High-level description of the GLOBAL ITV landscape
Transcription
High-level description of the GLOBAL ITV landscape
High-level description of the GLOBAL ITV landscape Deliverable D2.1 GLOBAL ITVID: GLOBALITV-D2.1-HighLevelDescriptionITVLandscape Version: 10 Deliverable number: D2.1 Authors: Ana Sílvia L. D. Médola (UNESP), Francisco Machado Filho (UNESP), Maria Cristina Gobbi (UNESP), Alan Angeluci (USP), Gustavo Calixto (USP) and Marcelo Knörich Zuffo (USP). Contributors: IRT, A-CING, FRAUNHOFER, SYMELAR, EBU, W3C, USP, UCB, UFPA, BAND TV and HXD. Internal reviewers: Christian Keimel (IRT) and Marisa Martinez (A-CING). Work Package: WP2 Task: T2.1 Nature: R – Report Dissemination: PU – Public Status: Living Delivery date: 30.04.2014 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Acknowledgement: The research leading to these results has received funding from the European Union's Seventh Framework Programme (FP7/2007-2013, call FP7-ICT-2013-10.2) under grant agreement n° 614087 and from the Brazilian Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq) under grant CHAMADA MCTI/CNPq Nº 13/2012 and project number 490088/2013-9. Disclaimer: This document does not represent the opinion of the European Commission or Brazilian Government, and the European Commission and Brazilian Government are not responsible for any use that might be made of its content. This document contains material, which is the copyright of certain GLOBAL ITV consortium parties, and may not be reproduced or copied without permission. All GLOBAL ITV consortium parties have agreed to full publication of this document. The commercial use of any information contained in this document may require a license from the proprietor of that information. Neither the GLOBAL ITV consortium as a whole, nor a certain party of the GLOBAL ITV consortium warrant that the information contained in this document is capable of use, nor that use of the information is free from risk, and does not accept any liability for loss or damage suffered by any person using this information. i Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Version and controls: Version Date Reason for change Editor 0 2014-02-01 First draft. Francisco M. Filho (UNESP); Ana Silvia L. D. Médola (UNESP); Maria Cristina Gobbi (UNESP) 1 2014-02-14 Preliminary structure. Alan Angeluci (USP); Tomas Cid (Symelar). 2 2014-02-20 Changes regarding workshop deci- Ana Silvia L. D. Médola sions and suggestions; content writing. (UNESP); Maria Cristina Gobbi (UNESP); Francisco Machado Filho (UNESP); Juliana C. Gobbi Betti (UNESP); Carlos Henrique S. Caldas (UNESP) and UNESP team. 3 2014-03-05 First version. Maria Cristina Gobbi (UNESP); Ana Silvia L. D. Médola (UNESP); Juliana C. Gobbi Betti (UNESP), Carlos Henrique S. Caldas (UNESP), Fabio Cardoso (UNESP); Kelly De Conti Rodrigues and Natália Coquemala (UNESP). 4 2014-03-07 Improvements and English review. Alan Angeluci (USP); Jeremiah Spence (USP). 5 2014-03-09 General reviews. Laisa Costa de Biase (LSITec); Demóstenes (LARCUSP); Gustavo Calixto (USP); Roseli de Deus Lopes (USP); Marcelo Zuffo (USP). 6 2014-03-13 Small format improvements (Graphics, Maria Cristina Gobbi images and tablets replaced in the right (UNESP), Juliana C. Gobbi Betti (UNESP), Carlos format; citation organized). Henrique S. Caldas (UNESP), Fábio Cardoso; Kelly De Conti Rodrigues and Natália Coquemala (UNESP). 7 2014-03-15 Minor format improvements. 8 2014-03-31 Internal review improvements and prefinal version. 9 2014-04-23 Minor format improvements Christian Keimel (IRT) 10 2014-04-30 Final version Christian Keimel (IRT) Alan Angeluci(USP) UNESP team. ii Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Executive Summar y This document provides an instrument for the overall development of the GLOBAL ITV project: it is a prospection with detailed information from project partners and third-party sources regarding future global iTV scenarios and landscape. This document is one of the main inputs for the GLOBAL ITV requirements specification and use cases focused on interactive TV user experience. It contains ten sections describing the aspects related with the future scenarios. After a brief introduction into the purpose of this document in Section 1, Section 2 presents a scenario’s framework, structured in bullet points and three main time perspectives: short (2015/2016), mid (2017/2019) and longterm (2020). This Section 2 is basically a synthesis of all discussion to be seemed in detail in fur-ther sections. The general aspects of iTV in Brazil and Europe Union contexts are presented in Section 3, addressing some political, economic and sociocultural aspects and seeking to give a broader picture of the markets in the European Union and Brazil. After that, Section 4 presents some researches in order to indicate evidence trends pointed by academic and market research on technologies and devices in the ITV domain. Section 5 discuss about data on penetration of iTV devices, such as DTV terminals, game console and mobile equipment. In addition, Section 6 shows an evaluation of broadcast and broadband aspects in Brazil and Europe Union achieving the strengths and weaknesses points for iTV purpose. Section 7 carries out a study about interactive technologies by doing an analysis on ubiquity, interoperability, seamless and haptic issues. Section 8 targets complementary information about other stakeholder maps and positioning. Section 9 presents a detailed overview on interactive technologies based in partner’s data collection and study objects from academia and industry. Special attention to user’s attitudes in front of TV and the use of second screens to increment the iTV user experience are given in Section 10. The final remarks are pointed in Section 11. This document seeks to cover all issues regarding GLOBAL ITV project and will be updated as necessary to resolve any procedural problems that may occur during the project’s lifetime. iii Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Table of Contents 1 Introduction ....................................................................................................................................... 1 1.1 Objectives ................................................................................................................................... 1 1.2 Methodology ................................................................................................................................ 2 2 Scenarios’ framework....................................................................................................................... 4 3 General Aspects ................................................................................................................................ 7 3.1 Brazilian context .......................................................................................................................... 8 3.2 European Union context ............................................................................................................ 13 4 Research Review ............................................................................................................................ 19 4.1 Worldwide ITV research initiatives ............................................................................................ 19 4.2 Research on second screen and social media ......................................................................... 21 4.3 Research on controls: artifacts, gestures, voices ..................................................................... 22 5 Access devices and penetration ................................................................................................... 23 5.1 TV devices and set-top-boxes ................................................................................................... 23 5.2 Smartphones, tablets and game consoles ................................................................................ 29 6 Networks ......................................................................................................................................... 33 6.1 Broadband ................................................................................................................................. 33 6.2 Broadcasting ............................................................................................................................. 42 7 Interactive technologies ................................................................................................................. 49 7.1 Horizontal and Proprietary Solutions ......................................................................................... 49 7.2 Convergence: ubiquous, interoperable, seamless and haptic features .................................... 57 8 Other stakeholders map and positioning ..................................................................................... 58 9 Interactive services ......................................................................................................................... 59 9.1 Related to the television content ............................................................................................... 59 9.2 Not related with the content ...................................................................................................... 59 9.3 Development of business model ............................................................................................... 60 10 Users attitudes and trends .......................................................................................................... 61 10.1 Television .................................................................................................................................. 61 10.2 Second screen and social media .............................................................................................. 63 11 Final Remarks ............................................................................................................................... 69 List of Abbreviations and Acronyms ............................................................................................... 70 References ......................................................................................................................................... 74 List of Figures .................................................................................................................................... 89 List of Tables ..................................................................................................................................... 90 iv Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 1 Introduction “High-level description of GLOBAL ITV landscape” report is the first effort from GLOBAL ITV consortium parties in trying to describe and foresee the television market environment for the next coming years. Understanding better the landscape of new technologies and their impact on content production and reception for television is an important stage for identifying trends in a complex scenario which involves different stakeholders and interests. Moreover, it helps to point towards user’s requirements, as they have been and will be even more pushed intensively into many innovative experiences on a daily basis, amid new devices, new platforms and new applications. Therefore, this document aims to provide a set of political, economic and social data analyzed under the perspective of television market in Brazil and European Union, emphasizing usage and consumption habits of technology, content, audiovisual applications, media platforms, access, services and multimedia features. The interactive television is under different stages and technical possibilities in areas of Brazil, as this heterogeneous aspect is also identified among the countries members of the European Union. Assessing the strengths and weaknesses of both region profiles may lead to interoperable perspectives. From the media convergence trend, the spreading of broadband Internet and new models of interactive television seems to be a proper starting point. Innovative applications and multimedia services emerge simultaneously with smart TVs, smartphones, tablets and others platforms, indicating the need for solutions for content and devices’ synchronization and interoperability. The challenge of technological convergence, aiming the interoperability of existing networks of transmission and reception systems - regardless if is DVB and ISDB –Tb – also directs the development of common hardware and software technologies and the design of an interoperable platform for interactive digital television, capable of offering hybrid solutions. 1.1 Objectives “High-level description of GLOBAL ITV landscape” report aims presenting the current situation of the television market in Brazil and the EU. Its goals are also indicating trends for the period 20152020, mainly regarding user’s consumption, habits and attitudes observed from economic, political, social and cultural contexts. It is considered the hybrid TV perspective as a way to support the scenarios here described. Specific Objectives • To indicate user’s attitudes and habits trends regarding television environment in Brazil and countries that comprise the European Union, with special attention to synchronization of the social media and second screen. • To analyze trend technologies on ITV field, considering geographical areas and economic, political and social constraints, focusing on mobile devices in evidence such as tablets and smartphones. 1 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 1.2 Methodology The consolidation of this document is undertaken from four main step’s approaches in order to organize the workflow (data gathering and analysis): a) Scenarios’ structuring and approaching – This first step considered mapping the report’s development tasks (Figure 1), detailed as follows: • Task 1: Brainstorm of the main hot topics and keywords in iTV for report’s purpose; • Task 2: Definition of the report approach; • Task 3: Definition of the report skeleton; • Task 4: Selection of data from reliable sources (market reports / scientific publications); • Task 5: Reception of partners’ scenarios’ inputs; • Task 6: Organization of scenario’s inputs into the report skeleton; • Task 7: Analysis of the content from the crossing of data and inputs; • Task 8: Writing of the report, reviews and format issues. Figure 1 – “High-level description of GLOBAL ITV landscape” development task Brainstorm Report approach Report Skeleton Data selection Scenario's inputs Input organization Content analysis Writing and reviewing It also defines three levels of content analysis (Figure 2): 1) Temporal level: • Short-term: 2015-2016 (during and just after finishing Global ITV project); • Mid-term: 2017-2019 (just after finishing Global ITV project); • Long-term: 2020 (years after finishing Global ITV project). 2) Domains level: • ITV as a service (social and public services, entertainment, education, market), considering individual or combined use with other platforms and technical constraints; • ITV considering the users’ habits (geographical area of access, time and consumption, new media literacy, users’ profile and interactivity); • ITV as a market opportunity (economic and stakeholders’ environment, industry recommendations, prospection of business and regional challenges). 3) Relevant aspects level: • Demographic and consumer’s profile, accessible services for people with disabilities and other user’s profile; • Regional contexts and sociocultural characteristics; • Availability of broadcast and broadband convergence; • Economic aspects and trends of technological assimilation. 2 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Figure 2 – “High-level description of GLOBAL ITV landscape” levels of content analysis Scenario Domains Relevant aspects b) Scenarios’ data gathering – The second step considered the work plan defined in order to search for relevant information and data that could support the scenario’s analysis. A database set-up was created to systematically organize the sources and contents found. c) Consortium Workshop for data shaping – A two-days on-line consortium meeting was carried out in order to discuss the preliminary methodology and skeleton; discuss inputs approaches and receive scenarios’ partners’ inputs. d) Report analysis and writing – The last step comprises the proper analysis of available forecast reports and documents, looking for additional sources of information; analyzing data from the inputs’ scenarios’ perspective; compiling, writing and reviewing the result of the analysis). This methodology is considered for the entire report approach, although during the GLOBAL ITV project many achievements and findings will be carried out requiring needed adjustments, further and deeper discussions as well as new and more detailed scenarios. The multiplicity of variants in this process may require others updated reports’ versions, to be delivered during 2014 and 2015. It is expected that D2.1 can be the basis for use scenario cases development and technical requirements to be developed on D2.2 and D2.3, respectively. 3 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 2 Scenarios’ framewor k As a starting point, some relevant scenarios were summarized and organized in order to explore a short, mid and long-term perspective for a global ITV implementation. Six categories of analysis were considered and are deeper discussed in the following sections: access devices and penetration, networks, interactive technologies, stakeholders map and positioning, interactive services, users’ attitudes and trends (Table 1). Networks Access devices and Penetration Table 1 - Projections for the implementation of a global ITV system Short-term (2015-2016) Mid-term (2017-2019) Long-term (2020) - Replacement of a considerable number of existing TV sets due to the FIFA World Cup and the Olympics in Brazil; - More involvement of European consumers regarding digital terrestrial television (DTT); -Growth of the connecting devices in the EU; - Acquisition growth of mobile devices and expansion of internet access in Brazil; - Higher growth of intent to purchase smartphone; - Strong growth trend of purchasing mobile devices with Android OS in Brazil. - Continuity of the growth trend in the replacement of the analogue TV sets models for digital/smart in Brazil, encouraged by the switch-off of the analog signal; - Analogue switch off in Brazil; - Need for expansion of broadband networks in emerging countries. - Growing of iTV experience with an ubiquity, seamless and high technological haptic features; - Continuity of the growth trend in the replacement of the analogue TV sets models for digital/smart in Brazil, encouraged (among other aspects) by the increasing of services, products and programs offered for ITV; - Continuous and steady growth of purchasing mobile devices, considering different rates in the EU and Brazil; - Houses more internet-connected in the EU. - The improvement of the EU economy and major sporting events in Brazil should contribute to an increase in broadband; Government policies-both in Brazil and the EU will foster this growth; -Increase in the provision of 4G in the European Union and Brazil; - Initiatives to expand the fiber optic network, considerably expanding the provision of broadband in the North, Northeast and Center-West regions of Brazil and Eastern countries of the European Union. - Legacy of the World Cup and the Olympic Games will contribute to the growth of the network in Brazil. - Consolidation of 4G as the main data access of mobile telephony, and the consequent cheapening of 3G allow access to mobile internet to lowincome population. - Implementation of core network solutions in Telco’s, such as IMS network, to improve the functionalities and quality of multimedia service, and therefore the satisfaction of mobile users. - Second stage of PNBL in Brazil and DAE in the European Union; - Operation of the fiber optic submarine cable linking Europe and Brazil; - Totality of EU countries with broadband coverage; - 90% of Brazil with broadband coverage; - Improvement of regulatory systems to supervise the quality of services offered by Telcos, including DTV. 4 Mid-term (2017-2019) Long-term (2020) - System integration of hybrid television in the EU; - Interoperability between various devices; - HTML5 as a standard for developing interactive content for broadcast and television advertising; - Second screen as an instrument of interactivity between the user and the television in the EU; - Intuitive interactive applications with access to social networks; - Content migration of broadband TVs to hybrid cloud in the EU. - Second screen as an instrument of interactivity between the user and the television in Brazil; - Development of applications that include broadcasters, national and regional, with the provision of specific content through their mobile devices. - Improvement of interactivity channel, especially for mobile users, considering the implementation of more sophisticated core networks in cellular operators, with more features. - System integration of hybrid television in Brazil; - Standardization of a hybrid TV receiver in Brazil; - Second screen as tools of interactivity between the user and the television in Brazil; - Content migration of broadband hybrid cloud TVs in Brazil. - Cooperation between broadcasters, in various media ecosystems, and other actors involved in the content production and distribution in the EU; - Development of new business models and new hybrid formats of television content; - Advances and massive investment in broadband capacity, consolidating the internet as a means of distributing audio-visual, interactive content, broadcast content stream in the EU. - Interactive applicability for live events (sports, Journalism) in pursuit of engagement from viewers transmissions; - Advances and massive investment in broadband capacity, consolidating the internet as a means of distributing audio-visual, interactive content, and broadcast content streamed in Brazil. - Cooperation between broadcasters, in various media ecosystems, and other actors involved in the distribution and content production process in Brazil; - Hybrid TV advertising market to provide numerous possibilities for producing unique and interactive content on multiplatforms. - Increase related content broadcast interactive services; - Development of interactive content for specific audiences; - Use of social networks; - Implementation of government services in Brazil. - Usability: development of intuitive interfaces; - Distance education; - Development of data security; - Control access to content; -services for the elderly (ehealth) population. - Services of voice command and gesture for people with special needs; - Services for bidirectional communication system. Interactive Services Short-term (2015-2016) Interactive Technologies D2.1 High-level description of the GLOBAL ITV landscape Stakeholders map and positioning Version of 2014-04-30 5 Users’ attitudes and trends Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Short-term (2015-2016) Mid-term (2017-2019) Long-term (2020) - User feedback by sending content (notes, comments and images) at any point of transmission, with filters that allow to establish a network of thematic interests or determination of groups; - Increased penetration and access to connected mobile devices; - The sustainability of ITV depend on the search for new forms of monetization of advertisements, given the trends of consumption based on demand for content; - The second screen is the environment of new possibilities allocation ads, charges for additional content; - The system that allows the user control over the flow of linear or non-linear programming, with the ability to ensure the entry of the hearing at any time in the program or display the contents previously appeared, functioning as a repository depending on the available prior the broadcaster. - Interactive TV has to be an adaptable to the needs of the service user, considering the platform perspective, the information will meet the specific demands, there will be an optimization of the transmission of this content; - The TV consumption in the short and mid-term should consider the generational issues, given that young people are placed in a converged environment and older people undergo a process of transition; - There is a lack of access to technical infrastructures in Brazil – mainly the Internet ones – even with the advances already mentioned; - Hybrid TV system should allow creating temporary channels for streaming content such as sports and music events. - Hybrid TV system has to ensure the efficiency of interoperability for establishing a ubiquitous operation in which all devices can remain in constant communication; - Hybrid TV should provide an architecture which allows devices currently used as a second screen to be able to boost applications for television; - Enhance the user experience, with recognition profile, location and spending habits. This practice lets you send and recommendation of advertisements, services, extra content and programming from the user's choice or recognition of their trends of preference. 