Executive Perspectives 2017, Part 2: The State of the Mobile–Sports-Production Business

The latest on IP and other challenges facing the industry

Although the mobile-production business is booming, truck providers face a host of challenges when it comes to technology and their bottom line. Vendors are being asked to deliver more for less as networks look to trim production costs and explore new “at-home” production workflows on lower-profile shows. In addition, technology continues to evolve at a breakneck pace, forcing mobile-production providers to address the needs of today while preparing for the potential arrival of 4K and HDR. Meanwhile, the rise of IP infrastructure seems inevitable, but truck designers must make difficult decisions because IP standards remain in flux and the technology for a full IP-production ecosystem is likely still a few years away.

In advance of the new year, SVG sat down with more than a dozen industry leaders to discuss the current state of the business and, more important, where it’s headed. This is the second in SVG’s two-part series. CLICK HERE for Part 1 of Executive Perspectives 2017. Here are the executives we spoke with:

Do you see a legitimate business case for moving to IP today? Why or why not?
Johnson: We want to put money into technology where we think we’re going to get the longest run. Right now, that probably means investing in IP, except that not all the right solutions are there. IP is the infrastructure of the future, but, right now, we have a majority of SDI and purpose-built hardware. We are going to see a transition to more common hardware and less on the SDI side. There is a big business opportunity there, and it’s how we’re going to maintain [the industry] going forward.

Moorhouse: Currently, there is no end-to-end IP solution that is really viable or cost-effective. Our thought is to wait and see where things go over the next 18-24 months. I don’t believe that, at the acquisition end, there is anything to gain from having a totally IP solution, specifically when working in HD or 3G. Unless [clients] get added value from an IP solution, we will not make investments yet.

Levine: Our business is based on demand and client requests. Our three powerful IP mobile units were designed and built to meet specific needs where IP was a true benefit. Baseband routing is still very viable for many applications.

Snyder: IP has a place in production, but current marketed IP technology can be distracting and expensive in a time when many networks’ mantra is “more for less.” Many of the current IP-based mobile units will be outdated before the investment in IP pays off.

Garvin: At this time, there is no business case for building an IP mobile unit unless it’s doing one of the half dozen largest events of the year. The best solution at this time for 4K HDR is 12-Gb single coax, and we believe 12 Gb is critically important for the future.

Sullivan: I think you have to think carefully about whether you want to invest in IP. Just doing it for the sake of saying this is an IP truck makes no sense. But, if you have a justification for doing it — like we did on Encore, which was really driven by the demand for monitoring — then, yeah. I think, a year from now, virtually [every truck we build] will have an IP core.

Do you believe that a new truck needs to feature IP infrastructure to be future-proof? And do you believe 12-Gbps SDI over coax equipment provides a legitimate alternative to IP?
Taubman: One thing is clear: the current quad 3G SDI [model] for 4K isn’t really sustainable. At a minimum, it quarters your existing infrastructure, and that’s not going to get the job done at the scale our clients demand. Things are moving along a lot quicker than I expected. However, we haven’t settled on a standard. It seems like every vendor still has their own alliance around their products with the NMI, AIMS, ASPEN, and other camps. All those alliances say they will be interoperable with one another, but no one has paved the road that makes that possible. While I see the need for 12G in the short term, especially on smaller shows, I think IP is probably going to win the day there.

Wehner: We think a truck-friendly IP infrastructure is several years away and, even then, will not be a requirement for anything but the largest events. We do believe that, someday, all trucks will be IP-based but it will not be on the current IP standards.

Snyder: Several remote-production companies are building baseband mobile units this year. IP is a luxury that only some customers will decide they can afford at this time. We should see an expense-lowering curve in the future because the cost of IP systems will become more reasonable, especially as more equipment manufacturers enter the IP space at a scale that mobile production requires.

Hoover: 12 Gbps is just another tool in the connectivity toolbox, along with SDI and IP. We think it has a place in smaller systems.

