Cartesian Coordinates Winter 2015 Cover

Cartesian Coordinates - Winter 2015

Our Winter edition of Coordinates features our Year-End report and includes a review of the past year, a scorecard for our 2015 predictions and our 2016 forecast for the communications, media and technology industry.

In the Winter 2015 issue:

  • Featured: 2015 Year-End Review and Predictions for 2016Cartesian Coordinates Winter 2015 Cover
  • Extracts from our insights on video analytics, Software-Defined Networking and password sharing
  • Expert Interviews with Jean-Marc Racine and key themes for the TV and digital video industry, and André Roy and video streaming content security issues
  • Client Challenge: Accelerating network transformation
  • Latest company news, services and events

Coordinates is Cartesian’s quarterly newsletter – a mix of industry analysis, expert insight and company news.

Excerpt from our Year-End Review and Predictions for 2016:

Predictions for 2016

Looking forwards to the year ahead, here are our predictions for 2016:

1. Pay-TV providers follow Comcast’s lead with their ‘Stream’ product and offer slim content packages over the top.

Although similar offerings from other US providers are a response to competition, their European counterparts continue to experiment with Pay-TV light propositions.

2. As OTT and TVE services mature, Pay-TV providers begin to crack down on password sharing.

Pay-TV operators begin to contend with credential sharing for the first time. Despite HBO/Netflix previously stated that they are not concerned about password sharing, this sentiment also begins to change.

3. Traditional broadcasters continue to resist the urge to embrace third-party OTT TV platforms.

A cohort of ambitious OTT TV startups struggle to deliver on their promises and scale back content offering and functionality, due to their inability to secure rights from broadcasters.

4. Despite pressure from Netflix and the EC (through AVMSD reform), who both love the idea of a “borderless” content rights ecosystem in the EU, no progress is made on this front.

Traditional broadcasters’ spending on content still vastly outweighs Netflix’s, and negotiating regional rights agreements remains deeply embedded in the traditional ecosystem. A paradigm shift on content rights across the EU does not happen any time soon.

5. SDN will continue to gain traction with more enterprise services being developed around the technology.

A general shift to networks-as-a-service begins. Premium services like bandwidth on-demand services (e.g. for sporting events) and flexible on-demand transport networks for enabling content providers to deliver live content through CDN servers will start to gain momentum.

6. Higher participation in crowdfunding will lead to more funding for sharing economy platforms, since small investors will have vested interest in sharing economy companies.

The funding landscape changes as entry into the sharing economy market increases. As users fund and own part of the sharing economy business, they become engaged advocates, increasing the rate of disruption on traditional consumer markets.

7. More partnerships will be formed between sharing economy companies and traditional businesses.

The trend continues, as the digital nature of sharing services allows for vast opportunities to integrate with traditional businesses.

8. Following the successes of industry frontrunners, more network operators get serious about decommissioning their legacy voice switches and moving to IP.

The business case for network transformation becomes increasingly attractive as operators revalue operational cost savings, property costs and revenue upside. In the US, FCC Network Change Notices from ILECs show an accelerating trend in central office decommissioning & copper retirement.

9. Global interest in the shut-down of 2G (GSM) networks grows as we approach the end of 2016 when the first networks are due to close.

More mobile operators discuss their plans in public with some seeking early closure to release spectrum for 4G, and others taking a longer-term view to support an installed base of 2G M2M modules.

10. In the mobile sector, Wi-Fi first business models grow in popularity.

Wi-Fi first business models – such as Republic Wireless and the Google Project Fi – gain popularity amongst consumers. More service providers consider this approach to limit MVNO costs.

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