The internet is a viable and profitable option for broadcasters, writes Alan Mercer, Head of Operations, SatStream, and a cost-effective way of getting language-specific content to expatriates across the Middle East Internet technology has improved significantly over recent years worldwide, and in the Middle East the opportunities for broadcasters to offer additional services over the […]
The internet is a viable and profitable option for broadcasters, writes Alan Mercer, Head of Operations, SatStream, and a cost-effective way of getting language-specific content to expatriates across the Middle East Internet technology has improved significantly over recent years worldwide, and in the Middle East the opportunities for broadcasters to offer additional services over the internet are better than ever before, this being a great way of getting local content to expatriates across the globe. However one major issue for many Middle Eastern broadcasters concerns the rights that are available for certain countries. The internet allows for delivery to anywhere in the world, so how do you ensure that it is only viewable in those countries where rights are secured? And how do broadcasters make the most of revenue opportunities for their content?
Getting online
In contrast to traditional television, setting up with internet broadcast requires very little investment and involves greater flexibility in deals, without the long-term and costly commitments seen for example in satellite distribution. The internet also allows broadcasters the opportunity to broadcast a much larger number of channels than might be feasible via traditional television, offering even more potential revenue. Coupled with this is the option of using the internet as a delivery mechanism to reach other distribution channels, such as IPTV platforms and internet-enabled devices. The internet-based feed can be provided to operators and distributed as integrated or Over-The-Top (OTT) content to set-top-boxes or to internet-enabled devices such as a Connected TV or mobile devices. Internet technology has seen very rapid development over recent years. Last-mile internet connectivity speeds are a lot faster than they were just a few years ago and bandwidth has increased across the globe.
However, good bandwidth is not always available, so it is important for broadcasters to be able to cater for all levels of bandwidth with the same content. SatStream uses the latest adaptive streaming technology, designed to adapt to changing conditions behind the scene, which essentially means that a viewer with very fast broadband will get the very best quality possible, but a viewer with slower broadband will get a lower definition experience, but avoid the annoying situation of the footage stopping intermittently for buffering.
Rights issues
As mentioned above, one of the biggest issues for many Middle Eastern broadcasters is securing global rights. This is of course the same for broadcasters and content providers across the world, it being relatively uncommon to be able to offer global content rights.
SatStream works with a number of broadcasters and content providers who fully understand and embrace the huge potential of TV broadcasting over the internet, but whose content does not systematically have global distribution rights. For example one Middle East-based client produces simultaneous English and Arabic language versions of the same channel, along with different geographical rights for each language.
The solution? The answer is actually simpler than you might think and it draws on a technique called geoblocking. All internet users have an IP Address assigned by their internet service provider. These unique addresses make it possible to determine which country, or even city, a specific user is accessing content from. Therefore, the streaming provider simply needs to ensure the video content is not viewable by a certain range of IP addresses, depending on the regions or countries, which need to be blocked. This is done by embedding a code, which contains a database of rules, essentially telling the stream the conditions that need to be met in order for it to be viewable, or to be geo-blocked.
For the broadcaster mentioned above with both English and Arabic programming, it is simply a question of encoding each stream with a different set of rules, dependent on the language.
Revenue generation The technology is all in place to make streaming via the internet a viable and profitable option, and of course thats the bottom line. Broadcasting via the internet offers huge potential to drive additional revenue; not least it opens up that same content to a much larger audience than would be possible via traditional methods.
There are two main ways to achieve revenue from this type of broadcast, either by charging the viewer, or by charging the advertisers. The one used depends partly on the type of content being broadcast, and whether consumers are likely to pay for it. Compelling content with widespread appeal will of course always find a willing audience, but some more niche content could work better with an advertising model.
It also depends on the target audience. For example, expatriates are often very keen to get all the latest news or their favourite programmes from back home, so they are likely to be happy to pay for that mainstream content. If its a viewer-pays approach, the general model is to launch as free-to-air for the first three to six months in order to generate as much interest as possible. Once established, broadcasters can then change to a subscription only methodology, either by introducing a monthly fee, or a pay-per-view method, whereby the viewer pays for the content viewed.
However, even for mainstream content, charging the advertisers may be a better option, as it can lead to higher viewer numbers, catching those who will be happy to view, but not so happy to pay. This can constitute something of a chicken and egg situation however, as until those viewer numbers are higher, it can be more difficult to generate advertising sales.
In addition, the interactive element of the internet opens up the option of targeted advertising, whereby a profile of the viewer and their viewing habits drives the adverts they see.
Looking ahead
For the broadcaster or content provider, of course, delivering content over the internet is relatively low cost compared to classic networks with the added attraction of flexible rights management, and pay mechanisms, as well as the ability to track total viewers none of which are readily available on classic TV networks. The demand for high quality live language-centric content to be available globally (outside of a regional Middle Eastern satellite footprint) is already here and growing. The challenge for Middle Eastern broadcasters will be providing content which is appealing enough to entice consumers to pay for it or made available to the diaspora under a sponsorship / branding solution.
