A look back at the biggest stories this week

Whether it’s important, depressing or just entertaining, the telecoms industry is always one which attracts attention.

Here are the stories we think are worth a second look at this week:


Facebook reignites the fires of its Workplace unit

Facebook has announced its challenge to the video-conferencing segment and a reignition of its venture into the world of collaboration and productivity.

Full story here


Trump needs fodder for the campaign trail, maybe Huawei fits the bill

A thriving economy and low levels of unemployment might have been the focal point of President Donald Trump’s re-election campaign, pre-pandemic, but fighting the ‘red under the bed’ might have to do now.

Full story here


Will remote working trends endure beyond lockdown?

It is most likely anyone reading this article is doing so from the comfort of their own home, but the question is whether this has become the new norm is a digitally defined economy?

Full story here


ZTE and China Unicom get started on 6G

Chinese kit vendor ZTE has decided now is a good time to announce it has signed a strategic cooperation agreement on 6G with operator China Unicom.

Full story here


ITU says lower prices don’t lead to higher internet penetration

The UN telecoms agency observes that, while global connectivity prices are going down, the relationship with penetration is not as inversely proportion as you might think.

Full story here


Jio carves out space for yet another US investor

It seems the US moneymen have a taste for Indian connectivity as General Atlantic becomes the fourth third-party firm to invest in the money-making machine which is Jio Platforms.

Full story here


Telecoms.com Daily Poll:

Can the sharing economy (ride-sharing, short-stay accommodation etc.) survive COVID-19?

Loading ... Loading ...

Maybe we should stop talking Millennials and start chirping Generation Z

With 5G becoming a reality, it won’t be too long before new services are launched, which is perhaps why we should stop talking about Millennials and start focusing on Generation Z.

It might seem absurd to ditch the millennials demographic, especially considering they have been referenced so frequently in recent years, but if we are looking to the future, we aren’t designing products and services for the current generation.

If 4G was a technology designed for Millennials, then 5G might possibly have to be designed for Generation Z. In five years’ time, when 5G is likely to be largely ubiquitous in the developed market, this is a digital-native demographic which will come of age with wild ambitions, big plans and credit cards.

Although the definitions of the different generations does vary, below seems to be a widely accepted definition.

Category Born Age range today
Generation X 1965 to 1980 40 to 55
Millennials 1981 to 1996 39 to 24
Generation Z 1997 to 2012 8 to 23
Generation Alpha 2013 onwards 0 to 7

Of course we are being very flippant when we suggest forgetting about the Millennials. This is and will continue to be a generation of individuals who have money and will want to spend it, but for those who are attempting to create a service to take the world by storm, an innovative eye will have to be cast beyond the horizon.

As an example of creating future-proofed services for the generation which is likely to be the most attractive, lets have a look at Rich Communication Services. It is an evolution for the telcos and SMS, but the Millennials are all using WhatsApp. RCS is redesigning a service created for a previous generation and competing against one which has been designed with today in mind. This is an attempt to savage old revenues, as opposed to thinking ahead and attempting to create new streams.

With every new generation of mobile technology, a change in societal behaviour is enforced. 4G democratised mobile internet and was embraced by the Millennials much more aggressively than Generation X. Arguably, older demographics have become accustomed to a way of life, therefore are not as welcoming of change, which will perhaps explain why so many services are seemingly designed for Millennials. But could the same not be said about 5G?

In five years’ time, Millennials will be in the same position as Generation X when 4G started gathering momentum. Your correspondent is a Millennial, so is writing from an informed (somewhat) position and is perhaps exasperated by the idea of something completely new. Today, your correspondent becomes frustrated attempting to learn all the different nuances and features of smartphones, applications, platforms or services, something which would not have been a problem in the first post-Uni years of the early 2010s.

But perhaps there is evidence of services being designed for Generation Z, even if the buzzword is yet to catch on completely.

Twitch is video live streaming service, designed for online gamers, which was acquired in 2014 by Amazon for $970 million. This is effectively an aggregator platform for commentary on gaming videos, tips and tricks, highlights or live streaming of organised competition and all other forms of user-generated content.