6 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 3 General Aspects The political, economic and social issues are usually strong factors influencing decision-making frameworks (Figure 3). In order to point out trends, it is relevant to define usages of digital technologies and media convergence from considering the pressure of these vectors in global iTV scenarios. The regional diversity present in the European Union and Brazil may direct possibilities of significant changes in content production, audiovisual applications, media platforms, access, services and technical constraints. The following pages aims to highlight some key differences in the stages of technological development in the regions analyzed by evaluating the strengths and weaknesses aspects, as well as its main challenges and opportunities. Figure 3 – Brazil and European Union general aspects 7 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 3.1 Brazilian context Brazil is going through a period of special attention to the goals of economic growth with employment generation, macroeconomic stability oriented towards social inclusion, having as priority action struggling with the extreme poverty [1]. In 2013, the economic and financial forecasts for growth have been revised downwards, resulting in a slowdown of the economy, especially since the end of 2011. This is shown by the low growth of the Gross Domestic Product (GDP), which fell short of forecasts. However, it is already possible to see signs of improvement, with a growth of 0.7%, when the third and fourth quarter of 2013 are compared, reaching levels higher than market expectations. It is also important to emphasize that the overall data show that in 2013 the "GDP at current values reached BRL 4.84 trillion (approx. EUR 1.556 trillion)" with an increase of 2.3% compared with 2012 [2]. Projections to 2015 regarding household consumption rose from 5.4% (2013) to 5.6% (2014 and 2015), led largely by the expansion of the income generated by the investments. Exports of goods and services that was 5% in 2013 is expected to present 4.1% of growth in 2014 and 3.7% in 2015. On the other hand, imports of goods and services that have reached the level of 6.3% (2013) will reach 7.8% (2014) and 7.0% (2015). Thus, in the short-term scenario the estimates suggest the increase of the investment rate, "measured as the ratio of gross fixed capital formation and GDP, for values greater than 20% over the coming years [3]. The overall results also point to a reversal of the economy: "the more dynamic arising from the domestic market, the less importance for projects focused on exporting commodities [4].The industrial growth will increase from BRL 461 billion 1 (approx. EUR 148.29 billion) to BRL 597 billion (approx. EUR 192.035 billion), with a variation of 29.5% 2. "The scenario is of real growth of almost 30% in industry investment, front of what was performed between 2007 and 2010” [5], especially for the oil and gas. According to the prospections, in the case of Electrical and Electronics Industry (ranking the fifth 3), the investment will be from BRL 21 billion (approx. EUR 6.755 billion) (2007-2010) to BRL 25 billion (approx. EUR 8.042 billion) (2012 - 2015) representing a percentage variation of 17.5%. Investments mapped in the sector are closely related to the dynamism of the internal market and the mechanisms to stimulate local production, being critical factors to attracting direct foreign investment. Among the planned investments, there are two important projects of strategic components (microelectronics and displays) in perspective, fundamental for the development of hardware production of information technology and communication chain. Under the mechanisms of stimulation, there are the actions of the Government and regulatory agencies (such as ANATEL) to adopt mechanisms preferably in public and private purchasing, and the demand for increased local content. In the software and IT services segment, the main vectors of expansion investments are the spread of cloud processing and mobile and portable devices [6] The rise of private sector investment in RD&I, the creation of a National Innovation System with ability to articulate companies, universities and funding agencies and the promotion of a strong regional decentralization of scientific and technological activities seek to reduce the "technological gap related to advanced economies” [7]. There are others conjectural challenges to be overcome, such as increasing of productivity, natural resources, sustainable development, inequality reduction, and globalization of the economy, formation of work force and employment and income generation. However, Brazil is heading towards global development as there is a direct relationship between progress and development and investment degree of the public and/or private sectors in technology and innovation. Since the publication of the Decree 4.901/2003 which established the Brazilian System of Digital Television (SBTVD), significant changes that directly or indirectly influence the market for national television are happening. Technological changes are transforming the media industry, especially in the television landscape. Rapid and simultaneous development of software and hardware to meet the demands 1 All the values quoted refer to the numerical standard in the American English, considering 1,000,000,000 as a „billion“. In British English, the corresponding value is „thousand million“ or „milliard“. 2 Contemplating the oil and gas, mining and quarrying, automotive, pulp and paper, electronic, chemical, steel, textile and clothing, CIS (Industrial Health Complex) and Air Force. 3 Petroleum and Gas (1st), Mineral Extraction (2nd), Automotive (3rd) and Pulp and Paper (4th) sectors. 8 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape of scanning transmission system and new forms of content distribution and market are making a big impact on traditional media, causing a breakdown in conventional forms of television production and consumption. The emergence and evolution of new devices connected to information networks changed the concept of two-way communication and interactive entertainment. In the country, multiple and simultaneous actions in various segments do not stop to occur, such as: the subsidies for the purchase of digital TVs and set-top boxes; discussions about the use of the 700 MHz band for mobile broadband fourth generation (4G) which is currently occupied by analog TV broadcasts; the compliance of the gradual analog signal switch off from 2015 until 2018, releasing this spectrum band for 4G; exoneration price of the equipment to allow migration to digital among populations with lower income, among others. Public policies that guide continuity government actions for free-to-air television signal for the citizen are aligned with the sustainability concept of the digital society, which considers broadband as essential for universal access, at all levels of strategy. Tactically positioned in the landscape of media convergence and informational networks, the processes related to interactive TV devices and their platforms offer ample opportunities for democratizing communication in the country in some aspects. The derivations of the actions developed within the interactive television enable the expansion and diversification of educational content, government services, entertainment, culture, etc., from multiple and diverse spaces. This generates direct and decisive results for the balance between the needs of broadcasters, equipment manufacturers, software and hardware, as well as the Internet, telecommunications and mobile phone networks, the consumer market, the business sector, the legislation and the cultural and national diversity. The possibility of developing interoperable platforms is a way to meet all these demands in a democratic way. To enable a better understanding of the possibilities mentioned, some data regarding the population profile can help to indicate the challenges that need to be faced, taking into account mainly the continental-size and cultural diversity of the country. The national population reached 190 million, representing a relative increase of 12.3 % compared to 2000, "resulting in an annual geometric average growth of 1.17% smaller than the previous decade, of 1.64% ". There was an increase in adult and elderly populations in the last 10 years, being estimated that in 2015 the number of children under 15 years should get less than 22% of the population. In contrast, in 2015 the participation of people over 65 years old is expected to reach more than 8% of the population (increased from 4.8% in 1991 to 7.4% in 2010): "the elderly population had an absolute increase of more 4 million in the last decade. However, the population aged between 15-64 years reached 68.5% of the population in 2010, being 64.5% in 2000, with an estimate that will be close to 70 % in 2015 [8]. However, the data point to the "demographic bonus 4 of Brazil, which has repercussions over the economically active population and the capacity to generate wealth, being an important indicator to project development prospects. In the Brazilian case it is estimated that positive scenario changes occur after 2030, "when the proportion of children in the total population become less than the elderly, 13.8% and 14.6% of the population, respectively” [8]. In this scenario, the coming technologies are the object of desire and consumption of this population group. It is the group that is constantly connected to the Internet. Although 53% of the population never had accessed internet and 52% do not have Internet in their houses, the rest of the population with internet access spend more time on-line than watching TV, for example [9]. "They do not rest even when are doing other activities: when watching a TV program, they usually check emails, search an unrelated content to what they are seen on TV and access social networks. This young public is the one which uses social networks through smartphones - 58.8%. The trade registers high of 30% in sales of tablets, notebooks and smartphones" 5. Some emerging trends can be addressed regarding the children and young public in this topic: there is an exponential connectivity growth among them; they are hard users of screen convergence and multifunctionality; they are more into digital literacy than older generations; they pass through and interact more with multiple mediations (family, school, different generations); and are strongly submitted to inequalities in regional infrastructures, i.e., their skills, use and appropriation of technologies are directly related to the availability and stability of networks in their areas 4 It is a demographic indicator pointing dependency levels in the strata between 15 and 64 years old. In Brazil, during some decades, "a substantial reduction in dependency of younger and older strata relative to the working age population. (...) The demographic bonus ends when the population moves to higher ages" [8]. 5 See more at: http://www.njovem.com.br/pesquisas/o-consumidor-digital/#sthash.zICDhqYS.dpuf 9 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape [10]. Although there is an increasing in the income in recent years, age is still a strong factor that puts the two extremes in the age structure on the radar of attention of the consumer market. If, on the one hand, the population is living longer and better, increasing the purchasing power of those who have more than 60 years, young people (between 18 and 34 years old) are also in very favorable conditions, such as employment and abundant credit to purchase. The two age groups accounted for BRL 900 billion (approx. EUR 289.5 billion) in consumption in 2012.They are approximately 3.7 million retirees who have returned to the labor market and at least 15 million are heads of households, being 70.4% in middle class and 18.8% in upper class. "This population group is predominantly female and from the new middle class, which represents a huge potential to be explored". The analysis show that in the last six years, the older population increased in 7% the consumption of goods, entering in the travel list and purchase of television sets. Younger and older represent two emerging markets for consumption [11]. Regarding the education field over the next 10 years, the National Education Plan (PNE, in the Brazilian acronym) is directed to expand the rate of attendance and frequency, infrastructure, quality of education, internationalization, research funding, professional development and the increase of teachers and doctors, estimating investment of 7% of GDP in 2020 for education. Thus, to meet the growing demands of the knowledge society, nations seek for solutions to expand and exchange knowledge, mainly aiming at national development. Some long-scale challenges are pointed to strengthen science, technology and innovation for structuring Brazilian economic development and fostering “the Brazilian population's access to education, knowledge, culture and sport with equity, quality and value diversity” [12], among others. One of the highlights is the investments in Information and Communication Technology areas and its impact on the national productive sector. There is a need to reshape cell phone services, by also mentioning that the income level still restricts access to fixed phone and broadband internet services. The legal framework of the telecommunications industry does not consider the broadband as public service, which eventually reduce the range of regulatory instruments by the ANATEL. The competition in the provision of this service is low, especially in the most remote locations and areas whose populations have lower purchasing power, since the phone companies control the supply and favor the most profitable areas. One way of looking at reducing costs and expanding access is designed in the National Broadband Plan (PNBL). The world witnesses the phenomenon of technological convergence, with the increasingly blurred boundary between telecommunications, information technology and audiovisual. In this context, in addition to increase the supply of Internet broadband, there are opportunities for the country's ICT sector. Software development provides higher margins than manufacturing and assembly hardware, with a large market for Brazilian companies. The content development is also an interesting area looking beyond the domestic market. The country still witnesses the expansion of communication systems with the introduction of digital TV, and also extending the reach of cable TV, the establishment of community radio stations and a wider range of Post Office in the country [13]. Although the area of telecommunications is considered strategic for the development of the country, most services are still held by the private sector as well as the diversification is restricted to large urban centers and some main cities and "peripheral and more remote regions remain covered with only one or no operator [14]. However, it is necessary to mention that the country is endowed with its own satellite network 6 and there was a great expansion of fixed and mobile telephony. For the "horizon of 2012-2015, the improvement needed concerns the expansion of broadband networks in the country, the media convergence that unites the different audio, video and text media, the massive use of these networks by digital inclusion policies, these being the main challenges of the program" [15]. Among the actions in the Goals Plan for the period 2012-2015: equip all rural public schools with broadband internet, in the host cities of the Confederations Cup (2013), FIFA World Cup (2014) and the Olympics (2016); offer fixed broadband at 10 Mbps and 4G mobile networks, reaching 40 million households with broadband Internet of quality, with band stability and 70% of the population with access to the Internet [16]. However, some of the projections just did not work and some reasons are explained in the Networks chapter of this report. 6 Brazil currently has two satellites in orbit:data collecting satellites SCD-1 and SCD-2, the first satellites developed and built in Brazil to enter into orbit. Key services offered by the Brazilian satellites developed and launched abroad [15]. 10 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape The profile of Brazilian Internet users is changing, but it is still defined by educational ranking, income and younger age. Considering consumers who made use of the network in the last three months, there was an increase of use (rural plus urban) 39% (2009) to 41 % (2010) and the Central-West region had the highest growth – from 45% to 50% in the proportion of users [17]. The most representative use (87%) is the graduated population and 79% in groups receiving from five Brazilian minimum wages (BRL 3.620,00 – EUR 1.164,44). There is a change on the national scene with the increased use in the bands above 35 years old. People aged between 35 to 44 years, there is an increasing from 29% to 33% and from 45 to 59 years rose from 16% to 20%, demonstrating that there is a use tendency among older strata. Regarding the infrastructure of information and communication it was found there was a growth "of penetration of computers and internet access in Brazilian households. The possession of equipment slipped ten percentage points, indicated by 45% of households. Have access to the Internet increased by 12 percentage points, reaching 38% of Brazilian households” [17]. Improvements in education indicators are also related by research: "the illiteracy rate of the population aged 15 years fell over from 14% to 10%, and between 15 and 24 years (population that had recent expansion of access to basic education), this rate went from 6% to 3% [18]. The expansion of income (4.8%) and consumption (4.1%) of families in Brazil are not sufficient to equate the possession of equipment and Internet access in the home reaches the average in the North American and the European Union countries [19]. In the Brazilian case is important to consider the regional and social differences that "may represent a barrier to the development of the country, with negative reflexes in growth in the use of computers and the Internet", being necessary a more effective action in reducing prices of equipment and access to network [20]. The high penetration of mobile, the increasing access to broadband Internet especially in the use of laptops represents the mobility trend. Compared data from 2010 and 2011show there was an increase in the number of devices, from 35% to 45%, although "the presence of the computer in the urban area (51%) is still much higher than the penetration of the equipment in the area rural (16%)". From ten households (38%), four have Internet access, being higher in the Southeast, "where technology is present in almost half of the households (49%). In the Northeast, in the other hand, the Internet is less than a quarter of households (21%), which is the lowest ratio among the regions of the country [21]. Factors such as income, social class and region influence the possession and access to technologies. "Among households whose income is up to the wages (BRL 724,00 – EUR 232,89), the internet access reaches 6%, while among families with more than five minimum wages (BRL 3.620,00 – EUR 1.164,44) it reaches 91%. In households classified as classes D and E (low-income), the penetration of Internet access is 5%, in contrast to the 96% observed in class A (high-income) [20] 7. Regarding the type of connection, in 2011, the fixed broadband (via DSL and cable technologies, for example) figured as the main used, "present in about two-thirds (68%) of households with internet access". With reference to the mobile broadband (3G), the penetration is 18% of connected households, following a global trend of growth with an increase of 8% compared to 2010 [20]. Although very discrepant numbers, increased the number of laptops. Among those who say they are 79% computer desktop and only 39% are portable. However, compared to 2008, the changes were significant, 95% versus 10% respectively. These differences may suggest that one of the barriers to a more widespread is the high cost of the notebook, since it has been a greater presence of equipment in homes in upper class. "In 2011, this proportion reached 81%, up 12 percentage points the previous year. In the middle class, the proportion of households with laptop computer nearly doubled compared to 2010, reaching 28% [22]. With reference to tablets, it appeared in only 1% of Brazilian households in 2011, but it is expected to have grown since then. In the upper class, its penetration was already 10% in that period. 7 The brazilian criterion of economic classification do not consider social aspects, but "aims at generating a standardized scoring system that could work as a predictor of individuals’ and families’ consumption capacity, able to discriminate large groups according to their capacity for consuming products and services that are accessible to a significant part of the population. The criterion discrimination procedure takes into account tangible household characteristics such as possession and quantity of durable goods, number of bathrooms, employment of domestic workers and educational level of the head of household. Each item receives a score and the sum of scores is then associated to an economic grade or stratum - A1, A2, B1, B2, C1, C2, D and E" [204]. In this criterion, the C and D classes have an average family income below the Brazilian minimum wage for Class A this value would be equivalent to approximately 13 salaries [205]. 11 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape However, there were 3.1 million units sold in 2012, showing a significant growth, and forecasts indicate an expectation of higher sales to 10 million units for the year 2014 [23]. The regulatory framework is also highlighted as a large-scale challenge for the next years, "in order to increase competition in the provision of services, advance the universal, to achieve better quality and lower prices in the provision of these services and enable regulatory environment conducive to convergence of digital media and network infrastructure for the transport of such content". The goal is to enjoy the major sporting events and investments defined in PNBL (National Broadband Plan) to enlarge "the degree of internalization of technological production of capital and consumer goods used in telecommunications operations aiming to trade balance of these goods". Regarding the telephony, the scope is improving the quality and setting of a tariff policy, with expansion of mobile services to 91.5% of the national population” [24]. Also, in the television segment, comprising cable TV, radio, Analog TV (to be replaced by a digital signal) there are still many challenges to be met. The expansion of countries adopting the Brazilian digital TV technology will affect directly national industry. Regarding the cable television and broadcasting, "the targets is the provision and coverage, with stimulus policies to expand the number and coverage of public and community broadcasting system strengthening the public radio and TV system, together with the pursuit of expansion and internalization of commercial TV stations [25]. It is estimated that investments in IT and Telecom in 2014, reaching a figure of about USD 175 billion (approx. EUR 127.236 billion), consolidating the country as the 4th largest market in the world. For researchers [23] significant changes occur in the short and mid-term. It is predicted that in 2014 it will occurs "an increase of 9.2%, based mobility solutions, cloud, big data and social business - the socalled 3rd platform - are seen as the new center of innovation and value". The results also estimate that approximately "71 million of smart-connected devices (desktops, laptops, tablets and smartphones) are sold in Brazil. The 3rd platform with based on mobility, cloud, big data and social business solutions, is the new center of innovation "and these technologies" are aligned to the increased influence of business executives on IT investments, buying increasingly specific solutions for their industries. It is estimated that USD 6 billion (approx. EUR 4.362 billion) of investments in IT are directly from business budget [23]. The research of IDC reveals that "by combining new devices (smartphones, tablets and other wireless devices) and new applications (unified communications, video, virtualization, and mobile device management), the 3rd platform stimulates the upgrading of corporation networks to deal with the increase of data volume 8, making the sale of Telecom services grows. IDC also predicts that by the end of 2014, the 4G network will be in commercial operation with a base of "3 million subscribers." In the scenario designed for the year 2014, IDC foresees for Brazil: The adoption of public cloud driven by application modernization is an important trend. Investments may reach US$ 569 million in 2014 and forecast to reach US$ 2.6 billion in 2017. The mobility remains high. The transition to mobile devices will continue to accelerate this year. Smartphones and tablets will end the year with sales of over 58 million units and 81% of share in the Smart Connected Devices market, gaining even more ground compared to desktops and notebooks. The "phablets", hybrids of phones and tablets, still take their first steps, but releases of smartphones with screens up to 5’ inches promise to rock this segment this year. For companies, CIOs have already realized the importance of an integrated mobility strategy, which contemplates the mobile device management (MDM). It is estimated that over 5 million personal devices will be brought into the enterprise this year (BYOD - Bring Your Own Device), which implies the need for a base management for mobile security and different components: device, connectivity, applications, security, access, identity, content control information, analysis and reporting. Another important focus is the modernization of applications to run on mobile devices. Finally, IDC Brazil highlights the acceleration of the "Internet of Things" with business applications (B2B). The forecast is that technological solutions that enable a continuous and autonomous communication between machines and devices move US$ 2 billion in 2014 in Brazil. Currently, the most significant initiatives are in the logistics and transport sector for fleet management, but the areas of health, automotive insurance, automation and energy industrial processes must also develop projects based on this concept of connectivity. 8 According to IDC Networking Tracker, the worldwide volume of digital information will reach 5.4 zettabytes in 2014-1 zetta is 1 trillion gigabytes. 12 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape According to data released by the BNDES for the period of 2014-2017, it is expected a "real growth of 26% compared to the period of 2009-2012, equivalent to an annualized rate of 4.7%”. For the telecommunications sector, the planned investment is around BRL 125 billion (approx. EUR 40.208 billion), directed to expansion of data transmission, network coverage (determined by the growth of traffic derived from mobile devices - 3G and 4G). "It is highlighted the inversions that will be made due to auctions of 4G – in the range of 2.5 GHz (already done) and 700 MHz (to be done) - with possible expansion in the investment level from the release of the analog TV spectrum space for broadband [26]. 