News economics
Oct 1, 2007 12:00 PM, BY MARK HORTON
When moving to an integrated nonlinear, server-based news system, it makes sense to consider HD.
How technology choices affect the business model
Some might get the impression that all disc-based news technologies are the same. Not so. There are major differences between systems, and these differences affect the business model.
A few broadcasters might consider buying prosumer PC- or Mac-based systems. This can provide some with a solution that fits their application and has a financial appeal because it's inexpensive at time of purchase. By using only standard IT technology, the individual components appear to be relatively inexpensive, and the choice of components appears wide.
However, there are hidden costs associated with using prosumer technology that can negate any apparent savings related to the original purchase. Poor integration can mean poor workflow and higher staff overhead. Stories can take longer than expected to get to air and may be difficult to re-version. Highly complex media management means bloated disc arrays. With HD, these problems would be even greater.
Of course, there are systems on the market that can work at HD resolution, but these can be costly either at time of purchase or during a later upgrades. In many cases, these offerings don't scale easily, even at SD resolution.
Some of these offerings are actually multivendor, meaning the company that provides them has implemented a number of solutions together to create a workflow. Different user interfaces, code bases and architectures can mean hidden operational and engineering costs. Sometimes, three different servers are required to ingest, edit and play out, which adds to the cost and operational complexity.
The need for an integrated server architecture
Figure 3. Some server architectures use three devices for ingest, edit and playout. Click on image to enlarge.
To publish a breaking news story on the air you first need to ingest the material, cut the story and add any graphics and effects. Then play out to air. This process is illustrated in Figure 3.
While some manufacturers use this multiserver solution, an HD upgrade can be expensive. In fact, some systems have to use two edit servers just to provide protection in case of a lost disc.
Day to day, that all means making, managing and moving unnecessary media. In the long term, an upgrade could completely break the original amortization schedule and pricing model.
The need to manage material efficiently
Finally, once broadcasters make the transition from tape to disc, they will need to rethink how to manage stories. Suppose you want to delete one or many legacy stories, and these stories contain shots you want to keep.
Some solutions allow you to delete the old clip, but at the same time you end up destroying the specific shots you want to keep. Other systems won't allow you to delete the old clip (keeping the disk unnecessarily full), so there is a constant need to defragment and consolidate the disks. When working at HD resolution, this problem is amplified because there is so much more data. The workflow can suffer greatly in this scenario.
Summary
The business advantages of moving to truly integrated nonlinear, server-based news creation are clear, and when you do, it makes sense to consider HD. The world is changing fast, and for broadcasters everywhere, HD future-proofing makes sound commercial sense. However, keep in mind that any new technology choice must support both the current and possible future business models.
Mark Horton is strategic marketing manager for post and broadcast at Quantel.
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