The proving grounds for the recent evolution of cloud-based broadcast operations has been free ad-supported streaming TV (FAST), a linear-TV streaming format that shares many advantages with internet-connected, NextGen TV broadcasting. One of these advantages includes a one-to-one advertising model that enables the targeting of advertisements to specific users and the collection of extensive, real-time data and analytics on how concurrent users are consuming a channel’s content — all without relying on panel-based reporting from market measurement firms.
Today, many cloud-based workflows originally designed for FAST-style streaming are now being considered for traditional over-the-air (OTA) broadcasting. This is applicable not only to those already invested in ATSC 3.0 but to any legacy OTA distributor.

This convergence of FAST and OTA workflows is an exciting development that gives broadcasters an excellent opportunity to experiment with delivering diverse content over the airwaves. “Convergence” is truly the operative word here: As workflows unite for cloud-based and traditional broadcast methods, content production and distribution will become more streamlined as well. Thanks to the maturity of the cloud within the FAST ecosystem, channels that were once exclusive to digital platforms can now be adapted for OTA broadcasting. And soon, the distinctions between cable offerings, OTA content and over-the-top services will become increasingly blurred. As this transformation unfolds, broadcasters will find it easier to build multiple channels, experiment with new offerings, manage content and ads across FAST and OTA channels, and personalize and localize content.

Benefit 1: Building Multiple Channels Is Significantly Easier

Cloud technology has empowered broadcasters to manage channels and incorporate sophisticated elements more easily and affordably. Thanks to the cloud, there’s little need for dedicated hardware in broadcasters’ setups. And when it comes to managing a channel, all related tasks can now be conducted in a Web browser, where content, graphics and advertisements can be built into a channel instantaneously and contribute to a more comprehensive viewer experience.

As cloud-based workflows for FAST have shown, broadcasters don’t need an entire control room’s worth of software and hardware to incorporate sophisticated elements, including graphics. J-bars, L-bars and other similar elements can be easily constructed in HTML, offering greater flexibility and resulting in a visually appealing presentation that matches the sophistication of cable TV programming. Essentially, broadcasters can construct a website over their channel and can automate various elements such as tickers, clocks, stock quotes, sports scores, weather information or any structured data source they have access to. This capability might have been beyond the reach of many TV stations lacking the necessary hardware or software for overlaying such elements onto their channels. However, by envisioning the channel as a website, the transition to NextGen TV-grade viewership becomes much more feasible. And the best part is that it’s straightforward and cost-effective.

Benefit 2: Experimentation Incurs Fewer Costs and Less Risk

Moving broadcasting operations to the cloud significantly reduces upfront costs, providing broadcasters with the flexibility to experiment with, launch and manage multiple channels at a time — even pop-up channels. Traditionally, broadcasters would invest hundreds of thousands of dollars upfront in building a traditional broadcast facility. Moving operations to the cloud often entails adopting a software-as-a-service (SaaS) model, which largely shifts accounting practices from capital expenditures to operational expenditures. As a result, establishing multiple channels in the cloud is far more cost-effective. There isn’t a massive initial expenditure; instead, broadcasters can spread the cost over the duration of a contract with a SaaS provider. This approach allows broadcasters to be more experimental and lowers the barrier to launching multiple channels, empowering them to introduce new offerings with minimal investment and very few operational demands.

If broadcasters want to test a channel in a specific market, there’s no need for extensive deliberation due to high costs for equipment, and it doesn’t require a significant financial commitment to get it off the ground. This cloud approach enables experimentation and trying out various ideas without significant upfront planning and costs.

Additionally, the threshold for launching pop-up channels around single live events is currently quite low, given the ease of the process. If broadcasters have the inbound signal, they can efficiently broadcast these events in a cost-effective manner, initiating and terminating these channels without requiring a significant financial investment or extensive internal deliberation. If broadcasters want to establish a channel dedicated exclusively to local high school football, they can launch that channel in the cloud within a few days, run it for a limited time during the football season, and even distribute the feed to other interested platforms. Similarly, thematic channels related to various occasions or special promotions don’t necessitate a substantial investment, allowing for more creativity and experimentation. Whether it’s a Halloween channel, Christmas channel or one dedicated to an awards show or sports event that’s only needed for a few days or weeks, the cloud offers a creative and cost-efficient advantage.

Benefit 3: Ads and Content From FAST Can Be Copied to OTA

In the cloud, broadcasters can also create FAST and OTA versions of their channels and potentially increasing their revenue streams. One of the key divisions between FAST and OTA broadcasting is in the advertising environment. FAST operates in a one-to-one advertising model, where a marker triggers a call to an ad server, leading to a real-time auction for that specific user’s attention. In contrast, OTA is a one-to-many model where broadcasters need to program broadcast advertising deliberately, scheduling different videos between ad markers. But whether displaying a slate in FAST or playing an actual ad in OTA, the process of scheduling remains quite similar.  Taken further, broadcasters can also create a variation of a specific channel for both FAST and OTA, especially on digital subnets. 