3.2 European Union context With the accession of Croatia to the European Union in 2013, the European Union consists of 28 Member-States. The countries and their accession period are as follow: Germany (1952), Netherlands (1952), Italy (1952), Belgium (1952), France (1952), Luxembourg (1952), United Kingdom (1973), Denmark (1973), Ireland (1973), Greece (1981), Portugal (1986), Spain (1986), Austria (1995), Finland (1995), Sweden (1995) Cyprus (2004), Slovakia (2004), Slovenia (2004), Estonia (2004), Hungary (2004), Latvia (2004), Lithuania (2004), Malta (2004), Poland (2004), Czech Republic (2004), Romania (2007), Bulgaria (2007), and Croatia (2013) [27]. Its origin is linked to a period of a European spirit of peace, union and prosperity, with six founding countries: Germany, Belgium, France, Italy, Luxembourg and Netherlands, having begun the first integration movements in 1945. But it was in 1950 that "the Coal and Steel European Community begins to unite economically and politically the European countries, to ensure a lasting peace." In 2000, the "Euro becomes the new currency for many Europeans countries". From 2010, "the new decade starts with a severe economic crisis, but also with the hope that the investment in new green and environmental-friendly technologies and closer European cooperation bring lasting growth and welfare [27]. Multilingualism is a key element of the EU's cultural diversity, with 24 official languages. The buildings of the EU Councils are located in Brussels, where most meetings are carried out. Figure 4 – Six areas of expenditure in the EU budget Direct aids and market-related expenditure 31% Rural development 11% Administration 6% EUR 141,900 million The EU a global player 6% Cohesion and Competitiveness for growth and employment 45% Citizenship, freedom, security and justice 1% Source: Adapted from [28] Besides the percentage of gross national income of each Member-State (0.73%), representing two thirds of the EU budget (Figure 4), the budget has its own resources, coming from the importation 13 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape duty rights applicable to goods from countries not belonging to the EU and "a percentage of revenues from value added tax (VAT) charged by each EU country” [27]. Currently, the spending priorities are defined in: economic growth and job creation, as well as reducing economic disparities between regions. The euro is the common currency in 18 of the 28 EU countries, used by about 332 million Europeans, being the "most tangible proof" of European cooperation and integration. In the worldwide, over 175 million people use currencies indexed to the Euro. The common market enhances trade and economic activities and turned “EU into a major trading power." The EU spends about 6% of its annual budget in human resources, administration and maintenance of its buildings resources. The total population of the EU is composed of 507,069,424 people [27], divided (Table 2): Table 2 - Distribution of the European population (by country) Country Total population Population (%) Austria (AT) 8 451 860 1.66% Belgium (BE) 11 161 642 2.20% Bulgaria (BG) 7 284 552 1.43% Croatia (HR) 4 262 140 0.84% Cyprus (CY) 865 878 0.17% Czech Republic (CZ) 1 051 6125 2.07% Denmark (DK) 5 602 628 1.10% Estonia (EE) 1 324 814 0.26% Finland (FI) 5 426 674 1.07% France (FR) 65 633 194 12.94% Germany (DE) 80 523 746 15.88% Greece (EL) 11 062 508 2.18% Hungary (HU) 9 908 798 1.95% Ireland (IE) 4 591 087 0.90% Italy (IT) 59 685 227 11.77% Latvia (LV) 202 3825 0.39% Lithuanian (LT) 2 97 1905 0.58% Luxembourg (LU) 537 039 0.10% Malta (MT) 421 364 0.08% Netherlands (NL) 16 779 575 3.30% Poland (PL) 38 533 299 7.59% Portugal (PT) 1 048 7289 2.06% Romania (RO) 20 020 074 3.94% Slovakia (SK) 5 410 836 1.06% Slovenia (SI) 2 058 821 0.40% Spain (ES) 46 704 308 9.21% 14 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Country Total population Population (%) Sweden (SE) 9 555 893 1.88% United Kingdom (UK) 63 896 071 12.60% Total population 507 069 424 100% Source: Adapted from [28] Although the EU represents only 7% of the world population, the volume of trade with the rest of the world represents about 20% of the global volume of exports and imports. About two-thirds of the trade of the EU countries is held with other Member-States. Although this trade has been affected by the global recession, the EU remains the largest trading power in the world, accounting for 16.4% of world imports in 2011, followed by the United States of America, with 15.5% of world imports, and China with 11.9%. The EU is also the largest exporter, with 15.4% of world exports, compared to 13.4% for China and 10.5% for the United States. The EU economy, measured in terms of total output of goods and services (GDP), is currently higher than in the United States: EU GDP in 2012 – EUR 12.945.402 million [27]. The unemployment currently affects about 23 million people, approximately 10% of work force population. This scenario has affected the public finances, reaching average deficit of 7% of GDP with debt levels assuming proportions of 80 %; this led to reducing growth, generating uncertainty and delaying major development projects. Also with the crisis some structural weaknesses were evidenced, as the average growth rate is lower than the economic partners due to low investment in "RDI, insufficient use of information and communication technologies, the reluctance of certain sectors to adhere to innovation" and a less dynamic business environment. Allied to this is the rapid aging of the population, making the EU active work force population begins to decrease from 2014. There is a twice faster increase of people over 60 years than it was in 2007, generating a decrease of the population and expansion the number of retiring and causing an overload on social security systems. This whole scenario helps to understand some changes and progress within the countries part of the EU. So, the Connecting Europe Facility [29] brings as a budget proposal the value of EUR 50 billion between the years of 2014-2020 to promote growth, increase employment rates and investment in infrastructure. Support is directed toward high sustainable and performance development, interconnection of European transport areas, energy and digital services. Similarly, according to the proposal in CEF [30], there will be investments of EUR 9.2 billion in broadband structure, seeking innovative solutions and projects in order to leverage new investments in high-speed broadband, considered the digital market’s backbone. Aiming to allow millions of citizens and businesses to connect to the digital market, CEF will support broadband networks and cross-border online public services, increasing intra-trade between Member-States and expanding the growth of new sectors such as e-commerce. These actions are aimed to eliminate or even reduce market fragmentation 9. CEF brings new guidelines for the telecommunications sector, proposing a set of goals and priorities for broadband networks and digital services. According to the report, the establishment of crossborder access to an infrastructure of interoperable digital public services is one of the priority areas. Thus, projects must be of common interest for the deployment of broadband networks and high-speed digital infrastructure services aimed for improving the competitiveness of the European economy, especially regarding small and medium enterprises in order to promote interconnection and interoperability of national networks as well as the expansion of these ones in the digital market. Also, investment in ICT is related to growth: 10% of households connected to high speed broadband represents an extension of 1.5% in the GDP and provides more than 20 million additional jobs until 2020. New technological developments, such as cloud computing, the 'Internet of Things' or applications for managing large amounts of data will be possible only with the availability of high speed broadband. Thus, the Digital CEF is a strategic point for smart, sustainable and inclusive growth, while also being at the forefront of the initiative of the Digital Agenda for Europe (DAE). Through the DAE, the EU has set ambitious targets for high-speed broadband roll-out and take-up in 2020. 9 For more information on the EU Single Market: http://ec.europa.eu/internal_market/index_en.htm. 15 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape CEF Digital will encourage investment in networks capable of achieving, by 2020, the DAE targets of universal coverage at 30Mbps and of at least 50% of households subscribing to speeds above 100 Mbps. [31] It is necessary to invest in the deployment of the network over the next 5 to 10 years (EUR 200 billion, according to estimates values) to promote access to broadband Internet (Figure 5). In densely populated areas (called black areas), investment will be carried out by the private sector. For the “white areas” that are sparsely populated ones, where commercial and industrial transactions are less evident, funding will be included by the Structural Funds and other national / regional public subsidies. The Digital CEF will intervene in areas called "gray", using financial instruments to help mitigating the risks and aiming commercially viable projects for high speed broadband. Figure 5 – Case for the EU investment Broadband networks 1. Current level of investment is not sufficient to ensure growth 2. No agreement on investment between incumbents and competitors, high cost of capital and high perceived risks Case for EU investment 3. No business case in rural and (in most) suburban areas 4. Core layers of digital services will not be financed by Member States or private operators 5. Interoperability, standards and cross-border problems for digital services Digital Services Source: Adapted from [29] Investments in high speed broadband enable short-term job creation and market competition (Figure 6), but also boost productivity, modernization of public administration and improvement of life quality and combat the exclusion of isolated communities, as well enabling new health applications. 16 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Figure 6 – Correlation Fixed Broadband Penetration and Competitiveness Source: Adapted from [31] One big challenge for the EU is to replace its first-generation broadband networks with other high-speed bandwidth networks, aiming to broaden their possibilities through applications like e-health (Figure 7) and technologies that use cloud computing, most of them depending on high speed broadband. Figure 7 – Applications like e-health and technologies that use cloud computing in Europe Source: Adapted from [29] Regarding the digital infrastructure services, the main challenge of the EU is creating a single digital system, ending the fragmentation of the system that impairs the growth of cross-border services, unnecessarily increasing the cost of services, as well as hindering the interaction between multiple communities, businesses, service providers, government and other social actors in the EU. 17 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Thus, another challenge is the possibility of carrying out digital services as a platform to allow industries to develop applications in order to facilitate the mobility of businesses and citizens across borders. The modernization of public administration and services (e.g. e-Government, e-Health, etc.) will improve and expand access, reducing language barriers, ensuring the highest level of security with lower costs for both the government and the citizen 10. 10 For more information on the Digital CEF: http://ec.europa.eu/digital-agenda. 18 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 4 Research Review In this section, some researches were selected aiming to evidence trends pointed by academic and market research on technologies and devices in the ITV domain. The source used is IEEE Xplore digital library database mainly. The enphasis is under user’s attitudes and habits, focusing in the social networks integration and second screen synchronization. New generation devices such as gesture and voice controllers were also considered. 4.1 Worldwide ITV research initiatives ITV research initiatives usually take advantage of a scenario-based design method as an approach for developing interactive systems [32]. Although most of them are more technology-driven (the focus is usually technical constraints and solutions), others research field approaches help to base a more comprehensive investigation, i.e., no research considering interactive systems can go further without an interdisciplinary approach. Putting it this way, human factors, human-computing interaction, user experience, communication and media studies and others fields’ contributions are highly recommended in order to obtain more reliable outcomes. Regardless the research method approach, there is a clear perception on future ITV models that seeks to ensure the operation of interoperable systems and hybrid technologies considering users requirements. These perspectives are not new and have been explored by several projects before. In general terms, most initiatives usually aim to enhance already stablished systems regarding efficiency and performance mainly; they also look as goal to harmonize broadcasting systems, defining frameworks for seamless integration of broadcast with other networks and content, usually the Internet ones. It is recognized by specialists around the world that countries must to overcome regional solutions and focus on a future generation of broadcasting systems harmonized with Internet technologies in order to create a turning point on stakeholders TV industry. Three recent initiatives can be described as an example of these worldwide consortiums: 1) FOBTV initiative: Future of Broadcast Television Initiative (FOBTV) is an initiative led by Asian, American and European partners from different sectors – broadcasters, manufacturers, network operators, standards organization, and research and universities groups. This is a global project regarding the heterogeneity of partners’ origins, and was officially formed in 2012; its focus is grownded on collaboration process for a global approach of terrestrial television broadcasting [33]. Four main scenarios are considered in order to set the project’s workflow and guidelines for development and prospection, as can be seem in Table 3: Table 3: Scenarios and characteristics of use cases Scenarios Characteristics Harmonized world standard - Worldwide harmonized terrestrial broadcast standard; - Robustness of mobile reception; - Integration with mobile broadband and Wi-Fi services; - Support of hybrid services; Immersive experience and new services - Resolution beyond HD; - Improved 3D experience; - More realistic audio; - Companion devices such as tablets and smartphones; - Multi-view presentation and screen subdivision; 19 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Scenarios Characteristics Smart interaction and personalization - Messenger type applications; - Support of social services; - Targeted advertisement; - Standardized interactivity supporting a wide range of applications; - Integration with other devices; More efficient and flexible use of spectrum - Facilitate the usage as the most efficient system; - Support of White Space operation; - Hybrid broadband-broadcast scenario including local storage; - Integration with other mobile networks Source: Adapted from [33] It is worthy pointing that the four main scenarios are considered the basis for project’s establishment, general framework design and key technology evaluation. 2) HBB-Next initiative: Hybrid Broadcast Broadband Next Generation (HBB-NEXT) is an European initiative led by entities from Germany, Belgium, UK, Slovakia and other countries. The project – which started in 2011 and is expected to finish in March 2014 – peovides a foundation for advanced services in hybrid and seamless integration of broadcast and Internet world. After years of using the first generations of Digital Television in DVB [34], it seems as HbbTV is establishing a new approach in many Europeans countries. Differently from FOBTV initiative, HBB-NEXTresearch perspective is more user-driven and focused in the design process, exploring user-centred technologies for enriching the TV-viewing experience [35]. From HBB-NEXT initiative, some concepts are meaningful to be here highlighted (Table 4): Table 4: HBB-NEXT – List of Definitions Concepts Definition Development Cycle In HBB-NEXT “Development Cycle” refers to the HBB-NEXT iterative design process. Starting with the analysis and requirements derivation in the first round, each development cycle covers design and development, and is followed by a user evaluation/validation which informs the activities in the successive development cycle. Prototype In HBB-NEXT “Prototype” refers to the HBB-NEXT proof-of-concept implementation. (…)The prototype will be interactive and contain both back-end and front-end features. Mock-up A representation of the user interface of the system which can be evaluated with users. Mock-ups can be very rough hand-drawn sketches (low-fidelity) or very detailed graphical designs (high-fidelity). They can be static, only representing the look and feel of the interface, or interactive, allowing users to perform actions with it when evaluating. 20 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Concepts Definition User Validation Phase The phase that users are recruited to perform tasks and activities with the mock-ups and/or prototypes of the system, and the usability and user experience of the system is being evaluated. Usage Scenario A usage scenario tells a story in order to describe a service from an end–user’s perspective. It also describes roughly the production background from the professional user’s perspective. Use Case A use case is a sub-element of a usage scenario which consists of one user action or a short sequence of user actions. Source: Adapted from [35] 3) ATSC 3.0 initiative: This is an ongoing initiative led by Advances Television Systems Committee which impacts countries and territories using the ATSC system, mainly in the North America. ATSC is more focused on standard implementation and technical feedback. Recently, the subjects in discussion concerns 3D-TV terrestrial broadcasting, video compression and transport streams, real and non-real time content delivery, among others [36]. The ATSC 3.0 aims to provide more services for users through the increasing of band efficiency and compression performance. For that, the previous version (ATSC 2.0) must to be overcome and surpassed as there is no possible compatibility between the older and the newer versions. 4.2 Research on second screen and social media Better understanding users’ habits and consumption revealed to be a key strategy regarding the use of multiple platforms and cross-related contents. In the case of ITV, consumer-oriented design approach for the delivery of digital content is relevant since the popularization of the digital environments [37, 38]. Social media is in the root of web development and has evolved gether with the technical development. Thus, the use of social media is in the repertory of a big part of those ones with Internet access, being the concept of Social TV very useful to understand how people are interacting and socializing around television content [39]. Section 10 shows some relevant data which reinforce this perception. The combined use social media on mobile devices, such as Twitter and Facebook, have a strong impact on public opinion while watching TV shows, and must to be further explored by content producers and broadcasters [39, 40]. It is recognized as a facilitator for the role of second screen for TV – which is to enhance audience interaction. Most of the experiences in the past and also some recent, though, explore the shared experience in “water cooler moments”, i.e., the interactive events are not synchronous or in real-time. Most of them were also stucked on interactions based on expensive and hard-to-develop software restricted to set-top-boxes. One of the main approaches to make second screen and TV more interactive is the development of standards-based framework focused on bi-directional communication and launch of applications from TV on the second screen by using Internet and web perspectives [41, 42]. This might estimulate broadcasters and content producers to create innovative applications regarding theirs TV programs, exploring new storytellings and formats and thus calling audience attention and engagement. Besides that, second screen can be used as a fruitful tool to collect data in benefit of broadcasters and advertisers. Standards solutions for television over IP became popular in recent years. Institutes and company consortia have been working on trying to make the convergence between broadcasting paradigms and IP networks. Although IP operators’ infrastructure and interoperability of systems can be a big constraint, this approach opens a great scenario for new business models and industry opportunities [43]. This is mainly due to the possibility of conciliate the best social aspect of IP and broadcast: the first one is linked 21 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape to the collaborative and interactive nature; the second one, with the possibility of delivering digital content for a massive number of users. Although this seems to be a very seductive approach, it is worthy pointing that the rising of distributing applications and content via IP networks can increase the network traffic and became a problem in an implemented scenario [44].With IP technologies and service architectures, many applications towards the exploitation of social and communication tools in TV environment has been explored, such as recommendation systems, multiscreen use, scheduling and sharing program reviews and comments, as demonstrated in [45, 46, 47, 48]. IP technologies for applications can facilitate obtaining special considerations regarding the profile of viewers’ groups, program genres preferences, geolocalization, content production and management, word-of-mouth effect and long-tails characteristics [48, 49, 50, 51]. 4.3 Research on controls: artifacts, gestures, voices The use of opposable thumb has been considered one of the key factors for human evolution. This enabled the human being to handle artifacts and tools that became useful and fundamentals in everyday life. In the case of TV industry, the use of remote control was considered a relevant improvement in 60s and 70s, which had a strong impact on users’ behavior by introducing the zapping effect among them. The mouse control for computers also established a new mark on computers industries, in a period where GUI was facing profound transformations for a better usability experience. In the case of ITV, the concept of remote control has been expanded in wider perspectives; the popularization of Connected or Smart TVs has stimulated research groups to develop interactive solutions not depending exclusively from the traditional remote control; drag-and-drop [38], voice chats and commands [52, 53, 54], the use of cams from tracking movements (firstly explored by games’ industry), microphones for speech recognition [53] and gestures [45, 55] are some trends being explored parallel to the use of the traditional remote control. These new control perspectives can be useful not only for creating an aggregated value for the TV product, but also for including people with disabilities by introducing a wider variety of accessible and inclusive controls. The use of voice control has shown more effectiveness [53, 54] than gestures applications, which requires a more complex variety of tests to catch-up more intuitive motions and recognize more accurated gestures [45, 55]. A well-established man-machine interface is very relevant for this kind of research, as shadows, light, distance, environment and other factors influence on the use of gestures for controlling an ITV, requesting very precise system calibration [55, 56]. Some research points to the use of simple three-dimension hand gesture for controlling TVs, using mobile phone accelerometers that instantly create avatars related to the gesture [57]. 22 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 5 Access devices and penetration The development and trend landscape for access and penetration of communication and information electronic devices is essential to forecast scenarios looking to the deployment of interoperable hybrid television technologies. Although there are striking differences between the services available in different countries and spending habits of their populations, it is possible to assume that, in the long-term and at different rates, all devices are directed toward embedded-driven models of interactivity, integration and connection ubiquity. The next topics seek to discuss these issues regarding TV, set-top-boxes, smartphones, tablets and game consoles technologies, considering the most market significant devices in the coming years. 5.1 TV devices and set-top-boxes It is estimated that 79% of the world's households (totaling approximately 1.4 billion households) have at least one television set. However, there is a significant difference of 26% in the average of possession among developed countries (98%) and developing (72%). There are about 349 million households without television in the world 11 [19]. In Latin America, Television arrived in the 1950s and currently 98% of the households have one or more TV sets. In countries like Uruguay and Colombia, TV is available in 100% of the households, followed by Argentina, Chile and Ecuador with 99% and ranging up to 95% in Guatemala and 94% in Honduras. The highest penetration id for open-to-air television signal, reaching 99% in Peru, followed by Chile, Ecuador and Costa Rica (all 97%) and the lowest rate in Guatemala (77%) [58]. Overall, the continued increase in the number of households with television sets will be reality in a short-term perspective, with the possibility of periods of deceleration, causing variations in the short and mid-term. This is due to the recent life quality growth as well as its continuity, related to the political, economic and socio-cultural panorama of developing countries. Some factors had great influence in this positive perspective, such as the expansion of access to electricity in rural areas, incentives to purchase with the reduction and fragmentation of values, the aggregated value of signal digital transition, the incentives from public policies and mobility between socioeconomic groups 12. The BRIC countries 13 are among the highest rates of televisions’ possession, accompanied by the United States only. Together, Brazil (4%), Russia (4%), India (8%) and China (25%) have 41% of households with televisions in the world (as can be seem in Figure 8), and a similar percentage of total population 14 [59]. However, the economic development of these countries, which promotes increased income of the population and consequent socioeconomic mobility between groups, begins a process of expansion of sales in the mid and long-term to replace technology, aspect identified in China and Brazil mainly. 11 The estimated number of households with television sets includes 140 countries, representing 98% of total households in the world. All data are for the year of 2012. 12 As an example of the influence of some of these elements, the case of the Mexican government can be cited: its plan to transition to the digital signal considered banned the sale of analogue TV sets (Official Mexican Standard NOM-192-SCFI/SCT1-2013, Apparatus Telecomunicaciones de Televisión y-decoders) and created a policy for distribution and installation for free the first converters and recently expanded to televisions (Secretaría de Comunicaciones y Transportes del Mexico: http:/ / www.sct.gob.mx/). 13 BRIC is an acronym which represents Brazil, Russia,India and China, being a term coined by Jim O’Neill in 2001. 14 Population (million): World - 7,095.2; China - 1,349.5, India - 1,220.8; Brazil - 201.0; Russia - 142.5. 23 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Figure 8 – Top countries by percentage of households with television sets, 2012 Russia 4% Brazil 4% India 8% China 25% United States 9% Others 50% Source: Adapted from [19] In a globalized scenario, the expansion of access, penetration and replacement of TV sets are not strictly related to major regional and global events (such as the FIFA World Cup and the Olympics). However, considering the changes foresee in the mid-term in the context of emerging countries, the analog to digital transition has become an uncertainty factor for the maintenance and expansion of existing indexes, directly dependent on subsidy policies developed by governments for the technological upgrading in residences, the relations between the culture of media consumption and population income and the dispute between broadcasters and telecommunication companies to offer services and content. European Union The average percentage of households with TV across the EU countries is 98%, occurring little differences between Eastern and Western EU countries [19]. The highest rates reach 100% of coverage in Greece and Cyprus and the lowest amount is 95% in Portugal and 92% in Finland [60]. However, there are considerable differences in the advancement of digitization processes: While Western Europe can present the rate of 89%of households with digital TV, Eastern Europe comes to just half that. Digital cable is a good infrastructure to exemplify how much catching up Eastern Europe still has to do (Western Europe has reached 64%compared to 31% in Eastern Europe), but the difference is even more pronounced for terrestrial transmission: While in Western Europe 93% of all TV homes with terrestrial reception use DTT, viewing via digital terrestrial reception in Eastern Europe only comes to a meager 24%. [61] Yet, "most of Western Europe achieved analogue terrestrial switch-off by end 2012. This marked the level of maturity for the sub region. The main pay-TV competition in Western Europe will involve attracting the remaining analogue cable subscribers, for instance through price promotions or by offering advanced television services (e.g. HD channels, digital video recorders and video-on-demand libraries)" [62]. Table 5 shows the number of households with TV, digitization stage and type of technology by each country. 