A day after Charter Communications announced a joint venture with Comcast to create a streaming platform based on the latter’s Flex broadband-only product, chairman and CEO Tom Rutledge said that he sees a day when the bulk of its Spectrum video customers receive service via internet protocol delivery. He called the Comcast partnership a step in that direction. 

“I expect that incrementally most of our customer base will be all-IP,” Rutledge said after being asked about the JV on Charter’s Q1 earnings conference call with analysts. He added that unused video spectrum can be recaptured and used to increase broadband speeds or provide additional capacity over time.

In a research note Friday, MoffettNathanson senior analyst Craig Moffett noted that if the Flex box does become Charter’s new set-top, effectively moving all of its video to IP-based apps, it would free up enormous amounts of capacity. 

Rutledge didn’t say when that would happen, and what he said is something that cable operators have been quietly moving toward for years. But it was a public admission that cable is acknowledging that streaming is becoming the dominant force in video. This is coming from one of the better performers in the video space — Charter lost about 112,000 video customers in Q1, compared to a loss of 512,000 video subs for Comcast. Later on the call, Rutledge said that he still believes in the video business and Charter’s ability to keep its pay TV losses low can be attributed to its knack for packaging.

“We’re continuously improving the rights structures around what we’re able to sell,” Rutledge said. “It’s been difficult because of the way historically video’s been packaged in this very fat, expensive bundle that is driven by sports rights costs. We’ve been able to get some of the content out of that ecosystem and put it into tiers and we’re successfully selling those. I think that over time, we’ll be able to build a very nice video business.” 

Also: Could Comcast’s and Charter’s New Streaming Platform Be the Launching Pad for Something Bigger? 

That’s a key point, and whether or not Rutledge was making it as a hint of bigger things to come, being able to package video correctly is going to be crucial going forward no matter what delivery system is used. I talk a lot about the day when cable operators will aggregate streaming apps and sell them in bundles, replacing the current video model — and Rutledge has hinted at that in the past, too. But with streamers starting to feel the pressure from high costs, competition and viewer fatigue, having someone with a proven track record driving subscriptions could be invaluable. Whether they take the industry up on it remains to be seen.

Maybe streamers are beginning to learn their lesson. Netflix, after years of saying they didn’t care if subscribers shared passwords, last month said they would crack down on the practice. Other streamers are keeping a closer eye on password sharing, something that Rutledge warned about years ago. 

And though it would have been easy to gloat about Netflix’s current dilemma, aside from a brief “I-told-you-so” joke, Rutledge took the high road, pointing out that the practice affects the entire media industry. 

“It’s not just a problem for the companies that are not controlling their passwords, it’s a problem for everybody in the industry, because all of that content that comes out without anybody paying for it affects the supply and demand of all content, not just the provider that is selling the content,” Rutledge said. “[That] diminishes the value of content for everybody, which is a point we had been trying to make for years.”

Another plus for Charter is that Rutledge actually likes the video business. He doesn’t see it as an albatross, or as a roadblock to offering more profitable broadband service, but as a good product in a growing lineup of good products. It helps that he has seen the various transformations of that product over the years, and not just in video. During the call, he was asked how he felt about the explosion of new fiber builds and fixed wireless offerings geared at taking broadband share away from cable. 

“There have been periods in my cable career where sentiment has gone up and down, and my sentiment has remained the same,” Rutledge said. “I think it [broadband] is a great business and I think we have a great opportunity to continue to grow the business successfully. When everybody’s euphoric it’s probably odd, and when everybody’s pessimistic it’s odd, and I’m unchanged.” ▪️

Centennial, Co.-based vendor Evolution Digital has announced the hiring of former WideOpenWest executive Cash Hagen as chief operating officer.

Starting Oct. 1, Hagen will oversee Evolution Digital’s expansion of its IP-based video and broadband technology solutions for cable operators, reporting directly to CEO Chris Egan.

Hagen quietly departed as WOW’s COO in May, as the operator’s CEO, Teresa Elder continued to shake up upper management and build out her team. He had served as CTO for WOW from 2008-2016.

Related: Evolution Digital Launches Android TV-Based Box for MVPDs

“Cash’s experience as a senior executive at a large broadband and pay-TV provider is invaluable to Evolution Digital in this next stage of transitioning operators to IP video delivery and continued acceleration of broadband growth,” said Egan, in a statement. “He has proven to be a successful and trusted leader with a strong reputation for driving growth, enhancing profitability and efficiency while delivering long-term value for cable and telecommunications providers. I have unwavering confidence in Cash’s ability to build on Evolution Digital’s many competitive advantages.”

It’s the latest top-level management move for Evolution Digital, which in August made two key promotions, naming VP of engineering Panneer Ramalingam its new chief technology officer, while incumbent CTO Brent Smith moved to the newly created role of chief strategy officer.

Taking aim at small- and mid-sized cable operators in need of a next-gen pay TV offering, MobiTV said more than 210 networks have signed on for a new, hosted IP video platform that will steer clear of traditional set-top boxes.

MobiTV hasn’t announced all the “major” networks that are on board for its new centralized, multi-tenant video delivery platform – branded as MobiTV Connect -- but did point to a representative group of programmers that includes C-SPAN Networks, Disney and ESPN Media Networks, Fox Networks, Fuse Media Networks, Hallmark Channel, Game Show Network, NBCUniversal, Pac-12 Networks, REELZ, Revolt, Showtime, Outdoor Channel, The Weather Channel, and Viacom. Time Warner and Discovery Communications are among the notables that are absent from the current list.

Under the hosted approach, MobiTV will transport national programming feeds from its centralized platform (the heavy lifting will occur at its facility in Sacramento, with support from points of presence in Atlanta, Ga., and Tennessee) to its MVPD partners. MobiTV will also ingest local broadcast feeds and distribute them for its cable and telco service provider partners.

MobiTV also sidesteps traditional set-top boxes by leaning on apps-based system that works with retail devices such as Roku players and Fire TV devices, web browsers, as well and smartphones and tablets.

MobiTV is also supplying the user interfaces, though the service will carry the MVPD partner’s brand and the MVPD’s individual channel lineups. The managed Connect system will also support the operator’s billing and authentication systems.

MobiTV’s hosted video system emerges as a new option that complements an on-premises version of its managed IPTV platform, and comes on the heels of MobiTV’s partnership with the National Cable Television Cooperative.

RELATED: MobiTV, NCTC Forge Next-Gen Video Deal

“We can basically take the headend infrastructure off their [the cable operator’s] plate, put it in a central location…and service many operators from a single source,” Charlie Nooney, MobiTV’s chairman and CEO, said of the company’s new hosted, multi-tenant version of Connect.

MobiTV’s new hosted angle aims to reduce the capital costs required to create a next-gen pay TV service for tier 2/3 operators, but Nooney said some larger MSOs have also shown interest in the deployment model.

Regardless of the size of the operator involved, the primary focus is to provide those service providers with an economic path to an IP-delivered, multi-screen pay TV service that can help them fend off a cadre of new OTT TV service and a bigger cord-cutting trend.

“It opens up a lot of options for it opens up a lot of options for cable and broadband operators to not only stay in the [pay TV] space but get aggressive in the space,” Nooney said.

As a point of emphasis, the programmers on board with MobiTV have given the nod to the company’s video transport platform, approving elements such as signal quality and security. MobiTV’s system works in tandem with the distribution rights of the pay TV partners that are actually selling the service to the end customers.

“They [the programmers] have approved our technical solution…but we’re not in the content business,” Nooney explained.

Despite some variances in technology approaches, MobiTV is targeting a sector of the cable and pay TV market that’s also being pursued by competitors such as TiVo, Evolution Digital and Adara Technologies.

RELATED: TiVo Goes Device-Agnostic With New Platform for MVPDs

For its part, MobiTV claims that more than 35 pay TV providers, representing a footprint of more than 600,000 U.S. homes, have signed on to deploy the managed service. MobiTV doesn’t plan to announce them until later this summer, but Nooney said the bulk of them are coming way of the company’s NCTC agreement.

RELATED: Evolution Digital Debuts App-Based OTT-TV Platform for Smaller Cable Ops

MobiTV, which is still working on deals with programmers that are not yet on board, intends to launch the new hosted version of its platform by the end of June or early July.

Hickory Telephone, DirectLink, USA Communications, C Spire and Citizens Fiber are among known service providers that are using MobiTV’s on-premises architecture to deliver IPTV services. It's possible that some of them will migrate to the new hosted version of MobiTV's platform. 

RELATED: Citizens Fiber Connects With MobiTV for App-Powered TV Option

IPTV is radically changing the way that content gets consumed by giving TV viewers greater control over the entertainment they want to watch.

This rate of disruption is driven by the emergence of new consumer experiences, new distribution options for content, new devices, new competitors, new sectors in the ecosystem and new content sources and creators. Here are the top five challenges that pay TV operators need to surmount to thrive in the rapidly evolving IPTV landscape.

Streaming services are raising user expectations

Over-the-top (OTT) services like Netflix have changed the game. Consumers today have far different—and far more diverse—expectations when it comes to entertainment content.

Consumers have greater exposure to a range of OTT/web-based content, and that is influencing their perception of innovation and raising the bar for every player in the industry. They don’t only expect their pay TV service to provide a channel guide and the ability to search for their favorite shows. They also expect greater personalization and discovery. They expect their pay TV service to learn their tastes and continuously provide innovative new features and next-generation discovery options that allow them to connect quickly to content they like.

Traditional pay TV operators need to respond if they want to hold onto existing customers, minimize churn and attract new ones. The good news is that pay TV operators are uniquely positioned to solve an increasingly chaotic entertainment experience for consumers by leveraging their strengths in live and recorded/VOD content availability, bringing OTT and pay-TV offerings together and upgrading to next-gen, cloud-based solutions that up the pace of innovation.

Conversational voice interfaces are going mainstream

Voice interaction is entering the mainstream as tech giants like Google, Amazon and Apple heavily promote voice-based features and drive consumer adoption. Consumers can now speak to their devices and actually be understood with accuracy and reliability. This is driving pay TV operators to look very closely at their own voice-based interfaces and how they can extend them to consumers.

If done right, voice offers the optimal user experience for not only command and control but content discovery and navigation. It not only helps users get to their content faster but also enables operators to expose users to a much greater breadth of content. For example, voice enables operators to offer a highly personalized, highly conversational interface capable of addressing complex queries such as, “Show me popular sitcoms from the ’90s, available on Netflix.” The ideal offering for operators is one that combines a deeply media vertical content solution with the broader voice ecosystems of Google, Alexa, Siri, etc.

Operators are embracing Android TV and unmanaged devices

Not long ago, Android TV was a controversial topic among pay-TV operators. But not anymore, now that Google has been continuously listening to operators and addressing the majority of their concerns.

Today, Android TV is highly attractive to operators for a number of reasons. In addition to being able to address a wide range of devices that consumers can access content on, the OTT ecosystem available through Google Play brings together thousands of apps that operators can instantly tie into. However, as the content grows, so does the need for a superior, differentiated and consistent user experience flowing across all client platforms and backed by a powerful cloud service that’s flexible, agile and scalable.

RELATED: TiVo Goes Device-Agnostic with New Platform for MVPDs

What’s more, with Android TV’s Operator Tier, Google has addressed concerns around security and control. Specifically, operators now have full control over operator experience and boot screen, as well as the ability to tie into Google Assistant and Google Play. As a result, Android TV offers another viable option for operators who may be looking at ways to integrate its offerings into their overall strategy.

Cable operators are starting the transition to IPTV

As operators look to IPTV, they’re encouraged by new and unique revenue opportunities, such as the ability to provide more OTT-like services to certain market segments.

But many operators wonder how they can they transition from their current infrastructure to IPTV, while controlling costs and minimizing disruption to users. Some operators will manage the transition more seamlessly and cost-effectively than others and that will make a significant competitive difference.

The reality is that the right next-gen solution can provide versatile deployment options—from QAM to hybrid to full IPTV. Such a solution can assist operators in their transition to IPTV by maintaining support for QAM deployments, while still offering a flexible migration path by addressing the capital expenditure, networking and rights constraints of the operator. As a result, operators can address their most strategic concerns while quickly adapting to the evolving needs of customers.

Dynamic features and partnerships are rising in importance

These days, new enterainment features pop up all the time, and pay-TV operators need to be evaluating their services on a daily and weekly basis, rather than quarterly or annually. But, it takes a great deal of agility and flexibility to capture customers in today’s dynamic, hypercompetitive marketplace – how can you stay ahead?

The best way is by leveraging a cloud service that gives operators the flexibility to anticipate market needs or consumer trends, as well as the robust ability to roll out quickly across all device platforms.

They should also form more partnerships. Savvy operators are starting to bundle OTT services like Netflix with their own offerings because such partnerships open up new opportunities for them. In fact, in a market that is increasingly fragmented, there is a window for providers to serve as the starting point for consumers’ entertainment experience and guide them through the maze of content options. It’s no longer a deal-breaker if the operator must hand off the consumer to a partner service. The goal is to own the race track, not the individual horses.

In the days, months and years ahead, IPTV will become an increasingly important part of the broadcast landscape. Operators that look beyond their traditional business model and embrace emerging IPTV opportunities will be the big winners going forward.

-- Michael Hawkey is senior vice president and general manager, user experience, TiVo

Evolution Digital, the Colorado-based video tech company focused on tier 2/3 cable providers, has moved ahead with the launch of eSTREAM 4K, a device that is powered by Android TV.

That all-IP device is designed to support the MVPDs own pay TV service (via an OTT app or a managed IPTV service) and integrate it with the vast array of OTT apps and services, including premium video offerings, that are available via Google Play.

Evolution said eSTREAM 4K, which can be branded by the MVPD, is certified with Android TV’s Oreo 8.0 software, and comes with a remote that supports voice navigation. It’s also outfitted with 802.11ac WiFi with a 4x4 antenna configuration, can pair up with Bluetooth devices, and supports two bandwidth-saving codecs -- HEVC/H.265 and VP9

Evolution Digital, which has previously hinted at its plans for an Android TV device, sees a couple of MVPD deployment and configuration scenarios for eSTREAM 4K.

-An operator could sell or rent the device to the customer and offer its own standalone app.

-Present eSTREAM 4K as a managed device whereby the box boots up directly into the operator’s video application.

“This is really geared towards operators that still also want to play a role in having a managed device, but don’t want to deploy a box with legacy technology, like QAM,” Brent Smith, Evolution Digital’s president and CTO, said.

He said the new device also rounds up Evolution Digital’s hardware strategy, complementing the eBOX, its hybrid IP/QAM device.

“We’re not here to pick winners,” Smith said, noting that some operators want to take a gradual transition to IP video using a hybrid approach, while others want to move faster and have all new boxes entering the field be IP-only.

For operators that want to get out of the box business completely. Evolution Digital has also developed an app-based platform that can run on retail devices, such as Roku players, Apple TV boxes, as well as other products that run Android TV.

RELATED: Evolution Digital Debuts App-Based OTT-TV Platform for Smaller Cable Ops

“Even though we sell boxes, we’re also advocating a box-less future,” Smith said.

RELATED: Big Video Opportunities for Small Cable (subscription required) 

As for the new Evolution-designed, IP-only eSTREAM 4K device, Smith said Android TV is attractive in this instance in part because “it essentially brings all of the key components on the OTT side.”