Johnson: IP has the potential to offer more resources and add volume to your capacity — and 4K requires a lot of volume. We are starting by operating with an IP [core], and then, down the road, we’re going to see a more fully IP [ecosystem]. It’s also very encouraging to see all these manufacturers working together and moving forward with SMPTE 2110 as a standard. But, if I had to [decide] to build a truck tomorrow, I’m still uncertain about IP. On the HD level, I think there may be a serviceable path that you can build with an IP core, but, for 4K, I think, if you chose an IP solution today, you may be wishing you had waited a couple years.

What is the most significant technical challenge in truck design today?
Hoover: As always, it’s weight and cooling. We always need to find a few extra thousand pounds in that 8,000-lb. box.

Snyder: I think what our customers want the most is reliability. However, the most current technology is not always the most reliable technology.

Moorhouse: In the USA, our biggest challenge is getting enough technical fire power whilst keeping vehicle weight under control.

Taubman: In the past, we knew really well how to put together a baseband infrastructure, and we knew exactly what that cost. As we move toward IP, I think, you’ll see us raising the bar much higher in terms of capacity. But the problem is figuring out the economics, as well as figuring out how to fit it into the truck. For IP, we’re still faced with this middle layer of gateways, which add cost and weight and require real estate. We are trying to design a facility so that those gateway pieces can melt away as true IP devices become available.

Wehner: It is very challenging to build mobile units that can accommodate the number and types of feeds and sources while maintaining such a high standard of reliability for over 4,000 events annually. Even the most routine regular-season major-league regional game requires many more feeds than we had just a couple of years ago.

Is there a specific technology (or technologies) that more clients are demanding?
Johnson: I think 4K is here to stay, and you will start seeing demand for a lot more 4K trucks. We just need a better toolset so that we can get back to the same level of capacity that we have with HD. We are also starting to see real demand for HDR. Also, high–frame-rate cameras continue to show good momentum.

Hoover: High-resolution (4K or greater), high-speed cameras that can seamlessly intercut with standard-speed cameras from an image-quality perspective, as well as replay servers to support them. [Customers are also asking for] seamless high-bandwidth connectivity with the broadcast center.

Wehner: Our clients love super-slo-mo systems. So we now have at least two on all our 53-ft. expandos, and all our new trucks have been rolling out with four SSMO cameras.

Taubman: Our clients want to go to 4K, and we want to do it at scale. They want to have all of their cameras be super-slo-mo. I think, if our clients could, they would have all of our HDC-4300’s enabled in 8X super-slo-mo and record them that way. But to do that requires this infrastructure that goes well beyond what we’re capable of doing today in baseband. All the things they would like to see require extra capacity, which is pushing them in the direction of IP.

Levine: As the business continues to change, we look for cost-saving areas that do not effect the overall production. We work closely with clients to implement technology that creates workflow savings — including streamlined tapeless systems, plug-and-play booth kits, connectivity to broadcast centers, and fiber interconnect —to minimize set and strike time.

Outside of technological challenges, what are your biggest concerns facing the industry today?
Orgera: Attracting, acquiring, and retaining great engineering talent to operate all of this constantly changing technology is critical and has always been a huge focus for F&F.

Rubenstein: I worry about the next generation of people who will be working in this business — whether it’s hiring new staff for us, crewing above and below the line, and sometimes who the next generation of decision-makers will be. As we operate in this new world of change, I hope this trend continues of a willingness to evolve with good ideas that have succeeded for the sake of maintaining a healthy remote-production business.

Farrell: As in past years, our largest concern is our external costs: crew and travel are the two largest expenses that push our margins the most.

Lewis: It’s less of a concern than an opportunity: I think there could be an explosion with Facebook Live that is going to really change things. That’s going to [mean] a whole new set of remote-production needs on an incredibly tight budget. Will that be a truck, a flypack, or a sprinter van? I don’t know, but I do think it’s going to be a game-changer for this industry.

Werteen: The biggest concern is audience fragmentation. Audiences are insatiable for quality programming, but they want it when they want it, on the device they want to watch it on, at a minimal cost. Many of our clients are still working to find their equilibrium. While this industry evolves, you need to have sound business philosophies, grounded in your beliefs, with an ear to the ground identifying what’s around the bend.

Responses compiled by Jason Dachman, Brandon Costa, Karen Hogan, and Ken Kerschbaumer during Q4 of 2016. This article was originally published in the 2017 SVG Mobile Production Yearbook.