24 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Table 5 - TV penetration in Europe: number of households with TV, digitization level and type of technology used Source: Adapted from [63] and [19] 25 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape In general, the process of analog-to-digital transition has evolved, despite the recent economic crisis that affected the European continent. Italy, Finland and England have already reached 100% of the rate, followed by Spain (99%) and France (98%) [61]. The general trends in short-term adoption of each system can be verified from the changes indicated in Figure 9. Figure 9 – Evolution of households with television sets, by type of technology, 2008-2012 Source: Adapted from [19] The purchase of television sets (especially for technological substitution) must include the immediate and short-term growth, stimulated by the world’s major sporting events and the availability of resources to extend interactivity and interoperability with handheld devices: "this might prove to be a good opportunity to stimulate sales of second generation home using flat TVs, with bigger screens of 50 inches and above, improved display quality and 4K UHD". [64] Brazil Data from the Brazilian Institute of Geography and Statistics indicate that 97.2% of Brazilian households have television sets, totaling more than 61 million homes. In the South and Southeast regions of the country, these numbers reach 98% of the total, being lower in the North (93.3%). Further details can be seen in Table 6. Table 6 - TV penetration in Brazil in absolute value (AV) and relative value (RV) Region North AV (1000 households) RV (%) 4.275 93.3 Acre 192 91.7 Amapá 187 97.8 Amazonas 877 94.5 Pará 2.016 92.6 Rondônia 470 94.4 Roraima 125 92.2 Tocantins 408 92.1 26 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape AV (1000 households) RV (%) 15.760 95.8 896 97.3 Bahia 4.252 94.4 Ceará 2.527 97.4 Maranhão 1.751 93.3 Paraíba 1.158 98.1 Pernambuco Region Northeast Alagoas 2.734 97.8 Piauí 857 91.5 Rio Grande do Norte 952 96.9 Sergipe 634 96.7 Region Southeast 27.011 98.4 Espírito Santo 1.153 97.7 Minas Gerais 6.370 97.6 Rio de Janeiro 5.577 99.1 São Paulo 13.912 98.6 Region South 9.361 98.1 Paraná 3.464 97.4 Rio Grande do Sul 3.733 98.6 Santa Catarina 2.164 98.5 4.685 96.9 840 99.0 Region Central-West Distrito Federal Goiás 2.041 97.3 Mato Grosso 961 94.9 Mato Grosso do Sul 843 96.3 61.092 97.2 Total Source: Adapted from [65] One option for those who live outside the major urban centers and cannot capture the signal of open-to-air terrestrial TV channels in their home is the satellite dish. Present in 37% of Brazilian homes 15, "it is possible to assume that its possession has opposite characteristics compared to the pay-TV. While this last one is present in large urban centers and is accessible to the richest and most educated strata, the satellite dish is more common in the countryside: possession is declared by 65% of respondents living in cities with up to 20,000 inhabitants, compared to 17% in municipalities with over 500,000 inhabitants". [9] In Brazil, the possession of electronics, especially those related to entertainment, communication and telecommunications industries, is related to some factors such as: - 15 Government rate policies- the Brazilian tariff policy is one of the impediments to purchase and exchange electronics. In the case of television, some models carry up to 40% of their price in taxes and fees 16. Aiming to leverage the trend of sales growth due to the hosting of the FIFA World Cup and alleviate this problem in short-term, the Brazilian Foreign Trade Chamber (Câmera de Comércio Exterior) changed the ad valorem import duty to 2% on computer and Concerning the number of respondents in Brazilian Media Research 2014. 16 A recent example is the OLED TV, which had its sales‘ launch announced by Samsung in the United States in August 2013 by the approximate price of USD 9 thousand; In Brazil, in November of the same year, the cost of the device was of approximate BRL 45 thousand (more than USD 19 thousand / EUR 14 thousand) to Brazilian consumers due to taxes and fees (Current market values). 27 Version of 2014-04-30 - - - - - - - D2.1 High-level description of the GLOBAL ITV landscape telecommunication goods until December 31, 2014" [66]. Action that impacts the Brazilian industrial production 17. Public credit policies - the most recent inclusive policy for consumers created by the government (in June, 2013) was “My Better House” (Minha Casa Melhor), which provides a credit of up to BRL 5.000 (EUR 1.608,34) for program beneficiaries of “My House, my Life” program (Minha Casa, Minha Vida) so they can buy furniture, electronics and appliances. The program defines an expense of until BRL 1.400,00 (EUR 450,33) to buy a digital TV, BRL 1.500,00 (EUR 482,50) for computers or laptops with internet access and BRL 800.00 (EUR 257,33) for tablets with more than 7'' screen and 8GB of memory. Values are paid for up to 48 months with rate subsidy of 5% per year. Private credit policies - consumption is directly linked to available credit in the square, so the handling of the private financial system greatly influences the purchase decision of the consumer. Slumps interest and credit facilitation (such as personal loans) tend to boost sales of consumer durables such as white and brown goods, which are integrated televisions products. Regional differences - Being a country with continental-size dimension, geographical and economic issues may present very distinct regional characteristics for signal distribution and delivery of products and services. In this sense, the geographical coverage of open-to-air television networks is still lacking, especially in rural and interior areas of the Northern region of the country. The Globo TV network company has the widest coverage, reaching 98.62% of the municipalities, followed by SBT (85.81 %), Record TV (78.98%) and Bandeirantes TV (64%) [67]. Regarding the pay-TV channels, the geographical coverage is still poor, with the lowest rates in the Northeast. The service is present in 27.8% of Brazilian homes, with the highest coverage in the Federal District (50.2%) and the State of São Paulo (48.1%) and Rio de Janeiro (42.7%) [68]. The digital signal is available for 52.4% of the population, and is expected to cover all the population in the mid and long-term [69]. In this scenario, the lack of operator choices and even channels configured on a discouraging factor for the consumer, even in the long-term. Retail market - the facilitation for payment in several parcels - characteristic of big retail chains is changing the landscape of Brazilian consumption and expanding access to the middle class for consuming goods, such as electronic equipment belonging to the brown goods sector (TVs, DVD, home theater, etc). Digital transition - the analog signal switch off should begin in 2015 and finish in 2018, and an optimistic perspective in the mid-term may maintain the current levels of penetration of Brazilian television. Misinformation of part of the population and the indefiniteness of public policy incentives for technological adaptation by the government can influence a decreased penetration. Another possibility is the growth of pay-TV, even though small. Digital literacy - beyond political and economic issues surrounding the access and penetration of television in the country, acceptance and use of new televisions devices pass through the challenge of integrating the Brazilian population into the digital world. Considering high rates of illiteracy (8.7% or 13 million of Brazilians) and functional illiteracy (18.3% or 27.8 million people), as well as the growing aging population [65], there is the need to enhance the new media literacy (NML) [70] to make users more able to interact with the proceeds from the hybrid transmission systems and perceive the aggregated value of these new technologies. Major sports events - In Brazil, soccer is a strong aspect in Brazilian culture, and therefore the programming of television stations is estimating the country's record of 52 million fans [71] watching these events, approximately 26% of the population. This seasonal aspect gather with the expectation of the FIFA World Cup and Olympics in Brazil, plus the holiday season from the end of 2013 boosted sales of televisions’ flat displays by 15% between the last two quarters of 2013 and 25% when compared to the same period of 2012 [72]. 17 In 2013, 14,444,366 television sets were produced, being 1,019,630 the analog ones, 957,496 12,467,240 with plasma and LCD displays.The revenues were of of USD 6,642 million, according to data from SUFRAMA, available at: http://www.teleco.com.br/nrtv1.asp. 28 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 5.2 Smartphones, tablets and game consoles The need and desire to be connected “every time, everywhere” increased consumption of portable devices and the frequency of replacement of these appliances in search of the latest technology, in part influenced by built-in obsolescence stimulated by industrial design and policy. There was an increase in the possession of Internet-connected devices in some European Union countries. Among some of them 18, it is possible to find a range of at least 11% in growth rates between 2012 and 2013, with an average of 18%, indicating the continuity of this trend [73]. Table 7 illustrates the percentage of possession of access to devices by some EU countries. Table 7 - Possession or access to devices by country Country Tablet Smartphone Standard phone Belgium 30% 39% 66% Finland 20% 51% 60% France 30% 52% 54% Germany 21% 55% 56% Netherlands 42% 59% 48% Spain 39% 69% 57% UK 36% 62% 46% Source: Adapted from [73] In developing markets 19, the lower levels of growth were in Mexico, with 5%, followed by Brazil, with 7%. The highest growth was recorded in Argentina, with 52% between the years of 2012 and 2013. Analyzes of the Argentine market 20 confirm the increase in sales volume and explain that the high rate may be related to the purchase of a first Smartphone and also the replacement of the device. As in other developing markets, such as Brazil, a common strategy of telecom operators is offering the most sophisticated versions of smartphones with lower prices from the binding of the purchase plans of data usage and connection. These indexes show a trend of continuous growth, but slowed in the long-term, for the countries of the European Union and other developed markets, since the possession of connected devices has already exceeded 50% of the total market, especially in Spain (69%) and the UK (62%), leaders in Europe [73]. In developing countries, periods of high growth related to the implementation of digital television signal and the provision of services and resources to the second screen may occur. The expansion of Internet access (considering price, quality and speed) should happen in a concomitant way, encouraging the use of connected devices away from large urban centers. In developing countries, Wi-Fi connections can be a strong form of connectivity mainly due to the cost of plans offered by mobile operators. However, to measure growth trends it is necessary to consider the prospect of intention and desire to buy and, regarding this respect, different indicators for each device can be found. These data are also 18 The rates per country are: Belgium - 25% France - 21% UK - 19% Germany - 15%, 11% and Finland [73]. 19 The indexes by country are: Argentina - 52%, Brazil - 7%, Mexico - 5%, Russia 33% and Turkey 42% [73]. 20 45% of respondents of a survey purchased their current device in the last year and 31% between the 1st and 2nd years with a huge turnover rate of devices (75%) in the last two years. It also points out that the Argentine market doubled sales of tablets compared to its previous year, reaching 900,000 units sold in 2013, reflecting the growing trends of purchase intention in developing countries [73]. Another important scenario to understand this data is that 82% of Argentina's population already has access to opento-air digital television [73]. 29 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape directly related to the pattern of consumption in many countries, influenced by the political, cultural and economic scenarios described earlier in previous pages. From an overall point of view, between the connected devices (Smartphone, laptop, tablet, digital camera, e-reader, music player and portable games), the most likely device to increase in the short -term purchase intent (in one year) is the Smartphone, both in developed countries (30%) and in developing countries (63%). Tablets occupy, respectively, 19% and 51% of intentions and portable games 6% and 24% [73]. In the countries of the European Union, the growth trend is more discreet, as shown in Figure 10. Figure 10 – Claimed purchase intent of smartphones, tablets and computers over the next 12 months Question: How likely are you to buy the following mobile devices in the next 12 months? Respondents that are likely to buy [%] 40 38 38 35 32 29 30 25 22 20 15 33 23 20 17 24 21 25 21 17 16 13 25 23 18 15 24 26 26 23 20 21 16 10 5 0 Smartphone Tablet Laptop/Netbook Source: Adapted from [74] The tablet market reached 3.1 million of units sold in Brazil during 2012, "i.e., 171% more than in 2011, when the country had sold 1.1 million of the equipment. In the fourth quarter it was 1.1 million", with higher growth rate. 77% have the Android OS and almost 50% of the devices cost less than than BRL 500.00 (EUR 160.83)" a factor that may explain the higher sales. Another interesting finding is that, from the total number of sales, "88% were for home users and 12% for the corporate market. Compared to 2011, the domestic segment grew 159% and 303% in corporate segment." The growth in 2012, compared with sales of computers, was of “one tablet for every five computers. In 2011, there was one tablet for every 14 computers. In the United States, it was sold almost one tablet for each notebook in 2012. In China, eight tablets per eight computers. In the world ranking of the tablet market, Brazil is ranked tenth. The country had closed 2011 at twelfth position". IDC's research also reveals that sales in Brazil jumped from 770,000 tablets sold in third trimester of 2012 to 1.8 million in the same period of 2013, while the 30 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape number of PCs increased from 3.9 million in third trimester of 2012 to 3.4 million in the same period of 2013. The expectation is that in 2014 sales exceed 10 million units [23]. Electronic commerce of smartphones in Brazil accumulated approximately BRL 1.3 billion (approx. EUR 418.168 million) during the year 2013 [75].The sales volume of these devices exceeded 48% in online sales in comparison with the conventional cell phone in the same period, with about 1.8 million items sold (versus 1.2 million). The report also reveals that during the year of 2013, seventeen million consumers bought smartphones in online stores in the country. Even in emerging market countries, the penetration of smartphones in China reveals a rate quite close to that of European countries and the United States, unlike the scenario found in the rest of the BRIC countries, especially India, which are showing the lowest rates (Table 8). In the mid-term the main challenge of these countries is the expansion of broadband networks, especially outside major urban centers. Table 8 - Penetration of mobile by country and type of technology (%) Country Smartphone Multimedia Phone Standard phone More than 1 device Brazil 36% 21% 44% 48% China 66% 9% 25% 36% India 10% 9% 80% 11% Russia 37% 11% 51% 51% Italy 62% 11% 27% 35% United Kingdom 61% 9% 30% 16% United States 53% 9% 38% 17% Source: Adapted from [76] In number of devices per person Brazil is the second only behind of Russia. In a national context, it is possible to identify the accumulation by periodic exchange of equipment, but is even more striking in the Brazilian population the habit of having more than one phone lines. Preliminary data from ANATEL referring to 2014 indicates possession of 272.4 million hones, averaging 137 devices per 100 inhabitants [77]. In Germany, about 42 million people have cell phones with Internet capability, representing six out of ten people. In addition, about 31 millions of Germans (approx. 44%) own a smartphone [78]. In Spain, there are 26 million mobile phones with Internet access. During the second quarter of 2013, 225 million units of smartphones were sold in the country (46% more than the previous year), from total sales of 435 million handsets in the world [79]. Despite the overall growth indicated, the International Data Corporation [80] warns that there is a trend of an expected dropdown in US and European markets for the coming years, although they remain optimistic on emerging markets. This is because the adherence to smartphones has been going on earlier in the European Union; in December of 2012, smart devices already were approximately 75% of all phones sold [79]. The projection for 2014 sales for mobile can reach 67 million (average of 76% of smartphones) [81]. These projections should mark a trend for the years 2015/2020, putting Brazil into a promising market in the use of the second screen. The trend is that households will be increasingly connected, as Figure 11 demonstrates. 31 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Figure 11 – Household take-up of digital communications/AV devices, 2003-2013 Source: Adapted from [82] In the short and mid-term, it is projected a greater replacement of the current TV sets due to the FIFA World Cup and the Olympics in Brazil, boosted by the Brazilian analogue TV switch off. The need for the expansion of broadband networks in emerging countries is a challenge for the deployment of a hybrid system in the country, associated to the growth of mobile devices purchasing with Android OS. Nevertheless, it is worthy pointing the increasing involvement of European consumers into the digital terrestrial television (DTT), the sustained growth of the connected devices within the EU and greater growth of smartphone purchase intention. 32 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 6 Networ ks Brazil and the European Union will face challenges to expand and improve the stability and speed of their respective broadband networks. The broadband penetration is considerably higher in EU countries than in Brazil. 26.7% of EU inhabitants have access to high-speed Internet, compared to 10% in Brazil [83]. However, this average varies greatly between countries comprising the European Member-State: Denmark and the Netherlands have rates close to 40% penetration, while poorer countries such as Romania and Bulgaria have rates close to 15%. Regarding the broadcast a service, the challenge is to establish the full transition to digital signals, which is still in progress in many countries, as well guarantee their interoperability in terms of using embedded technologies and systems. 6.1 Broadband The broadband penetration is considerably higher in EU countries than in Brazil [84]. 26.7% of EU inhabitants have access to high-speed Internet available, compared to 10% in Brazil. However, this average varies greatly between some countries, with Denmark and Netherlands getting rates close to 40% penetration and countries such as Romania and Bulgaria with rates close to 15% (Figure 12). Broadband penetration [%] Figure 12 – Broadband penetration – EU 2013 Source: Adapted from [85] 33 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape The graph indicates a lower broadband penetration in Eastern European countries. Most of these countries joined the EU only recently. In the mid-term, the high investment on high-speed optic fiber connections taking place in Eastern European countries should change this overview: Lithuania, Bulgaria, Latvia, Slovakia and Slovenia, currently with relatively low rates of broadband penetration, are on the list of the ten countries with the highest penetration of FttH in Europe [86]. For the long-term prospects, the countries comprising the European Union have created together a common agenda, the "Digital Agenda for Europe: The Europe 2020 initiative". [60]. The strategy aims to contribute to the growth of the European economy and help European citizens and businesses to get the most out of their digital technologies. Among its objectives, there is the creation of a new and stable common regulation for broadband in European countries for common interoperable network infrastructure, stimulating the growth and development of cloud computing, among others. One of the initiatives of the agenda is covering 100% of the EU territory with broadband Internet via satellite [87]. In Brazil, one of the biggest challenges is to expand its broadband network considering territorial extension and geographical diversity. This is not a unique difficulty of Brazil: all countries with vast territory have the same constraint. Even in the US, the birthplace of the Internet, the average speed is of 21.7 Mbps, lower than in Hungary (24.3 Mbps) and half of South Korea (52 Mbps). Although those are small countries, the average speed in Russia is similar to the US, but in Australia is smaller (Table 9). In this same study, the average speed of the Internet in Brazil is 10.1 Mbps, with Uruguay offering twice the average speed 20.3 Mbps [88]. This constraint affects all countries with large territory: comparatively, the average speed of the six largest world countries is lower than that one in countries in the same range of HDI [89] but smaller size. Table 9 - Relation between the Internet speed and HDI Country HDI Speed HDI Country equivalent HDI Speed Russia 0.788 21.5 Mbps Bulgaria 0.782 29.3 Mbps Canada 0.911 20.4 Mbps Switzerland 0.913 39.7 Mbps China 0.699 17.0 Mbps Thailand 0.690 17.3 Mbps United States 0.937 21.7 Mbps Germany 0.920 25.3 Mbps Brazil 0.730 10.1 Mbps Ukraine 0.740 19.8 Mbps Australia 0.938 14.2 Mbps Netherlands 0.921 39.5 Mbps Source: Adapted from [88] Considering other countries in the world, Brazil figures with an average bandwidth of 2.4 Mbps, behind countries such as Malaysia, Mexico and Singapore [90]. Noteworthy is the difference between this average speed of 2.4 Mbps and the reality of populous and most developed regions such as São Paulo, where the supply of connections over 10Mbps is vast and although still expensive, much cheaper than elsewhere in the country. These discrepancies among regions of the country when the density of Internet access in the regions of Brazil is compared [91]. The whole country, which has 10 residents with Internet access to every 100 inhabitants, is still below the average density measured in the world by the Organization for Economic Cooperation and Development (OECD), which is 26.29%. However, beyond this national lag, there is another delay, the regional one: the Northeast region of the country has 4% penetration and the Northern region 3.2%. The Federal District and São Paulo are the regions with the highest penetration in the country, with 18 in every 100 people having broadband access in home. Considering the municipalities, this discrepancy is even greater: cities with more than 500,000 inhabitants have about six times more penetration than cities with fewer than 20,000 inhabitants. It is worth remembering that 45% of the population is living in municipalities with less than 100,000 inhabitants. The expansion of interactive TV services is challenging for less populated areas, but with a relevant fact: a considerable portion of the population that inhabits the South and Southeast regions of the country have technical network conditions to 34 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape receive services from ITV in a full mode, compared to the EU countries. Developed applications and interactive products in the European Union could be exported and adapted to operate in Brazil, and as there is a focus of demand for these services in the country, an exchange of solutions for ITV can be performed in both directions. A brief historical back in time helps to understand some relevant factors. Brazil lived under military dictatorship from 1964 to 1985. During this period, there was a very large concentration of services under State management, including telecommunications: it was common to wait months or years for a telephone line due to the scarcity of available lines. Only in 1998, with the sale of TELESP (Telecomunicações de São Paulo), the telecommunications market was opened in the country. With the following privatization, many foreign companies settled in Brazil and began the expansion of the telephone network by twisted pair, leading landline to everyone who could afford. This expansion occurred late in the telecommunications network though. With relatively obsolete technology, led to a country with wired high density and little margin for Internet access; with a huge twisted pair cable network, the only broadband solution that did not require heavy investments was the ADSL (Asymmetric Digital Subscriber Line), which transmits data over the phone line. Nowadays the broadband access via ADSL band in Brazil is dominant, occupying 62% of households with access to high-speed Internet [83]. The cable access is half the penetration, 31 %, with the rest of the market occupied by radio access and FTTx connections (optical fiber). The problem of ADSL as a broadband access technology is the limitation of range and speed, reaching a maximum of 8Mbps in special cases, with distribution centers very close to the residence of the subscriber and network cabling without much noise. Due to these characteristics, ADSL connections are present where the other possibilities of Internet access are not available, such as municipalities with less than 100,000 inhabitants and rural areas. However, due to technical issues, it usually delivers between 1Mbps and 2Mbps of an unstable signal, besides their high price. Added to these limitations we have the issue of the differentiated width of bandwidth for download and upload, which in most cases provides users with a receiving speed of five to ten times bigger than the capacity of transmission by the network. Although the use of the internet offers much more downloading than uploading, the growth of the sharing culture, especially cloud computing, increasingly induces the user to upload files to servers outside of their devices. As examples, the buyer of a Smartphone Samsung Galaxy S line purchased in 2013 gained 50 Gigabytes of storage of files on a cloud service; the growth of applications that automatically sync photos and videos via cell phone or computer as the Google Chrome book, which are sold with a small hard drive and complete its storage capacity with cloud storage services. Another problem that ADSL technology faces in Brazil is the junctions of