
NAB 2008
By John Latta, WAVE
0806 7/4/08
Las Vegas, NV
April 14-16, 2008
In the past the NAB prided itself with the proclamation that every president since Herbert Hoover had come to give a speech. This may have stopped at Clinton but the notion seems sorely out of date. The state of the industry talk by NAB President and CEO reflected the times ahead.
Some are not optimistic about broadcasting's future. Some people in this business have been staring so long at the door that's closing, they haven't seen the new door that's opening -- the digital door.
The NAB's highest TV priority, in this critical final year, is the analog changeover in February. The NAB and the industry are making a billion-dollar commitment to DTV transition education.
On Feb. 17, 2009, as TV's old analog signal ends and we begin our digital future, one door closes ... but another opens, NAB is aggressively moving to get digital TV on cell phones, iPods, TV screens in cars, portable video players, laptop computers and more.
The next step is moving DTV to other devices, including mobile screens.
That's live TV on upwards of 345 million devices. ... By 2012, only four years away, three years after the transition itself, broadcast television could earn an estimated additional $2 billion a year in revenues from mobile video alone.
But before the industry can take advantage of new revenue opportunities, there is much to be done, and the industry needs to adopt standards and deploy the technology.
There is an explosion of content out there, and we have to be smart and nimble about how we deliver it to our consumers. (Three clips were show from YouTube. It was noted that the tag line at YouTube is Broadcast Yourself.)
On the subject of radio, radio's business model is not broken. NAB has an initiative called Radio 2020, designed to reignite the public's passion for radio.
There are those who said HD radio would never make it -- too expensive, too few stations, too this, too that. That attitude is changing. Ford, Mercedes, Volvo and BMW are just a few automakers that have made major announcements about offering HD radio in their vehicles. And radio stations are stepping up to offer the programming to support new multicast channels of HD radio. We still have a lot of work to do on this, but we are certainly headed in the right direction. The NAB is a strong advocacy group in Washington.
-- On the XM-Sirius merger, twelve state attorneys general and more than 80 members of Congress have written the FCC that the XM-Sirius merger is not in the public interest. The Justice Department's notion that the two companies do not compete is simply absurd. If combined, these two companies will control more spectrum than the entire FM dial.
-- On white space, portable, unlicensed devices have malfunctioned three times in FCC laboratory testing. Now we know (that) if these devices can't work in pristine lab conditions, they won't work in the real world -- which means interference on televisions across the country that cannot be traced or stopped.
-- On localism we're working to make sure that the (FCC) does not place unnecessary requirements on broadcasters that would actually hamper stations' efforts to serve their local communities.
-- On performance tax, nearly 200 members of Congress are standing with us against a performance tax on local radio.
NAB has fought and lost on satellite radio at every turn. The move to digital television has happened with reluctance over the 25 years of the ATSC. The public is no longer reliant on free over the air broadcasting as the source of news and entertainment. The transition on Feb. 17, 2009 marks the end of high power analog television broadcasts. It remains to be seen if local broadcasters will effectively transition to the new digital marketplace where advertising revenue is harder to obtain and declining. Newspapers are having a difficult time and broadcasters are already in rough times.
The registered attendees reached 105,259, with 28,310 international attendees.
0806.1 MPH – Television Everywhere
MPH, Mobile Pedestrian Handheld, in-band mobile DTV, is an initiative by LG, and its R&D subsidiary, Zenith, and Harris to use part of the allocated DTV spectrum for broadcasts of television content to mobile devices. A chip has been developed which will allow mobile devices such as: phones, PMP, laptops, GPS units and automobile TVs to receive DTV content. This is an IP based architecture which is claimed to work up to 100mph and while still indoors. Many of the cell phone carriers are claimed to have phones ready which use MPH. Deployment is expected in 2009.
The Open Mobile Video Coalition (OMVC), an alliance of U.S. commercial and public broadcasters, is pushing the development and early deployment of mobile DTV. Also, the Advanced Television Systems Committee (ATSC) is pursuing a standardization process expected to yield a single terrestrial mobile/handheld DTV standard by early 2009.
