Cloud (Network) PVR Discussion

After a delay due to legal review, which was settled favorably to the SPs’ network, DVR/PVRs (N-PVR) are being deployed in earnest by all SPs. N-PVRs are becoming mainstream: In addition to improving the consumers’ experiences they also offer numerous business values to the SP. N-PVRs are also a great step toward virtualization and the move to everything on demand. Simply put, an N-PVR is a DVR that resides in the cloud. When a viewer stores a program, instead of it being stored on a hard disk drive located inside the set-top box, the program (or metadata) is stored on a server or CDN cache located in the service provider’s network.

N-PVRs benefit both the service provider and the consumer. Service providers benefit substantially on both CAPEX and OPEX. Service providers have a love-hate relationship with the set-top box. They love them because they provide a managed service enablement platform in each home, yet they hate them because they account for about 50% of total CAPEX. Interesting to note is providers argue they are part of the network when it is convenient and argue that they are CPE when it is not. The latter is because of regulator ambiguity of TITLE VI in the U.S.

By eliminating the hard drive from every set-top the cost of the box is reduced, directly impacting CAPEX. Hard drives, being mechanical devices, will fail. The elimination of the drive thus increases the reliability of the box and reduces angry customer support calls and truck rolls. This directly impacts OPEX. Without a hard drive the set-top box will consume less energy, supporting the SPs’ goal of meeting the voluntary energy reduction agreement the industry and the U.S. Department of Energy (Note, not the FCC) signed in early 2014.

N-PVRs store consumer “save” programming in the cloud. This simplifies whole home DVR and video everywhere service offerings. With N-PVR all consumer playback originates in the network and not the primary set-top box. Although newer homes have coax cable widely installed throughout the home the bulk of homes do not. All in-home technology deployments are challenging to the SP because of the high variability in both the housing stock and in consumer sophistication. With the N-PVR all video streams are delivered from the network as “just another” channel.

N-PVRs benefit the move to TV everywhere or TV to all devices. In the home consumers watch TV programming on all of their devices. Because Wi-Fi is the common fabric connecting every device, N-PVR based video programming can be sent via the broadband connection and over the Wi-Fi network to all devices. Thus, consumers can view stored programming on all their devices, and the SP does not have to contend with home networking issues.

The N-PVR takes this concept out of the home as well. Consumers can view stored program from anywhere on any device with a broadband connect. This also applies to the delivery of programming on smart phones via 4G/LTE connections. In each of these cases, the stored SP programming is treated as over-the-top (OTT) and facing the same challenges pure OTT suppliers face such as quality of service and data usages. Equally, they can benefit from the innovation in the OTT marketplace.

This everywhere DVR experience also presents a new revenue opportunity to the SP. Targeted advertising and local ad insertion take on new meaning. For example, if a Boston-based consumer is watching a stored program from San Francisco, why show the ad Boston-based car dealership? Similarly, with smart phone location-based services being widely deployed, the SP can insert a targeted ad based on the user’s real-time location.

As illustrated, N-PVRs not only offer consumers a better video experience, they offer the SP real business value: reduction of both CAPEX and OPEX and creation of new revenue generating opportunities. Properly deployed, the N-PVR infrastructure will create the foundation for everything on demand and the move to virtual set-top boxes. Given these factors, SPs should deploy N-PVRs aggressively with the caveat that they must take a long-term strategic approach of viewing N-PVRs as the first application of the platform and not the only application. 

To discuss this please contact me at gwhelan@acgresearch.net

Network PVR a Win for SPs and Consumers

Moving the "storage" function out of the Set-top box and in to the network is a win for both the service provider and for the consumer.  This article, written in ADD solving terseness,  will give the read an overview of the salient points of the benefits of deploying a network-based DVR or N-PVR.  Comments/corrections/suggestions are always welcomed.

What is N PVR?

1.       Network Personal Video Recorder (a.k.a. Network DVR)

2.       A DVR in the Cloud

3.       A user’s programming or content is stored on a server located within a service providers facility instead of stored on a hard disk drive embedded in a set-top box.

Benefits for Service Provider and Consumer

1. Enables SPs to remove costly storage in every STB.
1. One less device to fail.
2. Reduces cost per STB,  less stranded capital
3.  Reduces power consumption of STBs
1.   Helps achieve goals set in voluntary agreement (see: http://greywale.com/wp-content/uploads/2013/09/greywale-communique-STB-010614.pdf)
2. Makes whole home DVR simpler
1.  All traffic originates from the network to any device (TV, PC, Tablet, Smart phone et al.)
2. Transparent to user
3.  Simplifies home networking, re-use existing networks such as WiFi,  No need for a new technology.
3. Enables TV-Everywhere or video everywhere and advanced video services
1. A single seamless video experience across all devices/screens.
2. Pause on one screen; resume on another screen is simplified.
3. Watch “save” programming on any device at any location.
   
4. Enables location-based targeted advertising
1.  Ads can be “re-inserted” to location user is actually watching stored content.
2. No need to play Boston Ads if user is watching Red Sox game in San  Francisco.
3. Enhances advertising packages to ad buyers.
4. Enhances viewing experience of consumer since ads are more relevant.
5. Increases ad revenues
5. Reduces usage and congestion of upstream bandwidth
1.  Eliminates the need for Sling Box
1. Sling box clogs limited upstream last mile channels
2. N-PVR eliminates Sling Box zero revenue traffic
6. Enables SPs to take advantage of innovations in Content Delivery Systems and advanced caching technologies.
1. May already be implemented for Video on Demand.
7. Enables smart phone to become DVR controller
1.  Guide on smart phone delivered from network
2.   “record” in network
8. Leverages investments in cloud infrastructure
1.  ROI of data centers investment will be enhanced with the addition of N-PVR application. 
9. CAVEAT
1.  As N-PVR rolls out, cache’s and servers may find themselves in facilities that aren’t as friendly as purpose built data centers.  These may include regional and local facilities such as central offices and head ends.
2.  Energy issues (e.g., heat) should be addressed.
10. LEGAL Issue
1. The Cablevision litigation in the U.S. has been resolved in Cablevision’s favor.
2. Content providers argued it violated copyright laws.
3. Cablevision argued it’s the same as a DVR just a different location.
4. After a number of rulings and subsequent appeals the U.S. Supreme Court refused to hear the case ending the litigation.
5. Recommendation to SPs…Deploy! 
11.  Technical Issues
1.  SP’s will need to have the stored programming in numerous formats applicable to specific devices.  i.e., different resolution and data rates for an HDTV verse a smart phone via 4G/LTE.
2. Do you translate and transcode on demand or ahead of time? 

   To discuss these issues please contact me at gwhelan@greywale.com

   For a list of previous articles please see   http://greywale.com/articles