But it’s also notable that cable operators will still need direct contracts with the premium OTT providers to support their services to eSTREAM, though this scenario is no different with other companies like TiVo and Comcast that are integrating those OTT offerings on their leased devices.

“But access to the high-value OTT world is one of the compelling reasons for Android TV,” Smith said.

Smith said Evolution has commitments for its new Android TV offering, but can’t name them yet.

Some of the company’s announced cable operator partners include Cablevision of Marion County, BELD, DTC, LHTC Broadband, Tullahoma Utilities Board, Valley Telecom Group, Gold Coast Broadband, GCI, TDS Telecom and WideOpenWest.

Evolution Digital is introducing eSTREAM 4K ahead the National Cable Television Cooperative’s Winter Educational Conference, set to run February 12-13 in San Antonio.

Evolution Digital, the Colorado-based video tech company focused on tier 2/3 operators, has rolled out a series of software enhancements and upgrades for eVUE-TV, a platform that enables partners to migrate to IP-based video services.

Updates to the platform’s user interface includes improved trick-play, frame overlay on video playback, operator-managed program categorization, enhanced adult filtering and automatic HD content filtering.

The new enhanced trick play capabilities, for example, let customers rewind and fast-forward through content at customized speeds, as well as screen captures that provide image-based detail about scenes as customers use those trick-play controls. For adult content, the new stronger filtering capability automatically moves adult selections into folders that are password-protected.

Evolution Digital is also rolling out a new backoffice operations console for eVUE-TV for managing linear and VOD billing systems. That console also allows for more monitoring and the reporting of customer viewing consumption patterns, the company said.

eVUE-TV supports IP-based VOD, linear, pay-per-view and network DVR services and applications. Last fall, Evolution Digital said 23 pay TV operators were on board with eVUE-TV following a string of recent deployments with MSOs such as Cablevision of Marion County, BELD, DTC, LHTC Broadband, Tullahoma Utilities Board, Valley Telecom Group and Gold Coast Broadband. GCI, TDS Telecom and WideOpenWest are also on its customer list.

RELATED: Evolution Digital Expands Customer Roster for ‘eVUE-TV’

“These upgraded features now available on our eVUE-TV platform offer consumers an exceptional viewing experience,” Brent Smith, Evolution Digital’s president and chief technology officer, said in a statement. “eVUE-TV provides our operators new opportunities to capture audiences who want to enjoy the best television functionalities available in the industry. In the competitive cable market, Evolution Digital strives to provide operators the tools that consumers want in a TV viewing experience to help retain and attract subscribers.”

eVUE-TV runs on Evolution’s eBOX IP/QAM hybrid device as well as integrated third-party hardware.

Last year, Evolution Digital also introduced eVUE-NOW!, an app-based platform that enables its partners to offer their own skinny TV bundles to OTT-powered, TV-connected devices as well as smartphones and tablets.

Ericsson Media Solutions and Bell Canada have inked an expanded multi-year deal that paves the way for the Canadian telco to build and launch a new multiscreen TV service powered by the vendor’s cloud-based MediaFirst platform.

The deal will bring personalized and converged multiscreen services to more than 1.5 million Fibe TV and Alt TV subs in Canada, they said.

Bell Canada has been using Mediaroom, the IPTV platform Ericsson acquired from Microsoft in the fall of 2013. MediaFirst is a next-gen, cloud-powered IP video platform that covers TVs as well as web browsers, smartphones and tablets.

“When integrated with Mediaroom, MediaFirst will deliver an agile, next generation TV platform with the necessary flexibility to easily incorporate third party apps,” they said.

Telus, another Canadian service provider that has previously used Mediaroom, is also upgrading to MediaFirst to augment Optik TV, its full-freight, managed IPTV service. Telus is also using Ericson’s MediaFirst platform to power Pik TV, an IP-delivered skinny bundle service that was introduced last April that runs smartphones, tablets and an Android TV-powered box sold by Telus for C$100.

RELATED: Telus Soft-Launches Skinny Bundle IPTV Service

Other announced MediaFirst customers include J:COM, Japan's largest cable operator, and Canada's SaskTel. 

A set of Canadian cable service providers – Shaw Communications, Rogers Communications and Videotron – are moving ahead with next-gen, multiscreen pay TV services that are powered by Comcast’s X1 platform. In the U.S., Cox Communications is also using an X1 syndication deal to underpin its new Contour pay TV service.

RELATED: Videotron to Use Comcast’s X1 Platform to Power New IPTV Service

In an effort to help its cable operators make the leap to IPTV, TiVo has introduced a next-gen, app-based platform that will enable TiVo to deliver its interface and overall user experience on a variety of retail streaming devices as well a client that will run on an MSO-managed device that runs Android TV.

Read More: Complete coverage of #CES2018

The new, underlying cloud-powered platform, to be demoed at next week’s CES in Las Vegas, is designed to allow TiVo’s cable operator partners to begin their pivot away from QAM-based digital video distribution systems and spark the transition to an IP-based video architecture, with options for VOD, DVR services as well as linear TV.

That migration can be deployed in several different forms, including hybrid QAM/IP approaches as well as IP-only scenarios for all video customers or those tailored to specific market segments, such as broadband-only customers or for services that are delivered on college campuses within the MSO’s traditional service footprint.

TiVo’s next-gen work centers on the backend control plane of the video service and factors in the company’s new UI, search across linear, OTT, VOD and DVR-recorded content, along with upgraded components such as voice search and navigation and a personalized recommendation engine.

For MVPD partners, TiVo will also integrate encoders and other video infrastructure components from third-party suppliers, explained Jim Denney, TiVo’s vice president of product and strategy.

An example of some of that early work is already taking place in Spain with Vodafone, which has combined TiVo’s new platform with network DVR technology from Ericsson, and was the first service provider to deploy TiVo’s new user experience.

RELATED: Ericsson Folds on Fabrix Systems For $95M

In addition to that backend work, TiVo work in the next-gen arena will also focus on streaming clients that will operate as apps on unmanaged retail devices such as the Apple TV box and Amazon Fire TV players. TiVo is also extending its next-gen platform to web browsers and apps for smartphones and tablets.  

TiVo, Denney said, is also developing a client to run on MSO-managed Android TV devices that will auto-boot to the cable operator’s experience when the box is turned on and extend more control to the operator, for those that want that option. This option will also enable cable operators to deliver their pay TV service on a platform that also supports the multitude of OTT apps that are offered on the Google Play store.

In both of those app-based scenarios, TiVo’s new fourth-gen UX (formerly code-named “Hydra”) essentially will be bridged to those retail and MSO-managed devices and support the same “design sensibility” that is delivered by TiVo on its more traditional Linux-based boxes, Denney said, noting that the approach allows TiVo to scale across different clients using a similar baseline code.

This isn’t the first time TiVo has tried to extend a bridge to third-party retail platforms. In 2015, TiVo introduced an app (in beta form) for the Fire TV that enabled users to watch shows and movies recorded to the DVR on the Amazon-made OTT device. AsZatzNotFunny reported Wednesday (January 3), TiVo retired that original Fire TV client app a few weeks ago, presumably to make way for the new app strategy being announced today.

RELATED: TiVo Flips on Fire TV App

TiVo’s fresh apps-based video approach for cable partners may ring familiar, as it shares some important similarities with new products for tier 2/3 MSOs that have been recently introduced by MobiTV and Evolution Digital.

RELATED: MobiTV, NCTC Forge Next-Gen Video Deal

TiVo has yet to announce if any of its current crop of MSO partners have committed to the next-gen platform. In the U.S., possible candidates include existing MVPD partners such as RCN Corp., Mediacom Communications, Armstrong, GCI, Grande Communications, Midco, and Atlantic Broadband, among others. Suddenlink is also a TiVo partner, though Altice USA, which acquired Suddenlink in December 2015, appears to be going in a different direction with its recently launched “Altice One” all-services platform.

RELATED: Altice USA Unveils ‘Altice One’

Ericsson said Telus is using the vendor’s new cloud-based MediaFirst platform to enhance and augment Optik TV, the Canada-based telco’s full-freight, managed IPTV service.

Among those enhancements, MediaFirst will add personalization features across devices (including TV and mobile) and enable Optic TV subs to watch TV, set recordings and watch VOD content on the Optik TV app using a unified interface. Those additions are now reflected in the Optik TV apps for iOS and Android.

The updated platform also taps into advanced analytics tools that help the service provider target relevant content and promotions to viewers, they said.

In the first phase, Telus has launched the enhanced version of the Optik TV app to almost 1 million customers in British Columbia, Alberta and Quebec.

Optik TV was originally developed on Mediaroom, the IPTV platform that Ericsson acquired from Microsoft in the fall of 2013.

Telus is also using Ericson’s MediaFirst platform to power “Pik TV,” an IP-delivered skinny bundle service that was introduced in April that runs smartphones, tablets and an Android TV-powered box sold by Telus for C$100.

RELATED: Telus Soft-Launches Skinny Bundle IPTV Service

Other announced MediaFirst customers include J:COM, Japan's largest cable operator, and Canada's SaskTel. 

RELATED: J:COM Taps Ericsson for New Multiscreen Service 

Charter Communications is taking aim at TV cord-cutters and broadband-only customers via a trial of a slimmed-down, no-contract streaming video package that starts at $19.95 per month.

The in-home IPTV offering, called Spectrum TV Stream, offers more than 25 channels, including the four major local TV broadcast feeds, plus PBS, CNN, Bravo, A&E, Discovery Network, FX, and AMC, History, and E!, among others, according to this promotional flyer about the service posted on Reddit.

Per the promo, that baseline offering also offers access to a library of nearly 5,000 free VOD titles and does authorize a subset of its live TV channels (those with TV Everywhere rights) to be viewed when the customer is out of home.

A premium version of the package, which costs $15 more per month (a price that is good for three years, according to the flyer), subs can get a VOD library with more than 10,000 titles and more than 35 premium channels from HBO, Showtime, The Movie Channel, Starz and Starz Encore. Subs can also subscribe to individual premium channels for $7.50 per month.

The flyer also shows a live sports and news package for an additional $12 per month that includes ESPN, NBC Sports, ESPN2, Bloomberg Television, and HLN, plus others.

Out of the chute, Spectrum TV Stream, which doesn’t use traditional set-top boxes, is supported on iOS, Android and Amazon mobile devices, Roku players, the Xbox One and Samsung smart TVs.

Confirming a report by Fast Company, Charter issued this statement:

“We are testing Spectrum Stream, an IP delivered in-home Cable TV product with traditional TV everywhere out-of-home streaming, to a group of prequalified and current Spectrum Internet customers to see if this smaller package resonates with a certain segment of non-video customers. It includes local broadcast channels, 25 popular cable networks and access to thousands of On Demand choices — along with options for additional news, sports and premium channels — delivered to connected and mobile devices, without requiring a set-top box.”

Charter tested a different iteration of Spectrum TV Stream in the fall of 2015 that started at $12.99 per month, bundled in a Roku 3 streaming player, and offered an add-on package with channels such as A&E, ESPN, Food Network, TBS and TLC for an additional $7 per month.

RELATED: Charter Targets Cord-Cutters With ‘Spectrum TV Stream’

Other pay TV operators are testing or rolling out slimmer bundles, including some without sports programming, as they try to stay on top of a small but growing cord-cutting trend.

Comcast, for example, has been eyeing a Q3 launch of Xfinity Instant TV, an in-footprint, managed IPTV service that will feature a variety of packages, access to a cloud DVR, and initially target broadband subscribers who don’t take a pay TV package from the MSO. Reuters reported that the app-based Xfinity Instant TV offering will be priced starting at about $15 per month and include packages that could sell for up to $40 per month, and allow for add-ons such as ESPN.

RELATED: Comcast Prepping Q3 Launch of ‘Xfinity Instant TV’

CenturyLink is taking a somewhat different approach with CenturyLink Stream, a nationally-available OTT offering that features a baseline $45 per month package that includes ESPN and a cloud DVR, and a handful of add-on programming packages.

CenturyLink Bows Beta of OTT TV Service

Petrichor Networks, a startup that is focused on helping cable operators unify their video networks and gracefully migrate to an all-IP platform, said it has hired industry vet S.V. Vasudevan as head of product.

Vasudevan, who has held exec slots at companies such as TiVo, Cisco Systems and switched digital video pioneer BigBand Networks (acquired by Arris in 2011), will be taking over Petrichor’s product functions as the company continues lab trials, pivots into initial field trials and prepares to launches its product/platform commercially later this year, and ramp up in 2018.

RELATED: Cable Tech Vets Target Video Unification

Vasudevan, who started at Petrichor on June 1, noted that the plan is “reimagine” video solutions using a cloud-based software system that aims to reduce costs and network densities by 50%, and reduce power requirements by about two-thirds, while also helping MSOs open the door to a new class of applications and revenue opportunities.

Petrichor aims to unify the operations of what have become dual video networks for operators -- one leaning on legacy QAM technology, and a newer one that runs over IP.

The premise of the company’s approach is to “provide a graceful runway to get from the traditional legacy QAM architecture to an all-IP architecture,” added John Boland, a former Arris exec who was named CEO of Petrichor earlier this year.  

While going all-IP and managing the quality of experience/service that underpins that move is the longer term end-game, Boland said that Petrichor has some more near-term opportunities to displace current on-demand hardware and reduce an operator’s operational expenses.

Boland, who has been focusing on Petrichor’s business development, noted that the company is in lab trials with two operators since Q3 2016, and expects to next enter a field trial with a yet-unnamed U.S. operator.

Regarding financing, he said Petrichor is about three-quarters of the way through a seed round, and that he’d like to see the company move through the field trials and enter commercial deployment before the company aggressively pursues an A-series round of funding.

“We've got plenty of runway right now,” he said.

Petrichor currently has 11 employees, but is in hiring mode.

Others industry vets tied to the startup include John Carlucci, president and chief strategist, who previously was president and CTO of Alticast U.S and a former exec with Clearleap (now part of IBM), and Time Warner Cable; Bill Helms, chief technologist, who previously was vice president of subscriber networks at Time Warner Cable; and Mike Hayashi, chairman, the former long-time engineering exec at TWC.

Video will account for about 82% of all global IP traffic by 2021, up from 73% in 2016, Cisco Systems concluded in its latest Visual Networking Index.  

The study, which forecasts key IP trends from 2016 to 2021, also expects to see gaming apps gain ground, rising to 4% of all global IP traffic by 2021, up from just 1% in 2016.

Back to video, the global IP networks will be pumping out 3 trillion Internet video minutes per month by 2021, equal to 5 million years of video per month, or about 1 million video minutes every second.

More than half (56%) of connected flat panel TVs will be 4K-capable and up by 2021, versus 15% in 2016, with the installed/in-service base of 4K sets set to rise from 85 million in 2016, to 663 million by 2021. Ultra HD video, meanwhile, is expected to account for 21% of global IP video traffic by 2021, compared to HD video (57%) and standard-def video (22%).

Among other notable video-related findings, Cisco said a global cord-cutting household will generated about 117 gigabytes per month  in 2017, compared to 63 GB per month for an average Internet household.

Virtual reality and augmented reality IP traffic are also set to achieve a compound annual growth rate of 82% over the five-year span of the study. Though VR and AR traffic will generate about 1.72 exabytes per month by 2021, it will represent just 1% of “entertainment” traffic, Cisco said.

