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Episode 32: The Problem With Third-Party Viewer Measurement Platforms; Previewing NFL on Amazon Prime

Podcast Episode 32 is live! This week we discuss the recent news of Amazon’s plans to use Nielsen for TV measurement of Thursday Night Football on Prime Video and highlight problems the streaming industry faces in defining what success looks like. With no standards or agreed upon methodology, definitions or user metrics, the streaming industry is struggling to measure and define viewership from one service to another. We also recap the Walmart+ and Paramount deal; new sports licensing deals with Big Ten Conference and the UEFA Champions League and discuss more of what Netflix’s AVOD offering could look like. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Amazon Prime Video, NFL, Netflix, Walmart, Nielsen, FOX, CBS, Disney, Peacock, Lionsgate, Big Ten Conference, ESPN, Paramount+, UEFA Champions League, DAZN, fuboTV.

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Why Video Engineering Teams Are Taking A Video QoE-First Approach To Playback Testing

Recently, I wrote about how device fragmentation and testing have become two of the most significant issues facing streaming services, specifically in ensuring audiences have access to high-quality playback that provides the best viewer experience on every device. Frustrated users are more than happy to give feedback on poor experiences through app ratings, social media, and other forums, influencing how future potential customers view streaming services. This matters as quality of experience has become one of the deciding factors in user retention, and difficulty in providing it can seriously affect growth and adoption.

At the root of ensuring quality is the Q/A testing done by the engineering teams, which generally happens through manual and automated methods. As I mentioned in my other post, both come at a high cost in terms of time and budget and require a high level of streaming workflow knowledge to identify and create the tests for every relevant use case. In this post, I will briefly touch on some of the current options on the market, their limitations, and how providers are jumping into the testing mix.

I often get asked, what tools are streaming Q/A teams currently using? Many Q/A teams start with a small list of manual tests being tracked in a spreadsheet or internal wiki, but this approach doesn’t scale and leaves too much room for error as the number of test cases grows. With the complexity around playback, that is just not an option for most, if not all, streaming providers. This isn’t the case for automated testing, as multiple open-source frameworks and vendors offer services covering browsers and different devices.

When it comes to free open source testing frameworks, some of the names I hear most often are Selenium, Cypress and Playwright and on the SaaS platforms side, Browserstack, LambdaTest and AWS Device Farm. Some of these platforms are excellent at providing or enabling streaming services to build testing structures for website and application performance, but they miss the mark when it comes to video. If you are focused on streaming media, these options aren’t dedicated to testing streaming playback and won’t always cover every device you need to support. This is important because even with access to automated testing frameworks, development team will need to identify and take the time to build up most of the use cases to fit their needs.

Additionally, even though these options are good at what they do, they either come barebones (no pre-set test cases) or have general use cases for multiple industries that can be implemented across testing structures. The significant limitations with general purpose frameworks become apparent when engineering teams need to get more granular and focus on performance, functionality, and playback quality. The heavy lifting will still be up to them.

Some vendors focusing on OTT and streaming are Suitest, Eurofins, Applause, and Bitmovin. The first three do it well with certain limitations to the automation control, not being self-service and needing to buy dedicated test devices or focused on guaranteeing the quality of experience while on applications. Bitmovin is the latest to join this group, known in the industry for their encoding, player, analytics capabilities, and streaming workflow expertise. Bitmovin added playback testing to the mix back in April by making their extensive internal playback quality and performance test automation publicly available, creating a unique client-facing solution.

Just before the NAB Show in April, Bitmovin released their latest Player feature, Stream Lab, which is currently in beta and open for anyone to test. I got the chance to see it firsthand at the show and learn more about this ambitious attempt to address the issue of device fragmentation. With their expertise in streaming and investment in building their own internal automated testing solution, stepping into playback testing made sense.

As their solutions are an essential part in a range of end-to-end video workflows, they have a full view of how the different pieces interact with each other and have developed over 1000 use cases they currently test on their Player. They have also built up their testing center with multiple generations of real devices, which you can see from my LinkedIn post when Stream Lab was first announced. That is where it is advantageous, as it is the first automated Playback testing solution that provides access to pre-generated use cases built for the streaming community to test on major browsers and physical devices such as Samsung Tizen and LG Smart TVs. This makes it possible for teams to ensure high-quality playback for streams, with no Q/A or development experience necessary, giving you confidence and peace of mind around version updates or even potentially supporting new devices.

