Posts for 'Intel'

  • VideoNuze Podcast #402: Hulu’s Growth, DVDs Fall and CES Recap

    I’m pleased to present the 402nd edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.

    This week we start by discussing Hulu’s growth to over 17 million subscribers, which it reported earlier this week. Both of us are impressed by the numbers, which makes Hulu a firm #3 in the SVOD market. The key number that we’d like to know is how many new subscribers are taking the ad-supported version, which has dominated in the past.

    Hulu’s and SVOD’s growth have come at the expense of viewers owning and renting video, as Colin explains in his review of recent Q4 ’17 DEG data. DVDs fell a whopping 22% vs. Q4 ’16 and rentals were down as well. The only category that grew was SVOD. Related, the dominance of SVOD makes me wonder how Apple is going to monetize its high-profile original TV shows. If Apple sticks with a transactional model it will be facing serious headwinds.

    Finally, Colin shares a few thoughts on CES product news from Samsung, LG and Intel.

    Listen in to learn more!


     
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  • 5 Year-End Video Stories You May Have Missed

    Welcome to 2013! If you were mostly checked out over the past 1-2 weeks (or were only paying attention to the fiscal cliff roller coaster), you didn't miss a whole lot in the video world. However, there were 5 items that caught my attention which I briefly describe below:

    See the 5 items

     
  • VideoNuze Report Podcast #125 -- Colin Reports From Brazil About Netflix

    I'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 125th edition of the VideoNuze Report podcast, for Mar. 16, 2012. This week finds Colin on business in Brazil, and he's been doing some sleuthing on how Netflix's rollout is going there. Back on the domestic front, we also discuss Intel's rumored TV plans and the latest on Aereo's rollout.

    Colin reports that anecdotal feedback on Netflix's content selection in Brazil is underwhelming as it is perceived as mostly older titles. He raises the critical question of whether Netflix was wise in choosing not to partner with any established players which might have brought content as well as an understanding of local conditions. Colin points out that the landscape is very different in Brazil vs. the U.S., with pay-TV penetration of just 20% and over-the-air broadcast viewing dominant. All that said, Colin has heard that Netflix is advertising heavily to build its brand. And Brazil is of course an enormous market, representing big long-term opportunities.

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  • Intel TV Plan Faces Long Odds Against Success

    If, as the WSJ is reporting, Intel is indeed serious about launching an over-the-top TV service later this year to compete against incumbent pay-TV operators, it faces long odds against success. The chip giant would be wading into the same terrain that has enticed Google, Microsoft, Apple, Sony and others. All of these technology companies are justifiably intrigued by the opportunity to disrupt a multi-billion industry rife with inefficiencies, cross-subsidies, inferior living room technologies and crummy user experiences. The problem is none of them can crack the code on how to succeed. Intel is likely to be no different.

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  • 10 Online/Mobile Video Items from CES Worth Noting

    Happy Friday. Below are 10 interesting CES news items related to online and mobile video that hit my radar this week, but that I didn't have an opportunity to write about. There were many more cool things coming out of Las Vegas, and on so on Wed, January 19th TDG's Colin Dixon and I will present our next complimentary webinar, "Demystifying CES 2011" to review everything more fully. Mark your calendars, registration will be open shortly.

    Intel "Insider" Movie Service unveiled - Intel unexpectedly launched its own online movie service as part of its "Sandy Bridge" chip announcement. The world probably doesn't need another service, but when Intel soon enabled is "WiDi" wireless display to project content to HDTVs, Insider will get more attention.  

    EchoStar acquires Move Networks assets - an inglorious ending for early leader in adaptive bit rate (ABR) streaming. As CDN prices plummeted and ABR competition emerged, Move's service was over-priced and marginalized.

    Funai integrates ActiveVideo Networks into connected devices - The first integration of AVN's "CloudTV" into connected CE devices allows interactive streaming content to be delivered in standard MPEG format.

    Orb BR launches - Orb Networks launches "Orb BR," a disc that inserted into connected Blu-ray players or PS3 that allows viewers to access content from the full Internet. Cost? $19.95. Waiting to try one out, this could be a winner.

    Comcast and Time Warner Cable service coming directly to Sony and Samsung TVs - Hate that cable set top box? Soon Comcast subscribers will be able to buy a connected Samsung TV and access the full Xfinity TV channel lineup. Similarly, Time Warner Cable subscribers will be able to buy Sony connected TV buyers and see the full cable channel lineup. Who would have thought?