0806.2 A Preview of 3D
DreamWorks Animation used an NAB session, with its technology partner Hewlett-Packard, to show its 3-D brand: DreamWorks Ultimate 3-D. It was DreamWorks Entertainment chairman Roger Enrico who stated it is like creating two movies – one for each eye. He stated "The difference from what's been done before is so great we needed a new name." All future animations at Dreamworks will be done in 3D.
A unique clip was shown from "Kung-Fu Panda" in Ultimate 3-D, with digital projection by Real D. Note that the actual movie is not being done in 3D but this was just an example of what it could look like. In spite of the limitations of the room the imagery was excellent. Each attendance was given a set of polarized glasses. These are claimed to be very low cost and essentially given away at the theater.
It remains to be seen how 3D can be used creatively to enhance the entertainment value of movies. The technology is clearly at a new level.
0806.3 CNET Looks to the Future of Devices
Brian Cooley, Editor-at-Large, CNET discussed Cool Gadgets and Hot Content.
here are four hot categories in consumer devices today: online TV, Digital Radio, in-hand devices and in car electronics.
Hulu changes the game for television content in the home from the Internet. Its recently added ability to post preference on social networks is likely to become a significant recommendation engine.
Other significant players include: VUZE and BBC iPlayer.
Microsoft’s Media Center led the move of the PC/Internet in the living room, i.e., the 10’ experience, but it will not lead the movement of Internet content to devices and televisions.
On the hardware side is Vudu, the forthcoming LG/Netflix box and the likelihood of a consumer box from Blockbuster with distribution via Circuit City.
Apple TV 2.0 is a major change for the better. Its limitation is the linkage to iTunes but this is the Apple way.
Other set top boxes include: LaCie LaCinema and Archos TV+WiFi.
Open wireless will change role which portable devices play and the functions they bring to individuals. A key example cited is Android by Google. With the recent auction of wireless spectrum which will be open, the basis for a major market change has happened. No longer will carriers have the lock on consumers. This is just begging to play out and it will change what we carry and what they will do.
But Google’s Android is not the only play. LiMo foundation is seeking a major position for Linux.
On mobile devices music was seen as the first successful application and there are indications that navigation will be the next. The importance of navigation was highlighted by the recent purchase of NAVTEQ by Nokia for $8B.
The Apple iPhone SDK and opening of the phone, with the usual Apple constraints, is an indication of the importance of the mobile platform.
No longer is the cell phone adequate but Smart Phones are the hot category. Consumer purchase intent signals that this will continue to be a robust category for at least the next several years.
Internet in the car is a major new direction for automobile companies. The recent demonstrations by BMW in Germany at the recent Geneva autoshow indicate how important the Internet has become. Maserati is also promoting its in-car PC which is a full PC accessible from the rear seats.
Two companies have introduced boxes to enable mobile WiFi: Autonet and AirBox.
It is expected that satellite based content to the cars will accelerate. Already Sirius is offering its Backseat TV with children’s programming.
From a consumer perspective the Microsoft Sync efforts with Ford show the importance of integration within the car. Others are expected to follow this lead.
The integration of digital radio with mobile devices was highlighted with the Polk Audio ES2. This allows one to listen to the radio and when something of interest is heard a button pushed. This registers on an iPod which is docked. Then the individual can connect the iPod to iTunes and download that song. This is called iTunes Tagging.
HD Radio offers new possibilities for radio with conditional access and tiered services and content.
0806.4 Where is the excitement?
The theme at NAB is “where content comes to life.” As The WAVE walked the floor. it was clear that the production side of the business has made the digital transition. There is even a migration beginning to 1080p. Yet, extending the broadcasting business to new business models and new distribution outlets is sorely missing. The most valuable asset which local broadcasters have is news, weather and traffic. Yet, the public can get this from many sources. As we saw yesterday in the CNet session on Cool Gadgets and Hot Content the automobile is just another platform. Who needs a radio for traffic updates, during the morning commute, when Dash is available? Mobile TV is a hot topic but as we set in on many sessions, we kept wondering, does the broadcaster get it? The syndicators and packagers of content are swarming around the mobile television opportunity. The broadcasters seem on the sidelines.
Here at NAB we are swimming in non-linear editors, digital switchers, NAS, asset management systems and on-air graphics. This is about selling the next sizzle in a market which loves the latest technology. But as broadcasters cut back in the Web 2.0 era, its future is shaped more by YouTube and MySpace than a 4K camera whose output goes nowhere. That new tower with the DTV transmitter goes to fewer and fewer receivers with rabbit ears.