telephone and communications network. As ADSL is a type of service that commonly takes the phone line to the limit, any fluctuations, amendments or deviations in the line cause disconnections, package delays or slowdowns. As the ADSL line is still the only possibility to bring a network to small cities or remote areas, congestion of the lines added to these other factors mentioned end up making poor quality connection. Another option for broadband access in Brazil is currently the cable connection. Previously restricted to TV subscription services, it gained popularity in major centers and expanded its services’ range such as broadband and IP telephony, offered together in one package. Popularized under the name "Combo" - packages that deliver cable TV, Internet and Telephony –this service is responsible for 31% of Internet access in Brazil. Some operators also offer video-on-demand services by the same cable, such as “NET” and “NET Now” services from Telefonica operator. If on the one hand to send internet data by cable offers significant advantages over ADSL, it is important to note that the cost of cabling is much bigger, and it is unusual to see wired networks over large distances or small towns. In rural areas, cities with fewer than 100,000 inhabitants or very far from large centers, radio became an increasingly form of delivering Internet. These radio connections already have more than 5% of Internet access in the country, being the access service offered by several small companies. Generally these companies distribute an Internet connection brought by optical fiber of a larger company, reselling this band divided among its subscribers via installed antennas in homes and buildings. This scenario of market decentralization, which is a characteristic of radio access, does not apply to other types of majority connections in the country. Both access via ADSL or cable is concentrated in 35 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape the hands of a few companies. The Herfindahl-Hirschmann-Index (HHI) 21, used to measure market concentration, points values near to the monopoly in all municipalities of the country (Figure 13). Figure 13 - HHI Broadband in Brazil 1% 4% HHI greater than 2500 HHI between 1500 and 2500 HHI less than 1500 95% In the European Union the scenario is very similar. The large investments and subsidies favor this monopolistic market trend. The market regulation by the government ends up making the broadband prices relatively low for the end consumer, but this happens due to the expense of the profits needed for further investment in network infrastructure and improvements in service quality [92]. This setting of restricted competition affects the quality of broadband services in Brazil and the European Union, and while there are various laws and bills aiming to regulate and manage telecommunications in the country, a company without competition practice usually delivers higher prices and lower quality of service. One alternative that is gaining more strength for broadband in the country is the use of data conduction through optics fiber. Fibers infrastructure are being stimulated by the arrival of major events in the country as well as government tax exemptions, through the Special Regime of Exemption Bandwide [93].Until 2018, there will be an increase of 600% in availability of FTTx 22 connections which will force companies to innovate traditional broadband services for not losing subscribers [94]. The distribution of internet operators in Brazil can be considered in two distinct layers: In the socalled "low-level", there are the backbones operators, which are responsible for the Internet network before being delivered to providers that sell connections called "LastMile", known as the "high-level" within the end user. In "low level", draws attention the reduced number of submarine cables connecting with the rest of the Internet. Brazil currently has 4 submarine cables linking the country with the US, which doubly onerous the traffic that needs to go to other places such as Europe. For the future, there is a project for a direct submarine link between Brazil and Europe, which should leave Fortaleza city and arrive in Portugal. Statements by TELEBRAS (Telecomunicações Brasileiras S. A.) estimate its operation in 2016 and a 15% of reduction in the costs of network traffic in Brazil only with the construction of this cable. However some experts say the problem in telecommunications in Brazil in low-level are not related with the submarine cables only, but with the internal network: The bottleneck is not in international operations, but in the domestic ones. This is the challenge for all operators. There is a strong dependence on terrestrial operations to further expand our capacity. It is useless to build a highway if at the end there will be several small roads. A 100 Gbps cable arriving in the country and not being able for traffic, dropping down to 10 Gbps, produces efficiency loss. [95]. 21 The Herfindahl-Hirschmann-Index is commonly used to calculate the concentration in a particular market. It is an index that ranges between 0 and 10000, and follows the following measure: The lower the index, the higher is the competition between the companies that participate in that market. Markets with index above 1800 are considered highly concentrated, and the closer to 10000, the closer the market is a monopoly. 22 Fibertothe X, or Fiber to the X, is all internet connections that lead optical fiber to the final place of connection, such as homes, apartments or businesses. Currently all the other major Internet connections are made by fiber optics, which are then distributed through other means such as ADSL, Cable, Radio or others indirectly. The FTTx connections are direct. 36 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape The Brazilian government has done studies that indicate the need for investment in the sector budgeted at more than BRL 60 billion (approx. EUR 19,3 billion), which will enable the expansion of broadband to 50 million homes in the country, in a plan of action for 10 years and anchored in optimizations of the existing structures already, added the construction of backbones and backhaul in the country [96]. In the “high level” scenario, corresponding to operators responsible for selling the internet to the end user, only four Internet companies dominate more than 90% of the broadband market supply (see Figure 14). “Embratel”, “Brazil Telecom”, “Telefonica”, “GVT” have together more than 18 million broadband subscribers, while all other companies divide the rest of the three-million-households market. “NET” (“Embratel”) dominates the market with 29% of broadband in the country, followed by “Oi” (“Brazil Telecom”) with 27%, “Telefonica” with 18% and “GVT” with 12%. “Embratel” provides most of its access via cable, usually in conjunction with a joint signature package of TV and fixed telephony via IP. “Brazil Telecom” has a mixed network of ADSL and cable, while “Telefonica” accesses are predominantly ADSL. “GVT” operates its high-speed network (connections up to 30Mbps) through fiber, and the remaining by cable. All operators have fibers, but without expressive numbers [97]. It is also important to state that all the leading enterprises have their own backbones. Market share [%] Figure 14 – Broadband market share in Brazil Source: Adapted from [68] The cost and speed of these connections vary due to the region where they are presented with an overall average cost for a 1Mb connection around BRL 40,00 (EUR 12,87), being lower in the Southeast and South and higher in other regions of the country. Considering the costs of the connection compared to the per capita income, the Brazilian connection is one of the most expensive in the world (Figure 15): among 15 countries (Argentina, Brazil, South Africa, Chile, Poland, Portugal, Canada, Netherlands, Finland, USA, Norway, France, Sweden, South Korea and Japan), the Brazilian broadband is the second in price only in Argentina, comparing the average purchasing power of each country. 37 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Figure 15 – Hours worked to pay 1Mbps Internet Japan; 0,0015 South Korea; 0,03 Sweden; 0,03 France; 0,09 Norway; 0,12 USA; 0,13 Finland; 0,14 Netherlands; 0,2 Canada; 0,32 Portugal; 0,91 Poland; 1,3 0 1 2 Chile; 2,71 South Africa; 3 3 Brazil; 5,01 Argentina; 5,15 4 5 6 Source: Adapted from [90] and [98] Most broadband connections nowadays in Brazil are between 512Kbps and 2Mbps: 30% of the total available. Connections over 10Mbps, driven by the recent availability in major centers and capital, represent 26.7% of the total [99]. Figure 16 shows the most common connections in the country. Figure 16 – Common Connections in Brazil 35 Market share [%] 30 Between 512 and 2048 Kbps Over 10240kbps 25 20 Between 2048 and 5120kbps Between 5120 and 10240 Kbps Less than 512Kbps 15 10 5 0 Source: Adapted from [83] These speeds are a challenge for the future as consumer Internet habits are gradually changing. Currently half of the Internet consumption belongs to two video on demand sites: Netflix and YouTube. Only Netflix occupies over 30% of the network, and although it has been consolidated in the United States and Europe, the service is still in its first operating years in the country; it is expected a significant increase in the number of subscribers in the coming years though. It is also estimated that in 2020 over 70% of broadband accesses in the country will be above 2Mbps [100]. However, only 40% 38 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape of the fixed broadband accesses in Brazil have more than 12Mbps. For watching a 3D video on Netflix is necessary at least 12 Mbps and the recommended connection for watching videos in HD (1280x720) is at least 5Mbps. With this scenario, at least 60% of broadband connections will not be able to display a 3D video on Netflix in long-term (2020), and 30% will not be able to display HD video in the same service. [100] Among the factors that may contribute to the improvement of this scenario is the introduction of video codecs that use less space to deliver the same quality, as the HEVC or VP9. These codecs promise to reduce the bandwidth used by half; videos that now occupy 5Mbps could use only 2.5Mbps if these codecs were used. Until 2020, it is likely that these technological improvements will be available, reducing the required bandwidth for video traffic and relieving the Internet traffic. An analysis of the connection data held directly by Netflix [100] delivers quite disparate numbers regarding the average speed of broadband in developed countries. As an example, the Google fiber connection is the fastest provider for Netflix in the US, with 3.78Mbps of speed. Whereas the plans for Google Fiber are 1000Mbps and there is a free plan of 5Mbps [101], the discrepancy between the speed of access to Netflix and speed offered by Google is evident. This finding is not restricted to the Google fiber service, and extends to all other providers in the country. [101] With the network neutrality proposal, to be regulated by the Internet Bill of Rights (Marco Civil da Internet), the government wants to ban the practice of traffic shaping in Brazil. [102] Telecommunications companies claim about this part of the law and forecast the possibility of increasing costs, transferring the expenses to the end users. Based in this scenario, one of the most important factor for the definition of broadband growth in Brazil is the approval of the Internet Bill of Rights and, above all, know what will the final text of the document ti be discussed in the Brazilian congress. If the government gives in this aspect, it runs the risk of Internet in Brazil have an artificially bloated and relative growth: If on one hand the average speeds will rise, exponentially , some internet plans will not be able to access certain contents on the contracted speed. On the other hand, if the government keeps the text as it is, it runs the risk of the network infrastructure of the country not to be robust enough to meet the demands of these new consumer habits and the Internet prices rise in line with increasing demand. Criticized in its launching announcement, the National Broadband Plan (PNBL - Plano Nacional de Banda Larga) began in 2011 and had as promises taking broadband to low-income consumers for BRL 35,00 (EUR 11,16) per month. At the time, 512Kbps minimum speed and a download limit of 500MB per month were determined. Behind the scenes, each provider offering customers interested in PNBL plans could acquire the Telebras backbone of 1Mbps for BRL 230,00 (EUR 73.98). In this 1Mbps, each provider could add 20 concurrent clients, considering the premise that not all customers would be connected simultaneously. From these twenty customers, only ten would have the list price, being the operator allowed to charge the price wanted for the other ten. The PNBL achieved relative success, but mainly due to operators’ flexibility. In the beginning, the proposed PNBL broadband was rejected by both the providers and the clients; the first ones complained about the forced value and the second thought the internet offered insufficient. Currently the PNBL has a reasonable range in cheaper operators’ plans in large cities, where the structure was already created and the Telco’s can offer cheap services to those who already have the service or have very close infrastructure installation area. The second stage of PNBL is much more ambitious. It seeks to bring broadband Internet (4Mbps) for 90% of Brazilian households by 2020, considering joint investments from government and the private sector of more than EUR 72,8 billion. Being the new PNBL a successful, there will be considerable leap in speed and quality of connections in Brazil within 3-5 years. Mobile technology: 3G and LTE Brazil has huge stats in the cell phone market: there is more than one cell phone for each inhabitant, with 272.4 million mobile phones. But this apparent scenario has its full coverage constraints: from these 274 million cell phones, only 35% have access to 3G networks, and 0.48 % of these have access to LTE network [77]. From the universe of active cell phone lines in Brazil, only 22% of these links are postpaid: the user pays a monthly bill with all connections and services. The absolute majority of these connections are prepaid, with credits paid before consumption. This fact is relevant because of the nature of the Internet connections of prepaid devices: the supply of bandwidth is very limited and intermittent. All 39 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape operators have 3G and 4G Internet packages currently in the country, with the latter one being offered in most capital cities and some towns in the state of São Paulo and Rio de Janeiro. With much larger installed base, 3G low cost connections are offered by all operators in prepaid packages, but with limited use of data and greatly reduced speed when reached. The range of maximum consumption of broadband data for 3G prepaid cell phones varies between 200 and 300 megabytes per month, and the speed between 300 Kbps and 1Mbps: after this consumption range, all operators reduce the connection speed of the user to levels down to the internet via modem: between 24 and 48Kbps. Based on the larger plan available for prepaid 3G Internet with a 300 Megabytes limit, it is possible to watch between five and seven 3-minute videos on YouTube a month. Such offers of connections are not feasible for any reasonable consumption of digital media, eliminating the possibilities of using the offer of anything that does not involve reading emails and basic use of social networks. Despite the recent introduction of LTE connections in Brazil, the predominant mobile data connection in the country is still 3G. Technology capable of transmitting up to 7Mbps data and present in 35% of the cell phone in the country, connected mass mobile mode is linked to this network. There are no few problems presented by 3G connectivity in the country, caused by various technical and operational difficulties: - The lack of antennas: Until the creation of the General Law of Antennas [103], all phone operators anchored in the absence of antennas many of the difficulties in mobile data transmission [104]. The previous law provided bureaucratic obstacles and strict environmental licenses, limiting the number of antennas in the network and congesting the existing. The new General Law of Antennas [103] makes it much easier to install an antenna, resolving this issue. This opens a possibility of a favorable scenario for 2020, where congestion of the antennas should decrease, and consequently the quality of the band offered via mobile connections should be improved. - The lack of available bandwidth: Every mobile connection before being mobile is fixed; data arrives to the central system through optical lines linked by backbones. Therefore, the mobile infrastructure suffers from the same problems of the fixed network. The National Broadband Plan should help to improve this scenario in the long-term. - The "threat" of 4G: Although the two technologies currently coexist, the trend is to replace the 3G network installed for 4G. One should replace the other in the mid-term. - The issue of switch off and 700 MHz band: In cities where there are 4G accesses nowadays, the layer of spectrum offered by Telco’s is of 2500MHz. The higher the frequency, the higher the capacity of the available bandwidth and the number of simultaneous users that enables a station; the range is smaller though, requiring more antennas and infrastructure. The goal of the government is to popularize access to LTE networks by making the 700 MHz band available for 4G connections, with a much larger scope and expanding the supply of these new-generation connections. - The lack of rules to regulate the telecommunications services. The ANATEL does not have defined suitable metrics to supervise the quality of the services or applications offered by telecommunication operators, especially for new services. LTE is a wireless networking technology, defined by 3GPP that intends to guarantee a high user experience in different applications. The main functionalities can be described in the following three basic concepts: managing subscribers, managing bearer tunnels, and using bearer tunnels [105]. Because LTE is an IP based network, the most important task of the network is to provide an IP packet delivery for the User Equipment (UE); this is the job of a bearer tunnel. The UE uses bearer tunnels to send and receive IP packets while moving through and between LTE networks. Bearer tunnels are adjusted to follow the user equipment as it moves through and between different networks to always ensure a path for packet delivery. Finally, the UE must authenticate, authorize, and register them with the network in order to be tracked, create, and use these bearer tunnels [105] As stated before, LTE is an IP-based network that means the packet core of network operators, specifically cellular operators, need to be prepared to support high data traffic. Cellular operators, particularly in North America and European Union are implementing an IP Multimedia Subsystem (IMS) in the last years. Thus deploying of IMS networks will fill the gap between two of the most successful communication systems, cellular and Internet technology. 40 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape The IMS network is defined by the 3GPP as a network domain dedicated to the control, management and integration of multimedia services [106] and is based on known and accepted protocols, such as, Session Initiation Protocol (SIP), Session Description Protocol (SDP), Real-time Transfer Protocol (RTP) and Diameter protocol. IMS Network can be used to serve various access mechanisms or technologies, such as LTE, WiMAX, WiFi, UMTS, GSM, CDMA, for this reason IMS is considered as an agnostic access network. In this context, IMS network plays an important role to serve different applications using IP networks, such as, VoIP, videoconferencing, IPTV, etc. IMS network provides more interesting features to improve the quality of multimedia services. For example, in the case of IPTV services [107]: - Integrated user registration and authentication User subscription management Session management, routing, service trigger Interaction with existing NGN service enablers (presence etc.) Roam support QoS and bearer control Unified charging and billing The IMS based IPTV can also bring additional advantages such as support for mobility, as well as provide converged applications integrated voice, data, video and mobile services to flexible quadruple play service concept [107]. Analyzing the state of the art, regarding the new solutions that support IPTV using an IMS infrastructure, some research are found, most of them focused on improving the users’ quality of experience, as presented in [108] [109]. The duplex communication characteristic of the internet protocol enables the IMS IPTV to provide enhanced interactivity features, which coupled with the personalized aspect of having an IMS registration, offers a complete two-way communication channel between content providers and consumers. This aspect is very important not only for IPTV service; it is also for the different solutions of digital television, such as, Hybrid TV. In the IMS IPTV architecture, personalization is an important feature. In order to achieve personalization at the application level (i.e., personalized electronic program guides (EPGs), advertisements, or even personalized blended communication services), every user has an IPTV profile [110]. In the next years is expected that cellular operators in Brazil will implement the IMS network, given to their users new features, which will improve the users’ expectations. Furthermore, mobile users of IPTV, DTV or other multimedia services will have a better channel of interactivity with all the functionalities offered by IMS network. Mobile broadband in Europe have adopted proportional (per capita) three times higher than the world average and the largest among continents (65.5 out of 100 Europeans have access to mobile broadband, the world average is 29.5 out of 100) [19]. It should specify that access to mobile broadband does not mean that it is made just for mobile devices, since it can derive from its use computers and modems capable of receiving SIM chips. This explains the 57% penetration of smartphones in the market "EU5" (Germany, Italy, Spain, France and the UK) [111]. However, the number of people accessing the Internet by mobile handsets tends to increase: In December 2013, 75% of phones purchased in the EU5 countries were smartphones, and 23 million people in these countries had both a smartphone as one tablet [111]. The highest penetration rates of mobile broadband in Europe are in Scandinavia (Finland, Sweden, Denmark and Norway) region, all have penetration rates greater than 85% in 2012 [19]. Finland and Sweden have higher numbers than 100%, indicating that some people in these countries have more than one handset access [19]. However, Europe faces the same problems of Brazil with the expansion of its mobile broadband network and transition to LTE technology. The lower frequency spectrum, the greater the distance covered by the signal, and the signal quality in confined areas also increases. Networks with frequencyspectrum tend to house more people [112]. Due to these characteristics, the use of higher frequencies (1800Mhz, 2600Mhz, for example) is more effective in densely populated areas, while lower frequencies (700Mhz, 800Mhz) are more suitable for less-populated rural areas and cities that are difficult to access. Both in Brazil and in Europe, the lowest frequencies are or were occupied by analogue TV 41 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape broadcasts. Therfore a reallocation of spectrum and its consequent availability for mobile broadband is required. In Brazil, as yet there has not been the "switch off" of the analog channels due to the transition to the digital TV signal and the low frequency band for LTE has therefore not yet been released. However, in the EU this has already happened in some countries (2012 data): Germany, France, Spain, Portugal, Italy, Sweden, Netherlands, Belgium and Switzerland all have already auctioned the 800 MHz frequency band [112]. Even so, the number of LTE connections in the European Union is still very low, with estimates that only 20% of LTE connections will be in the U.S. in 2017 [113]. Projections In the short-term, small changes are expected in the scenario of broadband networks in Brazil and the European Union. On the EU side, the gradual overcoming of the economic crisis that EU has suffered in recent years should contribute to the growth curve of access to high speed internet in the countries. In Brazil, the FIFA World Cup and the Olympics should boost investments in network infrastructure, and government policies to encourage broadband should continue pushing up the statistics of faster Internet in the country. Both the EU and Brazil have sufficient connections to feed the demand for ITV products chain. Brazilian infrastructure supports services (cloud computing, backbones, among others) and although it is smaller and more expensive than the available bandwidth in the European Union, which already fully involves initiatives in this area: one of the largest PaaS providers in the world, Amazon, has installed datacenters in São Paulo. In the mid-term, initiatives to encourage the expansion of the fiber network made by the Brazilian government and the European council should help to reduce lag in broadband penetration among Brazilian regions and between the countries of Eastern Europe and other members of European Union. The benefits of infrastructure investments created in Brazil for the FIFA World Cup and Olympics will be more apparent and should contribute to a further significant improvement of the broadband setting in the country. The consolidation of 4G networks in Brazil and the European Union should help to further expand Internet users rapidly in both regions, and the remaining 3G network should meet the demand for mobile internet of the poorest sections of the population. In the short and mid-term the natural expansion of 3G networks should promote linear growth of mobile broadband access in the European Union. There is still room for growth of current technology with the gradual exchange of common cell phones to smartphones, and in countries where broadband penetration is still low, such as the countries of Eastern Europe [19]. Finally, in the long-term, the full operation of submarine optic fiber link between Brazil and Europe will make the communication cheaper, faster and more efficient between these two regions; this will enable the expansion of joint projects and exchanges of experience. The year of 2020 is the final period of the PNBL second stage, and the "Digital Agenda for Europe” plan might expand the supply of broadband to its entire territory. The Brazilian plan is even more ambitious, due to the gap of the country in this sector: by 2020, it is expected that 90% of the population have broadband available. Also, in the long term progress of broadband in the U.S. should continue to evolve, but the rate of this growth depends on how effectively the 800 MHz band will be used for LTE. Delays in releasing the countries the spectrum needed for mobile broadband may hinder long-range expansion of the service, which tends to be confined in densely populated cities where the lower frequency spectrum is not used. 6.2 Broadcasting The operation of digital television embraces a wide range of factors that define the set of system operation. In general lines, three main broad components of a television system: the production component (TV station and program sets), the process of broadcasting and the reception system [114]. The TV station is responsible for generating content and delivers audio, video and data signals. In the case of open-to-air terrestrial transmission, these signals are broadcasted over the air to end-user. This process aims mainly to encoding information in order to optimize the bandwidth occupied, being this one of the main requirements of telecommunication systems [114]. One of the main encoding standards is the MPEG (Motion Picture Experts Group) [114]. 