{"id":4241,"date":"2016-12-20T09:10:47","date_gmt":"2016-12-20T14:10:47","guid":{"rendered":"http:\/\/www.cusjc.ca\/ottawainsight\/?p=4241"},"modified":"2017-11-18T11:22:00","modified_gmt":"2017-11-18T16:22:00","slug":"espial-dips-toe-in-virtual-reality-waters","status":"publish","type":"post","link":"https:\/\/www.cusjc.ca\/ottawainsight\/?p=4241","title":{"rendered":"Espial dips toe in virtual reality waters"},"content":{"rendered":"

The Ottawa-based tech company, which creates software for set-top boxes and smart TVs, is expanding into the fledgling virtual reality sector.<\/span><\/p>\n

“To us, virtual reality is the next screen we want to enable. It’s a user experience that adds new dimensions of depth and motion and there are some really interesting, creative things you can do with that,” says Jeff Huppertz, the director of marketing at Espial. <\/span><\/p>\n

Though it\u2019s still in its early stages of development and years away from being launched to consumers, staff at Espial are already conducting tests of its virtual reality technology. Users open an app on their smartphones, then slide the device horizontally into a headset, similar to cardboard ones distributed by Google. <\/span><\/p>\n

Huppertz envisions that in the next few years, Espial\u2019s technology will allow cable customers to login to their provider\u2019s app, put on their headset and experience premium content from channels they subscribe to, like HBO or TSN, in virtual or augmented reality.<\/span><\/p>\n

At the annual International Broadcasting Convention in Amsterdam this past September, representatives from Espial demonstrated a 360-degree concert experience to cable service providers from around the world.<\/span><\/p>\n

\u201cThe experience was as if they were in the front row or on the stage,\u201d says Huppertz. \u201cYou could use virtual or augmented reality in a lot of different scenarios, but we think live music is a case where it makes sense for an earlier adoption and use of this technology.\u201d<\/span><\/p>\n

Concerts\u00a0perfect for VR<\/h3>\n

Huppertz says concerts are the ideal first foray into virtual reality for cable service providers because it\u2019s high-value content that appeals to an ever-elusive demographic of customers, many of whom have never subscribed to linear television \u2013 millennials.<\/span><\/p>\n

\u201cIf you have a popular artist like Taylor Swift or Jay-Z that subscribers really want to see, that’s a compelling event that people, especially younger consumers, would want to invest in and put on a VR or AR headset,\u201d he says.<\/span><\/p>\n

While the sector is still very much in its infancy, Espial\u2019s bold leap into the world of virtual reality might not be as big of a gamble as it appears. An October report from Citigroup Inc. predicts VR and AR could be a half-trillion-dollar industry in less than a decade.<\/span><\/p>\n

\u201cWe think the overall VR\/AR market could reach $692 billion by 2025 and continue to ramp after that,\u201d says Kathleen Boyle, managing editor of the financial firm\u2019s Global Perspectives and Solutions publication. \u201cVR\/AR is now firmly on the radar as an investment theme and is expanding as an industry.\u201d<\/span><\/p>\n

New software for fall 2016<\/h3>\n

Espial has its sights set on innovative investments in the near term, too. In September, it launched its latest software platform. Branded as \u201cElevate\u201d, the cloud-based, multiscreen system is now used by more than 40 cable providers around the world, including Shaw and EastLink in Canada. It contains cutting-edge features, including voice control technology and user personalization across numerous devices, allowing cable subscribers a consistent experience on their televisions, tablets and smartphones.<\/span><\/p>\n

\u201cWhen you start up the service, you click on an icon that identifies you as the viewer, and because the software knows the kind of stuff you like to watch based on a mix of your viewing habits and preferences that you’ve imputed yourself, it’s able to bring up that for you,\u201d says Huppertz. \u201cIt’s similar to Netflix’s recommendations feature, but it goes a step further because we can expand beyond just the on-demand content that Netflix has by including live linear TV and other content providers like YouTube, Hulu or Amazon Prime Video.\u201d<\/span><\/p>\n

The personalization technology is also able to differentiate between PVR recordings made by different users, allowing each user to easily access the content they recorded without having to scroll through a lengthy list.<\/span><\/p>\n

\u201cThe ability to recognize and personalize the experience really helps to make the viewing experience more efficient and more satisfying. You find the content you want quickly, whether it’s recorded, live, on-demand or on a streaming service,\u201d says Huppertz. \u201cYou need the efficiency because we have such a vast array of content today — it’s really overwhelming.\u201d<\/span><\/p>\n

European\u00a0interest and sales<\/h3>\n

The advanced functionality of Espial\u2019s set-top box software has piqued the interest of some big players in the cable industry. In September, Portugal\u2019s largest operator, NOS, launched its Elevate-powered next-generation television service, with Germany\u2019s Tele Columbus following suit later this month \u2013 and more providers could soon jump on board.<\/span><\/p>\n

\u201cEspial continues to be in discussions with 25 of the largest cable operators in the world, and in deeper engagements with six operators, says Pardeep Sangha, an analyst at Haywood Securities. \u201cManagement is expecting decisions from several operators over the next six months, which represents potentially five million new subscribers for Espial.\u201d<\/span><\/p>\n

Despite the optimistic outlook, it\u2019s been a bumpy road of late for the software firm. In its third quarter ending September 30, Espial posted a $2.4 million loss \u2013 its fifth consecutive quarterly shortfall. Still, analysts are bullish on the slumping stock, currently hovering around the $2 mark. <\/span><\/p>\n

\u201cWe believe Espial is significantly undervalued. It\u2019s well positioned to grow its sales and pipeline in the coming years,\u201d says Sangha. <\/span><\/p>\n

Huppertz, too, is confident that the company is on the road to steady profitability. <\/span><\/p>\n

\u201cWe firmly believe that we’re pursuing the right long-term strategy, but in the immediate term, it\u2019s had a negative effect on our bottom line. But our board and our investors agree with our strategy and heartily endorse what we’re doing,\u201d he says. <\/span><\/p>\n

\u201cBy far, the best is yet to come.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The Ottawa-based tech company, which creates software for set-top boxes and smart TVs, is expanding into the fledgling virtual reality<\/p>\n","protected":false},"author":137,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[417,1],"tags":[429,430,341],"class_list":["post-4241","post","type-post","status-publish","format-standard","hentry","category-corporate-profiles-2016","category-news","tag-espial","tag-miguel-ramos","tag-ottawa-insight"],"_links":{"self":[{"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/posts\/4241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/users\/137"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4241"}],"version-history":[{"count":4,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/posts\/4241\/revisions"}],"predecessor-version":[{"id":4307,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/posts\/4241\/revisions\/4307"}],"wp:attachment":[{"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}