When the essence of broadcasting is localism, we have seen little of this, other than the news and weather. Tim Robbins, in his speech yesterday, lamb blasted broadcasters for not rising above tabloid local news. He excoriated the news institutions for their lazy and unprofessional adjustment of the truth and holding politicians accountable to it.
On the show floor the beef is in technology. A gaping hole is that broadcasters do not shape the end user experience. In the HD era this is left to the manufactures of CE devices, the cell phone operators and even the car manufacturers. Unfortunately, this cannot sustain an industry which also does not know how to go into digital with new content, new distribution and new economic models.
0806.5 Mobile Television Trial
A SES-Hiwire trial was conducted in Las Vegas from 8/07 to 2/08 with television distribution over cell phones provided to 200 users. Key findings included:
24 channels of content but this did not include sports and local channels.
50% of the viewing sessions were between 20 – 60 minutes
Average viewing was 8 minutes
Viewers favored traditional full-length programs
Viewers wanted local broadcasts and live major sports which was missing
A unified channel guide is very important
Shortfalls of the coverage, including in doors we seen as significant limitations
Top genres included: children’s, arts and music, learning, men and national news.
Women requested Disney which was not present
Users asked for DVR on the phone viewing devices
There was a desire for more types of devices including ultramobile PCs and car video
In short, consumers wanted on the mobile device the same television they see at home.
0806.6 From the Show Floor
Beyond 1080p
NHK is showing the UltraTV System. This supports 4320 scanning lines to create a 32mpixel image. There is a 22.2 multichannel sound system which has 4 layers of sound. The top layer has 9 channels, middle layer 10 channels, LFE 2 channels and the bottom layer 3 channels.
The Red booth was always packed. Its cameras include:
Epic – 5k, Red One – 4K and Scarlet 3K. All the cameras are in black and look like they are for Special Forces. The Epic uses the “mysterium X sensor” to achieve 5k resolution from 1 to100f/s. Red touts that its products are fully upgradable. Price of a camera is approximately $35k.
Digital Signage
Sony had one of the most complete product offerings in digital signage. It describes digital signage as an updatable dynamic sign that receives and displays images or video that can run at any time. Some of the product offering includes:
VSPNS7 – digital signage player which supports 5 layer HD playback and the ability to mix video, graphic, flash, text, audio and html.
BKMFW50 – simple digital signage player which does not require a network
ICSFW40D – Basic HD digital signage player which has network connectivity and store and forward ability.
Vegas Content creation software for digital signage (and more) authoring
Cisco had a single sign in the booth promoting the value of its digital signage solution.
TVLogic was promoting its multi-LCD panels to create a large area video wall display.
Wacom touch tablet
The Intuos3 professional pen tablet is supported by 100 software applications. Its specs include:
1,024 pressure levels
5,080 lpi resolution
Area to 12” X 19”
$749 price
RAID Storage for Consumer
LaCie is promoting its RAID storage products. The 2S2 Product has 5 disks, supports RAID levels 0,1+1and JBOD. The interface is PCI-Express or PCI-X. The price is 2.5TB for $1,349 at the show. This drive will support multi-stream HD video playback.
GPU Acceleration
Elemental Technologies, is showing an accelerator for Adobe Premier Pro. What is different about this product is that it claims significant performance improvement by using the GPU for rendering. The minimum system requirements include an NVIDIA G800 or greater based Quandro GPU.
0806.7 Hulu
Jason Kilar, CEO, Hulu, described the company since its launch on March 12, 2008.
Online television consumption is exploding. In March 2006 there were 30.6m streams and in November 2007 this has risen to 80m streams. Overall video consumption has risen 3X in 24 months, while online video advertising has risen also 3X.
Hulu is based on the premise that you can watch your favorite programs online anytime for free. Hulu is centered on providing premium content and has over 50 sources.The mission of the company is to help individuals find and enjoy premium content when, where and how they want to.
This is being accomplished with a very strong user experience. Jason spent some time reviewing the design principles of the user interface.