42 Version of 2014-04-30 • • • • • D2.1 High-level description of the GLOBAL ITV landscape Currently, there are five Digital TV standards worldwide [115]: ATSC (Advanced Television Systems Committee): Adopted in the North America, United States and Canada mainly. DVB (Digital Video Broadcasting): adopted in Europe mainly. ISDB (Integrated Services Digital Broadcasting): adopted in Japan mainly. DTMB (Digital Terrestrial Multimedia Broadcasting): adopted in China. ISDB-Tb (Integrated Services Digital Broadcasting Terrestrial – Brazilian version): adopted in Brazil mainly. The broadcasting delivery technology has as goal to deliver information by the airborne transmission of signals (radio and television) simultaneously. Each country has a specific analogue television broadcast standard that can be NTSC (National Television Standards Committee), SECAM (Système Électronique pour Couleur avec Mèmoire) or PAL (Phase Alternating Line). The analogue television was a very common entertainment way but nowadays it has been substituted by the digital television. In this scenario, the Digital broadcasting has been used instead of analogue waveforms. The digital television terrestrial broadcasting standards are: Advanced Television System Committee (ATSC), Digital Video Broadcasting-Terrestrial (DVB-T), Terrestrial Integrated Services Digital Broadcasting (ISDB-T) and Digital Terrestrial Multimedia Broadcasting (DTMB). The Integrated Services Digital Broadcasting (ISDB) is the Digital television (DTV) standard in Japan and the ISDB-T International has been used in South America. The Figure 17 shows the digital standards adopted by countries until December 2013. Figure 17 - Digital Television Standards Source: DVB Project [116] ATSC was created in 1982 by the Electronic Industries Association (EIA), the Institute of Electrical and Electronic Engineers (IEEE), the National Association of Broadcasters (NAB), the National Cable Telecommunications Association (NCTA), and the Society of Motion Picture and Television Engineers (SMPTE) [117] This standard works with HDTV (Digital high definition television), multichannel surroundsound and data and home broadcasting. ATSC has the following characteristics (Table 10). 43 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Table 10 - Characteristics of the ATSC standard Characteristics Modulation 8-VSB (Vestigial Side Band) Inner Code TCM 2/3 Outer Code Reed Solomon (207, 187, 10) Bandwidth 6 MHz Total Symbol Rate 10.76 Mbauds Data Bit Rate 19.28 Mbps Source: Adapted from [118] The DVB Standard has its origin in the collobaration of European companies during the 1990ies and the initial aspects of the standard were: • Develop a suite with digital satellite, cable and terrestrial broadcasting; • The system needed to carry any combination of multimedia data, and got ready to SDTV, EDTV and HDTV; • Must have ETSI standards for physical layers and error corrections. The main characteristics are shown in Table 11. Table 11 - Characteristics of the DVB-T standard Characteristics Multiplexing COFDM Modulation QPSK, 16-QAM or 64-QAM Inner Code Conv. 1/2, 2/3, 3/4, 5/6 or 7/8 Outer Code Reed Solomon (204, 188,8) Bandwidth 6 MHz, 7MHz or 8MHz Data Bit Rate 3.73 - 23.7 Mbps Source: Adapted from [118] DVB-S2 is the second generation of DVB Satellite system, DVB-C is used for cable system, DVB-T for terrestrial broadcasting, DVB-H for energy saving terrestrial broadcasting, DVB-SI for service information and DVB-MHP for interactive television. ISDB, the Japanese standard for DTV and digital radio (DAB) has three kinds of system: ISDB-S for satellite, ISDB-T for terrestrial and ISDB-C for cable, all developed in Japan. The ISDB-T standard has the following characteristics (Table 12). Table 12 - Characteristics of the ISDB-T standard Characteristics Multiplexing COFDM Modulation DQPSK, QPSK, 16-QAM or 64-QAM Inner Code Conv. 1/2, 2/3, 3/4, 5/6 or 7/8 Outer Code Reed Solomon (204, 188,8) Bandwidth 6 MHz Guard-time interval 1/4, 1/8, 1/16 or 1/32 Data Bit Rate 0.28 - 1.79 Mbps Source: Adapted from [4] 44 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape The SBTVD-T (Brazilian Digital Television System, technically known as ISDB-Tb.) for terrestrial standard had as guidelines: • Integration of services (email, multimedia); • Transmission of HDTV and multiple programs in SDTV; • Fixed and mobile signal reception in the same 6MHz channel; The SBTVD-T standard has the following characteristics (Table 13). Table 13 - Characteristics of the SBTVD-T standard Characteristics Multiplexing COFDM Modulation DQPSK, QPSK, 16-QAM or 64-QAM Inner Code LDPC 9792 - 1/2, 2/3, 3/4, 5/6 or 7/8 Outer Code Reed Solomon (204, 188,8) Bandwidth 6 MHz Guard-time interval 1/4, 1/8, 1/16 or 1/32 Diversity STC-OFDM Data Bit Rate 0.28 - 1.79 Mbps Source: Adapted from [118] Finally, the first actions of the Brazilian system - ISDB-Tb (Integrated Services Digital Broadcasting Terrestrial – Brazilian version), based on the Japanese standard (ISDB-T) - began with ANATEL around 1990, being widened from the year of 2000 with the laboratory and field tests, starting more concretely the project of a Brazilian digital television system by 2003. Institutions, industries, research centers and broadcasters were part of discussion group for the system deployment. "In the ISDB-Tb, there is a change in video encoding step, which is to use the coding standard H.264, also called MPEG-4 Part-10 and audio HE-AAC v2 also known as AAC+, while in Japan is MPEG-2 used to service high-definition video and audio MPEG-2 AAC” [119]”. Differently from the Japanese system, the Brazilian one uses a different middleware, known as Ginga, which encompasses declarative and procedural environments for applications development. Table 14 and 15 brings a panorama of systems in EU and Brazil. The red highlights means GE'06 23 signatory but no activity reported (RRC-06) 24 also SADC recommended DVBT2; planned means that definite plans to launch DVB-T services have been made; and licensed means that a DVB-T license or licenses have been issued or a tender for same released. 23 GE06 Agreement, Geneva, Switzerland, 2006. Planning area. Region 1 (those parts of Region 1, as defined in No. 5.3 of the Radio Regulations, situated to the west of meridian 170° E and to the north of parallel 40° S, except the territories of Mongolia) and the Islamic Republic of Iran. Frequency bands: Band III: 174‑230 MHz (For Morocco, the analogue Plan covers the band 170-230 MHz), Band IV: 470‑582 MHz and Band V: 582‑862 MHz. 24 The Final Acts of RRC-06 contain the Regional Agreement GE06, adopted by RRC-06, which governs the use of frequencies by the broadcasting service and other primary terrestrial services in the frequency bands 174-230 MHz and 470-862 MHz. They also contain frequency assignment and frequency allotment plans for the digital broadcasting service (television and sound), the analogue television plan applicable in the transition period, the coordinated list of assignments to other terrestrial primary services in these bands, and the Resolutions adopted by RRC-06. The GE06 Agreement is provisionally applicable as from 17 June 2006. Resolution 1 (RRC-06) – Broadcasting-satellite service in the band 620-790 MHz. Resolution 2 (RRC-06) – Characteristics for the coordination and the notification of primary terrestrial services in the bands 174-230 MHz and 470-862 MHz in the planning area. 45 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Table 14 - Digital Terrestrial Television Systems – global deployment – Part A Country DVB-T DVB-T or T2 DVB-T2 planned Trial adopted licensed Countries Deployed Australia 1 Belgium 1 trial adopted deployed all adopted 1 1 Brazil 1 0 Bulgaria 1 Croatia 1 1 Cyprus 1 1 1 Denmark 1 Estonia 1 Ethiopia 1 1 Czech Republic 1 1 1 1 1 1 1 1 Finland 1 France 1 1 1 Germany 1 1 1 Greece 1 1 Hungary 1 1 Ireland 1 1 Italy 1 Lithuania 1 1 Luxembourg 1 1 Malta 1 1 Poland 1 Portugal 1 Romania 1 1 1 1 1 1 1 1 1 1 1 1 Slovakia 1 Slovenia 1 1 1 Spain 1 1 1 Sweden 1 1 1 United Kingdom 1 1 1 Sub totals ATSC 0 Total adopt./deployed 1 3 23 6 3 27 7 10 0 27 0 World Sub totals Total adopt./deployed 0 41 5 72 10 34 118 24 58 8 146 8 Source: Adapted from DVB Project [116] 46 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Table 15 - Digital Terrestrial Television Systems – global deployment – Part B Country ISDB-T DMB-T/H STATUS adopted Adopted Undecided MPEG-2 Australia 1 Belgium 1 Brazil MPEG-4 HD Comment 1 1 Bulgaria 1 Croatia 1 Cyprus 1 1 1 Czech Republic 1 1 1 Denmark 1 1 1 1 1 Estonia incl. mobile & radio T2-Lite trials GE'06 sig Ethiopia Finland 1 1 1 France 1 1 1 Germany GE'06 sig Greece Hungary 1 1 1 1 1 Ireland Italy 1 Lithuania Luxembourg 1 Malta 1 Poland 1 1 Portugal 1 1 Romania 1 Slovakia 1 Slovenia Switch June 2015 1 1 1 1 Spain 1 1 1 Sweden 1 1 1 United Kingdom 1 1 1 Sub totals 1 0 0 17 17 15 Total adopt./deployed 1 0 0 34 34 30 Sub totals 14 3 45 41 50 27 Total adopt./deployed 14 3 45 82 100 54 World Source: Adapted from DVB Project [116] 47 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape At first glance, this scenario beckons to a polarization of opportunities, being a "nightmare for the chipset and device manufacturers” [120], which should invest significant quantities in the development of devices that can meet the consumer market. However, comparatively analyzing the DTT structures patterns, it is possible to state "there is more convergence than it seems at first sight". Thus, despite the fragmentation, "it is possible to find strong similarities between the various standards." This possibility creates a new opportunity. In the very near future, it is probable to think of driving a car anywhere or even use a tablet, as they will be able to receive all TV standards, without limitation of which standard is available in that area. The future points to Digital Communication, despite the political and industrial lobby, and enabling a new era regarding the possibilities of digital transmission. [120] In Brazil there is still a concern on "distribution of high definition signals to TV receivers and transmitting low definition for mobile receivers”. [119] There is a "flexible operation on the spectrum, complying with a range of different devices through hierarchical settings in the signal transmission layer". The central concern in setting a national standard transmission is due to several factors, such as the strong investment (government and industry), proving to be a decision that will result outcomes in short and mid-term in the movement of other society sectors. Also, the DTV is seen as a tool for digital inclusion, "contributing to the evolution of society through education, solving numerous problems in Brazil” [119]. In addition, other factors must be considered in this phase of system implementation, such as: prices of receivers, the impact on the domestic industry, the need to implement all layers of the population and commercial availability. It also must to be considered the production of digital content, which can become a differentiator for the industry of broadcasting in the national and international economic sector. In 2010, after an extensive study [121], it is estimated that the potential of the digital coverage area in Brazil define as greater potential of access the country's Southeast region, which includes 4 states (São Paulo, Rio de Janeiro, Espírito Santo and Minas Gerais) and potential of 39,138,772 inhabitants. Followed by the Northeast - 09 states (Maranhão, Piauí, Ceará, Rio Grande do Norte, Pernambuco, Paraiba, Sergipe, Alagoas and Bahia) with 15,231,339; Southern Region - three states (Paraná, Rio Grande do Sul and Santa Catarina), with 7,489,036 inhabitants; Central-West Region - 3 states and the Federal District (Mato Grosso, Mato Grosso do Sul, Goiás and Brasília), with 6,296,520 people. Finally, the Northern Region - 7 states (Amazonas, Roraima, Amapá, Pará, Tocantins, Rondônia and Acre), with potential access to 4,462,240 people. There is no doubt that Brazil is going through many challenges such as the need for adequate infrastructure for the system. "Delivering the management of a deployment process in a continental-size country like Brazil is complex and for any kind of digital TV system the telecommunications infrastructure is needed in all areas, especially for coverage and signal quality issues and the challenges that will arise with local scenarios, having different technical differences in infrastructure, work force, as well as advanced issues such as the return channel” [121] The proximity of the FIFA World Cup (2014) and the Olympics (2016), to be held in Brazil, are opening up important spaces for organizing the implementation of the standard in all regions and the ASO (Analogue Switch off), prioritizing a broadcast service and mobile reception of high quality, meeting the diverse social strata and qualification of workforce, among others. 48 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 7 Interactive technologies Section 7 includes the projected scenarios for the development of interactive technologies for hybrid television in the European Union and Brazil. Aspects of regulation and articulation between industry electronics, broadband operators, TV broadcasters and federal governments for the implementation of this system in the European and Brazilian market are discussed. Issues regarding ubiquity, interoperability, seamless and haptic features on ITV are considered, pointing scenarios for the development of a framework for multiple devices enabling content and interactive services. Aspects of telecommunications infrastructure are addressed with a focus on interoperability of systems and providing interactive multiplatform content. 7.1 Horizontal and Proprietary Solutions In Europe, there are three big groups of countries with different digitalization stages of television in households. The first group is formed by Italy, Finland, United Kingdom, Spain, Algeria, France, Tunisia, Croatia and Morocco, where the number of Digital TV in homes is over 90%. The second group are the countries with the TV digitalization between 75-89% of all TV sets: Slovak Republic, Luxembourg, Slovenia, Ireland, Austria, Belgium, Czech Republic, Germany, Norway and Netherlands. The last group are the countries with less than 74% of the households with Digital TV, such as Sweden (72%), Estonia (66%), Denmark (65%), Poland (64%), Switzerland (59%) and Portugal (54%). Ukraine (26%) and Belarus (16%) are the European countries with the lowest number of Digital TV spread among their territory [122]. In the Western European countries, roughly 40% of all sold TVs in the first four months of 2013 are Smart TVs – three-fold increase compared to 2011. [123] The number of Smart TV devices in European Union has increased in the past few years and tends to increase for the next coming years. Germany, France, Great Britain, Italy, Spain, Austria, Belgium, Netherlands, Sweden and Switzerland are the countries where the Smart TV devices available in people’s home surpassed 50% of total [123]. In a prognosis for 2014, 76% of all sold TV sets are Smart TV in Germany and 51% in EU10 (France, Great Britain, Italy, Spain, Austria, Belgium, Netherlands, Sweden and Switzerland). [124]. In the European Union, the share of Smart TV devices in TV sets is around 59%; from this amount, 92% are embedded with the HbbTV system [125]. HbbTV is established as a standard in most of the European Union countries and is under discussion for coexistence in other continents, such as Latin America and Asia. In Great Britain, HbbTV shares the English market with the indigienious system, Youview, and still needs to be fully started (Figure 18). Figure 18 - HbbTV across European Union and beyond Source: Adapted from [125] 49 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Germany has been leading the market introduction of HbbTV, followed by the French market with initiatives such as the “HD-Forum”. Spain has also active groups, carrying out tests with Telefónica network through “Mediaset España”, formed by the channels Tele5 and Cuatro; RTVE, a public channel, also supports HbbTV system. Netherlands, Czech Republic, Austria, Norway, Sweden, Denmark, Belgium, Switzerland Poland and Finland are also carrying out tests or starting the use of HbbTV. In Great Britain, the current Freesat platform is integrated with HbbTV. In Italy, MHP standard is in use but is expected to be complemented for hybrid use. The system is operated in 20 EBU country members and in discussion in America and Asia [126]. In the long term, the trend in others continents is to adhere to the HbbTV by interoperability process, considering the coexistent use of already established systems in the following continents with hybrid solutions. The emergence of hybrid TV services is in line with new technologies that arose in the past few years regarding the Video-on-demand perspective. Apple TV and Google TV can be listed as examples of this trend. The second one, as a Android-based TV platform, is a typical OTT-TV transmitting Internet services combined with broadcast programs, making the linear and non-linear watching processes seamlessly, offering similar functions to those ones already observed in other Smart TV providers – such as personalization, picture-in-picture mode and so on [126]. HbbTV as an open standard has similar and comparable solutions if compared with proprietary systems such as GoogleTV/AppleTV. [127] In a development environment for interactive technologies, focusing on horizontal solutions, it is designed as a progress in system integration of hybrid television in the European Union and the start of the implementation in Brazil. In the European market, with a variety of types of television broadcast technology (2008-2012) [62], HbbTV has been established as possible standard. In the Brazilian context, there are two environments: the environment of the terrestrial open-to-air TV, that covers 96% of the population, with 52.40% of cities with coverage of digital signal using the Ginga middleware technology [128] and pay-TV subscribers (27.8%). In both the European Union (advanced stage) and Brazil (initial), the implementation of hybrid television (a merge of broadcast and broadband services) permeates regulatory issues and coordination between industry electronics, broadband operators, broadcasters and TV federal governments. According to projections of the STAI Institute [129] on a short-term plan (2015-2016), the hybrid system is expected to occupy 40% of the European television market, requiring the development of standardization of a hybrid TV receiver. In the Brazilian scenario, it is applicable to long-term (2020) in a particular niche market, as in the Brazilian market there is notable consolidation and growth of pay-TV, with 16 million consumers [130], and hybrids TV standards are in the initial process of presenting the system with broadcasters and broadband operators. It is projected in the short-term that both Brazil and EU will consolidate the HTML5 as standard for developing interactive content in multiple system, contributing to the creation of applications and solutions for multiple screens for both content producers as the advertising market, with ads that leverage interactive systems for consumer engagement. The success of integration between television and the web depends on the ability to integrate the requirements of TV within the web standards [131]. The use of this open language must evaluate the possibility of interoperability of systems for both the Ginga and other connected TV standards 25. With the advances in broadband (77.3% households with Internet access, by region and level of development and the great integration of people connected by mobile devices (penetration rate of 75%) [19], the consolidation of second screen devices’ services as tools of interactivity between the user and the television in the EU market is projected for the short and mid-term (2017-2019), creating a demand for applications’ production and technical solutions for ITV. In the Brazilian scenario, even with the growth on sales of handsets and advances in broadband, it is observed the second screen beginning to establish itself as a service of interactivity in a long-term (2020). Interactive applications should be intuitive and benefit from social networks to engage the target audience, by exchanging messages and uploading videos and graphics, for example. Another possibility will be advances in the measurement of consumption practices indicators for television content, both for producers and for the advertising market, developing more adaptable and focused business models. 25 Theme addressed by the W3C consortium, Administrator of HTML5. http://www.w3.org 50 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Video Streaming Media Devices Assessing the multiple possibilities of interactivity, there is no doubt that interactive advertising is one of the most interesting features of ITV, not previously possible with traditional TVs. This new technology enables a variety of opportunities for the marketing of products such as instant purchase (TCommerce), shopping on-demand, newsletter subscriptions, interacting with social networks, and games, all directly involving the need or intention of the users. But these possibilities are not as simple as they seem to be implemented since the recent addition, there are several platforms seeking ways to participate in this heterogeneous market. Google TV, Samsung Smart TV, LG Smart T, Apple TV, Nintendo Wii (Opera), Sony PS3 are just a few of these platforms that use different technologies to deliver the experience of the TV connected to the Internet. So, to "develop an (App) application or interactive ad for each platform developer must use dedicated APIs". Another aspect to be considered is that, "There are market leaders (i.e., adopted by most users), there are also platforms and standards set." In this case, it can be a difficult and expensive task for the same reprogramming iTVC using different APIs. [132] "At this early stage, social networking, lifestyle, and gaming apps are poised to be the leading TV apps. video-entertainment apps such as YouTube, Vimeo, and vTuner (Internet - streamed media) are popular among early adopters and TV apps. Thus these application platforms have strong developer followings. The TV app market has the potential to merge many of these app categories so that users can engage with friends or watch TV while they interact with the programs themselves." However, it is still a fairly low percentage of developers who are interested in the applications market for TV platforms (approx. 11%) [133]. Figure 19 shows the leading TV-apps according to the preference of developers. Figure 19 - Leading TV-apps categories (%) Apple TV 60 Google TV/Android Samsung TV apps 50 Preference of devlopers [%] LG TV apps Boxee 40 Yahoo Widgets Roku 30 Xbox Marketplace Nintendo 20 Sony Playstation Tru2way/Cablelabs plataform 10 Java Meego 0 Source: Adapted from [133] 51 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape What can be observed in the current market of digital platforms is that the ITV Internet systems have a significant diversity, especially as compared, for example, smartphones. "While smart phones have 5-6 main different platforms, with clear market leaders of Google Android OS and Apple iOS, followed by RIM's Blackberry and more recently Windows Phone." In the area of television things are quite different. "Currently, Internet TV platforms are being developed by service providers (Hulu, Netflix, etc.); traditional TV manufacturers (LG Smart TV, Samsung Smart Hub, Philips SmartTV); internet service companies (Yahoo TV, Google TV); computer manufacturers (Apple TV); PC software developers (Boxee, Kylo.tv, MCE); TV channels (HbbTV); set-top box manufacturers (Roku, TiVo); Media Player manufacturers (Western Digital, Iomega); and even game console manufacturers (Sony PS3, Microsoft XBOX 360, Nintendo Wii)." [132] Platforms, in general, enable the development of APIs for specific applications, although there is diversity between them, as shown in Table 16. "It is important to note about Adobe Flash support which has stated that it is not recommending its use on the browsers of TV devices although it does support it." [134] With reference to the use of remote controls the same problem happens, and specific rules for the use of each device do not exist. "Which vary from PC-like full-qwerty keyboards to very simple TVlike remotes, and game controllers in the case of game console devices. Also, it is important to note that most platforms have Mobile Apps available to fully control them through the Smartphones." [132] Table 16 - Sample of TV Plataforms & WEB Standard Compatibility Google TV Samsung smart HUB Boxee LG Smart TV Nintendo Wii US 120 countries Worldwide 80 countries Worldwide JAVA / HTML / CSS /JS API HTML5 / XML / JS API HTML5 / JS Adobe AIR / Flash C/C++ FULL HTML5 FULL HTML5 Limited HTML5 HTML4.01 Limited HTML5 CSS3 CSS2, CSS TV Partly CSS3, CSS TV CSS2 JS YES 1.8 YES 1.6 YES Flash YES YES YES No YES Touchpad/ Keyboard TV Remote Remote with Kbrd TV Remote Motion Controller Availability App Development HTML CSS Remote Control Source: Adapted from [132] The growth of video-on-demand market in Latin America, especially in Brazil, is a trend that should continue in the long-term, driven by the increase in ownership of connected devices and by expanding access to broadband Internet. Providers that offer diverse audiovisual content, with access from different connected devices (such as game consoles, tablets, smartphones, etc.) came to registering 42% growth in total unique visitors between 2012 and 2013 in Latin America countries, such as Netflix. [135] "According to research by HIS Screen Digest, by 2015, 49% of all devices obtaining television services from the largest global pay-TV operators will be PCs, smartphones, tablets and other multiscreen devices, up from 18% in 2011. Set-top boxes will account for the other 51%, having declined from 82% of all devices over the same period". [136] (Figure 20). 