Even though Stream Lab is innovative in its mission when it comes to being a solution for device fragmentation, it is currently available in open beta as Bitmovin looks to add more functionality and use cases. The company started developing their own internal automated infrastructure about five years ago and from that moment, they’ve been adding use cases and functionality from workflows they’ve implemented ever since. Stream Lab still has a good amount to work on and add, but it stands to be a significant plus to development teams in the streaming sector and will be an essential piece for Bitmovin’s playback services.

How the industry tackles device fragmentation will be interesting to continue to analyze. It’s definitely something to pay attention to, as device makers show no signs of slowing down and creating a standard. Due to this, video engineering teams will struggle to cover every use case viewers might experience during playback, especially as new AVOD services from Netflix and Disney come to the market.

As Viewership To Disney’s Streaming Services Grow, Their D2C Losses Widen

Nielsen’s latest data says Disney’s D2C streaming services gained 5.4% of TV viewing “share” last month, yet Disney’s D2C business lost $1.1B in their fiscal Q3 quarter, their biggest loss ever. The metric of “share”, or viewing time, by itself, is not what the industry should be looking at to determine success. That one data point, by itself, does not tell a complete story and does not determine a “winner” as the media continues to say.

Also, suggesting there will only by a “few” winners or “3-4 winners” in the streaming wars, like I keep hearing execs say on CNBC each day is not accurate. Define what a “winner” means? Apple, Netflix, Disney, Warner Bros. Discovery, Paramount, Comcast, Amazon, Roku, will all be highly competitive for years to come and most have different business models. None of them are going to exit the market and that’s 8 companies right there. Suggesting there will only be a “few” winners simply isn’t accurate.

Disney’s D2C losses broken out by quarter:

  • Disney’s Q3 2022: D2C lost $1.1 billion
  • Disney’s Q2 2022: D2C lost $887 million
  • Disney’s Q1 2022: D2C lost $593 million
  • Disney’s Q4 2021: D2C lost $630 million
  • Disney’s Q3 2021: D2C lost $293 million
  • Disney’s Q2 2021: D2C lost $290 million
  • Disney’s Q1 2021: D2C lost $466 million
  • Disney’s Q4 2020: D2C lost $580 million
  • Disney’s Q3 2020: D2C lost $706 million
  • Disney’s Q2 2020: D2C lost $812 million
  • Disney’s Q1 2020: D2C lost $693 million
  • Disney’s Q4 2019: D2C lost $740 million
  • Disney’s Q3 2019: D2C lost $553 million
  • Disney’s Q2 2019: D2C lost $393 million
  • Disney’s Q1 2019: D2C lost $136 million

*Note: For some of these quarters, Disney included D2C revenue and losses with “International” before they restructured their business.

Episode 31: Q2 Earnings Recap From Disney, Akamai, Edgio, Vizio, Trade Desk

Podcast Episode 31 is live! This week we recap all the news from Disney’s April-June earnings including their D2C business losing over $1B in the quarter; their addition of 14.4M Disney+ subs globally; Hulu and Disney+ price raises; Hulu losing 3.4M SVOD subs and 100,000 Live TV subs and their launch of Disney+ with ads in December. We also cover the numbers you need to know from Akamai (Revenue up 6% y/o/y), Edgio (Initial 2023 revenue outlook of between $550-$560 million), Vizio (Platform+ net revenue up 69% y/o/y), and Trade Desk earnings (revenue grew 35% y/o/y). Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Disney, Netflix, Hulu, Tubi, Fox, ESPN+, Paramount+, Disney + Hotstar, Indian Premium League, Vizio, The Trade Desk, Edgio, Akamai, Roblox, Coinbase.

Qwilt and NCTC Members To Offer Better Video QoE by Deploying Caches Inside Rural ISPs

Last month, Qwilt and the National Content and Technology Cooperative (NCTC), announced significant progress on their initiative to upgrade NCTC member networks across the United States to help ISPs deploy an edge CDN, providing high-quality content delivery and better digital experiences. Combined, NCTC members reach 34 million households in the US but many of these ISPs are very small and don’t have caches from commercial CDNs within their network.

