Click here to close now.




















Welcome!

Java IoT Authors: Liz McMillan, Pat Romanski, VictorOps Blog, Cloud Best Practices Network, Elizabeth White

Related Topics: Microservices Expo, Java IoT, Mobile IoT, Microsoft Cloud, Linux Containers, Agile Computing, Video

Microservices Expo: Article

Why Did AT&T Enter the OTT Market and Streaming Video Business?

The opportunity to attract customers with an over-the-top (OTT) video-streaming and TV offering is significant

When the U.S. Appeals Court struck down the Open Internet Order's rules that prohibit Internet service providers (ISPs) from site-blocking and providing preferential service, the debate surrounding the true definition of an open and unfettered Internet reached fever pitch. Most of the large access providers in the U.S. are subsidiaries of traditional telecom carriers and cable companies. These companies fought hard for this ruling, so it is reasonable to expect that they already had their strategies in place and plans drawn up for the investments that will be needed to rebuild the Internet, or at least a part of it, according to their vision. It is about time too. Of all the technology companies that existed before the Internet, the telecom carriers and the cable companies were best-placed to take the lead in building the future. Yet in so many areas, the technical and service innovation came from new companies and organizations we had never heard of before - not from those traditional players. Phone and cable companies have never been leaders in the World Wide Web, cloud computing, social media, Voice over IP and many other areas. But now, they have changed the playing field (at least in the U.S.) to suit the game they want to play, and so, liberated from the fetters of the unfettered Internet, we have a right to expect new innovative services. With the gates opened to competitive differentiation, we're seeing interesting things, such as AT&T's $500 million joint venture with the Chernin Group to acquire, invest in and launch video-on-demand channels and streaming video services to compete with the likes of Netflix, Hulu and YouTube.

With more customers moving away from broadcast, cable or satellite TV, the opportunity to attract customers with an over-the-top (OTT) video-streaming and TV offering is significant, as is the opportunity for the right player(s) to deliver these services across multiple platforms (e.g., mobile) and distribution channels, thereby increasing revenue streams. OTT streaming services provide new players with the opportunity to deliver video content and new entertainment experiences to consumers outside traditional linear TV paths, such as cable, satellite or terrestrial. Since OTT services provide programming over the Internet and can come across the same wires as your cable TV service, the barriers to entry are greatly diminished.

It is no secret that AT&T has not been a fan of Netflix and the two are publicly quarreling over how much money the video service should pay for a direct connection to the AT&T network. It is worth noting that since the creation of the Internet, Web companies have negotiated peering and interconnection agreements where websites connect to intermediaries, which carry the traffic to ISPs, which deliver the content service to customers. Most people were not even aware of these interconnection relationships until February when Netflix agreed to pay Comcast to connect directly to its network. Though the Netflix CEO suggests that Comcast had strong-armed him into paying an "arbitrary tax," the deal ensures that Comcast customers have improved video quality for Netflix service.

Verizon has also asked Netflix to pay for a direct connection to its network, even as Verizon users (and AT&T customers, for that matter) complain of poor Netflix performance. Netflix has tried to avoid making payments, despite giving in to Comcast, and instead asked the FCC to issue net neutrality rules that "prevent ISPs from charging a toll for interconnection to services like Netflix, YouTube or Skype." Its request was rejected by the FCC when it indicated that it has no plans to expand its net neutrality rules to ensure that services like Netflix can connect to Internet providers' networks for free. In his response to Netflix, FCC Chairman Tom Wheeler asserted that the government has an important role to play in overseeing how networks connect to each other, but peering and interconnection arrangements are not a net neutrality issue under review by the Open Internet proceeding.

This is a highly charged argument for both sides. Carriers always have options when faced with growth exceeding capacity: either charge higher fees to reduce traffic or let congestion run rampant for all travelers. Unfortunately both these options have a negative customer satisfaction result and are lose-lose situations for the carrier. If the service quality for a streaming video is less than desirable, customers will get grumpy and blame their ISP for a "slow" connection. Netflix argues that "Some big [ISPs] are extracting a toll because they can-they effectively control access to millions of consumers and are willing to sacrifice the interests of their own customers to press Netflix and others to pay." Netflix is clearly upset, but video streaming has turned into a mass-market service and is a capacity hog. If Netflix and other OTT players want to use an increasingly scarce resource to carry its service at the quality levels the service dictates, who pays? There are limits that will be hit and someone will have to pay to expand the network due to growth in streaming, the growth of mobile and the coming tsunami of the Internet of Things.

Although the AT&T/Chernin deal marks the first time a big U.S. ISP has decided to go over the top with a TV service, Verizon also has plans for a streaming TV service through its acquisition of Intel Media, and has created a video streaming service by partnering with Redbox. On the broadcast side, Dish Network has also brokered a deal with Disney to stream Disney-owned channels such as ESPN and ABC over the Internet to customers' smartphones, tablets, video game consoles and other devices.

As more consumers increasingly view content on their smartphones, tablets, game consoles and connected TVs, the ability of a provider to reach across multiple platforms will unlock new monetization opportunities for a multiplatform experience.

AT&T's partnership with Chernin Group will bring a video-on-demand service to market, and presumably provide more content outside traditional broadcast options. If the content is rich enough, Comcast or Verizon FiOS TV subscribers can select the offering and put a wrench in the business of content companies.

There is an opportunity to go to market with original content that drives new customer experiences across mobile devices, social platforms and new technologies, thereby disrupting existing business models. There is a lot at stake for AT&T and it must ensure that its content is worth viewing to stand out in a crowded field of OTT providers. It would appear to be off to a good start with its Chernin partnership. The Chernin Group provides its media smarts and its majority stake in Crunchyroll, an anime streaming company, while AT&T delivers the potential for extensive distribution and access to its customer base and wireless networks.

Clearly, different and varied business models will need to be supported and monetized, whether they are advertising models similar to Google's YouTube, subscription fees like Netflix, or both advertising and subscription models like Hulu. As new partnerships and business models are envisioned, these will also have to be quickly launched and monetized at a pace not seen by carriers for traditional services.

Interested in learning more about these industry developments? Tweet us your questions!

More Stories By Esmeralda Swartz

Esmeralda Swartz is CMO of MetraTech, now part of Ericsson. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda is responsible for go-to-market strategy and execution, product marketing, product management, business development and partner programs. Prior to MetraTech, Esmeralda was co-founder, Vice President of Marketing and Business Development at Lightwolf Technologies, a big data management startup. She was previously co-founder and Senior Vice President of Marketing and Business Development of Soapstone Networks, a developer of OSS software, now part of Extreme Networks (Nasdaq:EXTR). At Avici Systems (Nasdaq:AVCI), Esmeralda was Vice President of Marketing for the networking pioneer from startup through its successful IPO. Early in her career, she was a Director at IDC, where she led the network consulting practice and worked with startup and leading software and hardware companies, and Wall Street clients on product and market strategies. Esmeralda holds a Bachelor of Science with a concentration in Marketing and International Business from Northeastern University.

You can view her other blogs at www.metratech.com/blog.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as soon as they are needed to take action.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.