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Internet Protocol-based (IP-based) service delivery is the wave of the future for the cable industry, a shift that has fostered an overhaul in the underlying technical architecture of cable networks.  But the industry still has a lot pioneering ahead in order to efficiently deliver the wide range of IP-based services envisioned for the 21st Century.

A crew of industry tech innovators delved into some of the all-important underlying details of the transition to IP-based service delivery today during a Cable Show technical forum entitled Cloudy, with a Chance of Breakthrough:  New Models for IP Service Delivery. The good news about the transition to IP service delivery is that the power of cable’s transmission capabilities is radically multiplied because reduction of content to streamable data bits enables the more rapid and efficient delivery of all kinds of diverse content.  The challenges arise, however, because a bit is a bit is a bit and it’s hard to tell one bit from the next without sophisticated forms of identification.

One key to solving some of the IP service delivery challenges is metadata cell encoding, according to Michael Adams, Vice President, Software Strategy, Solution Area TV at Ericsson.  In short, metadata cell encoding could be a crucial step in managing the diverse kinds of content flowing over cable’s IP pipeline by signaling to the welter of consumer electric devices the nature of the content bits (the metadata contains the necessary identifying information), allowing the multiple types of TV “screens” to know which bits of data are right for which devices.

In a “TV Everywhere” world, consumers could get frustrated finding the right kind of content amid the masses of options, Michael Kazmier, CTO of Avail-TVN said.  That’s why Avail-TVN is advocating the creation of a central database of the various kinds of IP-based content.  This mediated, federated source of content would be a meeting place of sorts that identifies the content and outlines its features.  “If the consumer can’t find what they’re looking for, you have failed as a service provider,” Kazmier said.

Not all challenges arise from providing more detailed information about the data streams.  Gaming, for example, is evolving into a “now” service for cable, offering  up the prospect of real-time or near real-time interactions among players.  But latency, or the time between when a piece of data is sent and when it is received, could undercut the “now” characteristic needed for a successful gaming service.  “The challenge in video gaming is to make the latency short enough to create the feel of real-time gaming,” said Charles Jablonski, Vice President of video gaming company OnLive.

Even as technology accelerates viewing choices, consumers drive the programming process and it’s the job of operators and programmers to satisfy customer content demands on whatever platforms they choose to use, top industry executives agreed during The Cable Show’s 2010 Opening General Session today.  When it comes to navigating and managing the abundance of new delivery methods, “I think we have to pay attention to the consumer,” Time Warner Cable Chairman, President and CEO Glenn Britt said.  “Let’s let the consumers tell us when they’re ready.”

Opening General Session at The Cable Show 2010

A line-up of top execs kicked off The Cable Show 2010.

With VOD, the Internet and mobile technologies driving a host of new content consumption complexities, “My job in my company is to enable all that for my customer,” Pat Esser, President of Cox Communications said.

“We are not going to be able to dictate how consumers enjoy things,” Kevin Tsujihara, President, Warner Brothers Home Entertainment Group said.  “They will tell us what they want and how they want it.”

Whichever way the technological winds blow, one thing is clear: Consumers will increasingly demand far more than lean-back linear programming and will demand greater interaction alongside traditional video.  As it is, traditional TV viewing is already increasingly accompanied by two-way interactions, particularly social networking, Viacom President and CEO Phillipe Daumann said.

Reaching out to new platforms is now mandatory as a marketing strategy.  “We have to do that so that the Mythbusters brand remains exciting,” Discovery Communications President and CEO David Zaslav said. He said that story and compelling personalities must come first, with the interactive elements following.

Instead of posing a threat to cable, the simultaneous consumption of content across multiple platforms and the diversification into new delivery methods is “the biggest opportunity that we’re seeing that completely blows our mind,” Tsujihara said.

The next big thing – and a hot trend on the The Cable Show floor – is 3D TV, with the assembled executives pointing to the excitement that 3D technology generated at the Consumer Electronics Show in January.  “I think it’s an opportunity for all of us.  It is a real big opportunity today to delivery something that you can’t get outside of movie theaters,” Tsujihara said.  Gaming could be the factor that propels 3D into the home, Esser said.  “Young users and gaming could drive this faster than most people anticipate.”  Zaslav concurred adding that “Gaming is fantastic in 3D, which will push the sets into people’s homes.”

