On November 14–15, the 2017 Global Home Internet Conference (GFIC) took place in Shanghai, drawing over 500 companies and 3,000 professionals. During the event, Patterson Reuben, Chief Engineer at TWC & Charter, delivered a compelling keynote speech titled “The Potential Challenges and Opportunities of MSO in IP Video Distribution.†The session highlighted the evolving landscape of IP video and the key issues facing the industry.
Over the past two years, the growth of IP video has been explosive, with more than two-thirds of content now being consumed via Wi-Fi. By 2019, it would take an individual approximately five million years to watch all the monthly IP video content available. This staggering volume of data makes it clear that no single provider can handle such demand alone. Reuben predicted that global IP traffic will reach 100 trillion bytes within the next two years, underscoring the scale of the challenge.
In terms of revenue, OTT video advertising surpassed traditional TV advertising last year in digital terms, signaling a major shift in how content is monetized. Marketers are increasingly relying on video as a core part of their strategies, with 93% using it in their campaigns. Meanwhile, 85% of businesses have internal teams or partnerships for video production. Shorter videos, particularly those under 90 seconds, show higher engagement, with a 53% retention rate. However, longer videos beyond 95 seconds tend to lose viewers, suggesting a growing trend toward concise, impactful content.
The current state of IP video is marked by several challenges. From protocol diversity—such as AP, TS, and HEVC—to encryption complexities, the industry faces a range of technical hurdles. Reuben outlined four main categories of challenges: diversity, quality, scalability, and profitability.
Diversity remains a key issue, as customers, standards, and content formats continue to evolve. Meeting these varied needs requires constant adaptation. Quality improvements, especially in resolution and metrics, also pose significant challenges. Scalability concerns the infrastructure needed to support expanding networks, while profitability struggles with the dominance of free content and the limitations of ad-driven models.
Reuben explained that TWC & Charter has developed systems to manage these challenges, including multi-channel live video conversion and encrypted packaging. They also use machine learning to enhance video quality, achieving 82% accuracy in initial tests. While progress is being made, further work is still needed.
To turn challenges into opportunities, TWC focuses on innovation, from on-demand services to interactive platforms that allow users to upload and engage with content. Additionally, the company sees potential in gaming, where app-based revenue could reach $37 billion in the future.
Beyond entertainment, TWC aims to improve user experience by offering educational content without intrusive ads. This approach not only enhances satisfaction but also builds long-term loyalty.
In conclusion, the IP video era presents both obstacles and opportunities. Through continuous research, new ideas, and innovative solutions, TWC and other industry leaders are working to overcome challenges and drive forward the evolution of home internet and video distribution.
Cixi Xinke Electronic Technology Co., Ltd. , https://www.cxxinke.com