This might sound like a ridiculous idea to many reading this article, but Twitch has four million content creators who contribute every month, 15 million daily active users on average and more than 600 billion minutes of content were streamed through the platform over the course of 2019.

Members of Generation X or Millennials might find themselves asking a question now:

Why would anyone want to watch a video of someone else watching a video game and commentating on what is going on?

The users are of course gamers themselves (or very likely to be) but this does seem like a service which is beyond logic. Older demographics might struggle to understand why this is appealing, but then again it is not designed for us. Different types of content are emerging for a different generation, and there is plenty of money to made of the back of it should products be designed with the right nuances in place.

Another example of this evolving landscape is the work-from-home mentality which is being forced on us all due to the COVID-19 outbreak. This is perhaps a glimpse into the future, where offices have become obsolete (perhaps not…) and the digital economy is running rampant. This would have been unforeseeable a few years ago, but a new era of connectivity could bring about an evolution in working practices.

Remote working is definitely not new, but it hasn’t really been embraced by the working world until it was forced to. Older generations might not be the most comfortable with the new status quo, but digitally native Generation Z may well be.

Of course, what is worth noting is this is simply history repeating itself. In the mid-00s, some older individuals might have wondered why anyone would want to display personal details on their lives for everyone to see (Facebook), how people could trust taxi drivers when you haven’t rung the depot (Uber) or why on earth you would want to stay in the spare room of someone else’s home (AirBnB).

These are all products which were designed for the next generation and enabled by the emergence of a new mobile technology. The Millennials are far from an obsolete generation for the ambitious innovators, but to fully embrace the 5G era, perhaps the baton will soon have to be passed to Generation Z.

But what could these services look like? Virtual reality might be one, having been written off numerous times by today’s demographics. Virtual meetings and video conferencing will certainly be a trend is staying for the long-term. The voice interface might well overtake touch at some point in the future, and there does seem to be incredible potential for gesture control. And who knows what else connectivity could be embedded into in the future…

And what is important to Generation Z? This is a generation which tends to travel more, is more socially and environmentally conscious, are super-swipers with relatively short-attention spans, they demand connectivity and access to services constantly, are OK with the cloud but take digital privacy and security more seriously and as they have been born into the social media revolution, are more welcoming of user-generated content, as well as creating it themselves.

If you’re wondering what might be big in the future, ask some of the kids in the office and just remember all the things which don’t make sense to you. It takes a special type of person to design products for the next era, but it will become a necessity as 5G stumbles towards us, albeit at a slower pace while we are in the grips of the coronavirus pandemic.

Millennials, we had a good run, but maybe we are just getting a bit old.

What a Wonderful World of 5G Devices

Many brands have already brought to market large numbers of 5G devices, such as smartphones and hotspots. According to the latest tracking done by the GSA (Global mobile Suppliers Association), an industry organisation, over 250 devices had been announced by mid-March 2020, with 67 of them commercially available, including 40 smartphones. Half a year previously, the same tracking recorded only 100 public device announcements, with only nine 5G smartphones commercially available. The pace of new 5G device launches has clearly been accelerating.

(Here we are sharing the opening section of this Telecoms.com Intelligence special briefing to look into how 5G operators and device makers can work together to deliver a win-win solution to grow the 5G ecosystem.

The full version of the report is available for free to download here.)

Consumers Love 5G Smartphones, or Do They?

Even in the midst of the ongoing uncertainty of COVID-19, the smartphone marketplace has been busy. A number of flagship 5G smartphones have been launched by companies like Samsung and Huawei as well as their challengers, most of which had been meant to be unveiled at this year’s Mobile World Congress that did not happen. Many companies have moved their launch events online.

Consumers have signed up to 5G services faster than they did 4G. South Korea clocked up 5 million 5G subscribers by the end of 2019, eight months after the three operators switched on their 5G networks. China’s total number of 5G subscribers topped 10 million by the end of 2019, only two months after the three operators launched 5G in the world’s biggest smartphone market. China Mobile, the world’s largest mobile operator by subscriber number, reported that it had attracted 15.4 million 5G customers by the end of February, four months after launch. Despite that few if any other operators have published their 5G subscriber numbers, the momentum is there.

