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Price remains most critical factor for 4K November 11, 2013 09.41 Europe/London By Robert Briel Price remains the most critical

  1. #3521
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    Price remains most critical factor for 4K
    November 11, 2013 09.41 Europe/London By Robert Briel

    Price remains the most critical factor for 4K (or UltraHD) TV adoption, according to ABI Research.
    However, OTT services such as Sony’s Video Unlimited 4K service and display features such upscaling will help early adopters bridge the content gap and raise consumers’ valuation of 4K as a TV feature.
    Consumers are conditioned from the mobile market to perceive value in higher resolution screens, with marketing such as Apple’s Retina Display branding the experience. This halo should carry over to 4K TVs. In addition, as new products that support 4K hit the market, like the upcoming next generation consoles from Microsoft and Sony or select Qualcomm Snapdragon 800 based mobile devices, consumer awareness will continue to expand.
    Asia-Pacific, notably, China, is expected to lead 4K (or Ultra HD) TV unit shipments. However, the North American market is anticipated to be the first region to eclipse 5% (in 2017) and 10% (by end of 2018) of TV households. Despite limited 4K content, declining 4K TV prices will facilitate the expansion of the installed base through normal upgrade cycles.
    Senior analyst Michael Inouye commented, “Despite a very limited installed base there have already been a number of 4K trials from broadcasters, pay TV operators, and satellite operators. While many point to the 2014 FIFA World Cup in Brazil and Sochi Winter Olympics as highlights for 4K, these events will have a minimal impact on 4K adoption – it’s simply too early.”
    Practice Director Sam Rosen added, “Unlike 3D, which required awkward glasses, 4K has the legs to become an industry norm. This isn’t a sprint, however, and it will take time for the necessary infrastructure, installed base of devices, and content to come together before 4K becomes an integral part of how the typical TV household consumes video content. We expect this could start to happen as early as 2018 in some regions. In the meantime, many consumers will have 4K panels without 4K content, or 4K game consoles without a 4K display, and will claim a superior 4K experience even though the technical merits are not quantifiable.”

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    Russian telco for sale
    November 11, 2013 09.12 Europe/London By Chris Dziadul

    Russian Railways plans to sell a 50% minus two shares stake in its subsidiary Transtelekom (TTC) by 2015.
    According to Kommersant, the proposed sale is discussed in the company’s investment and financial plan for 2014-2016. TTK had 1.05 million subscribers at the end of 2012, or 144% more than a year earlier.
    Its revenues amounted to R27.1 billion (+9% year-on-year) and its net loss was R0.7 billion (-30% year-on-year).
    The 50% minus two shares stake is expected to be valued at R37.5 billion, with the Russian Direct Investment Fund a likely buyer.

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    84% of Dutch homes watch digital TV
    November 11, 2013 08.52 Europe/London By Robert Briel

    VOD_UPCfamily-300x20584% of all TV homes in the Netherlands watch digital TV, with cable still the dominant platform.
    There are 7,431,000 TV homes in the country, according to the latest figure from ACM, (the Authority for Consumer and Market). 4,820,000 homes subscribe to cable, of which three-quarters are now digital (3,643,000).
    6% of all homes remain analogue only (cable), while 49% of the homes have both analogue and digital reception. The digitisation of cable homes is still progressing, but according to the Authority at a slower speed.
    The four biggest platforms are Ziggo, UPC (both cable), KPN (IPTV + DTT) and Canal Digitaal Satelliet (satellite DTH). Cable continues to lose market share. On June 30, 2013, 64% of all Dutch TV homes subscribed to cable, compared to 71% on June 30, 2011.
    The total turnover of all platform on a retail level is €1,691 million, of which €1,235 million is cable.
    A public version of the Authority’s report (7 page PDF of a power point, in Dutch only) is available for download from our website here.

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    Turkey signs major CDN deal
    November 11, 2013 07.46 Europe/London By Chris Dziadul

    Türk Telekom and Akamai Technologies have entered into a strategic partnership to jointly build and manage a high-capacity Operator Content Delivery Network (OCDN) in Turkey.
    According to Hurriyet, the network will be completed in 2014 and will allow for faster delivery of online content and video.
    It adds that the agreement, which was signed by infrastructure was signed by Türk Telekom CEO Tahsin Y?lmaz and Akamai CEO Tom Leighton during a press meeting, will ensure a significant increase in speed and performance for broadband and mobile users in Turkey, particularly when accessing social media and popular online video sites.
    Türk Telekom currently has 13.7 million fixed access lines and 7.2 million broadband connections.
    Akamai, on the other hand, delivers 15-30% of the world’s web traffic.

