PC and TV Convergence, Streaming Media

1
PC and TV Convergence, (Streaming Media)

• Bryan Duggan, MSc in Computing Science,
  (Information Technology for Strategic
  Management)

2
What is this paper is all about?

• Convergence between PCs and TVs
• Background
• How to watch TV on a PC?
• Streaming technical Overview
• Three main players
• RealNetworks
• Microsoft
• Apple
• Strategic analysis
• Conclusions

3
Background

• Convergence is
• the act of converging and especially moving
  toward union or uniformity
• View TV broadcasts on my PC
• Interactive television
• Interactive news
• Stock quotes
• Send email
• Surf the net

4
Background - Why?

• Maximise usage of pre-existing and emerging
  networks
• Use spare capacity on a companies network to
  broadcast training materials, announcements etc.
• Streaming broadcasts allow more control over what
  is watched.
• Increase audience share
• Space

5
Technology

• 2 ways to view TV broadcasts
• TV Tuner Cards
• Streaming
• TV Tuner Cards
• Plugs into your PC
• 40
• View Teletext
• View in a window or full screen
• Capture video
• Port for a camera
• Applications like banking training etc

6
Streaming

• Pioneered by RealNetworks, then called
  Progressive Networks in 1995
• Broadcasters can broadcast content to anyone,
  anywhere who has an internet connection
• Can present additional content (including
  advertisements) on the internet which would be
  impractical or not suitable for television.
• Sstreaming media networks are used in the
  corporate world to stream company broadcasts,
  presentations, marketing information, product
  launches and training events
• Consumer streaming media usage is expected to
  further grow with the rise in broadband Internet
  access.

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How does it work?

• Media is captured using traditional tools, such
  as video cameras or pre recorded video or audio,
  stored digitally or otherwise
• Content is then fed into encoding software which
  encodes the content into a format which can be
  streamed
• A streaming media server then serves the content
  to a streaming media client, (RealPlayer,
  Microsoft Media Player, Apple Quick Time Player)

Video/Audio Capture Device
Encoder Streaming Media Server
Media Player
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Encoder

• Codec - compressor/decompressor algorithm.
  Designed to help the stream withstand highly
  variable bandwidth conditions.
• Use compression to lower the bit rate while
  maintaining the best possible quality.
• Compression algorithm analyses the data and
  removes or changes bits so that the integrity of
  the original content is maintained as much as
  possible, while reducing the file size and bit
  rate. Uses Lossy compression.
• The audio codec enables good audio quality at
  relatively low bit rates close to CD-quality
  audio can be achieved at a small fraction of the
  bit rate and file size of uncompressed CD audio.

9
Server Client

• Server can be dedicated or HTTP
• For live broadcasts, the media is delivered in
  real-time to a streaming media server, and on to
  players that are connected to the server
• No download wait
• Similar to playing a CD or tape.
• Client program has playback controls, but this
  does not work with a HTTP server.

10
Bandwidth

• One of the two limiting factor on the quality of
  the stream, (along with the encoding algorithm)
• The bit rate of the media must be lower than the
  bandwidth of the network
• The player must receive a stream of bits
  continuously

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Other Considerations

• Interactivity
• SMIL - Synchronized Multimedia Integration
  Language
• Microsoft supports its own, proprietary standard
  for interactivity.

12
RealNetworks

• Rob Glaser, RealNetworks CEO, pioneered streaming
  media
• Supply RealPlayer, RealJukebox
• Partner with content providers
• ReslServer
• RealEncoder
• RealOne and RealNetworks Media Commerce
  Initiative

13
RealPlayer
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Server Side

• RealEncoder, (free) encoding software. Allows a
  user to encode for different bandwidths etc.
• RealServer server software. Price ranges from
  free (for 25 streams) to 6000 for streams. Fully cross platform
• RealSystem Producer Plus - Video editing and
  encoding software.
• Media Commerce Suite - Launched in September,
  2001
• Internet Media Commerce
• XMCL is an XML-based language designed to
  establish industry wide standards for Internet
  media commerce
• Rental, subscription, ownership, and video on
  demand/pay-per-view

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RealOne
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Microsoft

• Microsoft came late to the market with its
  streaming media technology, but now is gaining
  market and mind share rapidly
• Gartner Group believes that Microsoft and
  RealNetworks are now neck and neck in terms of
  number of users
• Its media player is shipped by default with
  Windows XP and so it is the default media player
  for most media types in XP
• It does not however support the RealNetworks
  codecs and so is unable to play most RealNetworks
  streams
• It also has limited support for the MP3 format

17
Windows Media Player, (WMP)
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Server Side

• Encoding
• Windows Media Encoder
• Power Point add In for Interactive media
• Windows Media Extentions
• Free (ish!)
• 319 to 4,000
• Reviews suggest that although feature rich and
  cheap, its not so reliable or stable
• Unlike solutions from Apple and RealNetworks,
  which are cross platform, Windows streaming
  server only works on Windows servers

19
Apple

• Apple were also media pioneers, shipping their
  first Media player for the Mac in 1992
• Now regarded as a niche player with just 4
  percent of at-home computer owners using
  QuickTime
• Partnerships
• QuickTime Player
• QuickTime Plus for encoding content and the
  Darwin streaming media server.