So far, 5G device shipment numbers have been strong. The research firm Strategy Analytics estimated that 19 million 5G smartphones were shipped in 2019. This was higher than most analysts had expected. So, at the first sight at least, consumers have shown strong enthusiasm in embracing 5G smartphones. Meanwhile, some evidence is showing that consumers have bought 5G smartphones not necessarily for 5G, or at least not the 5G the industry professionals would define it.

A research recently published by the software company Amdocs found that over a third of British consumers are interested in upgrading to 5G devices this year, but most of them are not sure what 5G is all about. The minority of consumers that claimed to know 5G would primarily cite faster internet. However, if the consumers take operators’ “gigabit speed” promise literally, they will be disappointed.

The network benchmarking and testing firm Global Wireless Solutions conducted a field test of the 5G networks in the centre of London towards the end of last year. The highest download speed of 470 Mbps was recorded on EE network, while the lower speeds of 330 Mbps and 320 Mbps were recorded on O2 and Vodafone networks respectively. These numbers, in addition to falling far short of “gigabit”, could only be achieved if the customer stood next to the base stations. Even those consumers well versed enough to quote buzz words like “low latency” would also be disappointed. The Global Wireless Solutions tests have found no meaningful improvement in latency from 4G connectivity.

This is an indication that the success to expand 5G adoption from early adopters to early majority is far from certain. While operators are honing their skills to convince consumers of 5G benefits, device makers, in particular smartphone brands, would also have much to lose if consumer enthusiasm should dampen by the underwhelming experience and patchy coverage.

To explore the topic further, the rest of this report first discusses what operators are looking for in 5G devices. We then analyse the key drivers for higher consumer adoption of 5G devices, including the underlying technologies. The report concludes by looking at the leading trends in the 5G device market in the next two to three years.

The rest of the report include these sections:

  • Do Not Ask What Operators Can Do For You, Ask What You Can Do For the Operators
  • What Is Happening Under the Hood?
  • Plenty To Look Forward To
  • Q&A with Daniel Gleeson, Principal Analyst, Omdia
  • Additional Resources

The full version of the report is available for free to download here.

AR/VR investments declined during 2019

Each year seems to be the year for virtual and augmented reality, but analyst firm Digi-Capital is now reporting investments have declined below the levels reported in 2017 and 2018.

Although it is still too early for the VR and AR neigh sayers to strut around too pompously, it is not the most encouraging of signs. The issue seems to be investments made in the continuously embryonic segment made in the final three months of the year.

The levels of investment in 2019 were still the third largest annual sum to date, though it was 35% lower compared to 2018, down to $4.1 billion. Digi-Capital has been measuring the success of the segment in terms of deal volume (number of deals) and deal value (dollars invested).

“While there could be an uptick in AR/VR M&A activity if a market inflection point happens in coming years, there isn’t an obvious catalyst for large-scale M&A in the short term,” the firm said in a blog post.

The prospects of virtual and augmented reality are worth keeping an eye on, as there is always a chance of a revolutionary impact on areas such as gaming, entertainment, training or video conferencing, but once again the segment is failing to live up to the promise. Q4 was the problem period for the segment, a single quarter, which does offer a glimmer of hope.

The biggest deal attributed to this sector over the course of 2019 was attributed to Snap, with the firm aiming to raise $1 billion in convertible senior notes. The funds were lined up to be used for working capital, operating expenses and capital expenditures, as well as potentially repurchasing common stock and for acquisitions.

Interestingly enough, a slow-down in the investment category of this segment could see a dramatic shift in the way it functions. Should investments continue to drop, start-ups might need to focus on revenue generation and managing burn rates. Without seed money and continued investments, the quality of products might suffer as firms are forced into go-to market strategies sooner than anticipated.

However, you have to remember this is only a short period of time and not necessarily a death sentence to the segment. Perhaps this is a bit of credibility for those who have been less than enthused by VR and AR for some time, you correspondent being one of them.

China Telecom celebrates the state surveillance potential of 5G

A new ad campaign by Chinese operator China Telecom promotes the enhanced spying and informing capabilities that 5G will bring.