Keith Lee, CEO and Co-Founder of “real-world” gaming company Booyah underscored the importance of gaming in the new media mix, explaining how his company aims to drive viewer engagement through “compulsion loops” so that people keep coming back.  Indeed, Booyah’s focus on depth, rather than breadth, of content has resulted in 20% of users providing 80% of the company’s revenues. Lee argued that a compelling online gaming experience ought to be like chess: Easy to learn how to play, but difficult to master.

Peter Chernin and Brian Roberts.

Photo by Angela Weiss, Getty Images, of Peter Chernin (L) and Brian Roberts (R).

The communications world has long coped with the seemingly inevitable balancing act between content and conduit.  In the cable industry, the relationship between programming and distribution started to give way in the 1980s as operators stepped up their investments in emerging cable program networks.  But comments this morning from cable’s biggest MSO head suggested that if Comcast’s deal to buy NBC-Universal can be completed, a whole new era of resolution between the two camps could begin.

No one has a better vantage point on the potentially pivotal changes than Comcast CEO Brian Roberts, who shared his view of the new world during an NCTA-Hollywood Radio and Television Society Newsmaker Brunch this morning at The Cable Show 2010 (read the details here).  During an interview by Peter Chernin, CEO of Chernin Entertainment (and former President of News Corp.), Roberts said that his company’s $30 billion deal to acquire NBC-U could go a long way to resolving the conflicts between operators and programmers.

“We have a unique opportunity to take this technological vision and really help lead us faster,” Roberts said.  “We all need each other and we all want to stay one step ahead on piracy” and other issues.

Which is not to say that NBC-Universal will lose its unique character.  “We’re not going to try to ‘Comcastize’ NBC-Universal,” Roberts said.  “There should be a distinct culture at NBC-Universal.”

Roberts suggested that, if anything, Comcast’s ownership could prove a boon to NBC-U because of the more natural fit between its business and Comcast’s cable enterprises, certainly a better alignment than NBC-U has with current owner GE.  “As great a company as GE is, [news and entertainment] is not the core of what they do.  You can’t say that about the new Comcast,” Roberts said.

Comcast is also pushing the entertainment envelope with its dedication to Xfinity, the operator’s expansive online and TV-based on-demand content services.  Comcast’s on-demand offerings have had more than 1.5 times the downloads of iTunes, with a reach of only 24% of the U.S. market.  “The consumer loves being able to get what they want when they want it,” Roberts said.

He also announced that Comcast’s on-demand offerings are about to take a quantum leap in capacity, with next-generation servers offering up to 11,000 movies in each market and up to 70,000 hours of instantly accessible choices.  The expanded offerings will kick off in Comcast’s Philadelphia and Washington markets this year.

You can watch a replay of the conversation at HRTS’ website.

The mayor of Los Angeles, Antonio Villaraigosa, commended the cable industry this morning for its support of an innovative youth center, A Place Called Home.

Speaking at the launch of the CableCares day of service (see earlier post here), Mayor Villaraigosa said, “I want to thank CableCares because you chose a place that makes a difference in the lives of young people every day.”  The mayor also expressed his appreciation to the NCTA for hosting this year’s show in Los Angeles, underscoring the economic boost to the city by exhorting everyone to “spend money.”

Several hundred cable industry volunteers are slated to spend the day at A Place Called Home, which has been widely credited for providing a safe and revitalizing haven in its South Central Los Angeles neighborhood.  Speaking to the assembled cable volunteers, Glenn Britt, Chairman, President and CEO of Time Warner Cable said, “You are going to play a small part in helping the many young people who benefit from coming to A Place Called Home.  It will continue to innovate our nation’s leaders and artists.”

Time Warner is a long-time supporter of A Place Called Home.  The company’s President of Residential Services for the West Region, Deborah Picciolo, said that Time Warner Cable’s commitment to the community is a huge part of their company’s culture: “It’s not only about cable, phone, Internet and programming providers.”

Find out more about A Place Called home by visiting the center’s website.

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