Bigger picture, Cisco forecasts that Internet users will rise from 3.3 billion to 4.6 billion, or 58% of the global population, during that span, while the adoption of personal devices and machine-to-machine connections jump from 17.1 billion to 27.1 billion.

The forecast also sees global average broadband speeds rising from 27.5 Mbps in 2016, to 53 Mbps in 2021.

Total global IP traffic is also expected to reach an annual run rate of 3.3 zettabytes by 2021, up from 1.2 zettabytes in 2016. To provide a sense of that scope, Cisco estimates that 3.3 zettabytes is equal to 14 times all the IP traffic generated in 2010 (232 exabytes), and all the movies ever made crossing global IP networks every minutes.

On the wireless front, WiFi and mobile-connected devices will generate 73% of Internet traffic by 2021. Cisco also expects total WiFi hotspots  (including homespots) to surge from 94 million in 2016, to 541 million by 2021.

Canadian telco Bell has added a set-top-free, apps-driven pay TV option with the debut of Fibe Alt TV, a service that offers up to 500 channels in the home via iOS and Android mobile devices, fourth-gen Apple TV boxes and Web browsers.

Fibe Alt TV, an alternative to Bell’s Fibe TV service, starts at $14.95 per month for a lineup of more than 30 channels in a “Starter” package that includes basic networks such as CTV, CBC, Fox, NBC, CBS and ABC,  though customers must also take an Internet service from the company.

Bell is also selling bulkier Fibe Alt TV tiers that carry a regular price of up to $103 per month. Those customers can also tack on premium such as The Movie Network, CraveTV, and HBO Canada.

Alt TV is initially available to qualified Internet customers in Ontario and Quebec, with plans underway to extend access to Atlantic Canada and Manitoba.

Fibe Alt TV offers up to two simultaneous streams in the home via a managed IP video network, and also supports access to certain content when customers are on the go.

Bell said it expects to extend support for Fibe Alt TV to Android TV-based devices later this year.

Alt TV doesn’t support certain features offered on its flagship Fibe TV product, such as select programming and content in 4K format, DVR recording, the ability to pause and rewind live TV, to restart shows in progress or from the past 30 hours, or movie rentals and purchases. It does, however, support pay-per-view programing and has access to a VOD library.

Bell’s TV unit added 22,402 net new Fibe TV subs in Q1 2017, and ended the period with 2.83 million TV subs, including 108,107 that came way of its acquisition of Manitoba Telecom Services (MTS), and a loss of 38,065 satellite TV subscribers.

Bell’s new streaming TV option comes on the scene as other service providers launch or make plans for next-gen video services.

Of recent note, Telus recently soft-launched a slimmed-down IPTV service/package called Pik TV that runs on smartphones, tablets and an Android TV-powered box and leans on Ericsson’s MediaFirst platform.

RELATED: Telus Soft-Launches Skinny Bundle IPTV Service

Shaw Communications, meanwhile, has launched “BlueSky TV,” a service that uses Comcast’s X1 platform. Rogers Communications has plans to debut an X1- based IPTV service by early 2018.

RELATED: Rogers to Tap Comcast’s X1 Platform for IPTV Shift

Comcast Cable said it has appointed former Amazon video exec Euan McLeod to the post of vice president, IP video engineering.

McLeod most recently served as global head of video of video at Amazon, where he headed strategy and development for projects and initiatives that included Amazon Video, Amazon Prime and Amazon Music. McLeod reports to Jason Press, SVP, video engineering and operations for Comcast Cable.

In his new role, McLeod will lead Comcast VIPER (Video IP Engineering & Research), the Denver-based engineering team that designs, develops and deploys the software Comcast uses to deliver IP video to TVs, smartphones and connected devices. McLeod will also guide Comcast’s ongoing migration to IP-based video delivery across all devices and platforms, the company said.

RELATED: Comcast Prepping Q3 Launch of ‘Xfinity Instant TV’

VIPER is also part of the Technology and Product Organization led by Tony Werner, who was promoted last year to president, technology and product at Comcast Cable.

RELATED:  Comcast Promotes Werner, Kotay

“Euan is a brilliant technologist with a proven track record of delivering world-class video experiences to customers,” Press said, in a statement. “His unique combination of experience, passion and technological prowess makes him the perfect fit to accomplish Comcast VIPER’s ambitious mission of building and deploying a next-generation IP video platform.”

Prior to Amazon, McLeod was VP of content platforms with Turner, where he oversaw development and operations for digital video content for networks such as CNN and TNT. He also McLeod founded Mobile Platform, a mobile video company that counted  customers such as BBC, Turner and Sky.

RELATED: Comcast to Launch ‘Xfinity Stream’ App on Feb. 28

McLeod earned his bachelor of engineering degree from Edinburgh Napier University and his MBA from Heriot-Watt University. He also studied marketing innovative technologies through Harvard Business School’s executive education program.

Layer3 TV, the Denver-based next-gen cable operator, has hired industry vet Gregg Grigaitis to the post of chief product officer.

Grigaitis, who will head a team that oversees Layer3 TV’s product strategy, product management and overall product development, most recently was with Suddenlink Communications, the MSO now owned by Altice USA. At Suddenlink Grigaitis played a big role in rolling out products like TV Caller ID, a TiVo-powered video product, SuddenLink2Go and the MSO’s ConnectedHome Security platform.

RELATED: Suddenlink Rolls Home Automation Service

Grigaitis previously was SVP of product and business development at Broadbus Technologies, the VOD server/tech company acquired by Motorola in 2006 and founded by current Layer3 TV CEO Jeff Binder. Prior to that, Grigaitis was director of GuestServe and Movie Products at SeaChange International.

Grigaitis reports to Binder and will be based at the Layer3 TV headquarters in Denver.

RELATED: Say Hello to ‘Concierge Cable’

Layer3 TV currently offers service in the Washington, D.C., metro and in the Chicagoland markets, with Denver on deck.

RELATED: Layer3 TV: A Different Kind of Animal

“Gregg joining Layer3 TV is not just a win for our customers, as he will pour his 25 years of experience into phenomenal products, but also a win for our company, which strives to attract the top talent in the industry,” Binder said in a statement. “I’ve personally worked with Gregg for many years and I know he is devoted to creating the best products in the cable ecosystem. Gregg will be a huge asset in developing and executing the goals on our product roadmap.”

“What excited me about Layer3 TV, was the incredible team Jeff has built, and also the company culture that is laser focused on building products that put customers first,” added Grigaitis.  “I am excited to be able to contribute to Layer3 TV as it aggressively scales a remarkable service.”

Comcast has set the February 28 launch of “Xfinity Stream,” a new app that will succeed the Xfinity TV app and unify the customer's access to content that is authorized for viewing in the home and out-of-home, along with other features in common with the MSO's X1 video service on set-top boxes. 

The free app for iOS and Android smartphones  and tablets and Web browsers will allow Comcast pay TV subs to obtain full access to the in-home TV service, as well as providing out-of-home access to more than 200 live channels, the ability to access and program their DVRs, and a VOD library of about 40,000 titles.

That mix of add-ons and new features will bring an “X1-like experience” on smartphones, tablets and laptops, Comcast said. 

Comcast customers will be able to download the new app for iOS and Android devices on Feb. 28, and those with the latest version of the Xfinity TV app already installed will see it transition to the new app via an update at the end of the month.

Comcast has been asked how this new app related to Stream TV, a new slimmed-down, in-home IPTV service bundle for mobile devices that’s being used as a save tactic and to target cord-cutters, and being tested in Comcast's Boston and Chicagoland markets. 

RELATED: Comcast: Stream TV Is Not ‘OTT’

Update: A Comcast official said the company still expects to roll out the in-footprint Stream TV package nationally later this year, though it will likely be rebranded to help provide some clarify between the new Xfinity Stream app and the name of the slimmed-down TV service package. However, customers who sign on for that soon-to-be-rebranded package will use the Xfinity Stream app to access their subscriptions.

“We’re focused on creating the best entertainment experiences across platforms and continuing to give Xfinity TV customers more choice in how, when and where they access their content,” said Matt Strauss, executive vice president and general manager, video and entertainment services at Comcast Cable, said in a statement. “With the Xfinity Stream app, we are giving customers access to the best content in and out of the home with a growing list of advanced features and capabilities that make the mobile experience nearly identical to the cable experience they enjoy at home.”

Lynn University of Florida has joined a growing list of schools to launch Xfinity On Campus, an IP-based video service from Comcast that is powered by the operator’s X1 platform.

The service, available to on-campus students at the Boca Raton-based university, supports apps for Web browsers and iOS and Android tablets and smartphones, and certain Amazon Kindle devices.

As of the fall of 2016, Lynn University had 2,842 students, including 2,095 undergrads.

Per the announcement, Xfinity On Campus offers nearly 80 live cable channels and is available to students living on campus at no added cost. Those students also have access to a range of authenticated TV Everywhere apps, such as WatchESPN and FXNow, that can be viewed when they are on the go.

Last fall, Comcast said it signed up 36 more schools for Xfinity On Campus, including the University of Notre Dame, Temple University, and Villanova, while also extending features such as a Cloud DVR. Comcast said more than 60 schools are now on board with Xfinity On Campus.

Following a trial period, Comcast launched Xfinity On Campus commercially in August 2014. 

Going all-Internet protocol is all the rage. Pay TV providers are doing it and over-the-top video services have already done it.

The same holds true for TV programmers looking to put all of their operations and other interworking components under an overarching umbrella of IP technology that will enable them to “virtualize” their infrastructure and develop and launch an array of new, more personalized services.

Turner is well along that path, having started its long, sometimes difficult journey about two years ago.

COMING TOGETHER

In addition to setting the stage for new types of services, migrating a legacy serial digital interface (SDI)-based infrastructure to one underpinned by IP will provide Turner with an operational link between two groups — broadcast and broadband — that have traditionally worked in relatively separate silos. The IP path extends a bridge to those two parts of the business.

“We made a decision as it related to the technology … to essentially look at our network organization function as a feed factory, and that feed factory can spit feeds out in IP , it can spit them out in SDI,” Jeremy Legg, Turner’s chief technology officer, said. “We’re largely indifferent to the format that those feeds actually go out in.”

In addition to providing an operational boost, going with an underlying IP infrastructure will enable Turner and other programmers to start to think differently about their traditional linear TV businesses that have historically been the venue of broadband and OTT.

“That gets [us] into things like personalized streams; it gets into things like personalized content and gets into the targeting of ads and promos and content, and assembling them in certain ways for certain audience segments,” Legg said.

With that as the basis, it’s conceivable that a programmer like Turner could turn one version of Cartoon Network, for example, into multiple versions targeted to different audiences based on shows specific viewers watch and with targeted, more-relevant ads.

“Ultimately, [this transition] leads you to having more versions of a network, not fewer,” Legg said.

But pulling that off using legacy broadcast infrastructure historically hasn’t been possible because it wasn’t IP -based. “You couldn’t write the software to do it,” he said, noting that Turner has begun to hook fiber cables into an IP router in its broadcast plant, and that new IP -based cameras will help to expand and unify the entire video production ecosystem.

IP REVOLUTION

Going with an IP infrastructure, he said, will enable Turner and others to develop software-based systems that can handle elements such as dynamic ad insertion, the multiplexing and personalization of networks that run on an IP -based master control and playout system. That in turn, will support the playout of personalized networks either on-premises or via the cloud.

“In many ways, I think, some of the biggest technology revolutions are actually happening in broadcast,” Legg said.

But this transition isn’t going to happen overnight. Though Turner has been at it for more than a year, there’s still at least a couple of years left to get the job done, Legg estimates.

Some big pieces of the IP puzzle have been completed, though.

Turner, for example, recently signed a deal with Amazon Web Services that moves its physical content into the public cloud, rather than storing everything on-premises. With those master files in the cloud, Turner can then determine, for example, which assets are ad-supported and contain Nielsen watermarks to satisfy a wide range of distribution and service requirements.

Last year, Turner, along with Fox Networks Group and Discovery Communications, made a strategic investment in SDVI, to help them build out media supply chains and ensure that their content is being formatted correctly. Also factoring in is Turner’s acquisition of iStreamPlanet, which plays a key role in how Turner’s content is packaged and encrypted for various streaming platforms.

Another important element was getting the organization to move in the same direction.

“Getting to a place where we had a common vision of where we wanted to go, was probably harder than the technology itself,” Legg said. “But once you get disparate groups all rowing the oars in the same direction, then you can start to move pretty fast.”

Though Turner is developing a hybrid system that relies on cloud and on-premises playout, the trend ultimately will lead to an all-cloud playout approach that could help to seed the move toward more personalized program streams.

LIVE COMES LATER

Some networks, such as Cartoon Network and TC M, don’t rely heavily on live programming or use constantly changing on-screen graphics, but instead lean on playlist-based programming schedules. That makes them possible initial candidates for cloud-based playout.

“We’ll initially look to migrate some networks out that are less complicated to play out,” Legg said. “We’re not in position to start playing CNN out of the cloud yet.”

But networks that are better suited for cloud-based playout could shift to audience-based targeting and tap into usage and viewing data that can help to “influence” the makeup of a personalized network playlist, Legg added.

Small operators seeking insight and information on competition, continued industry consolidation and the power of Internet-protocol video can seek it this month at the National Cable Television Cooperative’s Winter Education Conference. If for no other reason, it’s in New Orleans.

The NCTC said more than 270 members have already signed up for the Feb. 20-21 gathering (more than the number that attended last year’s meeting in Phoenix). More than 200 exhibitor representatives have signed on for about 80 booths and tables.

Advanced video platforms will be the focus of this year’s meeting, a topic on the minds of every small cable operator looking for a competitive advantage.

“The focus will be emphasizing how to compete in the new video world. There are several components to it, a blend of technology, marketing and market research,” NCTC CEO Rich Fickle told The Wire, adding the co-op is in the middle of finalizing an RFP with 16 different companies for IP and advanced video technologies.

Click through to the WEC agenda.

SITTING ON AN ANDROID

“We’re looking at systems that can be used without set-top boxes and, in some cases, they can sit on top of an Android TV set-top,” Fickle said. “The choices for how cable operators serve their customers have opened up quite a bit.”

The event will also feature industry experts from Leichtman Research, CableLabs and Parks Associates, among others, addressing topics including the evolution of the U.S. video market, leveraging IP video and the connected home. The conference also offers multiple networking opportunities and a Solutions Showcase exhibit hall featuring the latest suppliers and innovators, as well as product forum presentations.

Fickle pointed to the proliferation of digital MVPDs like Sling TV, DirecTV Now, Sony PlayStation Vue and YouTube Unplugged, adding that the NCTC will unveil some market research at the WEC that will offer more insight into how consumers look at apps and the services delivered through them.

Attendees can also gauge the regulatory climate in Washington, D.C., with a Monday, Feb. 20, discussion headed by America Cable Association CEO Matt Polka. Leichtman Research president and principal analyst Bruce Leichtman will offer a look at the state of the video and broadband industries, and panel discussions from top executives at Eagle Broadband, RCN, CenturyLink, CableLabs, Cable One, Parks Associates and Buckeye Broadband will provide insight into competitive and technology issues.

Pricing and packaging of services will also be discussed, especially as skinny bundles proliferate throughout the pay TV universe.

“We have several members who have been doing different flavors of that,” Fickle said, adding that there will be panels and research released at the conference around those strategies. “It’s all about how to compete and how to drive costs down but improve the customer experience. A lot of it is done through IP, which is a different approach than we have done in the past.”

