Saturday, January 5, 2013

Welcome to stream-land

February 20, 2012
For an informed view on connected entertainment in the UK & Ireland, visit Cue Entertainment 


The most recent data from communications regulator Ofcom says that British people watch an average of just over four hours of television every day. About 45 minutes of this is time-shifted; the rest is live TV.
Such mass consumption dwarfs the time devoted to packaged media although the 26 million UK households purchased 207 million Blu-ray and DVD discs in 2011, according to figures supplied to the BVA by IHS Screen Digest. They also rented several million more from Lovefilm, Blockbuster and others and probably watched quite a few illegal copies as well.

Even measured at its peak, however, the total length of time spent watching packaged media was insignificant when compared to the hours spent in front of the box. Today, the challenge comes not from TV but the other screens in the home: those connected to the internet.

Digital market research company ComScore has just released its report for December 2012. It shows that the UK has the highest engagement with the internet in Europe and each user spends an average of 35.6 hours a month online. Turkey was in second place with 33.7 hours and the Netherlands third with 32.2 hours a month.

To watch TV and browse the web are not mutually exclusive pastimes so for some of this time users will do both. The arrival of the “second screen” brings the TV and the internet together as never before so sports enthusiasts can check player statistics while they watch their team win or lose while film fans can check for prequels and sequels.

A close look at the comScore data shows that the audience measurement relates to those who go online from both home and work locations so that a total of 37.5 million “unique visitors” accessed the internet from the UK during December. There is a degree of double counting here as well since the same individual might follow a sports event at home and from the desk at work. The arrival of Netflix and increased competition from Lovefilm, however, can only increase the time that the British spend online as film content streams to the main screen in the home.

With monthly “all you can eat” fixed price packages there is an incentive for those at home to trawl extensive back catalogues and enjoy films all day, leaving aside for the moment the potentially significant data charges.

Academic research commissioned by Lovefilm and published in early February says that film fans that watch two movies a week are “happier” than occasional viewers. For the “Movie Medicine” report, researchers from Goldsmiths College monitored the viewing habits of 1,000 adults over 12 months. They found that the measured rate of “happiness” increases for every 10 films watched and that viewing 100 films a year or more correlates to higher earnings and reduced anxiety.

Report author Dr. Tomas Chamorro-Premuzic said, “The research suggests that the act of watching film enables people to disconnect from everyday life, but also it opens up our imaginations to be better prepared to make real-life decisions. Your social brain studies the events on the screen and begins to relate to, and learn from, the characters and their experiences.”

Lovefilm has begun to lobby government ministers, including Secretary of State for Health Andrew Lansley, and major UK companies to argue that access to filmed entertainment has a positive impact on health, wellbeing and professional productivity.

The report includes a Top 10 of films most likely to boost “happiness”, with Disney’s “Finding Nemo” in first place, followed by SPHE’s “The Da Vinci Code” and “Casino Royale” from Twentieth Century Fox Home Entertainment. That perennial feel-good film from ITV Studios Home Entertainment, “The Shawshank Redemption” is at No. 5.

The ability to stream non-stop feature films on demand could affect the level of broadcast TV audiences more than packaged media sales. DVD titles at the far end of the “long tail” will no doubt continue to sell on impulse for £3 but as Lovefilm (“5000+ titles”) and Netflix (“thousands of titles”) offer instant high quality video, the incentive to leave home is reduced. How much additional “happiness” is induced if someone never goes out and instead spends time in front of a screen watching online video?

A comment on the Guardian website raises the question of just how bad streaming video has to be before the viewer is roused to comment. One infuriated contributor wrote that he had started to watch the Six Nations rugby on BBC Broadband: “What a mistake, their poor picture quality could win prizes. Most of the time is buffering.”

As the technical support team will have told him, his connection speed is outside the control of the BBC and he should contact his ISP to check his line before he blames the broadcaster. It does raise the issue, however, of why some streams will play perfectly at relatively low data rates and others fall over at the first sign of contention.

On a slow connection that plays UltraViolet and Blinkbox streams without buffering, the BBC iPlayer stream that he complained about was almost unwatchable. The match stuttered, stopped and restarted with the audio out of sync until just before full time, when the iPlayer displayed the message “Insufficient bandwidth to stream this programme.”

This was not the experience of every viewer, of course, but the fact that these problems were visible two days after the match and out of peak times shows that not all streams are equal. Compression is more of an art than a science even in these days of automated, multi stream video encoding. Access to the iPlayer is free (at least for those in the motherland) but paid-for streaming video that does not deliver leads inevitably to angry complaints and cancellation.

Netflix has had its fair share of criticism for not anticipating the problems that come with bandwidth caps. Even at £5.99 a month, customers will be unhappy if the quality of the video does not match their expectations. Simply to increase bandwidth does not solve all buffering and quality problems although it can help. That side of the equation is outside the control of the company that delivers the video, particularly in those deprived parts of the UK where 2Mbps is a luxury.

To increase the compression so that the file size for any given running time is smaller is one way to reduce the incidence of buffering. Unfortunately, the trend towards high definition (HD) video has led to bigger files and higher bit-rates. The industry is working towards a new standard, known as High Efficiency Video Coding (HEVC), that will require higher-powered processors at both ends of the chain and it is expected to deliver files that are 20% smaller than today. That should arrive in 2013.

Netflix decided it could not wait that long. On Feb.1 a Silicon Valley start-up called EyeIO announced that it had found a way to halve video bit-rates and had already signed up its first customer. Netflix VP Product Development Greg Peters said, “Delivering a high quality video experience is top priority for Netflix and EyeIO technology is an important part of the technology that we use to improve video quality and overcome bandwidth challenges presented by the internet infrastructure.”

There have been many “breakthrough” product announcements concerning video compression over the past 20 years but few have shown the promise they claimed. One company managed to raise several million dollars, hold a massive launch party in Las Vegas and then vanish in a puff of smoke when it transpired it used Microsoft’s Windows Media Video for all its demonstrations.

This time, however, it seems that the achievement is real and Netflix is rumoured to be trialling the technology already. “EyeIO provides a straightforward solution for accommodating the rapidly growing demand for video delivery around the world, by alleviating the overwhelming bandwidth currently required to stream video,” said Co-founder and CEO Rodolfo Vargas. “eyeIO continues to challenge the commonly accepted limits of internet video delivery and enables everyone connected to the internet to enjoy high-quality video, no matter where they are.”

If his claim that EyeIO can compress high quality HD video to a 1.8 Mbps stream turns out to be true, householders in rural Britain will be very happy indeed. 

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