Eduardo Mace, president of Brazilian media company Log On Multimedia, discusses how over-the-top services compare to traditional pay-TV in Brazil, and the key role that mobile technologies like 4G will play in development of IPTV cloud frameworks.
Eduardo will be speaking at the TV Connect Latin America 2013 event taking place in São Paulo on 2nd-3rd July. For more information and to register, please visit http://latam.tvconnectevent.com.
Can you give some background on what Log On Multimedia does?
Log On is a multimedia publisher and developer that is currently a leader in home video in Brazil.
With 23 years experience in multimedia and AI, Log On has over the past four years developed a cloud streaming audiovisual navigation technology called DX that fuses the internet and television into a single framework.
Log On’s patented technology offers an IPTV user experience that is identical to the current TV user experience, and builds upon the success of television, with the ability to create advertising and subscription models that are known to work.
With content partners in Brazil, DX has successfully monetized video experiences with hundreds of thousands of individuals over mobile, PCs and connected television. DX is being introduced to the US this quarter.
How do you believe OTT services currently compare to traditional pay-TV in Brazil?
It’s all in the packaging. Traditional OTT services rely on web pages to offer their video content, while pay-TV uses television-like video to offer broadcast channel streams.
The latter has a proven track record of success and 40 years evolution in state-of-the-art niche video selling technology which seduces the consumer into the TV experience.
With the current OTT web-based services the big differentiator is price, and that in our view is marketing myopia. You cannot develop a market on price alone.
That is why we believe that the current TV experience can and should migrate to the internet.
What do OTT service providers need to do to further develop and monetize their services?
It has to do with the value proposition. The sense of urgency for the consumer is something that the current OTT models are exploring very badly, live and on-demand video content need to come together.
Coupled with a mixture of revenue models like advertising, subscription and pay-per-view, this should improve the services financial performance.
The tricky thing is to do that without affecting the user experience and value proposition.
The success measure for OTT services should be how long people spend consuming video, not how little they pay to consume.
On the networks side, what would you like to see happen to connect more Brazilians to broadband?
Last mile broadband infrastructure is always welcome, but we believe that mobile broadband wireless technologies like 4G are key to developments in IPTV cloud frameworks like DX.
To make this plain: more wireless frequency availability, more fibre connectivity, and better services that drive consumer satisfaction.