TAKING IT EASIER

Fickle added that programming contracts, which had constrained smaller operators from offering skinnier bundles, are easing up.

“The deals we’ve done over the last few years with the programmers have changed the restrictions,” Fickle said. “It’s not what everybody wants, which is, you can package anything you want, but it’s pretty comparable to what the larger MVPDs can do.”

Consolidation, a big topic when Charter Communications was pursuing Time Warner Cable — it closed the deal in May — isn’t as high on the priority list for small operators today. While there are likely some deals left to be done, Fickle said the emphasis is on cooperation.

“There are efforts underway to find ways for smaller operators to either partner up with some of the larger companies or band together even tighter to replicate some of the same capabilities, working together as a cooperative group of entities,” Fickle said. “Some of that needs to happen. I don’t think it’s something to panic about. Probably in the next five years it needs to be pursued in earnest.”

Elsewhere...

Mr. Wheeler’s Tweets Offer Pointed Words

Former Federal Communications Commission chairman Tom Wheeler didn’t take long to signal he would be a vocal critic of the new Trump administration, both at the White House and at the agency.

After tweeting “Congratulations Chairman Pai” on Jan. 20 — when Wheeler exited the FCC — by Feb. 1 he was taking aim at Pai’s decision to take the set-top box rule out of circulation. Wheeler had kept it in front of the commissioners for a possible vote, though that was highly unlikely to come from either Pai or his fellow Republican, Michael O’Rielly, who both opposed the revamp.

Wheeler and Pai had what often appeared to be a rocky relationship, exhibiting at times a strained courtesy at meetings, sparring in Hill hearings, and clearly at loggerheads over key policy and process issues.

On Jan. 31, after Pai pulled the set-top revamp item (a Wheeler centerpiece), and the day Pai presided over his first public meeting, Wheeler’s tone shifted as he took aim at both Pai and the cable industry — the latter a familiar target.

“Removing set-top box rule victory for Cable-wood over consumers,” Wheeler tweeted (Hollywood studios joined ISPs in pushing back on the set-top item), adding: “$200 million Pai Tax on helpless cable subs. Trump helping little guy??”

The chairman’s office had no comment. The Wire’s comment: Ouch!

— John Eggerton

Petrichor Networks, a startup led by a group of cable engineering execs late of Time Warner Cable and Arris, is taking aim at a major challenge faced by MSOs – accelerating the migration to an all-IP video world.

Founded in 2016, Boulder, Colo.-based Petrichor Networks believes that the platform it’s developing can speed this shift without requiring cable operators to toss out millions of older, non-IP set-top boxes.

Petrichor is also taking on a significant operational issue that this migration entails as MSOs continue to tend to and feed their legacy digital video platforms while also support a separate, parallel IP video network that is being used to ship video to tablets, mobile devices, Web browsers and TV-connected devices.

Petrichor aims to converge those silos with a hardware-agnostic, scalable software platform that enables cable operators to unify their video platform in such a way that they can use a single source of video to serve all devices, including those that are IP-connected as well as older set-tops that rely on QAM/MPEG video.

“By bringing our software solution, we knock down those silos,” said John Carlucci, Petrichor’s president and chief strategist, an engineering exec who is late of  Alticast, Clearleap (now part of IBM), Time Warner Cable and PolyCipher, a downloadable conditional access system initiative that was once a J.V. of Comcast, Cox Communications and TWC.

RELATED: CableLabs Takes Over DCAS Project From PolyCipher

That platform presents “an opportunity to accelerate the movement from where the operators are today into the IP space,” added John Boland, Petrichor’s CEO, a former Arris exec who took the helm of Petrichor Networks last month.

Petrichor Networks currently has eight employees and plans to expand on that. Other members of its leadership team include chief technologist Bill Helms, most recently VP of subscriber networks at TWC, and company chairman Mike Hayashi, the industry pioneer who last served as TWC’s EVP of architecture, development and engineering.

RELATED: Mike Hayashi Sets Exit From TWC

The core of Petrichor’s platform is called DROP (Dynamic Rate Optimization Processor), a real-time media processing software engine that can run on non-proprietary, off-the-shelf hardware. DROP is not a new codec, but uses a combination of algorithms that “enhance” existing codecs.

That system is comprised of the DROP Media Server and the DROP Set-Top Box.

The DROP Set-Top Box is designed to create a remote IP port that resides on the network. That, the company explains, enables IP video delivery to legacy video devices by housing some key functions of the set-top box in the cloud. That works in tandem with the DROP Media Server, which is designed to support standard interfaces like HTTP Live Streaming, multiple codecs (MPEG-2, HEVC, etc.) and interoperate with traditional QAM and edge QAM technologies.

Carlucci said the platform requires no changes to the set-top client software or the device’s navigation system, because the certain functions of the STB are virtualized in the cloud and “transparent to the existing software.”

More detail about Petrichor Networks, including how it shares and differs from the philosophies and technologies of other vendors focused on cable’s IP video transition, its trial activity with cable operators and its next steps will be features in the Feb. 6 issue of Multichannel News. The story also explains what inspired the company name, but in the meantime spool up this YouTube clip for a hint: 

As you might have noticed, our annual CTO roundtable in this week's issue of Multichannel News (subscription required) covered a lot of ground as engineers and execs head to Philadelphia for this week's SCTE/ISBE Cable-Tec Expo. We discussed next-gen WiFi strategies, DOCSIS 3.1 rollout initiatives, remote PHY architectures, virtualization and even a bit about what kind of impact MSOs should expect as 4K and High Dynamic Range enter the video picture.

Get complete coverage of Cable-Tec Expo 2016

And, because there was only so much room to work with, some of our discussion didn’t get covered there, so I’m using this space to include a brief passage on an oldie-but-goody question we posed to our esteemed panel: When will your available digital capacity be “all IP?”

That’s a tricky one for even the best crystal balls. After all, there are still millions of QAM/MPEG transport-only boxes choking the network, including a bunch of Digital Transport Adapters (that's a Cisco-made DTA pictured above), and operators are far from united in how they will push ahead with these migrations. Comcast is eyeing an all-IP future as it accelerates the rollout of X1, while Charter Communications shoots for a different strategy in which it can deliver a next-gen UI to IP-capable and QAM-locked boxes using the ActiveVideo’s platform now jointly owned by Charter and Arris.

While it’s probably impossible to know exactly when cable video will go all IP and join its broadband and voice brethren, our esteemed panelists were at least willing to noodle on it a bit.

“From a video standpoint, we're in position to enable that,” Kevin Hart, EVP and CTO of Cox, said. “The conversion from the QAM video distribution to only all-IP is still, I think, many years out into the future for most of us. It's going to take time, just based on CPE and everything else. We're in a good position to deliver all-IP, but it's going to take time, particularly on the QAM video infrastructure.”

Balan Nair, CTO and EVP of Liberty Global, had a more targeted answer, though one with seemingly plenty of runway: “Umm. 2025? Sure – 2025.”

To be continued...

Ericsson said it has integrated MediaFirst, its cloud-based multiscreen platform for MVPDs and OTT providers, with the Reference Design Kit (RDK), the preintegrated software stack for video and broadband devices being managed by Comcast, Liberty Global and Charter Communications (via its acquisition of Time Warner Cable).

Ericsson said the integration will be key as cable operator and satellite providers evolve to hybrid IPTV delivery platforms. Canada-based Telus is one of the early adopters of MediaFirst, but has not announced any plans to use RDK-based devices. Ericsson said other tier-1 providers in the U.S., Europe, and Asia are also on board, but isn't at liberty to identify them by name yet. 

MediaFirst is Ericsson’s new, HTML5-focused platform that’s tailored for the cloud and support for an array of connected devices/clients, including set-tops, tablets, smartphones, streaming players and PCs.

MediaFirst is separate from Mediaroom, the IPTV platform acquired by Ericsson in 2013 that’s deployed by providers such as AT&T U-verse, CenturyLink, Windstream, and Frontier Communications, among others.

Ericsson is one of more than 275 companies, including CE manufactures, chipmakers, software developers and service providers, to license the RDK.

“In this new IP world, consumers will put even greater demands on their providers to deliver amazing viewing experiences,” Shiva Patibanda, the new head of business line TV platforms at Ericsson, RDK pioneer, and the former CTO and GM of in-home products at SeaChange International. “By integrating MediaFirst TV onto the RDK, we can offer cable operators or any TV operator adopting RDK, a powerful cloud-based TV Platform to expand capabilities above and beyond consumers’ expectations.”

“Pay TV operators around the globe can now benefit from the common underlying software of the RDK, while retaining the ability to differentiate their customer facing TV experience using the innovative MediaFirst TV platform,” added Steve Heeb, president and general manager of RDK Management LLC. “Ericsson is a proven IPTV market leader whom we are proud to collaborate with and look forward to scaling this integration across Ericsson’s global customer base.” 

Comcast said more 36 schools have joined Xfinity On Campus, its IP-delivered TV service for college students, as the fall semester gets underway.

Comcast launched Xfinity On Campus commercially about two years ago, and added 27 schools to the mix last fall.

New school joining the mix this fall include Northeastern University, University of Notre Dame, Temple University, University of Michigan, University of Pennsylvania, University of Southern Mississippi, Villanova University and California State University, Fresno. Xfinity On Campus now delivers service on 63 locations. Here’s the current list of XoC partners.

Xfinity On Campus, a service that is underpinned by Comcast’s X1 platform, is currently offered on Web browsers and iOS and Android mobile devices. It’s designed to run on a campus’s managed, closed network, but the service also supports some TV Everywhere fare via the service’s newly app that supports the on-campus service as well as TVE content that's avaialble when students are on the go. 

In addition to live TV and VOD, Comcast has also added a cloud DVR component to the Xfinity On Campus offering. 

In a deal that expands its video software expertise and market share, Espial on Friday (August 19) said it has closed its acquisition of Arris’s Whole Home Solution platform.

RELATED: Espial Swings Deal for Arris’s Whole Home Solution

Terms and conditions of the deal were not disclosed, but Ottawa, Canada-based Espial said in June that it expects the acquisition to add $7.7 million annual revenues as it moves ahead on a plan to spur growth with “video-as-a-service” offerings.

Arris and Espial said they will collaborate on integration and co-marketing activities, and are creating a reseller agreement. Arris is now Espial’s preferred partner for gateways, but Espial is free to work with other hardware partners.

The deal also covers WHS’s infrastructure, client and server software products, a development and operations team primarily located in Kirkland, Wash., and a network operations center and two WHS cloud data center operations.

Espial also announced that Ron Miller will transition from Arris to lead the business as general manager.

The deal effectively transfers some key video software expertise to Espial from Arris, the world’s largest maker of set-top boxes -- , a position established through its acquisition of U.K.-based set-top maker Pace plc. in January, and its purchase of Motorola Home in April 2013.

Arris’s WHS originated from its $20 million acquisition of the Digeo set-top and software business from Paul Allen in 2009. MSOs that have deployed Arris’s WHS include Shaw Communications, WideOpenWest, Buckeye CableSystem, EastLink, Comporium, Consolidated Communications and Service Electric Cable TV.

Espial has previously said it will support current roadmaps, and look to accelerate future product roadmaps, for more than 40 service providers that use WHS in the U.S., Canada and Latin America.

Espial CEO Jaison Dolvane said when the deal was announced that there are more than 2 million boxes deployed that are powered by Arris’s WHS platform. He said the growth plan includes expanding the reach of WHS at existing customers, upselling others, and selling and deploying the offering to new customers.

"Espial gains a broad base of new customer relationships and further scales our world-class integration, operations, and software development teams,” Dolvane said in a statement.

The agreement will pit Espial against others that are looking to help MVPDs transition to IP video and next-gen video services, Evolution Digital, for example, is targeting that opportunity with its eVUE-TV platform. Comcast, meanwhile, is trying to syndicate and license its X1 platform. Cox Communications and Shaw Communications are already on board.

C Spire said it is working with MobiTV on a next-gen, in-home TV service that will do away with “traditional” set-tops and instead target a wide range of connected streaming platforms, including Roku players, Amazon Fire TV and Apple TV devices, select smart TVs, and iOS and Android smartphones and tablets.

The Mississippi-based wireless operator, which timed the announcement with this week’s The Independent Show in Orlando, Fla., said it expects to launch beta testing in November and obtain customer feedback and input prior to a commercial launch.

C Spire said the new service will feature a full linear TV lineup, including local broadcast TV stations, VOD, a cloud DVR, and seven-day TV “catch up” service. C Spire said it also has plans to pair that full-freight pay TV service with optional “skinny” channel packages

"Since the service relies on in-home streaming and mobile devices, it eliminates the need for traditional set top boxes,” Suzy Hays, SVP of consumer markets at C Spire, said in a statement. “This next generation service leverages our long-standing history of providing customer-inspired wireless experiences and will look and feel more like an app than your standard cable TV service with features such as in-depth search, personal recommendations and catch up TV.”

C Spire’s decision to go with an apps-style pay TV service comes amid the FCC’s pursuit of new set-top rules. The cable industry, led by the NCTA, has been advocating for an apps-based approach under its “Ditch the Box” proposal. Last week, the NCTA fed the FCC a pile of data and information about the technical and operational components of its proposal.

C Spire’s legacy pay TV service, called Super HD TV, features a mobile app with TV Everywhere support, interactive guide, and a whole home DVR that can record up to 400 hours of HD and record six shows at the same time. The company has been asked for more detail on its legacy vendor partners. C Spire has been rolling out fiber networks in several communities, including Clinton, Flora, Jackson, Madison, Quitman, Ridgeland, and Starkville.

Updated: A C Spire official confirmed that its legacy video platform was developed in partnership with Innovative Systems, and that its next-gen, app-focused TV product will be delivered into the home via managed IP connections.

MobiTV said C Spire is the first U.S. MVPD to tap its IPTV platform, which integrated several components, including the CMS, DRM, Media Player, nDVR, content policy, identity management, billing and authentication.

MobiTV has historically focused on mobile operators, and counts clients such as AT&T, Deutsche Telekom, Sprint, T-Mobile, TELUS, US Cellular and Verizon.

“The in-home TV experience is changing rapidly, creating both challenges and opportunities for providers as they navigate the new reality of delivering pay TV services in today’s market,” said Charlie Nooney, CEO of MobiTV. “This is only the beginning for us. We continue to break barriers and utilize our long-history in the video delivery space to help more companies’ future-proof their offerings through our ever-evolving, agile solutions within the video delivery ecosystem.”

Espial execs shed more light on the strategy and financial angle behind its proposed acquisition of Arris’s Whole Home Solution (WHS), a platform that has been deployed by more than 40 small- and mid-sized pay TV operators.

The business will add more than C$10 million (US$7.7 million) to Espial’s financials on an annual basis, with an expectation that the business will grow 20% to 30% per year, Jaison Dolvane, CEO of Ottawa-based Espial, said Wednesday on a call with reporters and analysts.

According to Espial CFO Carl Smith, 25% of WHS revenues is for recurring hosting and support, less than 10% for professional services revenue, with the balance made up of software license revenue. “There will be no hardware product revenue” for Espial coming way of the deal, Smith said.

Espial and Arris did not announce the financial terms of the asset deal, but Dolvane said Espial’s upfront payment for the WHS assets is “not material” to the Ottawa-based company, adding that Espial’s investment into its broader business over the next two years will be “more significant.”

