ZeuBlog

Roku's content game-changer

By Trevor Dyck

This morning, Roku announced two new devices which extend their product line, allowing high-quality streamed video to the living room TV. The Roku SD is a lower-priced ($79.99!) version of their highly successful player, and has essentially the same feature set but without HD. This is great for a second unit for places in your home where you may not have an HD-capable TV, such as the kid’s bedrooms. At the higher end, the Roku HD-XR adds wireless N connectivity. Wireless N (using the 802.11n standard) provides higher bandwidth and range, allowing those HD video streams to travel farther and better through your home. It also adds a USB port.

Roku is also shortly introducing the Channel Store – a game-changer in my view. This allows content partners who are using their SDK to add content to the device.

Roku has already said content from places like Mediafly, blip.tv. Motionbox, Revision3, Pandora radio, and Flickr will be on the Channel Store shortly. Our broadband provider customers are excited at the prospect of adding their own content, for example for local channels or high school sports events.

CTO Chalk Talk: Delivering Video Over Broadband Networks

Video featuring Sig Luft

Zeugma Systems CTO Sig Luft takes viewers through the first of many chalk talks on the ‘Delivery of Video Over Broadband Networks’. Sig identifies multiple methods for delivering Internet video and enhancing the quality of experience for consumers. 

More video tips from Zeugma’s CTO Sig Luft to come…

Hence the word “advocates”

By Andrew Harries

An article that ran yesterday in the Wall Street Journal  titled “Carriers Eye Pay-As-You-Go Internet” was an engaging read that pointed out much of what we frequently blog about.

The article highlights the clear division of opinions on this topic:

1. “[Consumer] advocates say unlimited monthly Internet service has been critical to the Internet's growth and the formation of online start-ups. Paying by the amount of Internet traffic used could damp usage and the sort of tinkering that can lead to breakthroughs, they warn.”
2. “Carriers believe it is only fair that heavy users pay more, especially since online file-sharing software, such as BitTorrent, takes up so much bandwidth”

… What is not included is the simple fact that while the supply of broadband bandwidth has increased significantly over the past decade, demand has increased even faster. In the early 2000s, MP3s came along… and shortly after consumer advocates found they could download standard definition movies (hence the word “advocates” – they download as often and as much as they please – and the bill remains the same).

Given these circumstances, don’t usage-based billing frameworks make sense? Yes, consumers don’t like them, but they don’t like paying their electric bills either.

Is there an electricity advocates group working to ensure that every person has the same electric bill regardless of how many lights they leave on? I’ll give you two guesses, but you’ll only need one.

The FCC’s Full Plate

By Teresa Mastrangelo, Principal Analyst, broadbandtrends

There is no doubt that a lot, and I mean A LOT, is going on over at the Federal Communications Commission these days.  Not only are 3 out of 5 commissioners new, but they are tackling the formation of a National Broadband Plan, the development of their Mobile Broadband Agenda, the addition of new principles for network neutrality, and revising their methods of data collection.  Additionally, they have taken on a new course of action that includes participation by stakeholders in the decision making process, as such they are issuing public notices on a daily basis and holding workshops across the country. 

So what have they accomplished thus far?  

Let’s start with the National Broadband Plan –  they have held nearly 30 workshops, listened to 236 witnesses (of which none were simply end users), received over 20,000 responses to its Notice of Inquiry, issued 9 public notices and set up a blog.  From this they have drawn the following conclusions:

1. Different applications require different performance parameters, and thus different speeds and potentially technologies
2. Current reporting requirements do not provide an accurate picture of broadband availability, pricing and adoption
3. It costs significantly more to deploy and maintain broadband in rural markets than in urban markets

The FCC’s Evolving Position on Net Neutrality

By Andrew Harries

FCC Chairman Genachowski recently gave a speech outlining the going-forward framework for net neutrality regulation. A critical aspect of this framework is that it will be promoted from a vague set of “policies” to an actual set of “rules.” In regulator-speak, rules have more teeth than policies so this should, when the rule making procedure is completed, offer greater clarity. But the most important aspect of the chairman’s speech was the explicit recognition of two unavoidable realities:

1. Even neutral, best-effort traffic does, under certain circumstances, require management. What these circumstances are and what constitutes permissible traffic management will have to be defined but it is encouraging the FCC recognizes that networks with no traffic management tools at all are of little value to consumers.
2. Net neutrality principles apply only to the high-speed internet access connection between the consumer and the internet. Traffic travelling over the broadband network but going to or coming from networks other than the internet are not covered by these rules. This other traffic, “managed services” as the FCC refers to them, include things like IPTV, VOD, and QOS-guaranteed video coming from content delivery networks. Here also, it is encouraging that the FCC recognizes broadband networks are capital assets and must generate a return if they are to receive continued investment. That return is more likely to come from fee-based managed services than from flat-rate internet access.

We will monitor the FCC rule making procedure but at least we seem to be headed in the right direction.

