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DVEO: 2017 Online Video Industry Predictions

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Intense IP video technology competition leads to lower prices, with a great choice in all systems categories, hardware as well as software, and overall price/performance continues to develop very favorably.

2017 will be the year of Ubiquitous Streaming, as streaming solutions become even more pervasive. Small companies and non-profits can now stream video with affordable equipment that would have been priced beyond their reach a few years ago.

Most interestingly, this inflection point in technology allows entrepreneurial people with limited means to create and launch "niche" OTT services while competing with much larger and established television enterprises for subscribers.

This inflection point is also a good time for larger operators to upgrade their systems.

New and re-vamped products now deliver many more streams at a lower cost. For example, two years ago, our Brutus™ III systems transcoded up to 40 SD streams. Now they transcode up to 80, and the Brutus™ VI systems transcode up to 200 SD streams. DVEO’s scalable solutions range from a single-channel 5.5-inch wide encoder to a telco-oriented system that transcodes 200 SD streams or 50 1080p streams.

With the increasing popularity of watching video on mobile devices, operators can reach more users with cost-efficient packaging equipment. DVEO’s Gearbox™, Brutus™, and MultiStreamer™ transcoders and encoders natively serve 50 HLS users. DVEO’s ATLAS Packaging Server family includes a system that supports up to 42,000 RTMP, DASH, and/or HLS users at 1Mbps.

H.265/HEVC is gathering steam and offers cost savings. It doubles the data compression ratio at the same level of video quality, or offers substantially improved video quality at the same bitrate. H.265 is available as an option on DVEO streaming products. Or, DVEO customers can upgrade to include H.265 capabilities at a later date.

See below the video for a full transcript, and see the rest of the 2017 Streaming Media Executive Predictions in the related articles below, or download the entire batch here.

Eric Schumacher-Rasmussen: I'm Eric Schumacher-Rasmussen from Streaming Media. I'm talking today to Laszlo Zoltan, who is the Vice President of DVEO. Hey, Las. How are you today?

Laszlo Zoltan: I'm doing great.

Eric Schumacher-Rasmussen: Good. We're talking a little bit about your Executive Predictions article that's in the January/February issue of Streaming Media magazine. Before we start though, let's start out with you telling our viewers a little bit about DVEO in case they're unfamiliar with the company.

Laszlo Zoltan: Okay. Well, we've been around quite a long time. We've been around 20-some years. We're an up and coming company in the streaming media industry. We've inherited some space because Elemental and Envivio were acquired in the last few years, which allowed us to move into somewhat of a vacuum and we've inherited some customers that normally would have done business with them, but now that they've become parts of huge conglomerates, there's certain customers that want to work with a dynamic young company that's very fast and quick to their needs.

Eric Schumacher-Rasmussen: You say in your article that 2017 is going to be the year of ubiquitous streaming. What's changed that's going to make that possible this year?

Laszlo Zoltan: That's a really interesting question. As we all saw, Facebook entered the streaming industry. YouTube is expanding dramatically. Video streaming is part of our everyday lives. We can stream everything we do from what we eat, where we are, what's going on. We're all becoming very used to streaming and, of course, it's all sucking up a lot of bandwidth but, to the younger generation, streaming is just part of their psyche, part of the world. It's not necessarily that they're using our products, but streaming has become ubiquitous.

Eric Schumacher-Rasmussen: You also say that you expect, as part of that, that niche OTT players were really start to get into the business more and those kinds of services, the niche OTT services will really proliferate this year. What's driving that particular growth?

Laszlo Zoltan: The cost of entry appliances, the devices that allow people to stream. Streaming is becoming easier to use on our iPhones, on Android devices, and we're more familiar with streaming. We're not embarrassed to stream whatever we're doing, wherever we are. We're sharing videos. Facebook and YouTube and all the other streaming services are coming at us, are making us free to use streaming in everything we're doing. Of course, the ultimate endgame will be when we're wearing streaming devices. We'll stream our lives. If somebody wants to watch what we do, where we are, what we're doing at any moment, they'll just push a button. "I wonder what Les is up to?" There we are, and streaming will be even more ubiquitous.

Eric Schumacher-Rasmussen: That's on the niche player, the individual level. What about on the larger operator and publisher level? That's also, of course, growing and expanding and will continue to do so. How do you see that playing out in the next year or so?

Laszlo Zoltan: Good point. I see a lot of independent companies sprouting up, creating streaming. For example, streaming news services or companies like Vice TV or something like that. Small, independent operators are entering, you might have called it broadcasting industry in the old days. Today it's streaming. They might have a niche that they want to stream about, a subject matter that is close to their heart, or maybe of interest for advertisers.

Every kind of niche in the world is being adopted for streaming. Hunting channels, horse racing channels, cooking channels, everything that's on YouTube will migrate to a streaming environment, 24/7 streaming, either on Facebook or YouTube or something else. There's a disaggregation of broadcasting, or disaggregation of streaming going on and we could all create our own channels.

Eric Schumacher-Rasmussen: Let's get a little technical for a minute. Earlier, you mentioned that all this streaming is, of course, sucking up a lot of bandwidth. Publishers, technology companies are looking for ways to make it more efficient. One of those ways is HEVC and H.265. You talk in your executive predictions piece about what DVEO is doing in that arena. What role is HEVC going to play in the growth of this ubiquitous streaming?

Laszlo Zoltan: It's driving down the cost of streaming, whenever it arrives. H.265 is technically here. In theory, it's here. It hasn't become ubiquitous yet. I believe it will become ubiquitous in the next few years. As prices go down, the bandwidth utilization will not necessarily have to double again because, thanks to technology, you have same quality, half the bandwidth.

More people can join in on the activity and the infrastructure doesn't necessarily have to change. Of course, the capture devices will have to change. Of course, set top boxes are changing and devices are changing, but it's a natural technological inflection point to a newer, better platform called H.265.

Eric Schumacher-Rasmussen: Let's close by talking more specifically about DVEO and what you're doing. What's on your roadmap for 2017? What sort of products are you offering that are going to help the growth of this ubiquitous streaming?

Laszlo Zoltan: It's interesting. Smaller companies tend to do more creative, advanced products. There are a couple of products that we can't really talk about, but what we want to do is combine our DOZER technology, which is error-correction, packet loss correction technology. We're planning to introduce an appliance that uses that error-correction technology so that you can have a Skype-like experience like we're having today without the inherent errors. We're building a device that's going to give us a Skype-like experience without the inherent errors of Skype because Skype, people have not beaten a path to our door and licensed our DOZER. We're going to show them how to do it properly because the Skype conference is subject to packet loss if too many people are on the same circuit, and we go through many, many hops, then Skype just hasn't solved every problem in the universe, but our DOZER product has. I'm giving you an insight into what we're planning.

Eric Schumacher-Rasmussen: Yeah, very cool, exciting stuff coming from DVEO. It's going to be interesting to see what happens to both your company and the industry in the year to come.

Laszlo Zoltan: I agree. I'm looking forward to an exciting year. We have more technologies coming out, more advances. We're small and what we've decided to do this year is invest in multiple teams of people to create multiple new technologies because some of the products that we have introduced in the past have become commodified and we have to innovate at a much faster rate and we expect to introduce a slew of new products in the next year.

Eric Schumacher-Rasmussen: Great to hear. Thanks so much for sharing your thoughts with us today.

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