52 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Figure 20 - Forecast of installed base of set-top boxes and active multiscreen devices acessessing pay-TV services for 43 of the largest operators 700,000 600,000 Units 500,000 400,000 300,000 200,000 100,000 0,000 2010 2011 2012 STB Installed Base of Multiscreen Operators 2013 2014 2015 Active Multiscreen Devices Source: Adapted from [136] This adoption trend of new devices can be identified among consumers in the United States. "Already, 38 percent of U.S. consumers say they subscribe or use Netflix to stream video, up from 31 percent in 2012. Netflix users are streaming across screens including new Smart TV (17%), tablets (15%), and directly on their computer (44%). And, streaming video is growing outside of the home as well as, with 23 percent of Netflix users saying they watch on mobile phones, up from just 11 percent in 2012 ". Access via game consoles fell on all platforms in the same period (Wii from 21% to 13%, PS3 from 16% to 10% and Xbox 360 from 14% to 12%). [137] In this scenario, the television can still be regarded as a primary screen for consuming video and access this content directly to the television you must use a smart TV or an external device connection. These devices act as set-top boxes, able to allow access to the Internet, and therefore to audiovisual content, such as Hulu, YouTube, and other providers, such as the aforementioned Netflix. Adding models smart TVs and devices with traditional device connection via streaming video it is estimated that, "there will be more than 759 million televisions connected to the Internet worldwide by 2018, more than doubling from 307.4 million at year-end 2013.” [138]. Among the main devices that enable this connection we can highlight are the Apple TV, Amazon Fire TV and Roku. Chromecast is similar to Roku Streaming Stick, a dongle that you can connect to your television set, they are not set-top boxes like Apple Tv, Fire TV and Roku. You can check the main technical characteristics of each device in Table 17. Table 17 - Streaming Video Media Devices Apple TV Fire TV Roku Chromecast Produce by Apple Inc. Amazon Roku Google Launch date 2007 2014 2008 2013 53 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Fire TV Roku Chromecast Price 26 USD 99,00 USD 99,00 USD 99,00 USD 35,00 TV compatibility HDTV or AV receptor HDTV only HDTVs only HDTV only Type, link up Set-top box, HDMI Set-top box, HDMI Set-top box, HDMI Dongle, HDMI Dimensions (mm) 98 x 98 x 23 115 x 115 x 17,5 89 x 89 x 25 72 x 35 x 12 Weight 270g 281g 141g 34g Processor, speed Single-core A5 chip Qualcomm Krait 300, quad-core to 1.7 Ghz Single-core Marvell DE3005-A1 Memory 512 MB 2 GB 512 MB 512 MB Storage Internal, 8 GB Internal, 8 GB HDMI Yes Yes Yes No Optical Audio Yes Yes No No Ethernet (wired connectivity) Yes Yes Yes No Yes Yes Dual-Band / Dual-antenna Dual-Band / Dual-antenna (MIMO) Dual-Band / Dual-antenna (MIMO) Single-Band 1080p 1080p 1080p 1080p H.264, MPEG-4, MJPEG H.263, H.264, MPEG4-SP, VC1 H.264, MP4, MKV H.264, MPEG-4, MKV 5.1 surround 5.1 surround 7.1 surround 7.1 surround AAC, MP3, AIFF, WAV AAC, AC-3, HE-A, PCM, MP3 AAC, MP3 AAC, MP3 Image JPG, GIF, TIFF JPG, PNG JPG, PNG Remote Control Included (infra-red) Included (Bluetooth) Included (Bluetooth) Ports/Interface Apple TV USB Audio Video Wireless Resolution Formats Supported Resolution Formats Supported Motion Control for games included Yes (for service and support) No, No Expandable (MicroSD slot) Yes, Internal, 2 GB Yes (to power unit) User’s mobile device optional game controller remote features motionsensing technology No Yes Yes Yes Yes Compatibility IOS, OSX Android, Fire OS IOS, Android IOS, OSX, Android, Windows, Chrome OS Complementary Observation AirPlay Voice Search Remote Control device with headphone Chrome tab cast mode allows play games with dual screens Mobile devices media streaming Source: Adapted from [139], [140], [141], [142], [143] 26 Values related to the U.S. Market. However, there is a cost variation for Apple TV in different countries; in the U.S., the values are equivalent to Fire TV and Roku, keeping in USD 99.00 (approx. EUR 71,00 - BRL 218,00), in Brazil the cost is BRL 399,00 (approx. EUR 130,00 - USD 180,00); among the countries of the European Union the values are approximated, but there is still some differences; in Germany, the cost is EUR 109,00 (BRL 334,00 - USD 151,00); in Spain, EUR 112,00 (BRL 343,00 - USD 155,00) and in the U.K. GBP 99,00 (BRL 365,00 - USD 165,00). 54 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape The companies responsible for the production of these devices include the largest companies of cable TV service, telecommunications, electronics, and social media in the U.S. market (Figure 21). Figure 21 - Annual Revenue of Selected Cable, Telecomunications, Consumer Eletronics and Social Media Firms Annual Revenue ($ Bilions) 200 150 100 50 0 Apple TV AT&T Verizon Microsoft Amazon Comcast Google TWC Facebook Source: Adapted from [144] “Google competes as a network, video, and technology provider, and 8 out 9 of the next Google Fiber markets the company announced are in Comcast or TWC areas. Apple tablets are viewing platforms for cable services even while Apple offers an online video service, Apple TV, and explores development of an Apple set-top box". Amazon launched in 2014 "its own set-top box while it continues to leverage its unequaled sales platform and family of competitive tablets to promote its burgeoning Prime Instant Video business". [144] In 2012, of all streaming devices sold worldwide, 56% were Apple TV, and over 13 million of these devices were sold until the first half of 2013 [145] (Figure 22). Figure 22 - IP Streaming Devices Segment Percent Market Share by Units Sold IP Streaming Devices Segment: Global, 2012 (%) Roku 22% Apple TV 56% Others* 16% TiVo 6% * include D-link Boxee Box and Boxee TV, Logitech Revue, Liberty Horizon, WD TV, Netgear Neo TV, RCA Streaming Media Player, Sony, Vizio, and others. . Source: Adapted from [145] 55 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape “Apple Inc sold more than $1 billion of Apple TV set-top boxes in 2013 and is investing heavily in the next generation of products, Chief Executive Tim Cook said at the company's annual meeting on Friday” [146]. In the United States, Apple also owns 41.6% of U.S. Smartphone subscribers 27 [147], allowing the integration by default IOS connection as well as the use of libraries of iTunes users. However, the scenario is quite different in other regions in Brazil, although it is the only regulated for marketing, Apple TV device has a high cost and compatibility with iOS devices only ultimately restricts its scope. In Western Europe, Apple has a larger percentage of the market compared with Brazil (but it is far below the U.S. market), even with record fall of 5 % in the last year, now accounting for 20% of market smartphones in the region. [148] We can state that in the U.S. market, which includes all the services listed in the previous table, Apple TV is among the largest segment with 29.3 % share of the social media buzz among select OTT video devices. The highest percentage is the Roku with 35.3%, Google TV has a 14.7% share, followed by 13.2% and 7.6 % for MeeGo and for Boxee, respectively. [137] Deploying Chromecast in its current patterns should have little impact on the Brazilian market, even with relatively inexpensive equipment ($35 dollars in the U.S. market) and interoperability of systems (Android, iOS, Windows, Mac), due to the inclusion of the Miracast (a standard wireless communication between mobile devices and HDTVs with interoperability of systems) as technology on connected TVs. However, we look at the possibility of developing applications in HTML5 or Android operating system language, using Chromecast or Android TV (project recently announced by Google) open an interesting space for your SDK is now open to developers. [149] Another aspect that should be considered is the business model. All these devices are based on a standard cost and subsidized sale of content is linked to the device, channels and content regionally limited. Still, the habit of consumption of official and unofficial content arises as a discouraging factor, on the premise that the profile of consumers uses of these devices use official, legalized content – and, thus, paid content. In Brazil it can be a limiting factor because there is no tradition of paying for audiovisual content, whereas the predominant television has always been the model of open and free TV. The potential audience for this device should be able to consume cable TV and connected TV. In this sense, video game consoles play a significant role in the short and mid-term, especially in developing markets still showing downward trends in the North American market. According to the annual report of Netflix, the world market has more than 40 million people connected to the internet TV service [150] and PlayStation 3 is a very important platform to the video service. In contrast, only the Fire TV and Roku raised concern with the integration of the gaming market. Without intent to compete with consoles (like PS4, Xbox or Nintendo Wii One), the device Amazon has an optional controller for games, which must be purchased separately, since the Roku, in its third version allows motion control by itself remote control device. Microsoft, with its Xbox One, enables, via an HDMI input, the control of a TV decoder, where the user has the possibility to play and watch a TV program at the same time, with interactive opportunities for full programming guide, among other functions - all controlled by gestures. In the short-term the main concerns regarding the services offered by interactive technology devices are related to discussions on net neutrality, especially in vogue in Brazil with the Internet Bill of Rights. Also, it is highly important to consider that with the proximity of the switch-off, the use of set-top boxes and other streaming devices can delay the need for replacing the television, allowing access to interactive content and on-demand. 27 About "159.8 million people in the U.S. owned smartphones (66.8 percent mobile market penetration) during the three months ending in January, up 7 percent since October. Apple ranked as the top OEM with 41.6 percent of U.S. Smartphone subscribers (up 1 percentage point from October). Samsung ranked second with 26.7 percent market share (up 1.3 percentage points), followed by LG with 6.9 percent (up 0.3 percentage points), Motorola with 6.4 percent and HTC with 5.4 percent". [147] 56 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 7.2 Convergence: ubiquous, interoperable, seamless and haptic features In the mid-term, it is expected that the content of the hybrid broadband TVs will be available in the cloud as a facilitator of integration, enabling access multiplatform content – mainly in the EU market. This progress is sought in the research of Gartner Research [151], whose growth projection of cloud storage must increase fivefold by 2016. The Brazil will follow this same scenario, but in the long-term, mainly due to speed limits, access and broadband price constraints. The interoperability between various devices (all in one) allows the ubiquity of content and services. From the point of view of production and interactive advertising market, it allows multiplatform content strategies (such as transmedia products). In the European market, in the short-term, it might be consolidated the production of applications that include national and regional broadcasters with the provision of specific content and enables the interactivity of users through their mobile devices. In Brazil, this service environment will begin to consolidate in the mid and long-term. However, for the functionality of this interactive content, investments in telecommunication infrastructure are required, ranging from large servers to large data bandwidth to quality electronic devices, and the creation of business models by the broadcasters. Regarding the use of video content on Smart TVs, the use of both applications (46%) or browsers (49%) for accessing the data is quite regular among users [152]. This is a clear trait of the convergence between TV and computer, showing how important is the environment of Smart TV as a paradigm shift in the business models for consumer electronics industry; this is a trend that has been continuous for the last two years and will stimulate the cooperation between hardware and content industry for commercial success [127]. Considering the user behavior in front of high technological devices involving touch features, it is relevant to consider as a future scenario the evolution of devices that incorporates high developed haptic and also increase the equipment seamless [153]. Thereafter, these future scenarios figured out an estimated increasing of iTV experience that approximates machines to humans. [154] 57 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 8 Other stakeholders map and positioning The map of global television landscape has undergone various shifts. All participants in the universe of transmission value, from content producers to developers of equipment (Figure 23) will be compromised "by the impact of the evolution of transmission technology and the growth in access to broadband Internet". The digital broadcasting networks will be modified due to three factors: the demand for more services and higher technical quality with better coverage, new technology with a more efficient spectrum use, and changing regulations on the spectrum use [155]. Figure 23 – Digital broadcasting value chain Content Creators Content Aggregators Multiplex Operators Service Providers Content Distributors Device Creators Source: Adapted from [155] In this environment, where broadcasters and their associations essentially dominated the universe, the Internet has brought new actors that have been integrated in this process, such as consumer electronics companies, Internet service providers, mobile operators and telecommunications industry. In Brazil, few television stations experienced the hegemony for decades, mainly in content distribution and advertising revenue. Recently, the market has shown signs of branching with the growth of pay-TV, the insertion of connected TVs and opening of the operators with data packages, telephone services and television content, as discussed in previous pages. Regarding broadcasters and content providers, the concern is on how to manage the audience and the advertising share in an environment that follows the diversification of media and, at the same time, how to integrate this new content ecosystem with profitability business models. In this respect, it is expected the beginning of associations such as the Smart TV Alliance [156], seeking to unify and standardize system models for connected TVs and W3C [157]. Thus, the scenario tends to the cooperation between the broadcasts, in various media ecosystems, and other actors involved in the distribution and content production process, boost in the short-term in the European Union and in the mid-term in Brazil, by developing new business models and new hybrid formats of television content. Time spent while watching TV continues growing, even among the young, and the live broadcast is the largest component of video consumption, especially in Europe [158]. From this, with the integration of the broadcasting system with broadband, one way to encourage increased consumption of television content would be a basic feature on the TV, such a live broadcast. From the sport events to TV journalism, these formats and genres, bringing together a large mass of engaged viewers and interactive internet applications are a trend to be followed worldwide, providing increased consumption and setting up a business model. In Brazil, it is believed that hybrid TV will be the key for television broadcasters / media groups in maintaining a major share of the broadcasting market, building up on Internet portals and providing content-on-demand, interactive products and second screen applications. Thus, the hybrid TV advertising market might provide numerous possibilities for producing interactive content on multi-platforms. This domain over the portals of access is strategic for big media brands and broadcasters, as the matter is not only the target audience, but also keeping their hegemonic role in the system. 58 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 9 Interactive ser vices TV with enhanced services is not a new approach but it is currently changing due to the availability of different services through several transmission process and platforms. New consumption practices of information and forms of audiovisual entertainment are becoming possible in the near future, increasing the relevance of these devices not just for socialization and cultural inclusion, but also for connection and day-to-day activities. Apps and OTT services are enabling consumers to proactively take control of their viewing experience and create their own solutions by picking and mixing services, especially in the EU scenario. This behavior will create a challenge for many existing business models. Hybrid TV system allows to concentrate dialogues that occur in multiple spaces of social networks. It should also provide greater user control over the flow of linear programming and / or nonlinear. 9.1 Related to the television content In a short-term scenario, the interactive services related to broadcast content will have a representative growth, generating a volume of additional information regarding the TV programs displayed in order to meet the demand for more complete information related to the content broadcasted on television. From the production perspective, it points to a transmedia strategy. The concentration of information in a single access device represents a saving of time for the viewer because there is an optimization of the allocation of additional information of interest to the viewer process. The integration of interactive TV system should provide access to meet demands of the target public services, always observing the need for easy usability interfaces. From content-related services, the accessibility issue must be on the horizon of the advances of a hybrid TV system, especially in relation to the mobility constraints. It is a trend to insert voice command and gesture technologies to promote the inclusion of people with disabilities. With the analog switch off scheduled for 2016 in Brazil, the production chain focused on accessibility is an area which will require an increase in technological innovations to facilitate access of people with limitations. The use of the second screen devices is a necessary condition for content running through broadcast system. From a one-all perspective, it is expected that interactive process may occur not only in the TV screen or mobile devices, but in a combined way, synchronized or not. This will encourage the development of program formats with new communication strategies, enhancing the prospects of involvement and participation of the viewer. In this aspect, the gamification 28 of content is one of the most efficient resources to mobilize audience participation. In the mid-term, the system must contain provisions for the security of data and control access to content. The television will remain a central feature of media mainly by live events transmission, integrating different social segments and contents of collective interest, which will be shared on social networks and phones apps, consolidating a second screen activity. These activities may also be considered in in/out activities (not only in home or office, but also while using public transport and movement). 9.2 Not related with the content Hybrid TV will have as one of its main attributes in the short, mid and long-term the benefit to connect the viewer with tools for accessing social services, such as accessing to databases, government services, distance education and searching video-on-demand. 28 Gamification is the application of typical elements of game playing to other areas of activity. 59 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape In Brazil, there is a great potential in the short-term for the hybrid TV services government to provide the people of different economic classes and educational levels. However, this will only occur if broadcasters to adopt this kind of technology. The strength of open and free television also depends on the support of public policies to encourage consumers and electronics industry to adhere the system. In the mid-term, hybrid television should provide an important tool for distance education in Brazil, and boost access to knowledge worldwide through educational programs available on digital platforms and clouds. The ability to create an environment of two-way communication is required for the use of technology with educational goals condition. In a long-term scenario, the TV will remain as a central media. The aging population in different parts of the world, especially in European countries and Brazil, requires many easy-going interactive services to the elderly people, and necessarily in language easy to use for inserting this audience segment in consumption Hybrid TV. It is possible to envision people with health problems, elderly or people with limitations triggering help services in their homes while remaining connected with family in a type of video conference, receiving messages from health professionals and purchasing products without leaving home. Such services are aligned with the trend of ubiquity, personalization of content and interaction aimed at those who need health care. Approximately 500 million people use mobile health applications in 2015 [79], which demonstrates a big demand in this sector. 9.3 Potential business models The possibility of better identification of the target audience, offered by access control technology, allows broadcasters to meet in the short-term the demand for specific content of interest from each segment. Broadcasters can be interested in models that consider the transmission of different contents considering the full-seg and one-seg bands, i.e., for consumers that might be interested in TV programs or interactive services while moving from a place to another or when they are not in home. In this case, services for traffic, weather and emergency alarms may be useful for these purposes. Hybrid TV must rely on interactive technology applications that facilitate the development of templates for customization of commercial insertions during the display of contents so there is the possibility of addressing the audience that the advertiser wants to achieve. Currently, participation of some viewer can be measured by the use of Twitter while watching television series, talk shows, interviews, sport events, and is a source of information to broadcasters on the quantity and profile of who is watching the TV show and using second screen at the same time. However, it is a source of indicators with a high degree of uncertainty, so that, in the short-term, the deployment of hybrid television system should be able to get more reliable data on the profile and interests of the audience from text messages sent, for example. This will be an important tool for the development of new forms of monetization of audiovisual production, always respecting users’ privacy when thinking about technics and methods to extract users’ access data. 60 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 10 Users attitudes and trends The expansion of the possession of connected devices has been modifying consumer habits for audiovisual content. Television still appears as the house’s central media, however, now it divides the attention of the audience with mobile phones, tablets and laptops, featuring a multitasking consumer, despite the availability of multi-platform content and services have opened new possibilities integration and interactivity. As shown in previous chapters of this report, almost all households in Brazil and the EU countries have television, which began a period of technological renewal (either by replacement of appliances, sign change and / or adaptation by using converters). Also, possession of connected devices follows a trend of growth, while maintaining different standards in different markets, and should not stagnate in the proposed for this analysis period (2015-2020). These notes indicate that homes and therefore the lifestyle are becoming more digital nowadays. If this access is a prerequisite for the potential use of interactive TV system, it is also necessary to understand in what ways and by whom these devices are being used. 10.1 Television In Brazil, the viewers have a fairly diverse profile, reflecting a model of TV with free open signal and the characteristics of the population, which has allowed high levels of penetration in different genres, ages and socioeconomic classes. In general, the composition of the audience shares this range; however, some highlights are needed, for example, the concentration of 41% of the audience in the range between 20 and 39 years and 48% of the audience in the middle class (Figure 24 and 25). Figure 24 - Consumer profile of the medium/TV Viewer Profile by Economic class (%) A1 A2 B1 Economic Class B2 C1 C2 D 0 5 10 15 20 25 30 E Source: Adapted from [67] 61 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Figure 25 - Consumer profile of the medium/TV Viewer Profile by age group (%) 10 to 14 years 15 to 19 years 20 to 29 years Age group 30 to 39 years 40 to 49 years 50 to 64 years 0 5 10 15 20 25 65+ years Source: Adapted from [67] Approximately 65% of Brazilians watch television every day, with rates ranging from 72% in Amapá (Northern region) and 54% in Tocantins and Mato Grosso do Sul (North and Central-Mid regions, respectively). Of the remainder, 17% watch at least 5 days a week and 18% is from 1 to 4 days. Only 3% of the Brazilian states do not have the habit of watching TV. The average consumption is 3.5 hours per day, and the highest rate is in the age group above 65 years of age, reaching about three hours and fortythree minutes during the week; the lowest rate for the same period contemplates the age group of 36 to 45 years, with three hours and seventeen minutes [159]. This can be partly explained, as this last age group is the Brazilian work force, being out of house most time of the day or working in home activities. The open channels still have hegemony between the television audiences, as 67% of Brazilian states only watch open-to-air terrestrial TV. Pay-TV focuses the attention of 7% of Brazilians uniquely and both share the other 24% (the remaining 2% have no apparatus for television or did not answer the survey on media consumption habits [159]. The average consumption time of paid channels is 2 hours and thirty minutes daily, but has increased steadily since 2008, with a cumulative increase of 24%. Still, the ABTA projects growth of about 35% in the number of households’ subscribers for 2018, extending its reach to 40 million households. [160]. In the Brazilian context the values practiced by television operators are still relatively high for most of the population, especially considering the packages offered include open-to-air TV channels, which explains much of the difference in consumption between the two models, being the cultural habits also of great influence in this issue (watching dubbed programs, for example) 29. Considering the most watched TV programs in Brazil, the most cited are the informative (news), serial fiction (the still popular Brazilian soap operas) and soccer games transmissions. [159] In European Union countries, 86% of the population watches TV every day or almost every day, similar to the national average Brazilian index if considered the same period (up to four days per week). Between countries, some differences can be seen, for example, "respondents in Finland (79%) are the least likely to watch television on a daily or near-daily basis, while respondents in Bulgaria and Portugal 29 NET and SKY are the two largest operators of cable TV in Brazil, and concentrate together 52 % and 31% of the market, respectively, according to ABTA (Brazilian Association of Pay-TV). The cheapest NET package costs BRL 39,90 ( EUR 12,83) and includes 88 channels, being 38 of audio only, 17 of mandatory transmission (Law No. 12,485 of September 12, 2011, which provides for audiovisual communication Conditional Access) and 15 free channels (open channels, games, services, advertisements and religion); it alsos retransmits open HD channels, pay- per-view channels and gate operator. The inclusion of two channels of Telecine network implies an increase of twenty reais (eight dollars and fifty cents) in the tuition. The same value considering the cheapest package offered by SKY, being the overall situation remaining very similar. The values of unopened packages may reach BRL 229,00 (EUR 73,66). The values were taken from the site of the operators. NET: http://www.netcombo.com.br/tv-porassinatura/pacotes-de-tv and SKY: http://www.skyprepago.com.br/ assine-sky/sky-fit 62 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape are the heaviest TV users (94%)." Furthermore, approximately 34% of European watch television by the internet at least once a week, and 17% watch two or more times [161], as can be seen in Table 18. Table 18 - Watching television from a TV set Source: Adapted from [161] Television is still the preferred media for consumption of sport related programs. The consumption of sport programs in countries such as France (96%), Germany (94%), UK (97%), Italy (93%) and Spain (97%) exceeds the percentage of Brazilian (92%) using television to follow the sport games [71]. Regarding informative programs, aspects of national interests in each country must to be considered, as large local audience programs may not have the same international acceptance (among EU countries), both by content and by the linguistic barriers. However, “the data reveals the importance of CNN International, BBC World, Sky News and Euro news, although CNN scores more highly throughout the survey than all other news channels. The surveys are interesting as they allow comparisons with the viewing of other channels, for example sports and entertainment. By and large news channels are less viewed than sports, music and documentary channels - but not by very much. On a weekly basis, for example 18% are watching CNN, 17% Sky News, 14% Euro news, while at the same time they are also watching; MTV 27%, Eurosport 27%, and the Discovery Channel 22% [162]”. 