The Impact of Native IP on the Satellite Ecosystem

Video distribution has seen significant disruption over the past decade. The traditional model of broadcast video distribution over satellite has been upended by the rise of IP streaming services and new market actors. In response, satellite operators are adopting a new norm, DVB Native-IP, that promise to not only challenge the IP-broadband video distribution model but also improve on its inefficiencies. What’s more, the new Native-IP norm can be leveraged to expand beyond traditional DTH into new market verticals. To understand the significance of the new Native IP norm, it’s important to look back at the reasons why it was created.

For more than thirty years, video distribution solutions over a satellite were fixed in a rigidly defined ecosystem structured around technologies normalized by DVB. These technologies were based on MPEG TS encapsulation, Conditional Access (CAS) content protection, and a set-top-box (STB) for decoding the broadcast stream and distributing content to televisions.

The emergence of OTT video services dramatically changed consumption habits and increased demand for access to non-linear content on all types of devices. This led to the emergence of several video distribution technologies for an Adaptive Bit Rate (ABR), such as  DASH encapsulation and DRM encryption.

 

To remain competitive, Pay TV Operators launched their own OTT services. This caused major disruptions to the previously established broadcast ecosystem and has led to the emergence of hybrid broadcast/broadband STBs and DRM encryption technologies replacing the CAS.

To avoid marginalization, the satellite ecosystem had to adapt and evolve. Satellite operators SES and Eutelsat, in collaboration with DVB and other major companies operating inside of the satellite ecosystem, are working to standardize a new norm known as DVB Native-IP. Native-IP distributes a video stream over satellite in an IP format (multicast ABR.), meaning the new standard can be used for both traditional DTH operations and OTT operations simultaneously. With Native IP, video distribution services can profit from the intrinsic advantages of satellite, like scalability, high Quality of Experience, low latency, and the effectiveness of multicast to lower the carbon impact.

 

This new Native-IP approach will have a significant impact on the satellite ecosystems and how content is distributed. Firstly, from a technological standpoint, the video distribution will change from streaming to a file-based format, meaning, traditional DTH operators will have to integrate Native IP technology into their STBs and adopt the standards to make the content available on the local network.

The adoption of Native IP will be especially attractive to new actors in the market. Not only will they be able to deliver non-linear services using a satellite network, but they will join an ecosystem that can deliver added features such as targeted advertising, and a personalized content catalogue. Native IP can also be an opportunity for operators to migrate toward a recurring business model with a “Platform as a service” approach.

 

Another significant impact is the expanded number of verticals that can leverage Native IP. Native-IP’s application will not be limited to the B2C Pay-Tv operator model but can be leveraged to include mobility and transportation, edge-caching solutions on a 5G network, or with a VSAT solution. This will converge the video and data operations of a satellite.

Of note, even with Native IP, the return path is not systematic, and by consequence not a client/server solution. New actors will have to develop solutions that deliver services while recognizing these limitations.

The internet and satellite are converging. With the emergence of constellations. It is not difficult to imagine that multicast/broadcast technologies will also be used on these new communication networks. The Native IP’s standardization certainly has a role to play in facilitating a multiscreen experience, minimizing the impact of video consumption on bandwidth availability, avoiding network bottlenecking, and creating scalable bandwidth use.

 

About The Author

Xavier Battas

CEO & CTO, Quadrille

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