Magazine

The Revolution in Video Services

© 2008 Hospitality Upgrade. No reproduction without written permission.

Americans are turning to broadband for their TV shows. Nearly 80 million Americans (43 percent of the online population) have watched one of their favorite TV shows on the Internet, up significantly from 12 months ago when that figure was just 25 percent. A full 20 percent of the American online population said they watch TV on the Web on a weekly basis, and that’s ahead of the 14 percent who say they take advantage of cable’s video on demand offerings. (Source:Digital Life America study conducted by Solutions Research Group)       

The Change in Television Viewing
Consumers’ television viewing habits have shifted with the greater adoption of personal video recorders (PVRs). The time shifting of content is now a preferred mode by on-demand viewers, who will dominate the overall consumer preferences in the near future. Viewers are accustomed to the choice of seeing shows when they want it.

The change in viewing habits goes in hand with the viewing of TV shows on the Internet, where content is available at anytime. Major broadcast TV networks now offer parts of their programming line-up, including some popular shows on their own Web sites to generate a greater viewing audience. There is a vast amount of video content available on the Web and it is growing rapidly. Video is available either on a live streaming format or on a downloaded basis with Media Player or similar software. There is an increasing number of innovative players entering this space and offering video services over the Internet.

It is the free or cost-effective access to content, at anytime, and the breadth of choice that attracts people to watch videos on the Web. Sometimes the insufficient availability of compelling TV programming or other entertainment content is driving people to look for content on the Web, outside of the packaged video content services from their service providers.   

Content Available over the Internet
A popular example of short-form video content over the Internet is Google’s YouTube, which has over 50 million registered users accessing video clips for free. Then there are companies looking to offer broadcast-quality content through the Internet, studios distributing DVDs online, and Web video portals offering downloads of long-form content such as movies and syndicated TV shows to PCs and set-top boxes. There are varying business models ranging from advertising-sponsored free content to fee-based on pay-per-view or monthly subscriptions. 

With a variety of past TV shows now available through the Internet, the concept of a long tail in the value proposition for this content is evolving quickly. One challenge in the access to this content through the Internet is ease of use in search. Search capabilities to access this content are being developed for ease and accessibility. With greater access to stored video over authenticated links over the Net, there is enormous potential for viewer choices.   

TV Transformation in the Guestroom
The TVs in the guestrooms are going through a transformation. Major franchisors have mandated brand standards for flat panel, HD TVs, LCD or plasma, 32-inch, 42-inch and even larger that are equipped with connectivity units. At the same time, the HD content and channel line-up offerings at the hotels are also being expanded. Hotel brands are teaming up with video service providers to offer time-shifted and niche programming on-demand and even exclusive content that is not available to the general audience. These initiatives are aimed at increasing brand loyalty. 

The connectivity units in the rooms have HD multimedia interface (HDMI), allowing guests to connect their own media devices and entertainment content from podcasts to gaming using the TV screens as the monitor. With HDMI becoming more popular and expected in laptops and many consumer devices, the connectivity options get much simpler. This also facilitates the portability of personalized content for the guest.      
 
What Does this Mean for Hotel Operators?
The cabling systems in many of the older hotels will not support the newer HDTV services. The same can be said of the network serving HSIA if it was installed more than three years ago. As TVs are changed out in the guestrooms there is an opportunity for the hotel operators to reassess video service contracts with existing vendors. There is a need for a good infrastructure layout to support all these emerging services.

It is recommended to perform an audit and evaluate the infrastructure at the hotel – from a cabling standpoint as well as the network equipment in place. Active network equipment would need to be installed that is capable of monitoring and responding to bandwidth needs appropriately. The network switches, routers, firewalls and gateways must be capable of deep content inspection to keep the bad guys out and let the good guys access the content. It will be necessary to manage the bandwidth available to the hotel overall to balance guest satisfaction and revenue optimization. There might be a potential for incremental revenues to the hotel operator for upgrading guests to higher Internet access speeds and in shared revenues from fee-based content billed to the guest at the hotel.

Ashok Kumar is an independent technology advisor with extensive experience in the justifiable implementations of emerging technologies such as Wi-Fi, IP networks, voice and video communications. He can be reached at akumar@ieee.org.