Obfuscation”.  Combined with the flurry of acquisitions through the 90′s and 00′s and you have today’s experience – mis-matched channel lineups and product offerings sometimes street by street.  The faster the industry can move to a switched, all-IP infrastructure the better.
  • Support Federated, Personalized Logins. In the online beta of Fancast Xfinity which launched yesterday, Comcast uses your Comcast.net email and password today, one per household.  This limits options for personalized guide listings and integration with other federated services such as Twitter and Facebook. Architect the solution for today’s established and emerging consumption habits.
  • Advocate a Multi-screen, Multi-location solution. The replacement should acknowledge the rightful place of multiple devices in consumption of services you’re already paying for – namely PC and mobile devices alongside your TV.  Segregation based on screen size is no longer an option.
  • Unify the Interactive platform with minimum UX/performance requirements. Blu-Ray discs, BDLive and tru2way all standardized on Java as middleware for the platform.  While I won’t get into a debate over the merits of Java, my experience has been poor on BD players with excessively long load times and reports of immature designer/developer tools. Learn from BD and ensure the industry to make the same mistakes with Tru2way.
  • Simplify Certification. The existing methods can certainly be improved.  I won’t go into details here but have had enough conversations in the industry to know this is a hard problem exacerbated by many factors.
  • Recognize need for Consumer Marketing. If consumers don’t know it exists, they won’t use it. The industry learned a lot from the DTV switchover earlier this year. Encourage an ecosystem to flourish.

There is no doubt these are hard problems with very smart people working on solutions.  But from a consumer’s perspective, tru2way is lining up to look like more of the same for the next 15 years.

This is just one person’s opinion on the situation and my advice to the FCC.  What do you think?

Ed. Note: Fixed table to reflect Cablecard+Tru2way middleware solution (thanks Dave).
Ed. Note 2: Updated Ceton product availability to 2010. (thanks Alexander).