Cable Operators Look to the Cloud for New Video, Business Services
Cable operators are moving to use the public Internet cloud and their own private Internet Protocol clouds to pump out new video and business services, products and apps to subscribers much faster than before while keeping capital and operating costs down, executives said. Over the past several months, several major North American cable providers have started cloud-based initiatives to deliver network-based DVRs, interactive programming guides (IPGs), IP video streaming, VOD, interactive TV apps and phone service to companies.
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Operators are especially focused on using their own managed IP clouds to develop and deploy new IPGs and user interfaces (UIs), replacing static, outmoded programming scheduling grids with graphically rich, more intuitive programming guides with more sophisticated search and navigation. The idea is to provide a better user experience for customers, helping cable companies stem the continuing decline of basic video subscriptions, executives said. Over-the-top (OTT) Web services and connected devices offer content navigation some see as superior to cable, as well as more search capabilities.
Cable operators also aim to use these cloud-based guides to support their multi-screen efforts by offering a consistent user interface across consumer electronics devices. They also hope to boost usage of their video products by subscribers. “We'll use it [the cloud] to drive that complexity out of the home back up to the edge and into the cloud,” John Civiletto, executive director of network architecture for Cox Communications, said on a webcast Monday sponsored by Cisco. “We think it'll actually drive consumption in the home because of the portability.” Cox has already introduced a tru2way-based programming guide called Trio, and seeks to add more cloud-based capabilities to its guide.
The new cloud-based guides should also enable cable operators to make data changes on the fly, avoiding the lengthy regression testing required for set-top-based IPGs. The new IPGs are designed to act as Web portals, letting cable operators place ads, offer electronic commerce, deliver customer care tips and upsell services. In the industry’s most ambitious case, Comcast is preparing to start its new cloud-based video platform, known as X1, in its first market. Comcast Cable President and CEO Neil Smit said on an earnings conference call recently that the company plans to start X1 in one “major” market in Q2, before extending it to other systems later in the year. The X1 platform will feature Comcast’s new graphically rich programming guide, which provides access to linear TV programming, VOD, ITV apps and some Web and social media.
"It enables us to innovate more quickly,” Smit said. “I think the impact of it will be hopefully more customers wanting to subscribe to our video service and less churn because they're more pleased with our product.” Comcast isn’t alone. Time Warner Cable disclosed in the fall that it began deploying a new cloud-based programming guide with improved search and navigation capabilities. Considered more of a first-generation guide, it features cover art and other graphically enhanced elements.
Switching to cloud-based services and apps, cable operators seek to take advantage of a growing installed base of DOCSIS set-top gateways in customers’ homes. These IP-based set-tops can deliver data and interactive apps to the TV screen, along with video programming. Time Warner Cable, Cablevision and other major U.S. operators are using these types of set-tops to feed the navigation systems for their new apps for the iPad, other tablets, smartphones, connected TVs, PCs and other connected devices in the home.