Detail on Broadband Stimulus Applicants

By Kevin Walsh

It’s taken a bit of time to wade through the 2,187 applications requesting $27,660,725,621 from US taxpayers in order to build out broadband infrastructure to better meet the needs of “unserved” and “underserved” residential consumers. I’ll leave it to people with more time on their hands to fully plumb the depths of this list but a few things jump out immediately.

Although it’s difficult to say with precision, it appears that businesses that build and operate broadband networks—namely telephone and cable companies—actually represent a minority of applicants. Telcos represent less than 10 percent of applicants. Assuming that cablecos represent a like amount this means that businesses that operate 100 percent of the US broadband footprint represent less than one-fifth of the applicants.

The other four-fifths is comprised of a grab bag of state and city governments, lobby groups, non-profits, educational institutions, etc. Here are some of the more interesting ones:
 

Broadband Speeds

By Kevin Walsh

Evaluating broadband ‘speed’ is an extremely slippery subject. There are a few reasons this is the case:

1. We don’t even measure broadband in terms of speed (e.g., kilometers-per-hour), we measure it in terms of capacity (bits-per-second).
2. The capacity that is advertised is a peak; it is not an average, a minimum or a guarantee.
3. The aggregation networks operated by broadband service providers often have far greater impact on capacity than does last-mile technology (copper or fiber).

How else to explain that, according to Akamai, Japan, with nearly ubiquitous 100Mbps fiber to the home, has an average downstream capacity of 7.99Mbps?

Finally, consumers don’t really care about speed or capacity; they care about delay (the latency between clicking a link and seeing the results). And while delay is sometimes a function of capacity, that is not always the case. Increasingly, the ability of the broadband operator to guarantee service quality is a bigger factor. With more and more streaming video moving over broadband facilities, consumers are becoming more attuned to the quality of the broadband connection.

Zeugma to Discuss Strategies for Broadband Service Providers

Representatives from Zeugma Systems are confirmed to present at multiple upcoming events on topics that are specifically designed to address recent issues and concerns BSPs have brought to Zeugma’s attention. While the majority of the presentations focus on the increasing prevalence of streaming internet video and corresponding monetization strategies for broadband service providers, the sessions will also deliver unique insights into consumer preferences and technology alternatives.

1. Oregon Telecom Assoc. CO and IT Show: Newport, OR, Sept. 24, 2009, 4:00 p.m. to 4:30 p.m.
Kevin Walsh, Vice President of Marketing, will present on “Increasing ARPU by Adding Advanced Subscriber Services”
2. PTA/NYSTA Expo: Syracuse, NY, Oct. 7th, 2009, 10 a.m. to 10:45 a.m. & 3 p.m. to 3:45 p.m.
Trevor Dyck, Director of Product Management, will present on “Capitalizing on Internet Video”
3. North Carolina Telecom Industry Assoc.: Charleston, NC, Oct. 14, 2009, time TBA.
Kevin Walsh, Vice President of Marketing will present on “Increasing ARPU by Adding Advanced Subscriber Services”
4. SUPERCOMM: Chicago, Oct. 20, 2009, 10:40 a.m. to 11:00 a.m.
Kevin Walsh, Vice President of Marketing will present on “Delivering on the Quality Promise: HD Internet Video over Broadband”
5. Alaska Telecom Assoc. Showcase: Anchorage, AL, Oct. 28, 2009, time TBA.
Kevin Walsh, Vice President of Marketing, will present on “Seizing the On-Demand Video Opportunity: Delivering High Quality at Low Cost”
6. Tennessee Telecom Assoc.: Bowling Green, KY, Oct. 27. 2009, time TBA.
Tom Meehan, Vice President of Product Development, will present on “Delivering on the Quality Promise: HD Internet Video over Broadband”.

Analyst Interview with Zeugma CEO

There are several approaches to prioritizing multiple applications on a converged network. Industry analyst, Jahangir Raina, from iLocus discusses one of the major issues – going back to the RSVP days – in convergence is how to offer a multi-tiered service with Zeugma CEO Andrew Harries.

Check more CEO interviews and additional commentary at iLocus.

Cable cutting: OTT video picks up steam

By Trevor Dyck
Roku, an OTT digital media player (aka set-top box) provider we have spoken of before on this blog, continues to add content partners.  The latest to be announced is Major League Baseball.   This adds to the already impressive list of on-demand episodic and movie content from Netflix and Amazon VOD.  Blip.tv and Mediafly were also recently announced.

However, I believe the addition of MLB is the most significant.  This is the first ‘live’ content on Roku.  One of the previous arguments of some against OTT video was a lack of live content.  Secondly, the quality is impressive.  Trying it out yesterday to watch the Red Sox vs. the Tigers, I was impressed with how good the picture looked.  And at only $34.95 a year for a subscription (including HD), this is going to be very popular.  I was also glad to see this works outside of the US, for example in Canada where I live.

OTT video really started picking up steam towards the end of 2008, and as we see industry players like Roku adding more and more content, we will see the trend of ‘cable cutting’ on the increase.  Why pay $80+ a month for a bunch of TV channels you don’t watch when you can get most of the content you want with a device like Roku and a few a la carte subscriptions?