Analyst Show Flashes from IPTV World Forum 2008 IPTV World Forum is a leading European event for the IPTV industry. Telecom providers, content and technology players assemble to discuss service delivery, marketing, and content over IPTV technologies and devices. Current Analysis was at the the show, and our analysts wrote intelligence reports on announcements made at the show. Highlights from these reports appear below. Clients with a subscription to respective modules can read the full report by clicking the Client Access links. |
Contents
| ► | Anevia and Smart Com Jointly Cast a Ripple in the Fragmented Sea of IPTV Ecosystems - Digital Media Infrastructure |
| ► | Neptuny Tries to Net Smaller Video Fish with SaaS Recommendation Engine - Consumer Broadband Services - Europe |
| ► | NEC Announces a Generic “Me Too” IPTV Solution Offering - Digital Media Infrastructure |
| ► | Latens Looks to Carry a Big STIK - Digital Media Infrastructure |
| ► | Ruckus Cuts IPTV Wires for Telenor's Bredbandsbolaget - Consumer Broadband Services - Europe |
| ► | Harmonic Once Again Achieves Microsoft IQ Lab Approval for an Encoder Product - Digital Media Infrastructure |
| ► | Swiss-based Osmosys Takes Neutral Approach to IPTV Market with Open Standards-based Solution Set - Digital Media Infrastructure |
| ► | Viaccess Gains Orca at Bargain Rate, but Timing and Competition Rain on this Basement Sale - Digital Media Infrastructure |
Anevia and Smart Com Jointly Cast a Ripple in the Fragmented Sea of IPTV Ecosystems
| Analyst: Yoav Schreiber | Digital Media Infrastructure | Client Access |
Announcement Summary
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March 13, 2008 – At the IPTV World Forum in London, Anevia, a Paris-based video processing server vendor and Smart Com, a system integrator and IPTV middleware vendor from Slovenia announced the integration of their products as part of an IPTV ecosystem targeted at European telco operators and ISPs. The agreement combines Anevia’s Flamingo DVB to IP Gateway and Toucan video servers with Smart Com’s Bee Smart IPTV middleware platform.
Analytical Summary
• Current Perspective: Neutral on Anevia and Smart Com’s having integrated their respective video processing and IPTV middleware solutions, primarily because in timing the announcement with the IPTV World Forum in London, the two companies are leveraging the European-focused visibility of the show. However, beyond marketing visibility, the two companies must still demonstrate what differentiates their integrated ecosystem from the myriad of rival offerings and, more importantly, how their combination will leverage unique strengths to create attractive propositions for European telcos and ISPs looking to deploy IPTV services.
• Vendor Importance: Moderate to high to both Anevia and Smart Com, since the two companies need to drive attention to their offerings in the highly fragmented IPTV market. As the next phase of IPTV deployments focuses on accelerating the introduction of advanced functionality beyond the mere streaming of linear TV over IP, Anevia and Smart Com are responding by positioning their integrated ecosystem proposition as meeting these IPTV operator requirements.
• Market Impact: Low on the IPTV middleware and content delivery system segments of the digital media infrastructure (DMI) market, especially in Europe. In the highly fragmented IPTV market, the announcement’s lack of apparent differentiation deprives Anevia and Smart Com of a distinct advantage over rivals on either technical or regional grounds, thus minimizing the imperative for rival responses.
Neptuny Tries to Net Smaller Video Fish with SaaS Recommendation Engine
| Analyst: Ben Tudor | Consumer Broadband Services - Europe | Client Access |
Announcement Summary
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March 12, 2008 -- Neptuny has launched a SaaS version of its recommendation engine, ContentWise, for sale to smaller IPTV providers and Web TV portals. The system can provide recommendations on VoD, nVoD, and TV channels and programmes. The company will face stiff opposition from other recommendation and data mining companies, as well as in-house applications developed by providers.
Analytical Summary
• Current Perspective: Positive on Neptuny’s release of ContentWise as software-as-a-service (SaaS), since it will make it easier for the company to sell its content recommendation services to service providers that might have balked at long integration times when considering the original product. SaaS allows the company to target new or small entrants to the market with a quickly deployed, flexible and cheaper solution than other vendors following the on-premises model.