Under the current plan, Espial believes this part of its business can go EBIDTA positive in 2018.

Dolvane estimated that there are more than 2 million boxes deployed that are powered by Arris’s WHS platform. He said the growth plan includes expanding the reach of WHS at existing customers, upselling others, and selling and deploying the offering to new customers.

He said Espial will look for WHS to help it expand in North America, as well as regions such as Europe, where Espial already has a presence (NOS in Portugal, and Tele Columbus in Germany, for example), and the Asia Pacific.

Though Espial is obtaining the assets of WHS, including about 50 Arris engineers and software developers, it’s not getting into the set-top-making business.

Under its new relationship, Espial will focus on software and user interfaces while Arris will continue to provide media gateways and set-tops. Previously, Arris sold WHS by bundling its software and hardware.

Updated: For set-tops and gateways, Espial said Arris its its "preferred to develop, manufacture, and distribute innovative WHS media gateways and set-tops and remotes to video service providers.  As we move forward, there is certainly the option to work with other hardware partners."  Espial also intends to include Arris Market, a platform for WHS offered in partnership with Wurl that enables the integration of third-party apps such as Netflix.  "Our intent is to include Arris Market – with Wurl as a partner - for the WHS platform. We will aim to finalize the details around this in the days and weeks ahead as we work to close the deal," an Espial official said via email. 

Under this approach, the software component is being severed from the hardware, and Espial believes this will allow for the faster introduction of new apps and services for pay TV partners.

“In general, the [WHS] customer base would like to see faster feature innovation and, really, from an Arris, perspective, they felt that partnering with a company like us... is going to allow them to actually achieve that,” he said, noting that Arris will serve as the “primary distribution channel” for the offering, though Espial will also pursue direct deals.  

Once the deal is wrapped up, Espial will push forward with a cloud-hosted “video-as-a-service” solution that will also seek to integrate G4, its new set-top software client for devices that run the Reference Design Kit and other platforms. By pairing its software with hardware from Arris and others, Espial will be pitching a platform that can spur IP video migrations.

“Some operators in the market have expressed a desire to have a turn-key, prepackaged, next-generation video solution that can be managed by a supplier,” he said. “Service providers are eager for an accelerated software roadmap.”

While a turn-key offering reduces the amount of customization an operator has, the advantages include faster time-to-market as well as lower capital and operational costs, Dolvane said.

Of course, Espial will be far from alone in pursuing deals aimed at helping cable operators and other MVPDs make the transition to IP and offer a servcie that blends their pay TV services with OTT fare. 

Among them, Evolution Digital is trying to do the same with independent operators via its eVUE-TV platform. Comcast, meanwhile, has been pushing a strategy to syndicate and license its X1 platform, though most of its early traction in this area has been with larger operators such as Cox Communications and Shaw Communications.

Evolution Digital and WideOpenWest (WOW) have forged a distribution deal that will enable the operator to offer IP-VOD services alongside its  live TV offering.

WOW, Evolution said, is the first operator to deploy eVUE-TV, an IP video platform unveiled in February that offers “thousands of hours” of video-on-demand content.  Evolution introduced eVUE following its acquisition of IP-VOD specialist i-Velozity, a move that will help Evolution’s partners offer their own VOD and live TV services via a unified platform.

WOW will integrate eVUE-TV with its new “SW!VEL” service for the eBOX, a hybrid IP/QAM set-top that is powered by TiVo’s software, user interface and search platform. Evolution has also developed a version of eBOX that uses “eGUIDE,”  an interface that uses Rovi’s Fan TV platform.  TiVo and Rovi are in the process of merging under a $1.1 billion deal announced in late April. 

At last month’s INTX show in Boston, WOW chief technology officer Cash Hagen hinted at the operator’s next-gen video plans.

He said WOW operator will use the eBox to targeted a segment of the market that wants a slimmed down pay TV package. During the initial phase of the rollout, SW!VEL, he said, will include the broadcast basic channels and integrated OTT apps. Phase II, slated for a summer launch, will add IP-VOD to the mix (via eVUE), and Phase III, expected to launch early next year, will add a cloud DVR service.

“With the rise of OTT streaming service providers, eVUE-TV puts the power back into the cable operators’ hands with a full library of leading content that’s easily accessible and navigational for the consumer,” Evolution Digital president and CTO Brent Smith said, in a statement. “We are extremely pleased that WOW! is taking their entertainment experience offering to its customers one step further by offering an instant and affordable platform so viewers can take advantage of the full breadth of WOW!’s video offering.”

"Now, with eVUE-TV, our customers can easily find their favorite content to ‘binge watch’ from start to finish, without having to switch inputs and streaming providers to access that content,” Hagen added.

A recent update to Comcast’s Xfinity TV app for mobile devices has opened up access to the live feeds of ABC and NBC, though only in select markets.

That update, delivered in early May 4, noted that “[i]n limited markets, live local broadcast channels NBC and ABC can now be streamed when you’re on the go.” The update also enhanced the app’s VOD feature with more categories and suggestions, the ability to buy on-demand content and stream and download it without leaving the app, and allow for users to dismiss the video player via a new “minibar” that resides at the bottom of the screen.

As for the live ABC and NBC feeds, Comcast confirmed that access is currently limited to the signals offered in the broadcasters’ respective owned-and-operatedmarkets.

NBC and ABC also offer live streams in some markets via separate authenticated apps that require a pay TV subscription, but this latest update gives Comcast a way to integrate out-of-home access to those live feeds into the Xfinity TV app, which is being unified to support VOD and live TV that’s available to customers when they are accessing the app in the home or on the go. See this Q&A with Matt Strauss, Comcast Cable’s executive vice president and general manager, video services, for more about that.

Cisco Systems and Roku said they are working together to enable Cisco’s Cisco VideoGuard Everywhere video service protection platform on Roku’s streaming players and integrated Roku TVs.

Cisco VideoGuard Everywhere, a software-based video security product whose roots stem from Cisco’s $5 billion acquisition of NDS in 2012, will also be used to support Charter Communications’ Spectrum TV app for Roku devices, they said.

Cisco and Roku added that they are collaborating to pre-integrate  VideoGuard Everywhere, a security system that compasses both conditional access and digital rights management, into Roku firmware starting next month. All Roku devices will be automatically upgraded to include Cisco security software.

Initial features and services the security integration support on Charter’s Spectrum TV app for Roku devices will include secure video-on-demand and linear TV playback, as well as control the number of devices that can be used simultaneously per subscriber account.

Charter is deploying the VideoGuard Everywhere solution across its systems, including the MSO’s new IP-capable “Worldbox” and Charter Spectrum TV apps offered on a variety of consumer electronic devices such as PCs, tablets and phones.

In February, Charter shed a bit more light on its downloadable security system, telling the FCC in a filing that it had completed two national centralized data centers to support the MSO’s new platform. Pursuing a retail option for that downloadable system was part of a set-top waiver that the FCC granted to Charter in 2013 that allowed the MSO to deploy dual-security boxes as it developed and deployed the new downloadable security platform. The FCC, meanwhile, is trying to move forward on new set-top rules that would apply to cable operators and other MVPDs and aim to "unlock" the set-top and spark a more vibrant retail market for video devices (the cable industry has argued that a new government mandate is unnecessary because the retail market for video devices that are capable of supporting pay TV is evolving amid natural market forces.). 

“We are always looking ahead for ways to make our customer experience better, providing more flexibility and options for accessing the television content people want to watch,” said Jim Blackley, Charter’s executive vice president, Engineering and IT, in a statement. “By expanding the Cisco downloadable security solution to our Spectrum TV App channel on Roku streaming devices, we can better control device streaming rights and functions within the home without compromising on the experience.” 

“We have been working closely with Roku to deliver a lower-cost, easy-to-deploy software security solution leading to innovative services like the Spectrum TV app on the Roku platform,” said Rajeev Raman, senior director of Strategy, Studio Design, and Product Management, Video Software and Solutions, Cisco. “Charter has been a pioneer in the industry for downloadable security to give its customers more options to watch what they want on the devices they want in their homes.”

“Utilizing the fast growing Roku streaming platform in combination with the Cisco VideoGuard Everywhere security solution enables operators to simply and securely deliver their branded video streaming services to the home, and optimally manage digital sharing rights for their content library,” added Andrew Ferrone, vice president of pay TV at Roku. “With this powerful combination, Charter continues to offer its pay-TV customers unique options to watch TV in ways that fit their lifestyles.” 

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Arris (booth 1214) will be teeing up virtual reality and IP video demos at next week’s INTX confab in Boston that will be running of the company’s growing family of DOCSIS 3.1 modems and E6000 Converged Cable Access Platform. 

The VR demo will feature content from a NASCAR track and inside the Arris Racing team garage and the use of three, separate screens showing videos being downloaded and viewed simultaneously.  Arris aid the demo will show how multi-gigabit technology can “deliver a consumer-ready VR experience in under a minute.”

On the IPTV front, Arris said it will show how its networking technology can support six, simultaneous HD video streams on a single Ultra HD screen – with one primary channel and five others in smaller playing windows, noting that running six of these  HD streams into a single video device on a TV would typically require in the range of 26 Mbps to 72 Mbps.

Layer3 TV, the self-described “next generation” cable provider, is seeking an “installation supervisor” in a handful of U.S. markets.

Layer3 TV is currently looking to fill that positon in Chicago; Houston; Alexandria, Va.; and in its hometown of Denver. Layer3 TV also has an office in Boston, but does not appear to be seeking an installation supervisor there.

Per the job description, a Layer3 TV Installation Supervisor will be tasked with managing and training technicians (contractors and employees), performing in-home installation, cable modem provisioning and in-home cable and wireless networks. The job will also be good for candidates who know their way around DOCSIS, WiFi, and Multimedia over Coax Alliance (MoCA, technology that delivers IP video and other content over home coax lines at high speeds for applications such as whole-home DVRs).

The location of those jobs could fuel further speculation on which markets Layer3 TV will target in the early phases of its service deployment.

Layer3 TV, which will use electric-powered BMW i3 vehicles in its service fleet, has been offering its IP-delivered service under the “Umio” brand in a couple of its early test markets for -- Midland and Kingwood, Texas – also the territory of incumbent cable operator Suddenlink (now part of Altice).

In a recent company profile in Wired, Layer3 TV CEO Jeffrey Binder said the company would also be launching in Chicago and a “couple of other major cities on the East and West coasts.” Per that report, Layer3 TV’s offering will sell for $80 to $150 per month, depending on how many TVs are connected to the service.

The story also shed some more light on Layer3 TV service distribution strategy. It won’t deliver content into the home over-the-top, but will instead come in via managed IP connections, and lean on a distribution facility in the Denver along with a 12,000-mile fiber backbone that will link it to individual markets that Layer3 TV will serve. For the last mile link, Layer3 TV will forge deals with “large infrastructure companies.”

Layer3 TV is not commenting further about its service deployment plan.

Facing the specter of new FCC rules aimed at “unlocking” the set-top box, Comcast launched a partner program Wednesday that will enable partners, including Samsung and Roku, to offer the MSO’s full suite of video services, including live, VOD and cloud DVR, to the home via retail video devices.

An FAQ about the new program sheds light on some of the requirements potential partners must live up to if they want to offer the Xfinity TV on their respective retail platforms.  

In it, Comcast notes that program partners won’t be charged to register or participate in it, but that they “bear their own expenses for any development, marketing, and operations associated with integration of the Xfinity TV Partner app on their device.”

Regarding technical requirements for app partners, Comcast outlines some of them, including compliance with HTML5 standards, Media Source Extensions (MSE), and Encrypted Media Extensions (EME) with the Adobe Access CDM (Content Decryption Module) and/or Microsoft PlayReady CDM, and Web Cryptography API

Because the app replicates the elements of Comcast’s pay TV service, participating devices must also enable their  Xfinity TV Partner app to comply with “all applicable regulatory requirements for cable service,” including Emergency Alert System, closed captioning, and must also support requirements set out in Comcast’s programmer deals spanning copy restrictions, geographic restrictions, and content branding.

Multichannel News has asked other companies such as TiVo, Google and Apple if they intend to join the new Xfinity TV Partner Program. 

TiVo, the first to respond, offered this statement: “We don’t have anything in the works with them on this program at the moment, but we’re always open to discussions.”

However, app partners will be using Comcast’s UI, which could make the program less attractive to TiVo, which would prefer to use its interface. Per the program’s FAQ: “Customers will discover and navigate content via Xfinity TV’s award winning user interface.” 

An awful lot of  telecom, media, entertainment -- and especially video -- companies find themselves in a rather chaotic business these days. In Part One of a two part series, following are six video and TV trends affecting the content side of the business. (Next week’s Part Two will focus more broadly on trends such as data and its overall impact on the industry and its stakeholders.)

RELATED:Visit MCN's Next TV department for more stories about the impact of these trends.

(1) Bandwidth Consumption Increases

Just as choice means more content to more devices and places, so does the implementation of that process necessarily involve more bandwidth to get it there. That will be important for those in the Content Distribution Networks (CDNs) and various core distribution industries (e.g., DBS, cable, telco, fiber, cellular, and wireless delivery and distribution infrastructures). Read more here.

(2) More Video

Anecdotally, Netflix spending several billion dollars (in 2016 alone) on the creation of Netflix-only content tells a good part of the story that claims “Content Is (Still) King!” Fees paid to top actors and actresses -- no less athletes -- portend much in the way of celebrities on the video stage further hyping attractive pictures (and viewer interest). Sports TV rights fees are yet another indicator of a great demand for desirable drama. Business models appear to be uncertain, wide and open, when it comes to monetizing and thus proliferating new content.

(3) Video Transition to IP/OTT/Streaming/Broadband

Cord-cutting and cord-shaving are reflections of not just pay TV customer frustration with the high costs of programming bundles (including the subsidization of sports TV that the majority of viewers don’t watch). They are also coupled with the availability of an alternative quality distribution vehicle, i.e., Internet Protocol (IP)/broadband TV (Read more here.)

(4) Video to Mobile

As smartphones, tablets, and wearable technologies rise in popularity, the demand for mobile applications is growing and will continue to evolve. Smartphones are still in their earliest stage, and the demand for iPhones, iPads, smart watches, etc., will enhance the need for better distribution of bandwidth. The ability of most consumers today to select Video On Demand (VOD) instead of live or linear viewing, especially on mobile devices, further drives this trend. (Read more here.)

(5) Connectivity Grows

Choice has for a long time been an important part of U.S. (and global) culture. The emergence and growth of DirecTV is a prime example of our “choice culture.” Similarly, if device builders and content rights holders and distributors can bring their content fare to more people, in more places, more often, and using more devices, chances are that their content will get viewed, and viewed more often. (Read more here.)

(6) More Content Stakeholders

Recent newcomers to the ownership and control of video rights include Amazon and Facebook. Indeed, there is pressure today on nearly every large content producer to create more, and/or better, content. There is also pressure on video distributors to jump into the content production and ownership game themselves (if they have not yet already done so). There are strong arguments, including vertical integration, that support such moves. Moreover, with Netflix’s success with House of Cards, it is tough for many to not want to also gamble for that “Golden Ring of (Video) Success.”

Jimmy Schaeffler is chairman and CSO ofThe Carmel Group, a streaming/broadband, broadcast and pay TV/video consultancy based in Carmel by the Sea, Calif.; he writes about telecommunications, entertainment and media.