By working with a prominent cloud SaaS partner, broadcasters with separate FAST and OTA versions of their channels — complete with different ad environments — can easily connect to an external ad server for broadcast. Here, the server will inform the SaaS partner about which ads to include and when. From there, the SaaS partner can converge the workflows, distributing the FAST version to established platforms using an IP-based stream and, for OTA, distribute the other version to stations via an HLS, SRT, or Zixi stream. Both channels require a specific IP version of their stream, so for the cloud SaaS provider, it’s just another digital endpoint, making the process both seamless and automated. By running the channel as either FAST or OTA depending on its intended market, content would discover a whole new revenue stream for broadcasters, significantly increasing immediate ROI.

Benefit 4: Content Becomes Far More Personal and Localized

Finally, cloud technology allows broadcasters to transform their operations into a cost-efficient and more customized 24/7 linear cable-style service. Thanks to the cloud’s ease of building a channel, opportunities for experimentation and convergent workflows between FAST and OTA, broadcasters can create an entirely new business model. In other words, they can effectively enhance the value of the scheduled content between live local newscasts, which typically serve as the cornerstone of local TV. And in doing so, they can not only avoid spending money on licensing content but also provide greater value to their customers.

Instead of investing in licensing national shows to fill the gaps between newscasts or overnight, broadcasters can use cloud-based content that offers more value to their audience and costs almost nothing. This approach allows them to maintain a local focus, which adds value for viewers. A weather channel might want different graphics layers for various parts of the country, which can be accomplished in the cloud. Similarly, a national news channel may want to incorporate localized segments, where a significant portion of the hour-long national news broadcast is filled intermittently with brief two-minute segments tailored to specific regions. By leveraging the cloud, it’s quite cost-effective to create these subfeed variants. There’s no need for numerous playout engines to support these channels, making these previously expensive considerations more viable and practical when done in the cloud.

Hesitations towards implementing the cloud as the primary playout system will vary among different broadcasters, even those that have already adopted offsite production. However, thanks to the boom in FAST over the last few years, cloud workflows have evolved significantly — far past the point of supporting digital subchannels to fully building and distributing network-affiliated primary OTA channels. The barrier to entry is low, even for those who have not transitioned to NextGen TV. By participating in the cloud-based convergence of FAST and OTA workflows, broadcasters can significantly change their internal operations, discover far more lucrative revenue streams and remain the beloved cornerstone of their local viewers.

GCI, the largest telecom provider in Alaska, placed a bigger bet on cloud services by acquiring Anchorage-based Network Business Systems, an Anchorage-based company that specializes in hosted and managed and IT services for commercial customers.

GCI did not disclose the financial terms of the deal, but said it was closed on Thursday (August 6) And that it has offered positions to all employees of NBS, which counts tech partners such as NetApp, Microsoft, Cisco Systems and HP.

GCI said the deal will help it bring a range of cloud services to Alaska-area businesses and bolster its growing cloud services team.

“We strive to bring our business customers state-of-the-art IT options at the best value,” said Greg Pearce, vice president of business services for GCI, in a statement. “More and more businesses are realizing that cloud services are the best option for data storage, processing and security.”

Comcast Business, the commercial services arm of Comcast, has launched a new hybrid data center and cloud program designed to give customers of its Ethernet platform more flexible and efficient access to critical tasks and functions such as data storage/backup, billing, and Web site hosting.

Comcast Business, which launched private Ethernet services in 2011, said it has extended that fiber-based platform to multi-tenant data centers and cloud exchanges, noting that the plan will help it broaden that access in its footprint to more than 1 million Ethernet-enabled buildings.

Comcast Business said it’s adding the capability as its customers look to mix private and public cloud services, based on the requirements of specific applications.

Under the program, Comcast Business is building direct connections into cloud exchanges to give its Ethernet customers scalable access to a range of cloud service providers.  As part of this strategy, Comcast Business said it has secured private connections with automated provisioning to multiple cloud services through the Equinix Cloud Exchange at 10 Gbps, 1 Gbps and sub-gigabit connections.

Comcast Business said it has extended its fiber network and Ethernet services into more than 325 data centers across the U.S., spanning individual Tier I facilities that local businesses use for data back-up to regional, to multi-facility Tier IV providers that offer colocation, managed hosting and cloud services with replication across diverse geographies.

“For CIOs and IT departments, sourcing their business applications to a multi-tenant data center or cloud is only viable if their business locations have private Ethernet connectivity to ensure application performance would be the same whether the server is on-site or hundreds of miles away,” said Mike Tighe, executive director, data services, Comcast Business, in a statement. “Our focus is on being the data center and cloud-neutral transport provider that empowers businesses with a choice in hybrid IT solutions and massive Ethernet network reach to connect data centers and cloud services to more than one million Ethernet-enabled buildings.”

Comcast is introducing the program as business services continues to be a major revenue growth driver for the MSO. The operator’s business services unit generated $1.01 billion in revenues in the third quarter of 2014, putting it on an annual run rate of more than $4 billion.