The ad was spotted by Abacus, which notes the ad circulating on WeChat makes a virtue of how much easier it will be to spy and inform on people with 5G. Abacus asked China Telecom about the spying app featured in the ad, but was told it isn’t real and that there are no plans to develop such an app. The sole purpose of the ad was to illustrate a novel 5G use-case, they were told.

At the core of the ad are three elderly people sitting around having a chat when they spot a couple of shifty looking young men. They view them through some kind of augmented reality app on their phones, which instantly identifies them as criminals. It’s then just a matter of one click on their phone screens to report said baddies to the police.

Our Beijing correspondent reports that the final screen on the ad reads as follows: “5G, connecting all things, beating the Chaoyang Masses hands down. One-click reporting to the police.” The Chaoyang Masses are a well-known community security volunteer group based in the upmarket Chaoyang district of Beijing. They have apparently been instrumental in some fairly high-profile arrests.

Facial recognition is a big deal in China, with Beijing being at the forefront of a social credit system that promises 1984-style constant surveillance coupled with a system of incentives and punishments apparently designed to control almost every aspect of a person’s life. While there are presumably millions of CCTV cameras around the country to support this initiatives, there are many more smartphone cameras.

It’s perfectly conceivable that the social credit system will reward smartphone owners who inform on their fellow citizens, which in turn would massively increase the reach and efficiency of the surveillance state. No doubt the speed and low latency of 5G will augment this whole process, but it seems unwise for any individual telecoms company to align itself so closely to such a dystopian scheme.

Wifi-6 goes toe-to-toe with 5G claims

The Wireless Broadband Alliance (WBA) is championing the results of a wifi-6 trial with Mettis Aerospace as proof the technology can be a viable alternative to 5G.

Wifi has largely been ignored in recent months as the 5G euphoria hits deafening levels, though the WBA is keen to ensure this technology can grab a slice of the Industry 4.0 pie with this trial.

Taking place in the 27-acre Mettis Aerospace facility in the West Midlands, the WBA has touted several use cases, including 4K streaming from a webcam mounted on machinery within the factory and augmented reality testing of machinery, suggesting speeds of 700 Mbps as well as latency below 6 ms.

“The completion of this initial phase marks a significant milestone for the adoption of wifi-6,” said WBA CEO, Tiago Rodrigues. “The Mettis facility is an especially challenging environment for wireless communications with furnaces, presses and heat, a lot of moving heavy machinery and the presence of dust and in-air particulates.

“Nevertheless, the field tests in this highly charged atmosphere have proven that wifi-6 technology works well and can play a vital role within the industrial enterprise and IoT ecosystem. If wifi-6 can deliver highly reliable, high quality and high bandwidth communications in this type of factory environment, then it can deliver it almost anywhere.”

With mobile communications stealing much of the thunder in recent years, wifi has become an increasing unpopular technology during conference presentations. During a London event in recent weeks, Shell IT CTO & VP TaCIT Architecture Johan Krebbers suggested the team would not consider wifi as an option during Industry 4.0 trials due to the time and cost implications. According to Krebbers, it simply isn’t worth it.

That said, this trial might give decision-makers something new to think about.

“The wifi-6 infrastructure installed as part of the trials has exceeded our expectations in terms of performance, reliable connectivity and consistent coverage across the target area,” said Dave Green, Head of IT at Mettis Aerospace.

“We are seeing immediate benefits in terms of the data we’re now able to collect and use. Moving forward, we will be able to vastly increase the data we collect from devices across our business, enhancing our manufacturing processes, reducing variability and increasing productivity.”

The WBA claims the trial proves wifi-6 is able to provide total connectivity across the factory floor and enable improved synchronization of factory floor machinery and equipment with centralized monitoring and control systems. As part of the trial Cisco provided 11 Catalyst 9100 access points, iBwave undertook a site survey of the manufacturing floor, while Broadcom and Intel provided the chipsets.

While 5G is dominating all the headlines for the moment, wifi might still have a place in the industry for those companies who are more risk-adverse. Trials such as this might well provide confidence to those who avoid the unknown perils of 5G technologies.