• Vendor Importance: High to Neptuny, as the firm’s IPTV offerings, including Caplan-IPTV edition and ToughStream Server, are becoming increasingly important as it grows the TV side of its business (see Neptuny Gains Additional Customer Credibility for Its IPTV Capacity Planning Suite, January 9, 2008). The company needs to adopt the SaaS model of delivering its applications to stay abreast of a market trend that is bearing witness to end users opting for off-premises software deployments, along with the benefits SaaS brings in terms of service and software upgrades on a rolling basis.
• Market Impact: Moderate on the IPTV market, because, despite the benefits of content recommendation systems, pure and hybrid IPTV systems require more integration for half of the recommendation engine’s actually job: harvesting user recommendations. That said, Web VoD companies will be a more likely target in the short term.
NEC Announces a Generic “Me Too” IPTV Solution Offering
| Analyst: Yoav Schreiber | Digital Media Infrastructure | Client Access |
Announcement Summary
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March 11, 2008 – NEC announced at the IPTV World Forum in London that it will launch an end-to-end IPTV business offering leveraging the company’s Next Generation Networks carrier applications. The offering, which will include both an internally developed video delivery server as well as CASCADE’s QualiTVision IPTV middleware, will be marketed internationally. Availability is expected later this year, and the company expects to generate 50 billion yen (USD 500 million) by 2010.
Analytical Summary
• Current Perspective: Negative on NEC’s announcement at the IPTV World Forum 2008 that it will deliver its own end-to-end IPTV offering because, in a market already crowded with credible and established vendors of end-to-end IPTV solutions, the NEC announcement is, in essence, an amalgamation and repetition of the various offerings already put forward by its top-tier rivals. Lacking substantial differentiation in technology or vision, the announcement also includes a product roadmap “wish list” that is too generic to gain market credibility.
• Vendor Importance: Low to NEC, because although the company does not yet participate in the IPTV and related application services layers, the company has apparently expended a fair amount of resources (R&D, marketing, etc.) to create the elements of its IPTV solution offering. However, despite NEC’s established position delivering network access infrastructure (especially to leading IPTV operators such as PCCW in Hong Kong), it is unlikely that NEC will prove to be materially successful in engaging higher level IPTV solution sales capable of fulfilling its 2010 goal of YEN 50 billion (USD 500 million).
• Market Impact: Low on the overall digital media infrastructure (DMI) market, which has an established roster of vendors with market proven end-to-end IPTV solution offerings. Companies such as Alcatel-Lucent, Cisco, Ericsson, Nokia Siemens Networks, Motorola, Thomson, ZTE and UTStarcom can already point to leading market shares and large scale deployments across the globe, giving them differentiated leadership positions which make a specific response to NEC unnecessary. Meanwhile, sideline players like Juniper Networks and Nortel have approached this crowded market by leveraging their infrastructure to tackle unique aspects in enabling new business models such as multi-play content service revenue sharing and IPTV application delivery.
Latens Looks to Carry a Big STIK
| Analyst: Ron Westfall | Digital Media Infrastructure | Client Access |
Announcement Summary
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March 12, 2008 – Latens, a provider of downloadable conditional access (CA) and IPTV service delivery platforms, announces the IPTV World Forum launch of Latens STIK, a Set Top Box Integration Kit, which simplifies the process of integrating Latens conditional access for IPTV and cable set-top boxes (STB). The main benefit for STB vendors is to reduce the time and cost of integrating with Latens’ highly popular CA solutions. For network operators, the main advantage is that this initiative widens the choice of set-top box and CA combinations.
Analytical Summary
• Current Perspective: Slightly positive on Latens’ launch of the Set Top Box Integration Kit (STIK), which is designed to further streamline the process of integrating Latens’ conditional access system (CAS) technology for IPTV and cable set-top boxes (STBs). The Latens STIK proposition promises improved integration and update coordination of STB, middleware and content security technologies, but Latens still must prove a critical mass of STB vendors and service providers will adopt the STIK program.
• Vendor Importance: Moderate to high to Latens, since the company needed to unveil the STIK program to further enhance its marketing motif as the only full spectrum CAS/content security vendor in the market today as well as boost IPTV World Forum-specific marketing initiatives such as further promoting its claim as first to market with an IP STB solution capable of delivering full encrypted HD PVR services.
