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Interview with Stuart Sikes

Ahead of Cable Congress 2013 we speak to Stuart Sikes, President of Parks Associates about cable priorities for 2013 and new trends in consumer technologies.


What do you think will drive cable’s priorities as we look at the state of the industry in 2013?
The increasing emphasis on a superior user experience will lead to new enhancements in 2013.  Giving consumers the ability to access content on all platforms will lead to richer interfaces and TV-like programming on non-TV devices.  2013 will see more robust connected device offerings, enabling users to browse the full capabilities of their subscriptions from tablets, PCs and smartphones — not just a limited sampling of what is offered on TV.  2013 will include a number of “in the labs” second screen experiments, none of which will be generally available this year.  New EPGs, or should we say, enhanced user interfaces will be fine-tuned as the industry responds to new standards set by both the Horizon box as well as by a growing number of OTT boxes, including Apple TV.  2013 will include a number of announcements of providers offering STB-less options.

As Parks Associates keeps a close eye on trends in consumer technologies, would you be able to tell us a bit about what these trends are? We are on the edge of an explosion of the Internet of Things (IoT).  The ways that we relate to our devices is quickly changing.  We see it evolving as follows:

  • A move to specialized app interfaces (this happened around 2011).
  • A move to gesture and voice commands (Siri is a crude start, and Samsung’s facial and voice recognition TV technology is an early example).
  • Context-based controls for devices will set lighting and temperature or TV channels based upon my preference as I enter the home.  Our cars already adjust our seat and mirrors based upon which key is being used to enter the car.  Our homes will follow a few years behind.
  • True smart systems in our homes are those that operate in the background, improving operating efficiencies and increasing our comfort and security without us having to “operate” them.  They will just work.  We see early examples in energy management technologies available through providers such as Comcast.

How will these trends affect the cable industry and the vendors who work along with it? Cable is in a great position to leverage a residential gateway device and offer incremental services for a few extra Euros each month, slowly but firmly wooing the subscriber into a deeper and more satisfying relationship.  When consumers realize that they want these new services, most will not want to self-install.  They will want to pick up the phone and have their cable company “just make it happen.”

What’s in the connected home for cable? Higher customer satisfaction and higher revenues.

Cable’s home has traditionally been television and it is now recognized as a leader in high performance fibre-rich broadband. What does cable’s evolution mean for the evolution of new video services? I think it means that cable is now in a great position to offer richer TV everywhere experiences — pushing the full TV experience to all devices while providing deeper OTT content integrated into its programming offerings.  By providing a superior “home screen” experience, cable can combat cord cutting and shaving.  In the end, if consumers receive a smooth, seamless experience to a robust set of content which is offered under a variety of pricing scenarios, then they have fewer reasons to shop for alternatives.

What’s the big new business model that you have seen that represents the biggest challenge to cable? And do you think cable can turn that into an opportunity? The biggest new model is offering TV everywhere services for essentially the same price — providing great amounts of convenience without directly charging a premium.  The opportunity here is to keep subscribers on-board and intact until new value-added services such as home monitoring, energy management, health monitoring can be added to the platform for incremental revenues.  It will be a couple of years before people are convinced of the value of new services, so cable has to hold onto subs while new value propositions are proven.

CABLE CONGRESS 2013

On Day 3 at 9.30 Stuart will be moderating a panel discussion on the ‘Home Automation’ subject. Home automation is a growing trend worldwide. As consumer demand for smart home security, control and energy management has picked up speed, operators see it as an opportunity to enhance their offerings. Yet home automation raises many questions: is it a new way to generate revenue? Will it further engage customers and make them more “sticky?” Is it the next step in product development? Click here for the latest programme.

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Rovi creates innovative technologies that connect people and digital entertainment. Reaching millions of consumers through popular applications, devices and websites, Rovi helps global consumer electronics manufacturers, service providers, content producers, retailers and advertisers provide a better entertainment experience at home and on the go. With unparalleled entertainment data, industry-leading media guides and storefronts, high quality video playback solutions, a multi-platform interactive ad network and more, Rovi covers the digital entertainment ecosystem with both custom and cloud-based products that bring consumers closer to the TV shows, movies, music and games they love. Learn more at www.rovicorp.com

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TiVo, the leading consumer TV product provider, offers best in class user-interface, enterprise video services and seamless delivery of broadband and broadcast content to every video screen in the home. TiVo’s intuitive experience offers consumers the ability to effortlessly aggregate, search and navigate one user interface to enjoy the best digital entertainment content available today. For pay TV operators, TiVo delivers proven financial benefits with increased ARPU, higher customer satisfaction and reduced churn. The TiVo hosted service provides a whole home solution across TV, mobile and tablet platforms, in addition to traditional set-top boxes.  Distribution partners include:  Cable One, Charter, Comcast, Com Hem, DirecTV, GCI, Grande, Mediacom, Midcontinent, Ono, RCN, Suddenlink, and Virgin.


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With more than 40 years of innovation in the IC industry, Intel brings the benefits of its established CPU architecture and its world-leading process technology to the cable industry in the form of system-level ICs for data and video gateways. High performance Intel®AtomTM processors at the heart of its cable gateway System on Chip products are delivering an exceptional user experience, with proven Intel®AtomTM processor virtualization technology set to further accelerate the way service providers can deliver and monetarise new services. Intel is proud to be a sponsor of the 2013 Cable Congress. www.intel.com

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NAGRA, the digital TV division of the Kudelski Group, provides security and multiscreen user experience solutions for the monetization of digital media. It offers content providers and DTV operators worldwide with secure, open, integrated platforms and applications over broadcast, broadband and mobile platforms, enabling compelling and personalized viewing experiences. Please visit www.nagra.com/dtv for more information and follow us on Twitter at @nagrakudelski.

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Teleste is an international technology group providing HFC and deep fibre solutions and comprehensive network planning and maintenance services for leading cable operators in Europe.

In 2012 our net sales was EUR 194 million and Teleste employed 1325 persons

The company is listed on the NASDAQ OMX Helsinki Ltd.

Visit www.teleste.com for more information.

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Farncombe is the leading independent specialist digital TV consultancy, providing world-class strategic advice, engineering and design services to clients across the digital TV and entertainment value chain. Farncombe’s experience in digital TV is unrivalled, focusing on the commercial opportunities in multi-platform, multi-screen and hybrid IP TV delivery. Founded in 1991, the company now has offices in the UK, France and Germany, and is recognised as an innovator driving the industry forward and the ‘go-to’ source for independent and authoritative strategic counsel. Farncombe’s international client roster includes amongst others: Arqiva, Broadcom, BSkyB, BT, Irdeto, Kabel BW, NAGRA, NDS, Ofcom, SABC, Top Up TV, UPC and YouView. For further information, visit www.farncombe.com.

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