Evolution Digital, a Colorado-based company focused on independent MVPDs, has introduced eVUE-TV, an IP video platform that features “thousands” of hours of aggregated VOD content that can be mixed with live cable TV offerings.

The introduction of eVUE-TV, a product that arrives after last year’s acquisition of IP-VOD specialist i-Velozity and is part of a rebranding, will help cable operators deliver popular VOD movies and TV shows, plus live TV, on a unified platform, the company said.

eVUE-TV offers new release movies, shows from leading cable network, including shows and series from premium networks such as HBO and Showtime, and enables access on a wide range of devices, including set-tops, tablets and PCs.

eVUE-TV, the company added, provides partners with a low cost approach for IP linear and VOD content via Evolution Digital’s central content distribution hub in Chicago, or through a distributed platform inside the cable operator’s content delivery network.

Evolution Digital said eVUE-TV will launch a new user interface for multiple devices in the “coming weeks,” noting that the platform can present and recommend content using viewing preferences and viewing habits.

“Evolution Digital is pioneering technology in the cable industry to fit the needs of the consumer by providing cable operators cost-effective solutions to increase revenue and stabilize retention,” Brent Smith, Evolution Digital’s president and chief technology officer, said in a statement. “With eVUE-TV, cable providers can now combine the most popular Video on Demand titles with their live TV offerings onto one seamless and easy-to-use platform while avoiding costly infrastructure upgrades.”

Layer3 TV, the Denver-based “next-generation” cable operator, has been conducting service trials under the “Umio” brand in select markets, according to information about the service that has appeared online.

The Umio Web site, first spotted byVariety, sheds much more light on services that will run on Layer3 TV’s platform, which features a souped-up, 4K-capable, IP-connected device and access to an extensive lineup of video packages that include local broadcast networks and dozens of cable channels such as ESPN as well as premium offerings such as HBO, Starz and Showtime.

According to Variety, Umio has been testing the service in Midland and Kingwood, Texas, since December. Suddenlink Communications, now part of Altice Group, is the incumbent cable MSO in those markets. And it's not yet clear if Umio will compete with Suddenlink, or if there a business relationship between Layer3 TV, Suddenlink and the Umio offering that's being trialed.  

However, the Umio site lists a business address of 520 Maryville Centre Drive, Suite 300, St. Louis, Mo., the same address that’s listed for Cequel Communications Holdings, which was doing business as Suddenlink prior to the Altice deal. The web site's fine print also notes: "Umio is brought to you exclusively by SL3TV, LLC" which could suggest that providing a new IP-based infrastructure is a key component of Layer3 TV's strategy.  

Layer3 TV has not disclosed its go-to-market strategy, but multiple sources not associated with the company who claimed to have knowledge about its plans told Multichannel News last year that one strategy of the Denver-based startup is to deploy its platform in partnership with MVPDs that are seeking a next-gen, IP-based video offering, and that Layer3 TV's platform would leverage its partner’s distribution rights. Notably, the Umio site says the service being beta-trialed is “powered by Layer3 TV.”

Update: “Think of it as direct-to-consumer, but with MSO backing,” a source said last fall, adding that the service could start in an MSO’s footprint, but could conceivably expand under a “co-op” partnership between multiple MVPDs that provide service to multiple footprints, but assembled under a common marketing campaign. If multiple MVPDs were to get on board with that idea, it could drive some needed scale into their collective video business. “I think they [Layer3 TV] believe their opportunity really is to manage the TV business for operators that want to focus on high-speed data. They are really trying to do something positive for the industry,” the source said of the Denver-based firm.

There’s has been  some evidence suggesting that Layer3 TV will also operate under direct-to-consumer-looking business models. For example, there’s been evidence of new, energy-efficient fleet vehicles with Layer3 TV branding. Layer3 TV, which has raised more than $80 million, did drop somehints in a recent FCC filing indicating that it will operate as an MVPD. Additionally, cable programming and distribution vet Lindsay Gardner joined Layer3 TV’s as chief content officer last year, heading up a team that’s been looking to strike partnerships with cable networks, broadcasters, and other “compelling content creators and packagers.”

It also  was not immediately known what other markets are part of the Umio beta trials.

Layer3 TV didn’t respond for comment Friday. Suddenlink has been asked to comment if it has a business relationship with Layer3 TV or the Umio service being trialed in Texas.  But according to sources familiar with the trials, Umio kicked off trials in Q3 2015, and that the trials are currently over-subscribed, meaning there’s a waitlist to get access to the beta. Update: Suddenlink declined to comment.

Per the Umio web site, its service lets customers record seven shows while watching an eighth, and provides enough storage for 400 hours of HD video. The platform is also “4K-ready” (at 60 frames per second), and integrates social media to help users keep tabs on what’s trending.

Among other technical details, the platform features an integrated cable modem that “controls all data and IP video transport,” as well as 802.11ac WiFi, two voice lines, an internal speaker (for spoken interaction with remote service techs), voice control, near field communications (for easy device paring), internal storage (ranging from 1 terabyte to 4 TB), HDMI 2.0, two USB 3.0 ports, Bluetooth, and 1000 Mbps Ethernet (via an RJ45 connector).

Per information about the beta, consumers who receive an invite get 60 days of complimentary service, and can keep their current service during the trial. In turn, beta testers are expected to provide feedback. 

The sample lineup shows local broadcast  networks, premium channels, and dozens of national cable networks, including A&E, ESPN, ESPN2, FX, AMC, TBS, USA Network, We TV,  AXS TV, Turner Classic Movies, and an array of digital music channels from Music Choice.

This is the promotional video posted to the Umio site:

[embed]https://vimeo.com/137424631[/embed]

Layer3 TV opened its Denver headquarters in September 2014. It was founded in 2013 by cable industry vets Jeff Binder, the former CEO of Broadbus (sold to Motorola in 2006), and David Fellows, the former CTO at Comcast.

Penthera, a startup that specializes in software that manages the secure downloading of video to mobile devices, has tapped media industry vet Daniel Taitz as its first COO.

Taitz, who is late of Martha Stewart Living Omnimedia and Univision Communications, will also serve as an EVP at Penthera, service on its board and report to company president and CEO Michael Willner.

Penthera’s announced customers include Comcast, Time Warner Cable and Charter Communications. Among that group, Comcast is using Penthera’s Cache & Carry system for downloadable titles offered through its Xfinity TV go app and the “check out” capability offered through Comcast’s cloud DVR for its next-gen X1 video platform. 

Penthera said it is adding Taitz to the team amid a growth surge and as it broadens its global scope.   

“We doubled our customer count this year and built a very strong client pipeline,” Willner said, in a statement. “To maintain this trajectory, Penthera is enhancing its sales strategy, casting a wider net to reach the entirety of the very large universe of businesses delivering video direct to consumers both in the U.S. and internationally. Dan, with his breadth of experience in corporate and business development of all aspects of traditional and digital media, will be a key player in the development and oversight of this expansion.”

Taitz has  served as interim CEO for Martha Stewart Living Omnimedia, was an SVP of business affairs at Univision, and was general counsel and chief administrative officer at Oxygen Media Corp.  Before that, he was a partner at the Friedman, Kaplan & Seiler, LLP and an associate at Willkie Farr & Gallagher.

Earlier this year, Willner noted that Penthera was working on a next-gen version of its platform that will enable its partners to switch out ads in TV shows that have already been downloaded. 

Those capabilities, covered in several patents that have been granted to the company, will ensure that the ads in downloaded shows are kept fresh and should position MVPDs to secure additional rights that enable them to expand the amount of titles they can offer in a downloaded fashion. 

It appears that Layer3 TV’s field techs will be riding in style while also doing something positive for the environment. 

Amplifying its policies around power savings and energy efficiency, Layer3 TV, the Denver-based “next generation” cable operator, confirmed that it has added the BMW i3, an electric-powered vehicle, to its service fleet.

Pictured is a BMW i3 outfitted with Layer3 TV’s branding that was parked late last week near the company’s new Denver headquarters. A spy on the street there passed the image along to Multichannel News.

Layer3 TV said the vehicle is the first installment of the company’s Field Operations Organization (FOO). It’s not clear how many BMW i3’s will eventually become part of Layer3 TV’s fleet, but an industry source indicated that there could be a larger engagement afoot between the emerging pay TV operator and the car maker. Layer3 TV isn’t commenting on its relationship with BMW.

According to BMW data on the i3, it was recognized as one of Kelley Blue Book’s ten top “Green Cars,” can travel 81 miles per charge, or up to 150 miles with a “range extender.” Per the car maker, buyers are eligible for a tax credit of up to $7,500. The baseline i3 carries a starting MSRP of $42,400, while the vehicle with the range extender starts at $46,250.  

Layer3 TV’s selection of the BMW i3 factors into the company’s broader commitment to the environment and sustainability.

Company co-founder and CTO David Fellows recently joined the Society of Cable Telecommunications Engineers’ Energy 2020 initiative in the role of “chief scientist.” Fellows, a cable industry vet late of Comcast, AT&T Broadband and Scientific Atlanta, noted that the time that a goal of Layer3 TV is to be “the greenest cable company in the world.” Eric Kuhn, Layer3 TV’s head of marketing, meanwhile, is on the council of Earth Justice, a non-profit environmentally-focused law organization.

Details about Layer3 TV’s fleet vehicle selection comes as the company makes progress on the deployment front. It has launched, on schedule, limited user trials in several markets. Layer3 TV, however, has not identified the locations of those trials nor discussed in great detail its grander go-to-market strategy.

However, Layer3 TV, which has raised about $80 million via two rounds of funding, did drop some hints in a recent FCC filing indicating that it will operate as an MVPD. A Pace-made IP set-top for Layer3 TV has also passed through the FCC.

It's déjà vu all over again.

As it did in 2012 when Comcast introduced a managed IP VOD app for the Xbox 360 that was exempt from the MSO's data usage policies for public high-speed Internet service at the time, the MSO found itself on the defensive again this week as it expanded the reach of Stream TV, its new skinny bundle, IPTV package for smartphones, tablets and PCs.

Some question whether Stream TV, a service for broadband-only customers tailored for so-called cord-cutters, violates network neutrality rules or puts other online video services at a disadvantage because the MSO’s new IP video offering is exempt from usage-based data policies that Comcast is testing in several markets.

As it argued three years ago about an app for the Xbox 360 that drew the ire of Netflix (Comcast pulled the plug on its Xbox 360 app earlier this year), the operator maintains that it’s well within the rules because the Stream TV service uses separately provisioned bandwidth to deliver the service to the home, and isn’t prioritizing traffic or delivering it “over-the-top” using bandwidth that’s set aside for its high-speed Internet services.  In essence, Stream TV treats tablets, PCs and smartphones like a regular set-top box, but uses an IP path into the home (DOCSIS 3.0 modems are flexible in that some tuners can be used for regular high-speed Internet service, while others can be used for managed IP services, while still keeping the traffic from each approach separate).

It’s the same principle that Time Warner Cable and Charter Communications are using for their managed IPTV apps that are being delivered to Roku boxes. Similarly, AT&T dedicates separate IP capacity for its managed IPTV U-verse service to the home, and uses other capacity for its public high-speed Internet service.

"Stream TV is an in-home IP-cable service delivered over Comcast’s cable network, not over the public Internet,” Comcast said in a statement issued Thursday, the same day it launched Stream TV to its second market – Chicago. “IP-cable is not an ‘over-the-top’ streaming video service. Stream enables customers to enjoy their cable TV service on mobile devices in the home delivered over the managed cable network, without the need for additional equipment, like a traditional set-top-box.”

The FCC does address the idea in rules released in December 2014, which explain that “an entity that delivers cable services via IP is a cable operator to the extent it delivers those services as managed video services over its own facilities and within its footprint…IP-based service provided by a cable operator over its facilities and within its footprint must be regulated as a cable service not only because it is compelled by the statutory definitions; it is also good policy, as it ensures that cable operators will continue to be subject to the pro-competitive, consumer-focused regulations that apply to cable even if they provide their services via IP.”

Even outside of Comcast and Stream TV, streaming video policies continue to be a hot topic. T-Mobile’s “Binge On” offering gives mobile customers the option to stream video (at 480p resolution, optimized with a proprietary bandwidth system) from about two dozen content partners, including Sling TV and HBO, without it counting against their cellular data usage caps.

During that announcement, T-Mobile CEO John Legere held that Binge On is “completely in line” with the FCC’s  network-neutrality rules, as no money changes hands, the program is available to any OTT provider, and that the feature is optional -- customers can turn it on or off.  

FCC chairman Tom Wheeler weighed in on Binge On today, praising it as “highly innovative and highly competitive” and an offering that is within the bounds of the commission’s Open Internet order.

Stream TV, Comcast’s mobile-first IPTV service for cord-cutters, launched Thursday in Chicago, a move that follows the service’s debut earlier this month in the Greater Boston region, which includes eastern Massachusetts, New Hampshire and Maine.

The no-contract, $15 per month service, targeted to broadband-only customers, features the major broadcast networks, HBO, access to “thousands” of VOD titles and the MSO’s Cloud DVR service. Comcast has plans to make Stream TV available across its footprint by early next year. The service FAQ notes that the new service is also available in select areas of Indiana and Michigan. Comcast has previously identified Seattle among cities that will get Stream TV in the early phases of the rollout.

The Cloud DVR component of Stream TV lets subs record up to two shows at once and holds 100 GB of storage (about enough for 20 hours of HD programming). Stream TV subs can watch on up to two devices at the same time.

Stream TV, delivered to the home on Comcast managed IP network, supports Web browsers, smartphones and tablets via the Xfinity TV app. Using their credentials, Stream TV subs can view some programming from ABC, Fox and HBO (via their respective apps) on connected TV devices such as Roku players, Apple TV boxes, the Amazon Fire TV, gaming consoles and via the Chromecast streaming adapter.

Update: Comcast's FAQ also reiterates that the in-home Stream TV service is exempt from the MSO's monthly Internet data usage allowance policies, which have recently been expanded to several markets, though not yet in Chicago or Boston. "Stream TV is a cable streaming service delivered over Comcast's cable system, not over the Internet. Therefore, Stream TV data usage will not be counted towards your XFINITY Internet monthly data usage," the MSO notes.

This approach came up with Comcast's original Xfinity TV app for the Xbox 360 (Comcast recently discontinued that app), which was also delivered over separately managed IP capacity, and not "over-the-top," meaning that the traffic did not co-mingle with spectrum and capacity set aside for the MSO's high-speed Internet service. Comcast has also been careful not to label Stream TV as an OTT service. However, the same can't be said for TV Everywhere apps that Stream TV subs can access in or out of the home.  

Comcast introduced Stream TV in July, and is launching it as it continues to improve its video sub losses. It shed 48,000 video subs, nearly half the 81,000 it lost in the prior year period and marking its best Q3 in nine years.

While Stream TV allows Comcast to target a different set of consumers, the MSO’s primary video focus is on X1, it next-gen video offering. “X1 has been transformative for us,”  Matt Strauss, Comcast Cable’s EVP and GM of video services said last week at the Wells Fargo Tech, Media & Telecom conference in New York. He said  VOD usage on X1 is 45% higher than on Comcast’s legacy video platform. About 25% of Comcast’s video sub base is now on X1.

Strauss acknowledged that Comcast must be careful not to cannibalize its base video offerings with slimmed –down offerings like Stream TV and Internet Plus.

