Welcome!

Mobile IoT Authors: Mauro Carniel, Rostyslav Demush, Pat Romanski, Elizabeth White, Liz McMillan

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 VP, Marketing Enterprise and Cloud, BUSS. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda was CMO of MetraTech, now part of Ericsson. At MetraTech, Esmeralda was responsible for go-to-market strategy and execution for enterprise and SaaS products, 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 resource and service control software, now part of Extreme Networks.

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
BnkToTheFuture.com is the largest online investment platform for investing in FinTech, Bitcoin and Blockchain companies. We believe the future of finance looks very different from the past and we aim to invest and provide trading opportunities for qualifying investors that want to build a portfolio in the sector in compliance with international financial regulations.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
We are given a desktop platform with Java 8 or Java 9 installed and seek to find a way to deploy high-performance Java applications that use Java 3D and/or Jogl without having to run an installer. We are subject to the constraint that the applications be signed and deployed so that they can be run in a trusted environment (i.e., outside of the sandbox). Further, we seek to do this in a way that does not depend on bundling a JRE with our applications, as this makes downloads and installations rat...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...