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ISSUE 05 // JULY 10

Region Focus

Korea goes 3D with Nagravision

The only provider of direct-to-home pay-TV services in Korea – SkyLife – is expanding its 3D offering with the help of Nagravision. As one of the most innovative pay-TV operators in 3D services, SkyLife is investing 5 billion Won ($4.4 million) to produce more 3D content and two extra 3D-only channels to add to the existing ‘Sky 3D’, which launched in January. Its aim: to bring a state-of-the-art 3D experience to its 2.5 million home viewers.

Nagravision is providing the technology and licensing to enable seamless sourcing and distribution of original 3D content as well as a full push-VOD solution. This will enable SkyLife to offer a new service called 3D MRS (Movie Rental Service) for subscribers to watch 3D content of their choice at their convenience.

 



SkyLife CEO Lee Mongryong outlines his views on what 3D means for the company, his subscribers and Korea…and why it’s here to stay.

 


For our customers to remain happy we need to provide quality content and a quality user experience. To do this we have to innovate and offer new content choices – this is why we’ve embraced 3D TV long before our competitors. We launched ‘Sky 3D’ back in January – the world’s first 24-hour 3D channel on our satellite pay-TV platform. In doing so, we’re setting the standard for 3D on TV in Korea.

When we first launched 3D channels, many people said it was too early for 3D. But our mission is to give our customers the best possible entertainment. James Cameron’s 3D film Avatar continues to rake in millions in box-office receipts – we wanted to transform the experience for everyone to enjoy in their own homes.

To 3D or not to 3D…

At the moment around 20 per cent of our customers subscribe to HD packages. Since launching the 3D channel we’ve seen the numbers of customers gradually increase - and initial customer research indicates many chose our service so they could watch TV in 3D.

‘Sky 3D’ is currently available on trial, so viewers can watch it at no extra charge. When it transfers to a commercial service later this year we expect more than 10 per cent of 3D TV consumers in Korea to subscribe. Predictions suggest that 3D TV will be sold to more than 300,000 subscribers in Korea this year alone.

How does it work?

‘Sky 3D’ is broadcast using a normal HD broadcast channel over existing SkyLife infrastructure. This means you can enjoy our 3D channel using the SkyLife HD set top box (providing you own a 3D-ready TV). The Sky 3D signal is a side-by-side, 1080i spatially compressed stereoscopic 3D delivery, decoded at the receiver’s site and viewed through circularly polarised passive lenses.

One current problem with 3D TV is that there isn’t enough quality content. 3D production costs are double or triple the cost of 2D content, and much more time-consuming to produce. This is why we’ve invested $4.4 million to extend our 3D activities and content.

By the end of May we’ll have high-end 3D production systems to enable us to produce a variety of 3D content focusing on live sporting events and concerts. World Cup matches and other sporting events will help drive the adoption of 3D television sets. The consumer interest is there – it’s now up to us and our partners to enable it, both at the back-end with the most advanced technology and at the front-end, with suitable and rewarding business models.

Working together

We have an existing partnership with Nagravision. It has unique experience across the 3D production chain as well as on the 3D technology and content licensing front. It boasts its own extensive 3D initiative aimed at enabling customers like us to launch 3D services with the development of a comprehensive 3D content sourcing and distribution operation. It’s also licensing original 3D content - including full features, sponsored and short-form programming - for us.

André Kudelski and Lee Mongryong wearing 3d glasses at NAB 2010

Over the next few months Nagravision will be providing us with a full push-VOD solution so we can offer a new service – 3D MRS (Movie Rental Service). This will be available later this year.

Nagravision will also help us by providing consultancy in the field of 3D production – this can include live event production management, post production and training via the Nagravision ‘3D Academy’ programme. They’re also developing high quality, real-time 2D-3D content conversion. That should help plug the content gap we’re facing until more 3D content becomes available.

The barriers to 3D

Apart from the lack of content available for 3D, partly because we’re ahead of the curve, another obstacle is the need to wear glasses to get the full 3D effect. Active shutter 3D TV glasses are fairly heavy which is uncomfortable for the viewers. TV makers are also only providing glasses that work with their own brands of TVs, which makes it impossible to have a uniform standard. Add to this the cost of the glasses, and it’s a wonder it can ever take off!

But it is. More innovators like James Cameron and films like Avatar will help continue the momentum. We’re just the trendsetter here in Korea, getting the broadcast ecosystem and technology ready to meet consumer demand when it happens. This it will – before the end of the year!

 


SkyLife | Korea Digital Satellite Broadcasting

 

Lee Mongryong

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