“You have to monitor that very, very closely,” he said. “This isn’t about putting things in the market to get consumers to downgrade.”

Dish Network (via Sling TV, Time Warner Cable, Charter Communications and Cablevision Systems are among other MVPDs that have launched or are testing streaming products geared for the cord-cutting crowd and consumers who have never taken a traditional pay TV service.

Pleased with its customer and employee trials of Comcast’s IP-capable X1 platform, Cox Communications said it has signed a national licensing deal for X1 and has sparked a commercial rollout of  a new version of Cox’s multiscreen “Contour” offering in San Diego.

Cox recently expanded its X1 trial in San Diego, offering it to customers there who contacted the MSO about the pilot. Previously, Cox was limiting the field test to employees and other “friendlies.” Cox had also been testing X1 with select customers in its Middle Georgia systems.

The licensing deal is a big win for Comcast, which has been looking to scale up its platform by partnering up with other MVPDs. Cox was the first operator outside of Comcast to evaluate X1, but Shaw Communications of Canada has also jumped in to trial it, and expects to move ahead with a commercial launch during Shaw’s 2016 fiscal year. Comcast has accelerated its rollout of X1 to about 40,000 boxes per day. Arris and Pace, which are merging, are Comcast's primary X1 box suppliers. 

The Cox licencing deal is also good news for the Reference Design Kit (RDK), the preintegrated software stack for set-tops and gateways being managed by Comcast, Liberty Global and Time  Warner Cable.  

The new national X1 deal comes amid Cox’s pursuit of a “future-state” video project.

Cox’s new iteration of Contour will support in-home linear TV, apps and widgets, and a cloud-based interface for set-top boxes and mobile devices. It will also feature other elements such as a predictive search engine, a voice-activated remote control, and a VOD library with more than 35,000 “choices.”

The new Contour will also offer an HD-DVR with six tuners, and 2 terabytes of storage.  It was not immediately clear if Cox intends to add a Cloud DVR, a feature that’s now part of Comcast’s X1 platform.

"We are always looking for ways to expand and enhance our video experience for our customers," said Steve Necessary, Cox’s vice president of product development and management, in a statement. "After extensive testing of the X1 platform, we are confident that the new technology will take Contour to the next level, evolving the experience across multiple screens and devices inside the home. Since we first launched  Contour, we have been pleased with the results and we are confident that the new Contour experience will be well received by our customers."

Following a trial period that ran several months, Comcast has gone live with Stream TV, an IP-based skinny bundle service for broadband-only customers that features the major broadcast networks, HBO, access to “thousands” of VOD titles and the MSO’s Cloud DVR service.

The rollout covers the Greater Boston Region, which includes eastern Massachusetts, New Hampshire and Maine.  Comcast expects to make Stream TV available across its footprint by “early 2016.”

Comcast introduced Stream TV in July, and at the time said it expected to debut the service in Boston in late summer and then bring it to Chicago and Seattle.

Comcast is delivering Stream TV via its managed IP network (meaning it's not a pure "over-the-top" service) to Web browsers, smartphones and tablets via the MSO's Xfinity TV app. While the offering does provide access to some TV Everywhere apps that work on TV-connected platforms, the core Xfinity TV app is not currently offered on devices like Roku players, the Apple TV, and Amazon  Fire TV, making it a mobile-first type of offering. 

Update: A Comcast official said the Stream TV service support two concurrent video streams per subscriber. The Cloud DVR component lets Stream TV subs record 20 hours of programming. According to the fine print on the new site dedicated to Stream TV, it appears that Comcast is targeting its next launch at Chicago. 

Comcast said Stream TV, which does not require a costly truck roll is offered on a contract-free basis, includes the broadcast TV fee, plus local taxes and fees, which vary by market.  To prime the pump, Comcast is offering the first month of Stream TV for free.

Targeted to cord-cutters and young, millennial audiences, Comcast’s new offering emerges at it and other MSOs look to turn the tide on video subscriber losses. Even without Stream TV, Comcast’s video metrics have been improving. In the third quarter, Comcast shed 48,000 video subs, nearly half the 81,000 it lost in the prior year period and marking its best Q3 in nine years.

Comcast is the latest MVPD to branch out with skinny bundles and offerings tailored for the cord-cutting and cord-nevers crowd.

Dish Network has Sling TV, which offers a core package for $20 per month that does not include broadcast TV stations. Time Warner Cable has pushed ahead with an IPTV trial in New York City, Mt. Vernon and New Jersey that relies on Roku players and delivers three different video service tiers to customers who take the MSO’s residential broadband service.  Charter is  testing a service called Spectrum TV Streamthat starts at $12.99 per month, and Cablevision Systems has created a set of tiers geared for cord-cutters.

"We want to make ordering and accessing Stream TV as simple as possible for our customers and let them start watching favorite content as quickly as possible," said Matt Strauss, EVP and GM, video services at Comcast Cable, in a statement. "It's an exciting time to be a TV fan – there is more quality content than ever and seemingly limitless ways to keep up with all the shows and movies people are talking about. We'll continue to experiment by creating offerings like Stream TV so that users can choose the service that works best for them."

"Interested Xfinity Internet-only customers can immediately start enjoying the service by using the Xfinity TV app or the online portal.  Stream TV is yet another choice for consumers to enjoy entertainment on their terms,” added Steve Driscoll, VP of sales and marketing for Comcast’s Greater Boston Region.

Time Warner Cable has pushed ahead with a IPTV trial in New York City, Mt. Vernon and New Jersey that offers three different video service tiers to customers who take the MSO’s residential broadband service (its “Extreme” tier or higher).

The trial, seemingly targeted to cord-cutters and video customers who are looking to avoid set-top box fees, centers on the MSO’s TWC TV app for the Roku platform, which provides access to more than 300 live TV channels, plus about 20,000 free and subscription VOD choices from the operator’s on-demand vault. Like Time Warner Cable’s regular TWC TV app for Roku, the version featured in the NYC trial does not support transactional VOD or a DVR features. But Roku does provide those TWC customers access to a platform that supports a massive number of OTT "channels," including Hulu, Crackle, Netflix, and Amazon Video. 

Details of the trial began to emerge late last month. On Monday, TWC announced that it’s offering three different tiers on the Roku platform via TWC’s managed IP network (and not “over-the-top” ):

-Starter TV: $9.99 per month for 12 months, a free Roku 3, and access to 20-plus channels in the MSO’s Starter TV plan, including ABC, CBS, C-SPAN, CW, Fox, HSN, NBC, TBS, TWC News and Univision. A DOCSIS 3.0 modem with Extreme Internet service (50 Mbps down in NYC, where the operator has completed “TWC Maxx” upgrades ) or above and in-home WiFi is required.

-Starter TV with Showtime and Starz: $19.99/month for 12 months for $19.99/month, a free  Roku 3, the operator’s Starter TV plan, and access to the Showtime  Anytime and Starz Play TV Everywhere apps.

-Standard TV with Showtime and Starz: $49.99 per month for 12 months, a free Roku 3 player, access to a lineup of 70-plus linear channels (including AMC, CNN, Comedy Central, Discovery, Disney, ESPN, Fox News Channel, FX, MTV, TBS, TNT, TWC News and USA), and credentials for the Showtime Anytime and Starz Play apps.

Per the fine print, TWC’s Roku-powered option in NYC expires on June 18, 2016, and is not available to bulk residential customers.  TWC has not announced the monthly rate for the offering following the trial period. TWC is in the process of being acquired by Charter Communications, which recently launched a streaming TV app for the Roku platform.

“The TWC TV Roku Trial represents an important step in our evolution, giving customers more ways to view the content they love in ways that work for them,” Peter Stern, TWC’s EVP and chief product, people and strategy officer, said in a  statement.  “This trial will help us build a better experience for our customers, while making cable television programming even more affordable, accessible and relevant to a new generation of consumers.”

Other MSOs have launched or are trialing new slimmed down TV offerings. Charter is  testing a service called Spectrum TV Streamthat starts at $12.99 per month;Comcast is nearing the wide launch of “Stream,”a $15 per month no-contract IP video offering; and Cablevision Systems has launched a batch of packages tailored for cord-cutters.  Dish Network is targeting cord-cutters and cord-nevers with Sling TV, an OTT-TV service that launched nationally in February and starts at $20 per month.

Cisco Systems shed more light on the drivers behind its decision to acquire 1 Mainstream, believing that the deal the deal will enable it help service providers and new OTT partners more rapidly tie in support for a growing array of TV-connected devices.

Cisco’s multiscreen strategy initially focused around “companion devices” such as PCs, tablets and smartphones, but is hearing from both service provider customers and OTT and media players that they also want to launch, and launch rapidly, on devices that are connected to the primary screen, Conrad Clemson, the SVP and GM of Cisco’s Service Provider Video Software and Solutions Cloud Engineering Group, said.

“From our perspective, 1 Mainstream is far and away a market and a technology leader in this,”  he said, noting that the vendor will bring into the mix that are not currently supported by Cisco’s cloud-driven platform (by the way, Cisco confirmed that it has backed away from the “Videoscape” brand introduced in January 2011 at CES, going instead with an “Infinite” suite that includes support for managed networks and devices, and its cloud DVR and virtual video processing platforms). 

In addition to iOS and Android mobile devices, 1 Mainstream’s site lists out several TV-connected platforms it supports, including the Apple TV, Amazon  Fire TV, Android TV, Xbox 360 and Xbox One, Roku, Chromecast  and Samsung smart TVs. Those on its roadmap include the Sony PlayStation 3 and PS4 and LG smart TVs.

Colin Dixon, analyst and co-founder of nScreenMedia, also believes that the deal makes sense for Cisco. While Cisco’s got the backend infrastructure to help partners nail up new services in the cloud and to manage them, they didn’t have “a simple way for anyone to launch a video service across multiple devices really quickly.”

And that’s where 1 Mainstream is coming in with a portal/template system that allows for customers to configure and roll out apps quickly on these platforms. The question moving forward, Dixon said, is how well this approach works with large-scale providers that want a more custom look, but acknowledged that 1 Mainstream’s work with Sky’s Now TV offering is in that tier 1 category.

Clemson said 1 Mainstream will also add to the mix expertise in OTT monetization, search, recommendations and data analytics, complementing  Cisco's work around content management and catalog display. The acquisition, he added, will also  help Cisco across the board with traditional service providers and enable it to “rapidly expand” to the white-hot OTT market.

He said all 22 employees of 1 Mainstream will join Cisco, including CEO Rajeev Raman, who will become director of cloud engineering on Clemson’s team and help to “drive our Infinite video roadmap forward.”

Raman, the former head of product at Roku, said 1 Mainstream has about 70 customers today and is on its way to breaking the 100 mark.

He said it made strategic sense to team up with  Cisco as the company looked to scale up faster and fulfill its needs to expand in areas such as marketing, channel partners and customer support.

He said OTT, like the name of his company, is rapidly becoming a mainstream initiative for broadcasters and operators. It’s now “part of their short-term, and medium-term and long-term business plans at the CEO levels of these companies,” he said.

New Orleans – A handful of top industry execs gathered here Wednesday at the General Session to discuss and debate the key technologies and trends that are impacting the industry now, are out on the viewable horizon, and even a few that are hiding behind corners.

And the topics were as diverse as the challenges faced by the industry, spanning mobile, multi-gigabit broadband, the IP video transition, and agile-style models that can enable operators to move at web-speed.

Waxing Wireless

While U.S. cable operators are leaning heavily on WiFi to lead their wireless strategies, Liberty Global has also been pushing hard on quad-play offerings that tie in the MVNO (mobile virtual network operator) model.

Mobile “is becoming the primary computing device,” Balan Nair, executive vice president and chief technology officer, said during a presentation about technology trends and how the operator is handling new forms of competition.

Liberty Global now has about 4.5 million mobile subscribers through its MVNO relationships (that sub number is expected to grow to 8 million through the MSO’s M&A activity), and Nair said Long Term Evolution (LTE) allows for seamless connectivity and the technology is on the road to delivering gigabit capacities.

“LTE is here to stay,” said Nair (pictured, credit: Susan Poag).

But WiFi, he said, “is becoming a bigger and bigger part of our story going forward,” noting that delivering a good WiFi experience in the home matters more to many consumers than the wired broadband pipe connecting the home itself.

Nair also shed some light on Liberty Global’s future plans, telling the crowed that the MSO is working on its first “WiFi-first” device, which would prefer WiFi access when it’s available, and seamlessly fall back to the LTE mobile network when it’s not.

Enabling that seamless transition “is not an easy thing to do,” Nair allowed, adding that Liberty Global expects to introduce its first WiFi-first product toward the fourth quarter of 2016.

During the follow-up panel moderated by Cox Communications president Pat Esser, Nair outlined four ways cable operators can enter the mobile game – they can build and operate the network themselves (if they have spectrum), buy another mobile provider, launch a “light” MVNO whereby the MSO is relegated as a reseller, or introduce a “full” MVNO play where the operator builds out the mobile “core,” keeps call control and essentially rents access to the radios and base stations.

Liberty Global has tried out all four and Nair was direct about the issues cable operators face with the home-grown route. “I’ll tell you, building sucks,” he said.  Though Liberty Global was able to obtain spectrum relatively cheaply, the MSO shut down its home-grown network about 18 months after launching it.

He said Liberty Global has found the most success from an operational and economic standpoint with the full  MVNO approach, which allows the operator to control the SIM card that goes in the smartphone.

 “In the end, it’s about handsets and price,” he said, noting that he puts the light MVNO on the “bottom of the list” because the operator has no control – it’s just about renting and selling.

Nair also talked up the positive affect quad-play bundles have on customer retention. “Over time, the churn rate it is discernable between a quad pay and a non quad-play,” he said. “There’s a  downside, though. if you screw up with mobile you lose all four -- you lose the whole quad play.”

Service Agility, IP Video, Cybersecurity

Other topics of note from Wednesday’s conversation: Service agility, customer-centricity, the all-IP progression, and cybersecurity.

Comcast, fresh off the national rollout of its voice remote, will launch an add-on called “X1 Answers” in mid-November, said MSO executive vice president and CTO Tony Werner.

“You’ll be able to  ask -- what was the Broncos score, how tall is the Empire State Building? -- I think it’s going to change a lot of things,” he said.

The transition to all-IP is foundational to proactive change, Werner and others said. By this time next year, Comcast will have deployed 8 million pure-IP set-tops, which matters to serving video on second screens.

“We have the same number of Baby Boomers as Millennials right now, and the Millennials are watching  a lot more content on mobile,” Werner said. “If we have 24 million customer relationships and 15 million video starts in a week [on mobile devices] -- that’s exponential, and it will probably only continue to grow. If you don’t have video over IP, you’re going to miss a big part of the audience -- and it’s a growing part, not a shrinking part.”

Rolling out more features and services more quickly is a big priority for all network operators, execs said.

Liberty Global, which is deploying solely Reference Design Kit-based devices, and will begin converting to HEVC (High Efficiency Video Codec) for 4K/Ultra HD video next year, will get to service agility using defined and publishable APIs (Application Program Interfaces), Nair said.

“I just want to build a stack that has almost every functionality covered by API -- it’s a big transition for us.”

For Nomi Bergman, president of Bright House Networks, the near-term product future includes more 10-Gigabit EPON (Ethernet Passive Optical Network), with an eye towards 100G EPON. “We’re now helping to create the standard for that,” she said.” Also hot in BHN markets: Its “Echo”-branded whole-home WiFi solution.

