i3 - September/October 2016 - 43

By Gary Arlen

Business

C S PAC E

Experiments as Streaming Expands

W

PHOTOGRAPH BY JOHN LAMB/GETTY IMAGES

hether it's Comcast's deal to carry Netflix via the cable
company's new X1 set-top box, the Google Chromecast
packaging of A+E Networks programs, Twitter's live
streaming of sports events, Roku's expanded embrace
of TV manufacturers or the new "Redbox Digital" streaming video
field trial, this is the season of over-the-top (OTT) alliances.
Traditionally strange bedfellows are discovering inventive approaches to deliver
video content.
Overall, the deal-making encompasses
familiar content as well as new made-forstreaming programs. Content creators
(plus brand marketers), hardware suppliers and video distribution platforms
are deep into exploration of the TV
anywhere environment.
As they move into the uncharted territory, over-the-top visionaries are both
rambunctious and cautious. When NBC
Entertainment Chairman Bob Greenblatt
teased his network's OTT plans in late
summer, he said, "Whatever we do in that
space, we want to do something that is not
an affront to the cable business or distributors," citing NBC and parent Comcast's
reliance on existing infrastructure.
The relationship between Comcast
C TA . t e c h / i 3

and Netflix was formed, in part, by consumer demand for integrated program
navigation: the ability to find shows on
multiple platforms, including Comcast's
own VOD and DVR services as well as the
Netflix library. There are countless implications for the alliance, since it conceivably
removes the need for a smart TV or a thirdparty digital video receiver such as a Roku
or Chromecast device. Not to mention the
net neutrality issues which were glossed
over when Comcast and Netflix unveiled
their collaboration plan.
With alliances flying in all directions, it
may be too early to determine the 'winning'
approach. Befitting the non-linear digital
environment, a variety of successful relationships will likely emerge. In the earliest
days of streaming video apps, almost every
TV-maker installed access links to their
smart TVs. LG, Samsung, Sony, Vizio and

other manufacturers put dozens of apps
on their screens - often with mixed results.
From the lessons learned just a few years ago,
today's digital video alliances are taking shape.
Now, content producers and packagers
are stepping up their deal-making. Roku
established a licensing relationship with
Hitachi America to put Roku's TV reference design into smart TVs. Roku made
similar deals for TCL sets and Best Buy's
Insignia brand. Roku has also developed
a hybrid set-top box that enables
"Roku-powered" partners to offer linear
and streaming content.
Facebook, Twitter, YouTube and
other social media platforms have
created enthusiasm about the potential
relationship in the video streaming
community. One reason for the video
enthusiasm is the revenue potential:
Madison Avenue has fallen in love with
online video. An estimated $10 billion in ads
will accompany streaming video this year,
a figure that is expected to escalate quickly.

Alliances include:
● Facebook is spending $50 million to

recruit about 140 media companies and
celebrities to create videos. Participants
include CNN, Vox Media, Tastemade and
Mashable.
● Twitter has deals with the four major
U.S. pro sports leagues to carry live video
streams of baseball, football, basketball
and hockey games.
● Amazon is partnering with Showtime, Starz
and AMC for content on the Amazon Video
platform in addition to shows from A+E
Networks, Smithsonian and Broadband TV.
● Redbox Digital is testing a video
streaming service that offers VOD and
electronic sell-through options.
In short, during today's lively experimental phase, everyone seems to be
looking for an invitation to the video
streaming matchmaking parties.
n
Join CTA's Entertainment Council and/or
participate in standards-setting meetings
at CTA.tech/i3
SEPTEMBER/OCTOBER 2016

43
37
http://cta.tech http://cta.tech/i3
i3 - September/October 2016

Table of Contents for the Digital Edition of i3 - September/October 2016
