January 13, 2011

End-user behavior is driving both IP traffic growth and viewer fragmentation. In order to meet the changing demands of consumers, network operators must rethink the role of the headend, the architecture of the transport network, and the approach to the connectable device ecosystem. Collectively, such changes will allow operators to improve quality of service, enable consumption across devices both in and out of the home, and incorporate OTT video within a managed environment. Consumers, network operators and content providers all stand to gain from this fundamental re-architecting of the IP network.

The rise of video-enabled IP-pull devices, coupled with their increasingly active use, is at the root of current and future IP-video traffic growth. By 2014, premium online video and IP-VoD alone will require the transport of 15 million Terabytes. Based upon the necessity of meeting IP-traffic demands, and stemming viewership fragmentation, network operators must invest in their infrastructure in order to secure the profitability of their existing businesses.

This paper examines how rethinking the headend, the transport network, and the approach to the connectable device ecosystem will allow operators to assure quality of service, generate new revenue, enable consumption across devices, and incorporate internet video within a managed interface.

Highlights:

• Between 2010 and 2014, global consumer internet traffic will triple
• By 2014, of the 500 Exabytes of IP traffic transferred globally, 10% - 15 million Terabytes ? will consist of premium online video and IP-VoD
• By 2014 in North America, 30% of connectable TV sets, games consoles, BD players, standalone IP streamers or pay-TV set-tops will be actively connected
• On average, this will allow one TV set per TV household to be connected to an IP service
• This surge in connectivity - and the significant pull effect it has on IP video traffic ? will threaten at peak times to overwhelm operator networks if they remain in their current form. At moderate levels of concurrency, it is possible that the total bandwidth required by an average service group will exceed the roughly 5000 Mbit/s that can currently be dedicated to any one group.

Tables and charts included:

• Global consumer internet traffic (2009 to 2014)
• Premium online video and IP-VoD traffic globally (2009 to 2014)
• Connectable devices installed globally (2005 to 2014)
• US: Connectable devices installed (2010)
• UK: iPlayer online views by platform (2010)
• US: Physical disc, VoD and online movie and TV transactions per TV household (2005 to 2014)
• US: Distribution of VoD transactions by source (2006, 2010, 2014)
• UK: Average playback time, by bitrate, for a given show streamed online (2010)
• Western Europe: Broadband connections by type (2005 to 2014)
• UK: TV set shipments by video platform supported (2010 to 2014)

Pages: 18

Tables & charts: 10

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