“It represents a really nice collaboration between the technology, product and marketing teams,” she said.

On the heels of Tuesday’s Cybersecurity Symposium, Nair described a massive hack in the Netherlands, where 2 million broadband connections were shut down, two nights in a row. The four perpetrators were arrested last week, and the incident caused Liberty to overhaul its crisis handling mechanisms.

“In dealing with communications, law enforcement, regulatory, PR -- as it turned out, what we had wasn’t the most easily translatable during a crisis. We had to rebuild a lot of our processes,” Nair said.

Panelists were also asked to discuss some things they’re working on today. For Phil McKinney, president and CEO of CableLabs, his thinking tends to gravitate to what’s coming tomorrow, noting that his group has been focused on “exponential technologies” – things that are outside the scope of the traditional planning cycle.

He worries about “what’s beyond the horizon…so that we don’t get surprised.”

But when later pressed to identify a theme for 2016, McKinney offered this: “It’s all about multi-gig,” a reference to the emergence of DOCSIS 3.1.

Layer3 TV, the Denver-based “next generation cable operator,” has not yet outlined its go-to-market strategy, but it’s becoming clear – in bright pink and orange, no less – that the resulting service will operate in part on an IP-based device made by Pace plc.

The Donohue Report spotted the device as it passed through the FCC. Though short in technical detail, the device located is model number CI2516, and has a colorful, humorous sticker on its underside that reads:  “WOOO OOAHH!! Who Turned Everything Upside Down?”  The Pace-made device also sports a DOCSIS MAC ID sticker, meaning it's for HFC networks. U.K.-based Pace is in the process of being acquired by Arris for $2.1 billion.

Layer3 TV is expected to support a variety of IP-connected devices, but it has dropped hints that it will also offer its own consumer gear, including a set-top that would be capable of supporting 4K/Ultra HD. As for other hints, a job posting from March 2014 proclaimed: "Knowing what RDK is counts as extra credit!," an indication that the company was at least considering a platform that uses the Reference Design Kit, the preintegrated software stack being managed by Comcast, Time  Warner Cable and Liberty Global. 

Layer3 TV, which recently changed its logo, has been asked for comment on the device.

Update: "We don't comment on equipment filings with the FCC," said Layer3 TV's head of marketing Eric Kuhn. "However, we have promised to be a next generation cable operator, so maybe pink and orange is the new black?"

The finding at the FCC marks the first evidence of a consumer device from Layer3 TV, which is expected to launch its IP-based service this year. The Denver-based outfit has not announced its specific plans and product strategy and roadmap, including whether it will offer a direct-to-consumer service or work in partnership with existing MVPDs.

However, a recent FCC filing by the company seems to add fuel to the notion that Layer3 TV will operate as a virtual MVPD of sorts. It told the FCC in July (subscription required) that it’s possible to build a platform that looks and acts like a traditional multichannel video programming distributor from a Commission-requirements standpoint, but can still be innovative and compete head on with legacy pay TV service providers.

A person familiar with the company’s plan told Multichannel News that would be inaccurate to label Layer3 TV an OTT service because it’s aiming to become a “new class” of distributor.

Layer3 TV did describe itself as having a “facilities-based architecture” to the FCC, which is looking to define online video providers (OVDs) that deliver a linear programming stream as MVPDs. If defined as such, an OVD would have access to content through the FCC’s program-access rules, but likewise would have to negotiate for retransmission consent with broadcasters.

The July 22 ex parte filing — which describes a meeting between several staff members of FCC chairman Tom Wheeler and Layer3 TV executives, including co-founders Jeffrey Binder (CEO) and David Fellows (chief technology officer) as well as Kuhn  — appears to confirm that Layer3 TV is approaching its business as a bona fide MVPD with the rights and privileges that such status would confer.

Layer3 TV likewise proposed to the FCC that a “technology-neutral” approach would paradoxically inhibit competition and degrade the quality of content that consumers demand, were the FCC to jettison certain obligations aimed at protecting the consumer interest, including requirements such as Emergency Alert System compliance, closed captioning, limits on commercial audio volume and the provision of public, educational and governmental (PEG) access channels.

“Compliance with those legacy rights and obligations that remain applicable, regardless of the delivery technology, is neither impossible nor anti-competitive,” Layer3 TV argued. “Nor is such a requirement unduly burdensome for new entrants, as Layer 3 TV said it would soon demonstrate.”

Layer3 TV hasn’t announced a launch date, but it is gearing up amid the recent debut of OTT-delivered pay TV services such as Sling TV, Dish Network’s slimmed-down service for cord-cutters, and PlayStation Vue, a more-robust multichannel offering Sony is currently selling in seven markets: Dallas, Miami, Chicago, Philadelphia, Los Angeles, New York and San Francisco.

Of recent note, Layer3 TV added programming vets Lynne Costantini (now president of business development at TheBlaze and a former exec of Scripps Networks and Time Warner Cable) and Sean Riley (an exec with multiscreen video tech firm 1 Mainstream who is also late of Fox Networks) to its content advisory board, which is now led by its chief content officer Lindsay Gardner, a programming vet who was formerly with Fox and Cox Communications.

In June, Layer3 TV  raised a $51 million “B” round that extended its total to $80 million.

Layer3 TV, founded in 2013,  opened its Denver headquarters in September 2014. 

Cox Communications confirmed that it has quietly begun to expand its trial of an X1-powered video offering in the San Diego area, allowing subscribers there to get service via a cloud-based approach that operates on Comcast’s next-gen, multiscreen video platform for set-tops and mobile devices.

Cox has been testing X1 as it pursues a “future-state” video project, and had been testing it in the lab before expanding it to Cox employees in a small number of markets, including Macon, Ga.

Cox spokesman Todd Smith said via email that Cox is taking a “reactive only” approach to the expanded X1 trial in San Diego. There, he said, customers who call in about Contour, Cox’s current-generation video platform for set-tops and tablets, are also being offered to opportunity to get the X1-based service, which Cox is currently referring to as Contour 2.

“We’re not marketing individual features heavily, but focused on testing standard Contour functionality on the X1 platform in a live customer environment,” he said, noting that Cox’s future plans involving X1 are still to be determined though its trial continues to show encouraging results.

Cox EVP Mark Greatrex told CableFAX in its September 15 issue about the San Diego trial and the MSO’s use of the Contour 2 label.

Cox was the first operator outside of Comcast to confirm that was evaluating X1, which Comcast now offers across its national cable footprint and is shipping about 30,000 X1 boxes per day.  

But Cox isn’t alone.  Shaw Communications of Canada announced in June that it was shutting down its original plan to develop an IPTV service to instead try out X1.

Those trials also add momentum to the Reference Design Kit (RDK),  a preintegrated software stack for IP and IP/QAM hybrid devices that’s being managed by Comcast, Time Warner Cable and Liberty Global. Comcast's X1 platform uses the RDK. 

Cox developed its original Contour platform, which features a six-tuner whole-home DVR and a personalized video recommendation platform from ThinkAnalytics (up to eight individual profiles), in tandem with NDS, which is now part of Cisco Systems.

Philo is nowhere near the size of Comcast, but the scrappy startup has managed to stay a step ahead when it comes to notching IP-powered, multiscreen on-campus video deals with universities and colleges.

Heading into the new school year, Philo said it has added 15 new schools to the mix, extending its total past 40. Those joining the mix include Clemson University, University of Houston, University of North Carolina Asheville, University or South Florida, University of Texas El Paso, University of Utah, Virginia Commonwealth University, and Washington State University (see below for the full list of Philo-powered universities).

Philo’s announcement comes on the heels of one from Comcast, which said that it now has 27 schools signed on for Xfinity On Campus, its IP-based multiscreen offering tailored for college students.

Philo’s platform delivers live TV and network DVR services, and access to TV Everywhere services such as HBO Go, to students over the school’s on-campus network, and supports several platforms, including Web browsers, iOS and Android tablets and smartphones, Roku players, and the Apple TV (via AirPlay).

Philo noted that it has launched a redesign of its Roku app (pictured) that will feature enhanced search and DVR functionality. It has also spruced up its Web, iOS and Android apps to allow for improved search, and a new home page that shows recent DVR recordings, shows that are trending on campus, upcoming popular shows.

San Francisco-based Philo (formerly known as Tivli) was founded in 2010, and secured a $10 million “B” round earlier this year led by New Enterprise Associates. It’s led by CEO Andrew McCollum, who was a founding member of the Facebook team.

McCollum said computers/browsers are Philo’s most widely used platform, noting that 20% to 30% of students only bring a TV to campus. However, Roku users tend to consume the most video, he said.

Though a lot of schools still rely on more traditional bulk TV deals, he said a growing number of schools are making the leap and writing RFPs, including some that are "calling out the Philo service by name." 

Here’s the full list of Philo partner schools:

-Auburn University

-Brown University

-Bucknell University

-Cal Poly State University San Luis Obispo

-Clemson University

-CSU Monterey Bay

-CSU Sacramento

-DePaul University

-Duke University

-Elon University

-Fordham University

-Fort Hays State University

-Harvard University

-Jackson College

-Lawrence Technological University

-Lubbock Christian University

-Marshall University

-Miami University of Ohio

-Mount St. Mary's University

-North Carolina Central University

-Pepperdine University

-Rice University

-Roanoke College

-Sacred Heart University

-Sheridan College

-Shippensburg University of Pennsylvania

-Stanford University

-SUNY University at Stony Brook

-Texas A&M University

-Trinity University

-UNC Asheville

-University of Alabama

-University of Houston

-University of Michigan

-University of South Florida

-University of Texas El Paso

-University of Utah

-University of Washington

-Virginia Commonwealth

-Washington State University

-Wesleyan University

-William Paterson University of New Jersey

Comcast has signed on 27 schools for Xfinity on Campus, its IP-delivered live and on-demand video service for college students, and is adding some new bells and whistles to the platform for the new school year.

A year after Xfinity on Campus launched commercially with seven university partners on board, Comcast said the service will be available this fall at the following schools:  Benedictine College; Brandeis University; Bridgewater College; Chico State; Dartmouth College; University of Delaware; Drexel University; Emerson College; Goucher University; Lasell College; Loyola University Maryland; Massachusetts Institute of Technology; Morehouse College; University of New Hampshire; Northwestern University; Regis College; Rider University, St. Michael’s College; Seattle Pacific University; Sonoma State University; Washington & Lee University; and Yale University.

The service is also being at Carnegie Mellon University this fall, and will be rolled out soon to Tennessee State University. Other announced partners include Oregon State University, Champlain College and Lebanon Valley College.

Comcast hopes to bring more schools to the Xfinity On Campus fold later this year, Marcien Jenckes, Comcast Cable’s executive vice president, consumer services, said in a media briefing. Those schools, he noted, need to meet certain technical requirements such as a robust WiFi network on campus.

Jenckes also talked about the strategic importance of Xfinity On Campus, which is powered by Comcast’s cloud-based, next gen X1 video platform.

Xfinity on Campus “allows us to introduce students to our next generation products, services and technologies,” Jenckes said. “Strategically, that was very important for us as we want to show the marketplace that we are evolving to satisfy consumer behavior.”

Comcast also shared some learnings, including some usage trends, it has seen with Xfinity on Campus, which is currently offered on campus WiFi networks on PC and laptop browsers and iOS and Android mobile devices.

Students primarily use their laptops to view content using Xfinity on Demand, explained Jeremy Andreoli, Comcast Cable’s executive director, video services.

Per Xfinity on Campus viewing data, millennial students watch live programming almost twice as much as VOD content – 62% versus 38%.

“If you give students access to live TV, they actually watch it,” Andreoli said.

Led by the NBA playoffs, sports programs have dominated live TV viewing on Xfinity on Campus, followed by Major League Baseball, the Stanley Cup playoffs, NBA games, ESPN’s SportsCenter, Premiere League soccer, and UEFA Champions League soccer matches.

HBO’s Game of Thrones was the most popular VOD title, followed by Keeping Up With the Kardashians (Bravo); Grey’s Anatomy (ABC), The Big Bang Theory (CBS) and Modern Family.

Andreoli said new components coming to Xfinity On Campus later this year include an option to add Comcast’s cloud DVR. In addition to allowing students to stream recorded shows while they are on campus they can also download recorded programs for later viewing on mobile devices.

Comcast is also transitioning Xfinity On Demand to a new consolidated version of the Xfinity TV app and Web site that will support live TV, on-demand and DVR viewing.

Students will also be able to purchase digital movies and TV shows through Comcast’s electronics sell-through platform.

Comcast has not yet committed to bring Xfinity on Campus to TV-connected devices such as Roku boxes and the Apple TV, but does have hybrid deals in place with university partners that also allow students to connect TVs directly to traditional set-top boxes.

“Our goal is to make sure that the end users can consume the content on their terms,” Jenckes said, noting that XoC could evolve to take advantage of Comcast’s “Xi” class of IP-based TV client devices that are used with X1 today.

Comcast, of course, isn’t the only provider that’s making multiscreen connections with university partners. Others include Philo, a startup that landed a $10 million “B” round of funding earlier this year, and Campus Televideo.

Jenckes said competition for such “middle service providers” arose when cable didn’t evolve fast enough to support changing student viewing behaviors.

“They historically filled holes in the marketplace,” he said. “The way I look at it, if we’re doing our job the way we should be doing our job and meeting our customer needs, there isn’t necessarily a need for that middle service.”

TiVo said it has locked up a deal to offer its whole-home and multiscreen platform to the more than 805 small- and mid-sized cable and telco members of the National Cable Television Cooperative (NCTC).

Financial terms weren’t disclosed, but the deal will allow NCTC members to get “cost-efficient access” to TiVo-powered products and services. The partnership includes access to multiple device providers that offer the TiVo platform, including TiVo itself, Pace, Evolution Digital (digital transport adapters), and TiVo “soft clients.”

NCTC noted that it’s investing in a common back office integration platform that will connect with multiple billing systems as well as TV Everywhere authentication platforms.

“This is a key enabler of the TiVo deal and could also support future IP video and OTT solutions,” Rich Fickle, NCTC’s president and CEO, said in a statement.  “We are excited to work with TiVo and believe our members are now better positioned to address a growing array of options for receiving television content."

Rollout will commence by end of year with new features and platforms to follow in early 2016, TiVo and NCTC said.

The agreement should help TiVo push further into the tier 2/3 MVPD world, and expand on deals it has in place with operators such as Suddenlink Communications, Mediacom Communications, RCN, Grande Communications, WideOpenWest, GCI, and Atlantic Broadband, among others.

TiVo ended its fiscal first quarter with 4.81 million subs through MSO deals, and 944,000 TiVo-owned subs. It reports fiscal second quarter results later today.

"This is a remarkable agreement for TiVo and the Pay-TV industry in which an influential alliance has embraced a single, shared platform for the delivery of advanced TV services," Ryan Perry, TiVo's VP of business development, said in a statement. "With this partnership, the NCTC has taken a consolidated, efficient approach to harnessing innovation by making TiVo a top choice for its member operators."

"We are committed to providing our members access to the technology and products that give them a cost effective approach to deliver technology-rich TV experiences," Fickle added. "Collaborating with TiVo gives NCTC members access to an advanced TV offering with best-in-class multiscreen capabilities, OTT integration, and a personalized user experience.”