10.2 Second screen and social media The use of second screen for media consumption and interaction is becoming a standard [127], being the combined use of other devices with TV a clear trend: Figure 26 shows how the use of tablets and smartphones in Germany tends to grow considerably between 2012-2017 [163], reflecting an international perspective of how mobile devices have a decisive influence on the media use. 63 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Figure 26 - Combined use of mobile devices with TV trend Source: [163] The rate of aging of the population pyramid, still a few years behind the European indices, demonstrates the need for a productive ecosystem that considers generational situation in a context in which young people are already involved in a converged environment and the elderly go through a process of technological and digital literacy 30. Considering the different aspects, it is possible to say that the integration of the elderly to the digital universe is a challenge even in the most developed countries. In the United States, for example, young people between 13 and 34 years old have penetration, possession of connected devices and digital habits rates up to two times higher, especially regarding to activities such as the consumption of OTT video and VoIP services 31 via smartphones. However, it is interesting to note that the elderly people have the desire to connect and enjoy products and services that can facilitate their daily life, indicating a potential and growing market 32. "Online and mobile shopping lists are also used by nearly one-quarter (23%) of global respondents, with significantly higher percentages open to the idea. Three in four respondents in Latin America are willing to use online shopping lists If they become available, along with six in 10 from the Middle East / Africa (63%), Asia-Pacific (62%), North America (62%) and Europe (61%)" [164]. Another range of audience that needs special attention is the child and adolescent. It is not today that television acts as a sort of electronic babysitter. Different studies indicate a Brazilian average consumption exceeding two hours daily at this age, characterized by the high rate of children and young people who watch television alone. Among the preferred formats, programs with greater restrictions by parents (movies and reality shows) can be listed. The access of children and young people to the Internet in the country follow very approximate proportions, also with lonely watching. [107] The European youth remains approximately three hours watching TV, and one every six claims to be online while watching television [165]. In European countries, 12% of children have access to Internet via handheld devices for personal use (mobile phones and tablets), with the highest percentages in 30 Literacy is understood here as "the ability to interact, communicate and create knowledge using ICTs" [185]. 31 The IConsumers research [171] indicates that only 4% of Americans over 45 years says watch videos OTT (Internet-based video on TV via devices connected), that rate drops to 2% over 55 years. 32 The number of people older than 60 years could increase more than double, from 841 million in 2013 to 2 billion in 2050. According to UN figures figures [197]. 64 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Norway (31%) and the UK (25%) [166]. Thus, it has become generally accepted that children are increasingly adhering to the early use of mobile (especially mobile) devices and the Internet connection (for social networking and games) creating a new area of opportunity, but also vulnerability. Thus, an important warning is that the hybrid system enables television, in a short-term scenario, can provide applications for locking or/and automatic safety protection and parental controls. They help to safeguard the kids to exposing them to inappropriate content, interpersonal contacts and risk of cybercrime, respecting the specifics legislation in each country 33. The generational specificities also makes it a priority in the short-term, as common usability requirements are met for the management and access to services and content, given the different levels of literacy arising not only from diverse age groups, but also of policy, economic and sociocultural scenarios between multiple regions (in the case of Brazil) and between countries (in the case of the European Union). In this perspective, interactive TV must have a friendly, intuitive and adaptable interface to suit the needs of the user interface, including rely on accessibility criteria that consider the special needs. Familiarity with concepts of interaction and interactivity 34 are not new, nor are the result of the digital age. The analog media already had public participation in their productions, although they did not offer a channel of direct feedback in real time. The interaction process was so described by the technological level of each moment. Currently, interactive services are potentiated parallel to the expansion of Internet access, but remain underutilized. However, beyond an individualized, direct and immediate feedback channel, scanning allowed the use of a second screen feature that should be thoroughly explored on ITV from the connection platform. The understanding of the meaning of the second term display, which does not necessarily define the use of a second device, is required though. It is possible to start extra content: interaction screens and side frames on the TV screen itself only with the conventional remote control commands. In multiplatform perspective, the information must meet the specific demands with the optimization of sending the information. In the short-term, the interactive television system may allow user feedback, with the sharing of content (notes, comments and images) at any point of transmission, with filters that allow establishing a network of thematic interests or for determining groups. In Brazil, 73 % of Internet users are on social networks and 74% of them claim to share opinion about TV content [167]. The number of Brazilians who consume traditional TV and online simultaneously is nearly 6 %; from these ones, only 2% have tablets, considering people between 35-55 years. 86% of the youth people have mobile phones, being 17% Smartphones [58]. In Europe 36% of the population reported using connected devices (especially tablets and smartphones) while watching television [165]. Although the data indicate that the use of tablets in Brazil is relatively low, especially when compared to the international market, it shows a growth trend as indicated in previous chapters. Likewise, a study conducted in 2012 by Motorola Mobility has revealed that 34% of respondents watch mobile TV in Brazil, being very close to the global average, which is 37%; this shows that in the Brazilian case, the trend is for increasing consumption of devices that can be used as a second screen. Another interesting fact is that laptops are still the most widely used means to watch TV from mobile devices, with almost 60% of the options. Smartphones have been gradually gaining more fans and now occupy the second position among the most used in the country to watch TV programs remotely. Accompanying these trends in the mid-term, broadcasters are investing in content to the second screen. TV Globo, Brazil's largest broadcaster, has recently acquired the rights to the Rising Star program, reality show of Israeli origin where the big difference is the use of the second screen through applications for smartphones and tablets; the development of some national applications in sports field, the football championships, soap operas and reality shows is also the strategy focus. Sony also has released an app for smartphone in 2013 that allowed the connection to the PlayStation 4 using Android and IOS technologies. Integration with social networks is a motivating factor for the user of a second screen; reviews on networks like Facebook and Twitter move large numbers of people around an event, program, episode, scene or even character. Figure 27-28 and Table 19 demonstrates this statement. 33 Concern that meets the guidelines set by the European Union for the establishment of a common digital agenda between their countries. 34 The interaction would be a human behavior that involves interpersonal relationships, exchange of experiences among people [203]. 65 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Figure 27 – Percentage of TV audience interacting with Facebook Source: Adapted from [168] Figure 28 – Number of Interactions with Facebook Source: Adapted from [168] Table 19 - Integration with social media: television content commented in Twitter Nielsen Twitter TV Ratings – Daily Top Five (3/05/2014) Rank Network Program Unique audience (000) Unique authors Impressions (000) (000) Tweets (000) 1 FOX American Idol 1,660.9 3,815.1 33.9 63.7 2 Comedy Central Workaholics 808.6 1,201.3 17.9 23.0 3 E! Chelsea Lately 702.0 2,175.1 3.3 4.1 4 A&E Duck Dynasty 583.6 1,120.0 15.0 21.3 5 MTV The Real World: Ex-plosion 526.8 1,340.5 11.7 23.8 Source: Adapted from [169] 66 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Given this scenario, it is recommended that, in the short-term, hybrid TV system allow to concentrate dialogues that occur in multiple spaces of social networks. It should also provide greater user control over the flow of linear programming and / or nonlinear, with possibilities to ensure the entry of the hearing at any time in the program display or use of content previously shown, as in the case of serial productions, functioning as a repository, which will depend on the availability and prior authorization of the broadcaster. The second screen users looking for extra content tend to share information and data that is being consumed, as shown in the Figure 29. Figure 29 – Activities on second screen by popularity Read email while watching TV/video content Use apps or browse the internet to kill time Use apps or browse the internet to find out more information Use social forums at the same time as waiching TV/video content Discuss the TV/video content currently being watched with others online Watch two or more programs, live events or shows at the same time Compete with others watching the same time Watch the same program or show two different camera angles Interact with the show through voting 63 56 49 40 29 25 14 14 13 13 0 20 40 60 (%) 80 100 Live betting on a sports event at the same time as watching it Source: Adapted from [170] In the mid-term, the system must also be creating temporary channels for RF and / or complete transmission of content, such as major sporting and music in order to take advantage of periods of heavy concentration of television audiences’ events, allowing choices of options by users regarding the program. The second screen can be a viable alternative to the concurrent transmission of schedules. In the long-term, the user experience must be enhanced with profile recognition, location and spending habits. This practice will enable the transmission and indication of advertisements, services, extra content and diverse programming, from the user demands or recognition of their preferences (recommendation systems). The sustainability of interactive television will depend on the exploration of new forms of advertising and monetization of content on demand, given consumer trends. Approximately 28% of consumers would like that television advertisements were more targeted to their interests [171]. The second screen is the environment of new possibilities for allocating announcements and charging for additional content. For this, the technology must contemplate a hybrid TV based in a peer-to -peer architecture, which allows devices currently used as a second screen to be able to boost applications for television. Hybrid TV system should ensure the efficiency of interoperability for the establishment of a ubiquitous operation in which all devices can remain in constant communication. However, this requirement, as well as trends and directions shown, are directly related to the development of infrastructure with 67 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape broadband connections, which involve content and services available on the hybrid model television platforms. In most countries that comprise the European Union, "speeds for fixed broadband and data services have been increasing by 20 to 40 per cent year-on-year, enabling a bigger quantity and better quality of audio visual entertainment to be delivered to the growing basis of connected screens" [172]. In Brazil, the infrastructure will represent a major bottle-neck to be overcome in the long-term. 68 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape 11 Final Remar ks This report seeks to present an overall framework on opportunities and challenges regarding an implementation of a Global ITV system. Starting from scenarios summarized and organized in few categories and observed in a short, mid and long-term perspective, the discussions in further sections went deeper. The overview of the economic, political and social indicators of regions of interest to the Global ITV was the following section of this report. Although data points to the prospect of economic growth in Brazil, there is still a gap in advancement of the educational system and improvement projects in the infrastructure of the Internet, putting Brazil in a different stage. The following sections deal with the indexes TV penetration in different regions of the world, the population's adherence to mobile devices, the structures of connecting networks, technologies and interactive television services, maps and positions of the segments involved in the chain production of interactive television and habits and trends of users. While the expansion of the adoption of a unified hybrid system of interactive television is the main challenge for the EU, in Brazil the difficulties are more related to different dimensions for its deployment. Among the major obstacles to be overcome, the deficient nfrastructure of the Internet and the high prices of television sets with digital technology as well as mobile devices like tablets and smartphones can be listed. Stakeholders such as the government and broadcasters are crucial to create the required conditions deployment of a hybrid television in Brazil and EU. Considering the importance of the growth of television combined to mobile devices, it is not unreasonable to assume favorable conditions for the formation of a certain range of the market for interactive television. The document presented here is the first effort on projecting scenarios for the deployment of a global hybrid TV system. The goal at this time is to support the subsequent actions relating to the work packages of the teams working on the project Global iTV. The indications in the scenarios exposed should help to guide the development of technological solutions that result in interoperability of hybrid television system to be deployed in the European Union and Brazil, integrating mobile devices that allow interactivity with the use of the second screen and social media. The next steps will be monitoring the evolution of social, political and economic conditions, the supply chain and consumption trends of viewers in the regions of interest. Moreover, the work of deepening the analysis of the data will be conducted to monitor subsidize the development of this technology platform. 69 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape List of Abbreviations and Acronyms 4K UHD Ultra High Definition Television 88-VSB Modulation method used for broadcast ABTA Brazilian Association of Pay-TV, Associação Brasileira de TV por Assinatura ADSL Asymmetric Digital Subscriber Line ANATEL National Agency of Telecommunications, Agência Nacional de Telecomunicações AS Application Server ASO Analogue Switch off ATSC Advanced Television Systems Committee AVC Advanced Video Coding BGCF Breakout Gateway Control Function BNDES Brazilian Development Bank, Banco Nacional do Desenvolvimento BRIC Brazil, Russia, India and China BYOD “Bring your own device” CAMEX Foreign Trade Chamber, Câmera de Comércio Exterior CEF Connecting Europe Facility CIOs Chief Information Officer CSCF Call Session Control Function DAE Digital Agenda for Europe DiBEG Japan's Digital Broadcasting Experts Group DMB Digital Multimedia Broadcasting DSL Digital Subscriber Line DTMB Digital Terrestrial Multimedia Broadcasting DTT Digital Terrestrial Television DTV Digital television, Televisão Digital DVB Digital Video Broadcasting DVB-T Digital Video Broadcasting Terrestrial EC European Commission EPG Electronic program guide EU European Union, União Europeia FIFA Fédération Internationalede Football Association FttH Fiber-to-the-Home - Fibra para o lar FTTx Fiber to the x GDP Gross Domestic Product GE06 Regional Agreement Ginga Middleware specification for the Brazilian-Japanese Digital TV System GUI Graphical User Interface GSM Groupe Special Mobile 70 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape H.264/MPEG-4 Video compression format HbbTV Hybrid Broadcast Broadband TV HD High Definition HDI Human Development Index HDTV High Definition Television HEVC High Efficiency Video Coding HSS Home Subscriber Service HTML HyperText Markup Language HTML5 Hypertext Markup Language, version 5 I-CSCF Interrogating CSCF ICT Information and Communications Technology IDC International Data Corporation IDH Human Development Index, Índice de Desenvolvimento Humano IMS Network IP Multimedia Core Network Subsystem IPR Intellectual Property Rights IPTV Internet Protocol television ISDB Integrated Services Digital Broadcasting ISDB-T Integrated Services Digital Broadcasting Terrestrial ISDB-Tb Integrated Services Digital Broadcasting Terrestrial – Brazilian version LDTV Low - Definition TV LTE Long Term Evolution MGCF Media Gateway Control Function MGW Media Gateway MRFC Media Resource Function Controller MRFP Multimedia Resource Function Processor MS Member States NDA Non-disclosure agreement NTSC National Television Standards Committee OAQM Offset Quadrature Amplitude Modulation OECD Organization for Economic Cooperation and Development OFDM Orthogonal Frequency Division Multiplexing OLED TV Organic Light-Emitting Diode - Diodo Emissor de Luz Orgânico OTT Over-the-top Content PAL Phase Alternating Line P-CSCF Proxy CSCF PNBL National Broadband Plan, Plano Nacional de Banda Larga PNE National Education Plan, Plano Nacional de Educação R&D Research and Development RD&I Research, Development and Innovation 71 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape RTP Real-time Transfer Protocol RRC-06 Regional Radiocommunication Conference SADC Southern African Development Community SBTVD Brazilian System of Digital Television, Sistema Brasileiro de Televisão Digital Terrestre SCM Single Carrier Mode S-CSCF Serving CSCF SDP Session Description Protocol SECAM Système Électronique pour Couleur avec Mèmoire SIP Session Initiation Protocol STN gateway Public Service Telephony Network TELEBRAS Brazilian Telecomunications Company, Telecomunicações Brasileiras S. A. TELESP Sao Paulo Telecomunications Company,Telecomunicações de São Paulo UE User Equipment UK United Kingdom UMTS Universal Mobile Telecommunication System URL Uniform Resource Locator US United States VAT Value Added Tax VoIP Voice over IP W3C World Wide Web Consortium Wi-Fi Wireless Fidelity WiMAX Worldwide Interoperability for Microwave Access WP Work Package 72 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape Partner Acronyms IRT Institut für Rundfunktechnik GmbH, DE A-CING Aqua-Consult Ingenieros, S.L., SP FHG Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e.V., DE TDF TéléDiffusion de France, FR RETEVISION Retevisión – AbertisTelecom, SP SYMELAR Symelar Innovación SLU, SP EBU European Broadcasting Union, CH BAND TV Rede Bandeirantes de Televisão, BR HXD HXD Interactive Television, BR LSI-TEC Associação do Laboratório de Sistemas Integráveis Tecnológico, BR UCB Universidade Católica de Brasília, BR UFABC Universidade Federal do ABC, BR UFPA Universidade Federal do Pará, BR UNESP Universidade Estadual Paulista “Júlio de Mesquita Filho”, BR UNICAMP Universidade Estadual de Campinas, BR USP Universidade de São Paulo, BR W3C World Wide Web Consortium at GEIE ERCIM, FR 73 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape References [1] Ministério do Planejamento, "PPA - Plano Plurianual," Brasília, 2011. 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[Accessed 4 March 2014]. 88 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape List of Figures Figure 1 – “High-level description of GLOBAL ITV landscape” development task ………………………………. 2 Figure 2 – “High-level description of GLOBAL ITV landscape” levels of content analysis ……………………… 3 Figure 3 – Brazil and European Union general aspects ……………………………….……………………………. 7 Figure 4 – Six areas of expenditure in the EU budget ……………………………….……………………………… 13 Figure 5 – Case for the EU investment ……………………………….……………………………….……………… 16 Figure 6 – Correlation Fixed Broadband Penetration and Competitiveness ……………………………………… 17 Figure 7 – Applications like e-health and technologies that use cloud computing in Europe ………………….. 17 Figure 8 – Top countries by percentage of households with television sets, 2012 ………………………………. 24 Figure 9 – Evolution of households with television sets, by type of technology, 2008-2012 …………….……… 26 Figure 10 – Claimed purchase intent of smartphones, tablets and computers over the next 12 months ……… 30 Figure 11 – Household take-up of digital communications/AV devices, 2003-2013 ……………………………... 32 Figure 12 – Broadband penetration – EU 2013 ……………………………….……………………………………... 33 Figure 13 – HHI Broadband in Brazil ……………………………….……………………………….………………… 36 Figure 14 – Broadband market share in Brazil ……………………………….……………………………………… 37 Figure 15 – Hours worked to pay 1Mbps Internet ……………………………….…………………………………... 38 Figure 16 – Common Connections in Brazil ……………………………….…………………………………………. 38 Figure 17 – Digital Television Standards ……………………………….……………………………….……………. 43 Figure 18 – HbbTV across European Union and beyond ………………………………………………….… 49 Figure 19 – Leading TV-apps categories (%) ………………………………………………………………….. 51 Figure 20 - Forescat of Installed Base of Set-Top Boxes and Active Multiscreen Devices Acessessing PayTV Services for 43 the Largest Operators (Thousands of Units) ……………………………………………… 53 Figure 21 – Annual Revenue of selected cable, telecommunications, consumer electronics and social media firms………………………………………………………………………………………………………………………. 55 Figure 22 – IP Streaming Devices Segment ………………………………………………………………………... 55 Figure 23 – Digital broadcasting value chain ……………………………….………………………………………... 58 Figure 24 – Consumer profile of the medium/TV Viewer Profile by Economy class (%)………………………… 61 Figure 25 – Consumer profile of the medium/TV Viewer Profile by age group (%)………………………………. 62 Figure 26 – Combined use of mobile devices with TV trends …………………………………………………….. 64 Figure 27 – Percentage of TV audience interacting with Facebook …………………………….…………….… 66 Figure 28 – Number of interactions with Facebook ………………………………………………….…………….… 66 Figure 29 – Activities on second screen by popularity ……………………………….………………………….…. 67 89 Version of 2014-04-30 D2.1 High-level description of the GLOBAL ITV landscape List of Tables Table 1: Projections for the implementation of a global ITV system ………………………………..…………… 4 Table 2: Distribution of the European population (by country) ………………………………...…………….…… 14 Table 3: Scenarios and characteristics of use cases …………..……………………………….………………… 19 Table 4: HbbTV-Next – List of Definitions …………………………………..…………………….………………… 20 Table 5: TV penetration in Europe: number of households with TV, digitization level and type of technology used ……………………………….……………………………….……………………………….…………………… 25 Table 6: TV penetration in Brazil in absolute value (AV) and relative value (RV) ……………………………… 26 Table 7: Possession or Access to devices by country ……………………………….……………………….…… 29 Table 8: Penetration of mobile by country and type of technology (%) ………..…………………….……….…. 31 Table 9: Relation between the internet speed and HDI …........................………….....…………………..……. 34 Table 10: Characteristics of the ATSC standard …………………………….…………………………….………. 44 Table 11: Characteristics of the DVB-T standard ……………………………….…………………………………. 44 Table 12: Characteristics of the ISDB-T standard ……………………………….………………………………… 44 Table 13: Characteristics of the SBTVD-T standard ……………………………….……………………………… 45 Table 14: Digital Terrestrial Television Systems – global deployment – Part A ………………………………... 46 Table 15: Digital Terrestrial Television Systems – global deployment – Part B ………………………………... 47 Table 16: Sample of TV Plataforms & Web Standard Compatibility ….…………………………………………. 52 Table 17: Streaming Video Media Devices ……………………………………………………………………….. 53 Table 18: Watch television from a TV set ……………………………….……………………………….…………. 63 Table 19: Integration with social media: television content commented in Twitter ……………………..……… 66 90