On November 14–15, the 2017 Global Home Internet Conference (GFIC) took place in Shanghai, drawing over 500 companies and more than 3,000 professionals. During the conference, Patterson Reuben, TWC & Charter’s chief engineer, delivered a compelling keynote address titled “The Potential Challenges and Opportunities of MSO in IP Video Distribution.†His speech highlighted key trends and future directions in the rapidly evolving IP video landscape.
Over the past two years, the growth of IP video has been exponential, with two-thirds of all video content now consumed via Wi-Fi. By 2019, it would take an average person about five million years to watch all the IP video content available in a single month. Such staggering numbers indicate that no single provider can manage this volume alone. Reuben predicted that global IP traffic will reach 100 trillion bytes within the next two years. Moreover, OTT video advertising revenue surpassed traditional TV ad revenue last year, signaling a major shift in the media industry.
Today, IP video is being commercialized across a wide range of platforms. Ninety-three percent of marketers incorporate video into their strategies, and 85% of businesses have internal teams or partnerships for video production. Shorter videos, especially those under 90 seconds, see higher retention rates—up to 53%—while longer videos tend to lose viewers quickly. This trend suggests that shorter, more engaging content will dominate the internet in the coming years.
Despite its potential, IP video faces several significant challenges. These include diversity in formats, customer preferences, standards, and content types, making it hard to meet varied demands. Quality remains a concern, as resolution improvements and consistent user experience are difficult to maintain. Scalability is another hurdle, particularly when expanding infrastructure and ensuring smooth deployment. Lastly, monetization poses a challenge, as free content continues to dominate, and traditional advertising models are becoming less effective.
Patterson Reuben also explained the underlying reasons for these challenges. For instance, TWC & Charter uses an AP protocol that must adapt to changing customer needs. The company packages and encrypts content before delivering it through its network, aiming to provide a seamless experience. However, encryption and resource management remain complex, especially with emerging technologies like VR.
Quality challenges stem from the lack of standardized metrics for measuring user experience. While TWC & Charter evaluates video quality using multiple factors, the process becomes complicated when dealing with encrypted or high-resolution content like VR. Similarly, profitability is tricky in a market where free content is prevalent, and subscription models are struggling to gain traction.
To overcome these issues, the focus should be on addressing diversity, scalability, quality, and profit models. TWC is exploring innovations such as on-demand encryption, multi-screen delivery systems, and machine learning to enhance video quality. Additionally, they are looking at new business models, such as SaaS-based video services, which allow users to interact, upload, and engage with content beyond passive viewing.
Reuben also mentioned the growing potential of gaming apps, predicting $37 billion in revenue by the future. Free games and ad-supported services may decline, but a balance between free and premium content could offer unique value to consumers. Companies like TWC are exploring various commercial strategies to generate revenue while maintaining a positive user experience.
In addition to entertainment, TWC is investing in educational resources, offering users valuable content without intrusive ads. This approach enhances user satisfaction and builds long-term engagement. As the IP video era continues to evolve, TWC and other industry leaders are committed to developing innovative solutions that turn challenges into opportunities, ultimately shaping the future of the digital media landscape.
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