20
QuickTime Player
21
Server Side

• QuickTime Plus encodes content
• Darwin
• Cross Platform
• Open Source
• Based on RTP/RTSP
• Apple strategy seems to be to urge the industry
  to develop common standards for the streaming
  video and audio in particular in relation to
  wireless Internet applications and television
  set-top boxes.

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Which format will survive?

• The company that wins the biggest share of the
  streaming media market also wins the various
  add-on devices, palm pilots, set top boxes etc.
• Annual revenues of more than 7 billion by 2005
• Apples QuickTime
• Apples Open Source, standards based strategy
• Loyal following amongst Mac users
• A shift towards watching streaming media on
  devices other than PCs, (such as set-top boxes,
  PDAs etc)
• Score badly in reviews
• Less media is available in the QuickTime format,
  which means that users are less likely to
  consider QuickTime as a media player.
• RealNetworks and others are also poaching content

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Which format will survive?

• RealNetworks
• Currently have the advantage on Microsoft.
• They are the streaming media pioneers with a
  track record of growth and diversification.
• Content partnerships with AOL Time Warner,
  Bertelsman and EMI Group
• Technical partnerships with network hardware
  leader Cisco (Mohney 2001).
• Diversified from focusing on streaming media to
  content management, content provision, games,
  Internet media commerce, network infrastructure.
• They also have brand recognition and loyalty,
  having been the main company in the streaming
  media space for several years.

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Which format will survive?

• RealNetworks (Continued)
• RealNetworks is feeling the squeeze from their
  main rival Microsoft.
• On July 26 of this year, Real laid off 15 of its
  workforce.
• Also slackening demand for RealNetworks servers
  and a falloff in advertising on its Web sites
  have caused revenues to slide 24 since the same
  time in 2000 (Greene, 2001).
• Microsoft
• Regarded as technically inferior by some (Covell,
  2001)
• Its media player will be installed by default on
  every PC running Windows XP
• Its server is free may be enough for Microsofts
  technologies to gain the dominant position
  (Greene, 2001).
• Over 3000 broadcasters use Windows Media

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Where it is and where its all going...

• The market is in its infancy compared to how big
  it will be in five years time
• Issues which must be overcome for mass adoption
• The dot com crash
• Availability of high speed networks
• The need to develop effective mechanisms and
  practices to protect content
• Need to ensure that effective compensation is
  arranged for the owners/broadcasters of media
• Internet users reluctance to pay for service
• Most people still regard their PCs and
  televisions as having different functions.

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5 years time?

• Infrastructure capabilities will be
  significantly more fully developed in five years,
  creating the backbone required for programmers to
  truly provide streaming media capabilities
• Marty Yudkovitz, president, NBC Digital Media
• But penetration on the TV and in other
  convenient forms will still be in the growth
  phase, and a good percentage of homes will still
  not be able to receive streaming media
• Marty Yudkovitz, president, NBC Digital Media
• Five years down the road is there will be a
  battle between the TV and PC for control of the
  video environment. I think shows will
  increasingly be streamed or downloaded-some onto
  the TV, some onto the PC. People will want to
  watch what they want when they want.
• Phil Leigh, vice president digital media, Raymond
  James Associates.

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5 years time?

• Product placement will become integrated into TV
  shows since viewers will skip most commercials.
  What program originators will have to do is
  feature products during shows, and TV will become
  interactive.
• Phil Leigh, vice president digital media, Raymond
  James Associates
• The consumer is going to have a massive
  selection process in front of them, with current
  content and archived content and a massive amount
  of choices to make. The consumer will have the
  power to program what they are going to see when
  they are going to see it.
• Howard Meltzer, chief operating officer for the
  new media division of World Wrestling Federation
  Entertainment
• The legal issues that make streaming difficult,
  such as fees and rights, will be clarified within
  five years. In five years, the set-top box will
  enable a simultaneous broadcast and streaming
  viewing experience, possibly through a stream
  offered concurrently in a separate window
• Erik Flannigan, senior vice president,
  entertainment verticals for Walt Disney Internet
  Group

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5 years time?

• Every television content provider will have a
  streaming strategy for the digital delivery of
  content. Every business will have to take the
  Internet into account.
• Ravin Agrawal, partner, EastWest VentureGroup

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Conclusions

• Streaming media has reached a level of maturity
• It has a relatively high level of usage and users
  are increasingly reaping it benefits.
• Much of the technology and infrastructure
  required for mass adoption of the technology will
  fall into place in the coming years.
• By 2005, business-to-consumer audio and video
  streaming is expected to generate annual revenues
  of more than 7 billion (Mayer et al, 2001).
• Sony will begin offering as many as 100 movie
  titles streamed over the Internet this autumn, at
  the cost of a cassette at video stores (Ault,
  2001).
• Many of the worlds broadcasters now stream their
  conventional broadcasts over the Internet.
• Corporate use of streaming technology is on the
  increase.
• Streaming media is becoming mainstream.