• Market Impact: Moderate to high on the content security segment of the digital media infrastructure market as Latens CAS technology is already deployed by a wide variety of cable, telco and satellite operators, obliging content security rivals to adopt specific marketing actions aimed at the STIK initiative. The STIK initiative aims at creating an ambitious alliance umbrella with cable STB vendors in particular and thus should generate more impact than a vendor-centric announcement such as a product line enhancement.
Ruckus Cuts IPTV Wires for Telenor's Bredbandsbolaget
| Analyst: Ben Tudor | Consumer Broadband Services - Europe | Client Access |
Announcement Summary
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March 12, 2008 -- Telenor has selected Ruckus Wireless to supply Smart WiFi 802.11g systems for the wireless distribution of its IPTV service offered throughout Sweden via wholly owned subsidiary Bredbandsbolaget. Under the agreement, Ruckus Wireless is supplying Telenor with its MediaFlex 802.11g Smart WiFi systems. The Ruckus MediaFlex systems will be available to consumers in Sweden through Telenor retail outlets, and self-installation is easy.
Analytical Summary
• Current Perspective: Positive on Telenor’s adoption of Ruckus routers and access points for consumer self-installation, as it will help subsidiary Bredbandsbolaget entice more customers to its IPTV service, as well as improving its roster of products for sale or provision to subscribers.
• Vendor Importance: Moderate to Telenor’s Bredbandsbolaget, because while it will give the company’s IPTV products a unique feature in the short term, rivals are likely to catch up quickly. The advent of Devolo’s powerline networking products, promising up to 400 Mbps over mains electricity cables (albeit without QoS), may also pose a threat to Ruckus’ products used in this application.
• Market Impact: Low on the Swedish IPTV market, as IPTV over WiFi is something of a niche product at the moment, and Bredbandsbolaget has a relatively low number of subscribers. That said, the technology is already in use by service providers across Europe, so we expect this to make a valuable addition to Bredbandsbolaget’s CPE line-up.
Harmonic Once Again Achieves Microsoft IQ Lab Approval for an Encoder Product
| Analyst: Ron Westfall | Digital Media Infrastructure | Client Access |
Announcement Summary
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March 11, 2008 -- Harmonic announced that its new DiviCom Ion AVC standard-definition (SD) encoder has completed encoder conformance testing for the Microsoft Mediaroom Internet Protocol TV (IPTV) and multimedia software platform. Microsoft administered the test as part of the Microsoft Mediaroom Interoperability and Qualification Lab (IQ Lab) program, which is intended to enable the ongoing interoperability and compliance of encoders used in deployments of Microsoft Mediaroom. A Microsoft Mediaroom ecosystem partner, Harmonic powers the video headends for a majority of Microsoft’s IPTV customers. Harmonic delivers over 5,000 broadcast video channels around the world to more than four million IPTV subscribers, and it counts more than 100 telco operators as its customers.
Analytical Summary
• Current Perspective: Slightly positive on Harmonic securing an interoperability seal of approval from Microsoft’s IQ Lab for the DiviCom Ion AVC encoder product, because it re-affirms the ongoing technical and co-marketing alliance between Harmonic and Microsoft, but the announcement lacked customer breakthrough revelations specific to the DiviCom Ion product line and will not compel rivals to adapt sales and marketing responses specific to the announcement.
• Vendor Importance: Moderate to high to Harmonic and Microsoft, as Harmonic needed to unveil the successful conformance testing for its DiviCom Ion AVC encoder platform to complement the similar Microsoft IQ Lab test approvals for the DiviCom Electra 7000 HD MPEG-4 AVC (H.264) encoder and the Electra 5400 SD H.264 encoder products as well as sustain its marketing motif of extending any-to-any video processing to customers. Microsoft needed to show its IQ Lab testing regime continues to focus on best-of-breed products for complementing the Microsoft Mediaroom platform.
• Market Impact: Low to moderate on the video headend segment of the overall digital media infrastructure market, as Harmonic is one of the top vendors within the nascent IPTV head-end segment and Microsoft’s channels compel rivals to at least consider re-stating their recent channel and marketing efforts in relation to Microsoft (whether for or against Microsoft).