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    Kudus pioneers interactive services in Namibia
    November 12, 2013 08.06 Europe/London By Robert Briel

    NBC digital TV screenshotExset, pioneers of TV ecosystems for emerging markets, has announced that Kudus Technology, based in Namibia, has successfully developed monetisation applications, that can be deployed by the country’s public service broadcaster Namibian Broadcasting Corporation (NBC) using Exset’s Digital Monetisation System (DMS).
    Albertus Aaocchhamub, director general of NBC, who is driving the nationwide digitisation, said, “We wish Exset and Kudos the best and feel that this endeavour will bridge the gap between technology, government and monetisation.”
    In a first for Africa, Kudus worked with DMS supplied by Exset to demonstrate innovative and appealing applications, including games, that can be deployed by NBC over digital broadcast networks. The demonstration version of the NBC African Page, as the service is currently known, is a prime example of how Exset’s technology can be used to create enticing interactive content. NBC is currently heavily involved in the country’s plans for digital terrestrial television rollout.
    Kudus has already demonstrated its DMS-based applications to the public at two events held in August. Himeezembi Kahorongo, CEO of Kudus Technology, said, “We compiled a questionnaire to get feedback on the DMS Namibian pages at these demonstrations. The result of the questionnaire indicated that the general public is very enthusiastic and eager about DMS Namibia pages. In addition, businesses couldn’t wait to provide their services on the system as to them it showed a much more effective way to promote their product to those who don’t have internet and newspaper access.”
    DMS allows governments, network operators and broadcasters to push forwards with the deployment of digital broadcast services (terrestrial, cable or satellite) by removing the hurdle of monetisation. Facilitating the deployment of interactive services over and above traditional television, DMS allows operators to monetise not only through low-cost TV service subscription but additionally through selling interactive services using a variety of revenue share models. DMS has been designed to help bring about digital transition in markets around the world where other information and entertainment distribution technologies (including the internet) have so far failed
    Kahorongo addsed, “We’re very pleased to be the first in Africa to develop our own applications using DMS. While currently at the demonstration stage, we believe that interactive services that provide both entertainment and a TV-based information platform are very important in the drive towards digital by broadcasters like NBC.”
    Andrew Pons, director of marketing, Exset, said, “Across Africa the TV screen offers the most low-cost way of reaching populations on the wrong side of the digital divide. In turn, DMS offers the way to monetise those deployments by providing access to the TV screen to governments, magazines, major brands, teleshopping services and more. Exset is proud of the technology that it has developed and the fact it will allow the monetisation of digital TV services where previously impossible.”

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    Netflix and YouTube take 50% web traffic
    November 12, 2013 07.38 Europe/London By Robert Briel

    Netflix and YouTube account for 50% of all North American fixed network data, according to Sandvine’s internet traffic trends report.
    “For the first time ever, peer-to-peer filesharing has fallen below 10% of total traffic in North America, which is a stark difference from the 60% share it consumed 11 years ago,” said Dave Caputo, CEO, Sandvine.
    “Since 2009 on-demand entertainment has consumed more bandwidth than ‘experience later’ applications like peer-to-peer filesharing and we had projected it would inevitably dip below 10% of total traffic by 2015. It’s happened much faster. This phenomena, combined with the related rise in video applications like Netflix and YouTube, underscores a big reason why Sandvine’s business has grown beyond traffic management to new service creation.”
    Sandvine’s Global Internet Phenomena Report 2H2013 includes findings from fixed and mobile networks around the world.
    Average monthly mobile usage in Asia-Pacific now exceeds 1 gigabyte, driven by video, which accounts for 50% of peak downstream traffic. This is more than double the 443 megabyte monthly average in North America.
    In Europe, Netflix, less than two years since launch, now accounts for over 20% of downstream traffic on certain fixed networks in the British Isles. It took almost four years for Netflix to achieve 20% of data traffic in the United States.
    Instagram and Dropbox are now top-ranked applications in many regions across the globe. In mobile networks in Latin America, Instagram, due to the recent addition of video, is now the 7th top ranked downstream application, making it a prime candidate for inclusion in tiered data plans which are popular in the region.
    Netflix (31.6%) holds its ground as the leading downstream application in North America and together with YouTube (18.6%) accounts for over 50% of downstream traffic on fixed networks.
    P2P Filesharing now accounts for less than 10% of total daily traffic in North America. Five years ago it accounted for over 31%.
    Video accounts for less than 6% of traffic in mobile networks in Africa, but is expected to grow faster than in any other region before it. Blackberry use in Africa? Blackberry email and BBM messaging accounts for over 13% of traffic across the continent.
    “You have to be in Africa to understand Africa. Sandvine now has customers in 20 countries within Africa and we are pleased to include truly representative data on this high-growth market in this year’s report,” said Caputo.
    “The African market is especially unique, as most users are connecting to the Internet for the first time through mobile devices, and using applications like Skype, Facebook and WhatsApp. In other parts of the world, new users have first connected to the Internet via a fixed line. While video is a small part of mobile bandwidth in the region today, we predict Africa will be the fastest video adopter and operators will respond with creative device-and application-based service tiers.”

