[Satellite News 08-26-10] For the past two years, 3-D broadcast technology for the average consumer was mostly discussed in the future tense, providing satellite broadcasters and developers with a promising glimpse into a world beyond HD. However, these companies now find themselves embracing a very real and robust 3-D consumer market created by such catalysts as the success of the blockbuster film Avatar and the international 3-D presentation of the 2010 FIFA World Cup.
     With the IBC 2010 conference in Amsterdam less than a month away, developers and manufacturers are pulling out all stops to deliver technology that can build off the excitement. While IBC traditionally focuses on three areas of broadcasting – content creation, management and delivery – this year’s spotlight seems to be shining on high-quality content delivery, driven by the increasing demand for digital stereoscopic 3-D.
    Thomas Schierl and his fellow scientists at Berlin’s Heinrich Hertz Institute (HHI) are working on technology to prepare for the reality of 3-D content delivered to the average living room, such as codecs that make 3-D movies up to 40 percent smaller for television transmission over satellites or the Internet. “New TV sets will start off by only playing 3-D movies from the Blu-Ray disc that is now coming into the third dimension. The next step to bring 3-D into living rooms will be made possible via broadcast or IPTV channels running via satellite, DSL or cable,” said Schierl.
HHI’s research couldn’t be timelier as the changing broadcast industry dynamic shows consumer expectations ahead of today’s technology. The new consumer speaks of 3-D in the present tense, and is already adept at accessing content through alternative platforms.
    IBC Exhibition Committee Chair John Holton said that developments in digital 3-D entertainment over the last few years have resulted in a remarkable new dynamic for the industry. “Five years ago it was a technology demonstration … Now, there is tremendous pressure to take that success from the cinema and move it into the home. In the world of sports, Sky in the United Kingdom and ESPN in the United States are the first in a dozen or so stereo 3-D channels that will launch this year. The innovative application of technology has allowed broadcasters to deliver 3-D over their existing HD infrastructures, meaning that all the consumer has to do is buy a new television.”
    International Datacasting Corp. (IDC) and technology partner Sensio have developed a strong 3-D presence in the satellite industry over the past few years. The two companies are showcasing a series of new developments at IBC 2010 that seem to acknowledge specific demand in the market. One of these new technologies is IDC’s SFX 4104 satellite receiver, which has enabled distribution of live 3-D events to more than 700 screens in 33 countries around the world. The same solution was used to deliver 2010 World Cup footage to 475 cinemas worldwide.
    “We now have a complete range of professional-grade, premium-quality 3-D solutions for the broadcast community, including encoding/decoding, signal processing, and 2-D to 3-D conversion technology,” said Sensio President and CEO Nicholas Routhier, whose company was shortlisted for IBC’s 2010 innovation awards. “On-demand 3-D, such as live sporting or cultural events, represents an important future revenue stream for content-producers, and Sensio is committed to supporting the development of this market, technologically, and commercially.”
    The analyst community, once hesitant to embrace short-term 3-D take up, now finds itself reeling in target dates for mass market success. In a recent study, IMS Research claimed that about 50 broadcasters and pay-TV operators will be offering 3-D TV services by the end of this year, after discovering that 75 percent of the companies it surveyed plan to test or offer 3-D over the next 18 months.  The study, “3-D Video & Gaming in the Home,” showed that 20 percent have already launched 3-D in some capacity.
     According to IMS’ new forecasts, 9 percent of worldwide TV households will have a 3-D TV set by the end of 2014 and penetration is expected to be much higher in the United States, where 40 percent of TV homes at the end of 2014 are forecast to have a 3-D TV. “Although right now there are only a few select operators and networks that have the resources to create and deliver a compelling 3-D offering, most leading service providers and broadcasters around the world are considering how to enhance their premium offerings by incorporating 3-D,” said IMS Analyst Anna Hunt.
    Altman Vilandrie & Co. and Peanut Labs launched a cooperative study on Aug. 23 with even more specific results on the excitement over 3-D consumer market, showing that more than half of individuals who have seen 3-D movies plan to purchase a 3-D capable TV set in the next three years. “Providers that can be nimble in adopting mobile video, 3-D and other innovations will stem potential defections, especially among younger consumers,” said Altman & Co. Director Jonathan Hurd said in a statement.
    That same study showed a “seismic shift in consumer video preferences,” providing opportunities for cable and satellite providers to differentiate versus online video alternatives. The percent of overall respondents watching full TV episodes online daily has increased from 5 percent last year to 10 percent. The results are concurrent with the U.S. cable industry’s subscriber shortfall in the 2010 second quarter. “About 25 percent have seriously considered dropping subscription TV service because Internet video services meet most of their needs,” the report said.
    These results shouldn’t surprise the satellite industry, as 3-D roll-outs and technology developments have been long in the making. U.K. satellite broadcaster BSkyB is set to launch its landmark 3D service on Oct. 1, using IBC 2010 as a platform to generate buzz among vendors. BSkyB CFO Mike Darcey is scheduled to deliver a keynote IBC session and rumors are already circulating that he may reveal more details about its 3-D service on an international broadcasting level.