Swiss-based Osmosys Takes Neutral Approach to IPTV Market with Open Standards-based Solution Set
| Analyst: Erik Keith | Digital Media Infrastructure | Client Access |
Announcement Summary
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March 11, 2008 – Osmosys S.A., a provider of open standards Java-based interactive digital television solutions, announced the launch its new end-to-end IPTV Solution at the IPTV World Forum at Olympia, London (March 12-14, 2008). The Osmosys solution enables the deployment of IPTV and multimedia services over broadband networks, and includes Osmosys’ EGG 3D graphics technology, open standards middleware based on GEM technology, a number of Linux-based server modules, and is controlled by a user friendly front-end system for easy administration.
Analytical Summary
• Current Perspective: Neutral on Osmosys’ entry into the IPTV market, because despite the company’s established presence in the digital video broadcast (DVB) market and solid installed base (as well as the fact that the IPTV market is effectively still in its formative stages), the middleware sector is already very competitive, and Osmosys faces the difficult tasks 1) demonstrating critical differentiation of its solution set amidst a growing pool of contenders, which includes Tier 1 vendors Microsoft and Thomson, and 2) winning mind and market share within a diverse array of operator accounts worldwide.
• Vendor Importance: High to Osmosys, which needed to time its official entry into the IPTV market to generate maximum exposure; to this end, Osmosys’ debut at the IPTV World Forum event in London provides the company with maximum exposure for a formal launch, especially given the fact that seven of the top ten IPTV service providers (in terms of subscribers) are European operators.
• Market Impact: Low to moderate on the overall digital media infrastructure market, because despite Osmosys’ experience in the DVB market, and the competitive advantages of offering an open-standards-based IPTV solution set that leverages key technological “building blocks,” Osmosys is entering a very competitive market segment where it will be difficult to generate customer and market traction, even with a compelling IPTV service delivery/performance/value proposition..
Viaccess Gains Orca at Bargain Rate, but Timing and Competition Rain on this Basement Sale
| Analysts: Ron Westfall, Yoav Schreiber | Digital Media Infrastructure | Client Access |
Announcement Summary
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March 10, 2008 -- Orca Interactive Ltd., a market provider of IPTV middleware and applications, announced that it has signed an agreement with Viaccess, a France Telecom subsidiary. Under the agreement, Viaccess will acquire a 100% stake in Orca for an estimated price of $21.4 million. The completion of the transaction is subject to conditions precedent and notably to the approval of the transaction by the extraordinary general meeting of Orca Interactive.
Analytical Summary
• Current Perspective: Slightly negative on the acquisition of Orca by Viaccess, because the announced deal does not convincingly establish a stronger competitive position for either player in the overall IPTV and IP video markets. The acquisition demonstrates that Orca confronted significant challenges growing revenue and share with middleware deployments among Tier 2 and 3 operators, and thus needed to seek an exit strategy. However, the combined company will not likely penetrate larger accounts with Orca’s middleware, and at best, it may be able to layer some of Orca’s differentiated applications on top of existing rival middleware deployments. Furthermore, given that Orca is to be acquired by Viaccess, and not another major player, the deal signals that Orca’s technology may not have proven as differentiated or competitive to begin with.
• Vendor Importance: High to both Viaccess and Orca, as Viaccess needed to diversify its content security-centric portfolio by adding closely related IPTV middleware technology from a market-proven player, such as Orca, while Orca needed to merge with IPTV/content security vendor Viaccess, expanding its channel opportunities as well as improving its long-term competitive prospects by avoiding long-term competition as an independent within the increasingly competitive and commoditized IPTV middleware segment.
• Market Impact: Low to moderate on the digital media infrastructure (DMI) market, because Orca, despite its early success gaining IPTV subscribers and possession of a differentiated middleware offering, is a small player whose weight shifting into the Viaccess fold will not dramatically alter the industry’s competitive landscape. In addition, since Viaccess itself is not a major industry player, its possession of Orca’s middleware technology will also not materially alter the competitive landscape. However, rival IPTV middleware, content security, and IPTV solution vendors should take note, as Viaccess can now claim to offer a broader solution that is somewhat differentiated in that it can combine both middleware and content security solutions in a distinctly integrated fashion.