Hulu also supports social networking. It is possible to send Hulu content to users on many social networking sites. In fact, the sender can select only segments of content which they find of greatest interest – clipping content. A viewer can also e-mail Hulu content by reference.
Hulu has an interesting approach to distribution. Many sites can have the Hulu site embedded within them. Today this includes: Yahoo, Comcast, MSN, AOL and Myspace. There are 12,000 additional sites with Hulu content. Hulu allows other sites to maintain their own look and feel.
For content owners to capitalize on Hulu the company has laid out the following:
Be offensive about the online video medium no defensive.
Accept that your video presence will not be in demand by all; and
Be a part of strong consumer experiences.
The first point was stressed by Jason. For example, Hulu advocates less advertising not more. It was cited that the advertising time in its content is ¼ that on broadcast. But the CPMs from Hulu are actually higher than broadcast. His message was do not exploit the online medium for perceived maximum income but use its strengths.
One of the most popular programs is Arrested Development, which is no longer available.
Another principle at Hulu is that media is not essential to human lives – it is optional. Thus, media is an impulse business and as distributors we much make it very easy to get to and use.
Hulu is based on premium content, a top quality user experience and content owners being offensive about the medium, not defensive.
0806.8 3D in the Home
NHK had its own booth showing ultra high definition television. On the delivery side there was a 46” 3D LCD HD television. They called this a part of the 3D HDTV home theater. We looked at the 3D and it was quite good.
At NAB the 3D@HOME consortium was launched. This will be a non-profit alliance of companies to promote affordable in-home 3D. The early members include:
Philips, Samsung, Walt Disney Studios Home Entertainment, Thomson, IMAX, TDVision, 3DIcon, Corning, Planar Systems, QPC Laser, SeeReal, 3ality, DDD, In-Three, Quantum Data, Sensio, Fraunhofer Institute IMPS, Sim2, Setred, Universal Studios Home Entertainment, Holografika and Volfoni. The consortium is focused in the near term on the following:
Creating and publishing useful technical roadmaps;
Developing educational materials for consumer and retail channels; and
Facilitating the development of industry standards and their dissemination.
The following statement was made to support the formation of the consortium:
Driven by the success of 3D in digital cinema, an entire new ecosystem is forming to develop the hardware, software, content and delivery mechanisms to bring 3D entertainment into the home. This will include 3D gaming, sports, movies and other entertainment. "In 2008, millions of TVs, capable of showing stereoscopic 3D content, will be purchased by consumers," noted Insight Media President, Chris Chinnock. "The value of DLP, PDP and LCD TVs sold in 2008 that are capable of showing HD-quality stereoscopic 3D content is expected to exceed $2 billion dollars, making this market large enough to attract the interest and attention of many players."
0806.9 WAVE Comments
The WAVE has heard numerous arguments on how FPDs will be everywhere. This is all about increasing the total display area in the home and increasingly outside the home with digital signage. But we were surprised to see digital signage here at NAB. It seems a stretch to equate the experience of broadcasters in video and their access to advertisers as the basis for broadcasters getting into digital signage business. But the emergence of digital signage as a market is the result of many factors. Certainly a key one is the availability of low cost FPD. But as we learned at DisplaySearch, digital signage is more than just a FPD. There are many elements to this market including the back end, authoring and management. We found it interesting that Sony had the most complete line of signage products. To them it is an extension of the video product line, including monitors. Sony even had a content authoring software package.
The broadcasters have no choice but to provide content to mobile devices. The work on the MPH, Mobile Pedestrian Handheld, technology is one of several using digital spectrum in the US. Thus, we expect that the US will follow the rest of the world and see television in cell phones. But we still have a hard time understanding the business model for broadcasters. Will CPMs on cell phones impact the revenue stream of a local broadcaster? As the one trial in Las Vegas indicated, consumers want from the mobile devices the same functionality they have at home, including the same channel line up and even a PVR. Thus, the device and content bar has already been set high.
Just as consumers are buying 1080p FPD televisions as a future proof investment here at NAB 4K and beyond is gaining traction. But does this make sense? Does the public have the interest in seeking the ultimate in image quality? Certainly the NHK booth showed video quality which is impressive but does this make any market sense? We expect it will be at least 5 years for the investment in HD to settle out before there is any serious interest in 4K beyond digital cinema.
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