Bridging the PC-TV Gap
December 19th, 2007 No Comments
Nick Wingfield from the Wall Street Journal writes about how no one's really figured how to watch Internet video on TV sets. So far, products like Apple TV and Akimbo haven't reached mass usage for a number of reasons such as they're hard to use, hard to install, high cost and low value proposition because content can be found elsewhere.
Wingfield goes through the problems and talked to vendors to discuss possible solutions. For example, the problem of too many set-top boxes. Consumers need to know that a new stand-alone box gives them something they can't get anywhere else. Things like new high def DVD players have the potential to keep a coveted place underneath the TV set. Also, game systems like PlayStation 3 and Xbox 360 act as set-tops since they can download music and movies.
The solution to this is incorporating features into existing devices or one new converged box. However, there's no consensus on what that box might be. Will it be Tivo? A cable box with a DVR and Internet functions?
According to Scientific Atlanta, cable companies may end up winning this battle. Cable and satellite TV providers already provide the majority of DVR devices to U.S. consumers, so it seems possible that Internet connectivity will soon be a part of set-tops. Kip Compton, general manager at Scientific Atlanta said that cable companies will begin rolling cable boxes that can access Internet video next year.
However, others believe that cable companies won't want to do this because consumers will be able to watch TV free by accessing content on the Internet. And that may impact their revenue.
Cable and satellite companies, however, need to think beyond their quarterly earnings cycle and think longer term. Consumers will be happier and increased usage in Internet video may mean better integration of digital media advertising and may spur other revenue that we haven't even thought of.
IPTV services may have the biggest jump. In the U.S. AT&T's U-Verse and Verizon's FiOS TV services use IP networks to deliver broadcast TV programming. So integrating other IP features should be relatively easier than it would be for cable or satellite providers.
So far, however, IPTV providers are just ramping up in the U.S. so they're just trying to roll out broadcast and VOD services and gain new customers. Advanced Internet features aren't yet a big part of IPTV, either in the U.S. or the rest of the world where IPTV is much more mature.
You can leave a response, or trackback from your own site.
RSS Feed
Twitter
Posted in