France pushes forward with trials of much-hyped mmWave airwaves

Much has been spoken about the promise of mmWave spectrum bands, and France has announced 11 trials to separate the wheat from the chaff in 26 GHz.

Launched by Agnès Pannier-Runacher, France’s Secretary of State to the Minister for the Economy and Finance, and Sébastien Soriano, Chair of the Electronic Communications and Postal Regulatory Authority (Arcep), the trials will sweep the country, covering a handy number of different usecases, while also bringing in an attractive number of different technology companies.

It’s a comprehensive approach few other countries could match-up to. Interestingly enough, several of the projects are being led by enterprise companies, or organizations that do not specialise in telecommunications. To some, it might not sound like the most sensible approach, though it will ensure business demands are priority number one; the problem with telcos is that they specialise in telecommunications and very little else.

The first project will be led by Universcience, at the Cité des Sciences et de l’Industrie, and will focus on public engagement. The La Cité des sciences et de l’industrie 5G trial platform will showcase use cases to the public, through open events, as well as temporary and permanent exhibitions.

Although many in the general public would claim to have heard of 5G, few will actually understand what it is. Education programmes are critical not only to ensure the public is made aware of progress, but also to encourage the next generation into the STEM subjects. For any nation to capitalise on the opportunities presented by the 5G era, the skills gaps will have to be closed.

The second, at the Vélodrome National, will bring together Nokia, Qualcomm, Airbus and France Television to understand how 5G can aid sports media. Low latency and increased bandwidth will be key topics here, as will the integration of artificial intelligence for operational efficiency and augmented reality to improve consumer experience.

The third trial will pair Bordeaux Métropole, the local authority, with Bouygues Telecom and will aim to capitalise on public lighting networks to deploy new infrastructures.

The Port of Le Havre will lead the fourth trial alongside the Le Havre Seine Métropole urban community, Siemens, EDF and Nokia. This initiative will explore 5G applications in a port and industry-related environments, with use-cases such as operating smart grids and recharging electric vehicles.

At the Nokia Paris-Saclay campus, trials will be conducted in a real-world environment, both indoors and outdoors, thanks to Nokia 5G antennae installed at different heights on the rooftops, and in work areas. This project also includes a start-up incubator programme.

The Paris La Défense planning development agency and its partners have submitted another interesting usecase. With 5G CAPEX budget strained already, the Government department will test the feasibility and viability of owning infrastructure and selling turnkey access to operators. This might erode coverage advantages which some telcos might seek, though in assuming ownership (and the cost) of network deployment, the 5G journey might well be a bit smoother in France.

The seventh trial will pair Bouygues Telecom with France’s national rail company, SNCF, at the Lyon Part-Dieu train station. Tests will focus on consumer applications, such as VR and AR, as well as how transportation companies can make best use of data and connectivity to enhance operations. The eighth trial will also be led by Bouygues Telecom, focusing on industrial IOT in the city of Saint-Priest.

Orange will oversee two trials at part of the wider scheme, with the first taking place in Rennes railway station with SNCF and Nokia. Once again, part of this trial will focus on consumer applications, making waiting a ‘more pleasant experience’, with the rest focusing on industrial applications such as remote maintenance using augmented reality.

The second Orange trial will focus on various 5G use cases in heavily trafficked areas, such as enhanced multimedia experiences for people on the move and cloud gaming. This trial is supposed to be generic, and another opportunity for start-ups to pitch and validate their ideas in a live lab.

“The 26GHz spectrum band will allow us to explore new services based on 5G,” said Mari-Noëlle Jégo-Laveissière, Chief Technology and Innovation Officer of Orange. “We are aiming to set-up experimental platforms that will stimulate collaboration on these new use-cases across all economic sectors.”

With the spectrum licenses live from October 7, the trials are now officially up-and-running. Each of the projects must have a live network operational by January 2021 at the latest and have to make it available to third parties to perform their own 5G trials.

This is perhaps one of the most interesting schemes worldwide not only because of the breadth and depth of the usecases being discussed, but the variety of companies which are being brought into the fray. Although the telco industry does constantly discuss the broadening of the ecosystem, realistically the power resides with a small number of very influential vendors.