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    CTC Media looks to the future
    November 12, 2013 07.59 Europe/London By Chris Dziadul

    Yuliana SlashchevaCTC Media expects to be making up to 10% of its revenues from digital and non-core businesses in the next five years, according to Yuliana Slaschova, the company’s CEO.
    Speaking exclusively to Broadband TV News, she added that these businesses also include merchandising, sublicensing of its brands online and offline and sublicensing of its content to different off-line platforms, including the CTC International pay-TV model in cable and satellite.
    Slaschova also said that digital referred to not only broadcast content but also gaming, dating and ecommerce.
    It is already trialing a dating service on Domashniy and will also start an ecommerce trial on the female-oriented channel next year. It in addition plans to start a gaming trial in 2014.
    Slaschova stressed that CTC Media sees such services operating as revenue shares, with the broadcaster teaming up with companies that specialise in them.
    Speaking more generally, Slaschova said that CTC Media sees new media offering the biggest growth potential. It has already taken a number of important steps to realise this. The first, only three months, ago, was to stop licensing its content to other internet aggregators. This should allow it, in two to three years time, to make much more revenue than up until now on mobile and the internet.
    The second was to strengthen its digital team by hiring a number of key personnel and the third to start monetising its flagship, family-oriented channel CTC and male-skewed Peretz.
    It has only just taken the third step, having already monetised the Domashniy portal for over a year.
    Domashniy now offers viewers not just search answers but also “how to” advice on a number of issues.
    Commenting on the Videomore service, Slaschova said that it now offers content from not only CTC Media’s three channels but also, exclusively, Ren TV and Channel 5.
    Regarding multiscreen, the company sees its main task as finding ways to get the family together in front of the screen. In reality, this will be watching the same content but on different screens.

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    Hitron passes EuroDOCSIS 3.0 certification
    November 12, 2013 07.33 Europe/London By Robert Briel

    Hitron Technologies have announced that their CGNV4 1-Gig Residential Gateway passed EuroDOCSIS 3.0 certification.
    CGNV4 has been developed as a future proof and advanced residential gateway that can provide download speeds of up to 1 Gigabit per second by bonding 24 downstream channels.
    “As Hitron Technologies, we have always been working on the cutting edge of innovation. CGNV4 is a powerful and future proof gateway to enjoy broadband cable services where 500 Megabit per second is becoming the premium standard,” said Luke Van Lierop, VP and managing director of Hitron Technologies Europe.
    “Now that mainstream Internet services start to exceed 100 Megabit per second it is time to introduce 24×8 gateways that are ready to deliver broadband services for many years to come.”
    On top of its high-speed capabilities CGNV4 includes an PacketCable 1.5 certified eMTA, eRouter, DS Lite and concurrent dual band Wi-Fi supporting IEEE802.11ac and the latest Wi-Fi hotspot specifications. The product is capable of running advanced applications for in home connectivity, IPTV and video services. There are configuration options that support DECT and MoCa as well.

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    Divan.TV goes global
    November 12, 2013 08.36 Europe/London By Chris Dziadul

    Divan.tvThe Ukrainian OTT service Divan.TV has signed contracts with a number of rights holders including CP Digital, KiT, Makto and Sonar.
    As a result, it will be able to offer over 300 new movies and 150 TV shows, targeting 300 million Russian and Ukrainian speaking audiences in 200 countries.
    Divan.TV has also added a new section of around 200 short films, each of 2-5 minutes duration, to its offer.
    Divan.TV was founded in 2009 and has developed its own proprietary OTT middleware. Its freemium and premium subscription services, launched last year in Ukraine, have so far attracted 125,000 users.
    Significantly, the new development will effectively result in Divan.TV being transformed into a global OTT service, becoming the first and only Russian speaking service on smart TVs, media player (Roku), tablets and other devices.
    It aims to have up to 2 million customers in the next 3-4 years and to break even on its global expansion, on which it says it has invested millions on dollars, in 2.5 years.
    As a result of the expansion, Divan.TV will open head offices in the US (California) and Russia (Moscow) and leave only a representative R&D department and representative office in Ukraine.

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    Strong Q2 for Kabel Deutschland
    November 12, 2013 08.47 Europe/London By Julian Clover

    Kabel DeutschlandKabel Deutschland has seen a second quarter recovery in its premium TV subscriptions, adding a further 55,000 units in its second financial quarter.
    The Vodafone-owned cablenet had previously announced the addition of 84,000 new subscribers to its Internet and Phone services, resulting in its strongest second financial quarter for several years.
    KDG said revenues had returned to a quarterly growth track, increasing by €7 million in Q2. Year on year, revenues rose by 4.0% to €471 million
    However, the company posted a net loss of €129 million or minus €1.46 per share due to a negative net income effect of €206 million from the Vodafone transaction.
    In the first quarter KDG added just 24,000 premium TV units after a decision by Germany’s private channels reduced the opportunity to upsell.
    Kabel Deutschland’s direct subscriber base expanded to 7.6 million (plus 35 thousand net adds year on year) out of a total of 8.4 million unique subscribers.


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