Don’t Discount The Web For High Definition Delivery
April 18th, 2008For years now, we have all suffered with video clips that were blurry, jittery and blocky in tiny windows on our computer screens. At least the content was newsworthy or hysterically funny. Recently however, content quality has improved. Major TV networks now host mainstream programming for streaming. Aggregating websites like Hulu and Joost provide primetime fare with image quality approaching that delivered by Comcast and DirecTV.

John DiLoreto
Analyst and Editor for
Insight Media
Yet, when it comes to HD, experts have predicted that not very much content would be delivered online, saying it is too expensive to host and deliver. And the last-mile data connections don’t run fast enough to deliver it.
Well, Akamai has found otherwise, and they’re in a good position to know, having pioneered the content delivery market a decade ago. In a recent survey of content providers, the company finds a surprising trend to adopt HD video online. In the survey of leading broadcast and cable TV networks, online publishers, sports leagues and social media sites, they found that 75% of leading broadcasters plan to deliver HD content in the next 24 months. That’s substantial near-term intent.
And, you won’t have to wait two years to get your HD. Fully half of respondents said they already offer it or intend to do so within the next 12 months.
And it’s not just short clips these companies are planning. While half were planning previews, news clips, etc., 35% were preparing HD movies, TV episodes and sporting events. This strong interest in long-form HD content shows that TV networks and film studios are now being drawn into broadband HD.
Why? Because it is becoming economically and technically possible, according to Akamai. "Even six months ago, a 500 or 700 kilobit per second bitrate was pushing it," said Tim Napoleon, Akamai’s chief strategist, Media & Entertainment. "Now while 500-700 Kbps is more of the norm, we’re seeing companies really pushing the envelope with 1.5 - 2 Mbps and HD, in the ranges of up to 6 Mbps bitrates, across our network."
This means that consumers are seen to be adopting faster broadband services to successfully stream this high-quality content. Even with the latest codecs, such as VC-1 and H.264, you still need several Mbps for a good HD viewing experience. Vudu, for example, requires that you have a 2Mbps broadband link for their standard definition content.
Meanwhile, companies like Akamai are making it less costly to scale the delivery of lots of high-bandwidth video content to lots of viewers.
The economics require not only cost-effective delivery but proven premium business models for delivering HD video online. "Content providers are enthusiastic about pushing the quality bar, though a key issue is cost of delivery and potential ROI," said Will Richmond, president of Broadband Directions LLC, a market intelligence firm specializing in broadband video that helped with the study.
The bottom line here is that we are getting a positive, solid indication that broadcasters and studios are serious about bringing compelling, mainstream HD content online. The caveat is that to support it advertising will cost more and viewers may be expected to pay for premium content. This model has certainly been catching on.
Our question remains, however, for how long will this 75% of broadcasters and studios merely "dabble" in HD, offering just a few selections as conventional broadcasters did for many years?
Before rolling out a massive array of titles in HD, content providers will be looking at the adoption rate of 2 - 6 Mbps broadband subscribers. So, go out and get yours, and start watching HD online. If we watch it, they will come…and bring the rest of their catalog with them.









