Thursday, January 28, 2010

The Coming of Age for Mobile Video

To be published in the SHOW DAILY publication


The continuing technology evolution continues to revolutionize the mobile phone industry with powerful processors, fast Internet, high resolution screens, and thousands of applications. Mobile devices, which traditionally have served a singular purpose, have evolved beyond “dial tone”. With the introduction of new “smart” devices such as the Apple iPhone®, Windows Mobile®, BlackBerry® and Google Android™, mobile devices have become multimedia platforms that now deliver “videotone.”

Cisco estimates that mobile data traffic will double every year through 2013, increasing 66 times between 2009 and 2013 and by 2013, 64 percent of the world’s mobile traffic will be from video (Source). Additionally, thanks to applications like YouTube®, iTunes® and the availability of 3G connectivity, high quality video on your handset is a reality.

This land of mobile promise is a long time promise but only a recent occurrence; smart phone capabilities have made dramatic strides in the last few years, most notably with the introduction of the iPhone. However, the dramatic rise of 3G-enabled phones and data-hungry users have caught wireless providers off guard, and it is negatively impacting not only the users’ experience, but also their perception of the overall service.

Few expected the massive increase in data usage; 3G networks were deployed with the idea that access over the Internet would be limited, compared to desktop and laptop computers. Pipes were relatively small and devices relatively simple. The original thinking was that phones would be used to access WAP-optimized web sites, corporate email, “walled content” gardens accessed through the provider’s own network, and standard sites viewed slowly due to cumbersome navigation. The new reality is that
mobile browsers have improved, while applications for live and on demand video playback capabilities have dramatically enhanced navigation and user experience.

Although video support is inherent on most smart phones, delivering content to the phones is not necessarily easy because video cannot always be viewed within the mobile browser. It is handled by a separate video player built into the phone’s operating system (OS), and transition between the browser and the application is not always smooth. Mobile device consumption of video is ready to take another dramatic step forward this year, however, with the introduction of Adobe Flash® v10.1 support for most smart phones. This will not only enable the hardware accelerated browsing of thousands of Flash® powered web sites that were previously inaccessible, but will also allow Flash® video to play within the phone’s browser without having to jump to another application. This capability will allow for ubiquitous access to live video content which is notorious for bringing networks to their knees. Consumers rejoice, but wireless providers are understandably concerned.

The nice thing about mobile handsets today is that they, for the most part, behave like regular computers. Devices access content over standard protocols just like PCs, using HTTP and real-time streaming protocols. Where they are dissimilar, however, is in how they access the Internet, with all requests travelling through the wireless provider’s private network to peering locations. This is less of an issue for wireless providers who are also ISP providers because they typically have expansive, well-connected networks, but the majority of content that people want to view is not within the provider’s network. To make matters worse, as more and more wireless providers offer unlimited data plans, usage and costs increase while revenue remains flat.

To increase performance, the choice is pretty stark; build more network capacity, bring the content closer to the user, or employ a combination of the two.

The first option is fairly simple. Increase infrastructure investment, adding more and bigger pipes, and establish better peering relationships with major ISPs which host the content on the Internet. This will improve overall throughput, but not efficiency. Popular content will continue to be requested from within the network and increasingly consume bandwidth inefficiently.

The second option is to utilize caching technology which will cause content that is popular to be stored closer to the end-user. This will result in fewer trips to the edge of the network because it will be served from within instead, reducing the need for more and bigger pipes.

The news isn’t all bad, though. As wireless data networks become more efficient and better performing, it creates a platform for revenue growth per user. Wireless providers who make the investment will have, not unlike cable providers, a highly connected, video enabled subscriber base. It is an attractive proposition for content owners who are looking to expand their own revenue models with premium content offerings. Exclusive content offerings could be used as an alternative to using the mobile phones themselves as a differentiator for consumers. Finally, consistent high performance and availability is also a highly desirable feature which can be used to attract and retain new users. Bad performance in one aspect of the service will cause a negative perception of the service as a whole.

Advanced handset performance, high speed Internet access, and in-browser Flash support is creating a perfect storm for live and on demand video on the mobile. Wireless providers that are positioned to offer the best access, and content owners that make their video available to wireless users will be on the forefront of a major consumption shift in the mobile industry.









Author - Darcy Lorincz, CEO

Author’s Notes:


Source: “Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update,” Retrieved January 29, 2009, from “Web”
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