This is a complaint which does seem to be attracting more headlines at the moment. If you look at the Telecom Infra Project (TIP) being championed by Facebook, the aim is to commoditise the hardware components in the network, while decoupling them from software. Ultimately, the project is driving towards a more open and accessible ecosystem.

France’s initiative here could have the same impact. By designating enterprise companies and local municipalities as leaders in the projects, instead of the same old telcos and vendors, new ideas and new models have the potential to flourish. This looks like a very positive step forward for the French digital economy.

Telefónica demos surgery with a bit of help from 5G

Some surgeries were performed in Spain with real-time assistance from Japan thanks to the low latency of 5G.

This is still far from the remote surgery that has for so long been used as an illustration of the utopian potential of 5G, but is nonetheless a dramatic illustration of the kind of things it could unlock. A surgeon performed some operations in Malaga and had real-time assistance from another doctor who was dialling in from Tokyo. That assistance would have been far less useful if there had been a lag on the line.

The demo was part of the Advanced Digestive Endoscopy Conference and featured some degree of augmented reality. It claims also to be the first in medical congress in which the training sessions have been broadcast live with almost no latency, thus enabling attendees to interact thanks to 5G and AR.

“The operations organised at this conference are just an example of the numerous practical applications that 5G can have in healthcare,” said Mercedes Fernández, Innovation Manager at Telefónica. “Thanks to two key features of this technology – the low latency that allows transmission without delays and the ability to handle large video streams at high speed – it was possible to perform this intervention with the added value of doing so live and in real time with the interaction of doctors and attendees to provide solutions and ask questions about the clinical case that was undertaken.”

“The experience of previous years in organising innovative training courses in digestive endoscopy allows us this year to provide a global training course thanks to 5G technology, something that might seem science fiction but that we are making reality today” said Dr Pedro Rosón the surgeon who performed the operations.

“The use of 5G and augmented reality is, without doubt, what stands out in comparison with our previous editions and with any other standard medical workshops. We are therefore proud to keep and to continue offering an innovative training space with the live conducting of cases by specialists from Spain and abroad, with an emphasis on theory and reviewing the latest advances in interventional endoscopy.”

Remote assistance via 5G that makes use of AR may well be one of the primary use-cases used to sell 5G to industry. The potential it offers for providing training in the field is clear and it could transform the way training and mentoring is conducted. These are still early days, but each demo such as this one likely makes mainstream acceptance of this kind of technology more likely.

Verizon buys into alternative realities

Verizon has announced the acquisition of Jaunt XR, adding augmented and virtual reality smarts to its media division.

While few details about the deal have been unveiled, the deal will add an extra element to a division which has been under considerable pressure in recent months. The Verizon diversification efforts have proven to be less than fruitful to date, though this appears to be another example of throwing money at a disastrous situation.

“We are thrilled with Verizon’s acquisition of Jaunt’s technology,” said Mitzi Reaugh, CEO of Jaunt XR. “The Jaunt team has built leading-edge software and we are excited for its next chapter with Verizon.”

Jaunt XR will join the troubled media division of Verizon which has been under strain in recent months. The ambition was to create a competitor to Google and Facebook to secure a slice of the billions of dollars spent on digital advertising. On the surface it is a reasonable strategy, but like so many good ideas, the execution was somewhat wanting.

Since the acquisition of Yahoo, Verizon has had to deal with the after-effects of a monumental data breach, write off $4.6 billion of the money it spent on the transaction, spend big to secure a distribution deal with the NFL and cut 7% of its staff. The first few years of living the digital advertising dream has been nothing short of a nightmare.

Looking at the financials, during the last quarter the media division reported $1.8 billion in revenues. This was down 2.9% from the previous year and accounted for only 2% of the total revenues brought in across the group.

With Jaunt XR brought into the media family, new elements could be introduced to the portfolio. Details have not been offered just yet, though with VR, and more recently, AR expertise, there is an opportunity to create immersive, engaging content for the mobile-orientated aspects of the business.

