Skip to main content

Do we really need to transcode video in the cloud?

I hear a lot of talk in the market about the challenge of format proliferation in streaming video delivery. The thinking goes that the number of devices that can stream video - phones, TVs, set top boxes - is growing and so content distributors must transcode into an increasing number of formats to service them. This creates a mare's nest of connections and formats to service consumer demand.

I wonder whether we should also consider another world, where devices increase in processing power and application platforms become standardised across categories of devices (e.g. Android on TVs). In this world, distribution becomes a trial of bandwidth at the edge and possibly also in the core and the devices shoulder the burden of making viewing a rich experience.

A similar thing happened when the mobile web was young. Operators spent tens of millions on hardware and software to enable web pages to be viewed on phones. It didn't take long, however, for phones to gain the processing power to repurpose pages, standards to be developed for designing pages and browsers to reach the handset. It seems to me that telecoms always try and answer emerging demand with big, centralised technology and the answer almost always turns out to be light-weight software that consumes their bandwidth!

For me, the same seems likely to happen with video. There will always be new devices. Creating new 'cloud based' format transcoding regimes for each is just dumb. Right now, if I was a retailer or broadcaster wanting to service non-browser-based demand, I'd be thinking very carefully about how much capital I was going to commit to it. If someone else is willing to do it in the short term, for opex-only outlay, then best to consider it. On a short contract!

Comments

Popular posts from this blog

Differences between Industrial and Digital businesses

Since I'm stuck on a Eurostar crawling through western France I thought I'd use the downtime to share this table I've made on the differences between Industrial and Digital companies across the main business functions. A strange insight into how my mind works... but hopeful a useful summary!

Strategic lessons from Debenhams

Yesterday’s news cycle brought with it the announcement that Debenhams, a staple of the UK high street, was now in the control of its lenders . This kind of news is sad for the employees of Debenhams and certainly for its shareholders, but it is also a good opportunity for reflection. A business that can trace its history back to 1778 may be about to cease trading forever. For leaders in the retail and associated consumer industries, now is a good time to consider what lessons can be learnt from Debenhams and what could be done to seize the opportunity presented by its passing. I’m thinking about the topic of strategic responses to emerging events at the moment because of the seeming inevitability of a recession this year or next, which will doubtless bring with it many similar situations. Before I get started, a disclaimer. I have no inside knowledge of Debenhams, I have never consulted for them, pitched to them or even met anyone in their management team. This post uses Debenham...

Impacts of a handset leasing model on mobile telcos

Following yesterday's post, here's some related thinking on the impacts on operators of handset leasing. Handset sales represent around 25% of operator revenues in a typical European market, but generate only around 5% of margin. It may therefore be the case that the scenario described would lead operators to a more profitable structural model than exists today. Oil companies are consistently and acceptably profitable, despite being (literally in some cases) the ‘dumb pipe’ that operators are so desperate to avoid becoming. One of the reasons for the oil majors sustained profitability is clear focus on their role in the value chain – to supply the fuel that enables transportation, relying primarily on location, then brand and finally product innovation to compete. BP or Shell do not need to subsidise the purchase of a car in order to drive consumption of fuel because consumers are ‘hooked’ on it (it gets them from place to place) and there are many credible car manufacturers an...