NCTC’s program with Qwilt will allow their members more control over content flows and catering to the needs of global and regional content providers for more capacity, consistency and performance in video delivery. A single API allows content publishers access to a national federation of NCTC member networks and monetization of content delivery for NCTC ISPs through revenue sharing with content providers. More than 100 NCTC members have signed up to deploy the Qwilt CDN inside their network and are expected to have it in production by the end of Q3. While Qwilt won’t discuss the total combined network capacity across all ISPs, I would expect it to be in the range of 25 Tbps of egress capacity, using the math of 15-20 Gbps of capacity per deployed server.

These deployments will help deliver video to areas where QoE could be a larger problem and while not mentioned in the release, I would expect that Disney+ will be one of the first OTT services to go across this distribution network, since Qwilt already has a commercial relationship with Disney. In addition, the NCTC negotiates agreements with OTT content providers to give their members economical access to streaming content. For NCTC members that participate in their OTT agreements, independent operators gain access to a portfolio of entertainment options with the goal of attracting and retaining cord-cutters and cord-nevers. The NCTC currently has agreements in place with Cheddar, CuriosityStream, Disney+, ESPN+, HBO Max, Hulu, Peacock, fuboTV and Philo.

If you look at the NCTC as a collective ISP, they are larger than Comcast when it comes to the number of households they serve. The new caches from Qwilt will allow smaller ISPs to deliver the type of video experiences that most viewers expect and get within larger ISP. This allows regional service providers to compete with the same level of QoE and get the exact same technology that Verizon uses in their deal with Qwilt, but they don’t have to be the size of Verizon to get access to the caches.

While on-demand video will be the first use case for the deployment, I expect that live streaming will also come to the platform and is where ISPs will really see some immediate benefits on the QoE side. Large-scale live events, with unknown traffic spikes, is where we see the majority of QoE problems, so I would expect we’ll see first-hand accounts of ISPs delivering live events via the caches in the immediate future. Qwilt hasn’t given a timeline on the other types of content the platform will support, but they did tell me they expect the caches to be able to handle software downloads and other content shortly.

Over the years we have seen a lot of CDN models come to the carrier and service provider market, with little success. But this deal with the NCTC is by far the largest deployment to date, based on the numbers of households it covers. With about 132 million households in the US, the Qwilt caches will cover almost 27% of all those households and provides and open caching platform that federates otherwise isolated carrier CDN models into a unified global CDN.

Episode 30: Why FAST Is Overrated; Earnings Recap from Paramount, Fubo, Warner Bros. Discovery, AMC, Lionsgate, Fastly, Vimeo

Podcast Episode 30 is live! This week we discuss why FAST services are overrated; the news that HBO Max and Discovery+ will launch as a single service in the U.S. next summer; we highlight the key data you need to know from Q2 earnings from Paramount (added 4.9M Paramount+ subs), fuboTV, (lost 70,000 subs), Lionsgate (added 1.8M Starz subs) and cover earnings from streaming vendors including Fastly, Brightcove and Vimeo. We also discuss why WPP, which is the world’s biggest advertising agency group, raised its revenue growth targets for 2022. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Warner Bros. Discovery, HBO Max, Discovery+, fuboTV, Netflix, Tubi, Pluto TV, Paramount+, Sling TV, AMC Networks, F1, Lionsgate, Starz, Roku, Canal+, WPP, Liberty Media, Altice, Fastly, Cloudflare, Vimeo, Brightcove.

Episode 29: Earnings Recap; Key Takeaways from Roku, Amazon, Apple, Charter, YouTube, Microsoft and Comcast

Podcast Episode 29 is live! This week we breakdown the key numbers you need to know from Q2 earnings at Apple, Amazon, Alphabet, Comcast, Roku, Charter, Meta, Microsoft and Samsung. We cover the “significant slowdown in TV advertising” seen by Roku and others; Meta’s price per ad falling by 14%; Peacock TV subs being flat quarter-over-quarter; cord cutting from Charter (lost 240,000 pay TV subs) and Comcast (lost 521,000 pay TV subs); and YouTube’s slowest ad revenue growth in over two years. Thanks to this week’s podcast sponsor, Agora.

Companies, and services mentioned: Companies, and services mentioned: YouTube, Netflix, Apple, Meta, Comcast, Charter, Peacock TV, Alphabet, Microsoft, Panopto, Kaltura, Shofify, Google Cloud, Quest 2, Samsung, AWS, Roku, Amazon, Apple TV+, NFL, Amazon Prime Video.