Personalized television
Mar 1, 2009 12:00 PM, By Chris Gordon
The costs of stream-based systems scale up with the number of streams. To enable ad splicing, every stream requires its own video processing unit. While this cost model works when shared across thousands of subscribers, it falls apart when each television requires a unique stream and a dedicated processor. To solve the quality and cost problems, there must be a fundamental shift from the legacy approach of stream-based video processing to a new approach of asset-based video processing. Ad or program assets can be preprocessed and stored, once and only once, as a constant-quality variable bit rate stream. They can then be combined by a scalable splicing multiplexer at the network edge in a cost-effective manner without compromising quality.
Required bandwidth
Addressable ads require addressable bandwidth, and bandwidth in a cable or satellite system, while extensible through incremental capital investment, is finite and in high demand. The introduction and expansion of HD programming is critical to the success of the enterprise, but HDTV demands four to five times the bandwidth of SD. HD VOD is a valuable revenue generator and competitive tool, but the bandwidth required to support it further reduces the available pool of bits. While it may be possible to store the advertisements locally on the associated set-top box/digital video recorder, the vast majority of deployed set-top boxes don't have the storage capability and could not participate. Therefore, to deploy an addressable advertising solution in the near term, the unique and personalized ads have to be delivered centrally, much like VOD assets. And while neighborhood segmentation will get us part of the way there, to match and exceed the value of Internet ad placement, video service providers need to provide customization at the household, and even TV room, level.
There are several bandwidth management tools available today. Satellite operators and some content providers have adopted MPEG-4 for HD programming. Cable operators are transitioning to digital and deploying switched video technology, but more is required. MPEG-4 is not practical for cable in the near term due to the large deployed base of MPEG-2 set-top boxes. Switched digital video will not work for satellite due to the inherent one-to-many design of the satellite transmission system.
It is clear that providing the personalization users and advertisers demand will require a holistic approach. For cable operators deploying switched digital video, much of the bandwidth gain is realized on the long-tail content, or content that is not highly viewed (not where advertisers typically want to buy time). So while switched video is a critical first step to addressable programming, the operator will need to first create the bandwidth/space for the new tier of switched services in addition to optimizing the switched programming for the most efficient bandwidth use.
First, video service providers need to take a careful look at how to optimize the broadcast spectrum, the largest part of spectrum use today. By applying advanced compression techniques, up to 50 percent of the broadcast spectrum can be reclaimed to support addressable programming and advertising.
Second, service providers must find methods to deploy the known and proven technology of VBR statistical multiplexing on the personalized programming that viewers and advertisers demand. By enabling VBR for these streams, another 50 percent gain of the switched/on-demand bandwidth can be realized and applied to addressable programming. The critical event is a shift from stream processing to asset processing and a separated, cost-effective edge multiplexing and splicing capability.
Finally, and perhaps most importantly, quality cannot be sacrificed. Today's premium consumers, those most coveted by advertisers, are increasingly aware of quality differences and are being aggressively marketed to on the basis of quality claims. Sacrificing quality to achieve addressability would be a strategic mistake, and the consequences would become quickly apparent.
Embracing a new approach
The opportunity to provide addressable programming and advertising is enormous. It is the lifeblood of the new media giants and a critical component of the 21st century media and entertainment landscape. The potential is great, and the enabling technology is within reach.
To provide an architecture and cost model that will enable addressable ad splicing, service providers must embrace a new approach to asset-based video processing. To provide the required bandwidth, they must optimize their systems holistically, squeezing every last bit from all segments of the spectrum. And to maintain a strong competitive position against up-and-coming service providers, they must continue to provide the highest-quality programming on the most important display — the television.
Chris Gordon is director of product management for Imagine Communications.
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