This transaction will certainly add variety and depth to the services and products in the media portfolio, but soon enough you have to question whether Verizon is throwing good money after bad. This has not been a fruitful venture for the team thus far.

NBC’s opportunity to cut through the streaming noise with Olympics

With NBCUniversal set to launch its own streaming service in 2020 the risk of content fragmentation is becoming more apparent, but this only underlines the importance of a niche.

Although many of these streaming services might think they are doing something innovative or novel, in reality they are copycatting Netflix. The big issue is that Netflix is already moving onto the bigger and better. Original content is the new frontier, though NBCUniversal might have stumbled across another unique selling point.

“Peacock will be the go-to place for both the timely and timeless – from can’t-miss Olympic moments and the 2020 election, to classic fan favourites like The Office,” said Bonnie Hammer, Chairman of Direct-to-Consumer and Digital Enterprises business unit.

The Olympics, and live streaming sport on the whole, is an area which the streaming giants have largely ignored to date. Amazon has dabbled with tennis, NFL and has a few English Premier League games for the 2019/20 season, while Twitter (admittedly not a streaming service) has got a partnership in place with the PGA Tour. YouTube has toyed with some live events, but never nailed it. It’s a bit sporadic, rather than a coherent assault.

With the Tokyo 2020 Olympics, NBCUniversal has a great opportunity to carve a niche and create a unique position in streaming ecosystem.

Through the NBC Olympic channel, the company has produced every Summer Olympics since Seoul in 1988 and every Winter Olympics since Salt Lake City in 2002. It has all media rights on all platforms to all Olympic Games through to 2032, paying $7.75 billion (US rights) in 2014.

This is a major attraction for consumers around the world and could form the central cog of a new type of streaming service if the team plays its cards right. Olympics coverage averaged 27.5 million viewers across all platforms, with streaming growing particularly. Nearly more than 2.71 billion minutes of coverage was streaming from the Rio Olympics, more than double the previous two events combined.

This is what the new streaming challengers need to understand; they cannot replicate the success of Netflix.

Disruptors to a fast-evolving ecosystem often try to do this and it fails due to the rapidly changing landscape. Netflix found success in being a content aggregator, bringing together titles from a variety of different sources. This model is dead. It cannot be replicated.

The creation of Peacock is another sign of content fragmentation. From next year onwards, Netflix viewers will no-longer be able to view titles such as ‘The Office’, ‘Parks and Recreation’, ‘Brooklyn Nine-nine’ and ‘30 Rock’. This is a consequence of each of the newly emerging platforms. When HBO Max emerged, Netflix lost ‘Friends’, ‘The Fresh Prince of Bel-Air’ and ‘Pretty Little Liars’. With Disney+, all Marvel content will be removed from the Netflix library.

This is a dangerous position for any challengers. The Netflix model is dead because everyone wants to home their content exclusively. The value to the consumer of the aggregator model which drove Netflix in the early years is dwindling away as the content landscape becomes increasingly fragmented.

This is the importance of original content for the streaming services; it allows the creation of a selling-point beyond price. Admittedly, the Netflix original content will not appeal to everyone, but it has big enough budgets to create the breadth and depth, so each show does not have to be a catch-all, mass market product. Anyone who thinks they can compete with Netflix on original content will have to spend a lot of money to do so.

With coverage of the 2020 Election and the Tokyo Olympics on the NBCUniversal streaming platform, there is a notable opportunity to create a proposition which can cut through the noise.

Another very interesting opportunity for NBCUniversal is a fast-emerging trend in the content world; interactivity. This was a notable theme at IBC 2019, and sports presents an opportunity like few other genres.

Viewers could personalise their experience through the selection of different cameras or commentators. Value add content can be generated for months prior to the live-streaming of the event. Technologies such as virtual and augmented reality have a natural home in the sports ecosystem. Partnerships can be developed for additional monetization. There are endless troves of data points to engage every niche of viewer. The opportunity to build a more complete story all the way through the year is very evident.

The question is how aggressive NBCUniversal will be. Will it expand into other sports and live events? Will it look to drive engagement outside of the US market? These are unknowns and will largely be dependent on the delivery of the Tokyo Olympics, though it has a very good opportunity.