    Skype plans to acquire Qik mobile video service - Moving to bulk up its involvement with video, Skype plans to acquire Qik, which allows users to record and share video via mobile devices.

    Motorola and AT&T unveil Atrix 4G - Have a look at this video to see what the future of mobile devices look like - the power of a full computer in your pocket. Two very clever docks mean that users can easily view video on bigger screens as well as work with a full keyboard and mouse.

    Vudu to offer 3D movies - a first for online delivery, aggregator Vudu announced that it is currently offering 3D movies to certain Samsung connected devices, and will soon offer it to PS3, Vizio, LG, Mitsubishi, Toshiba and boxee.  

    Boxee gains access to CBS programs - Boxee broke some new ground by gaining access to CBS programs, something that neither Apple TV, Roku or Google TV currently have. No word on pricing yet.

    Yahoo adds feature to its Connected TV platform - Yahoo, one of the early entrants in the connected TV area, launches a feature call "broadcast interactivity" which allows further engagement with TV program content.

     
  • Intel's CEO is Bullish on Google TV, Less So on Apple TV

    Intel CEO Paul Otellini is plenty bullish on Google TV. In a short video interview with CNNMoney.com's Poppy Harlow, he praises Google TV's vision, saying that "we're just at the beginning of the smart TV revolution" and that "the holy grail here is a seamless proactive integration of this content." Of course, Otellini has a vested stake in Google TV's success as Intel is supplying its Atom chip to power Google TV.

    Otellini is decidedly more bullish on Google TV than he is on Apple TV, though he's cautious in noting that Apple is an Intel customer too. He says that Apple TV is "a streaming device for protected content, and there's a market for that," but quickly adds, "I think there's a bigger market for a deeper integration of the Internet into content." I think he's right on both accounts. It depends on what the user values - an open Internet experience on their TV, or a closed, but easy-to-use way of accessing a high-quality library (not to mention the price for each). There isn't one right answer, yet anyway. See "For Connected Devices, To Browse or Not to Browse - That is the Question" for a deeper discussion.




     
  • Google TV Unites Web and TV in One Experience

    Colin Dixon, senior partner at industry research firm The Diffusion Group, which is a VideoNuze partner, has been attending the Google I/O developer's conference. Following his analysis of the WebM project yesterday, today he offer commentary on Google TV which was unveiled today. Back in late March I had posted on Google TV, based on some back-channel info I had received. I'll have more commentary as well.

    Google TV Unites Web and TV in One Experience
    by Colin Dixon

    This morning, at Google I/O in San Francisco, Google announced a comprehensive push to bring the Internet to TV, an effort dubbed "Google TV." Working with initial partners Intel, Sony, and Logitech, Google is assembling an open ecosystem to deliver web content and applications directly to the TV. As well, rather than ignore traditional TV content, the effort seeks to integrate the Internet and TV into a single seamless experience.

    Intel's CE4100 Atom-based SoC will serve as the processor engine for the service. The CE4100 is optimized for TV applications with sophisticated video handling and a 3D graphics engine built in. It also inherits the Atom processor's frugal power consumption capabilities and small footprint. The software stack that will run on the CE4100 is from Google. Android has been ported and optimized for the processor along with Google's Chrome browser. Since Android is the core operating system, many of the applications that have already been written for smartphones should run with little or no modification. Of course, the Android marketplace will also be available to add other applications to the experience.

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  • Here's How Google TV Will Work - And What It Might Mean

    Last week, the NY Times shared some details of "Google TV," the new set-top box Google is developing in partnership with Intel and Sony. The article provided a good outline, and now, based on additional information I've gathered, I'm able to provide new details on the box and also explain what it might mean.

    The first and most important thing to know about Google TV is that it is not being positioned to induce users to "cut the cord" on their subscriptions to existing multichannel video programming distributors' ("MVPDs" like cable, satellite or telco) services. Or at least that's Google's initial positioning; whether it's genuine or really just a Trojan Horse game plan is another whole matter. For now anyway, Google is taking a "friend of the industry" approach, telling MVPDs that it's briefing that it is looking to complement their businesses by bringing the full Internet to the TV (this follows the same convergence theme as the new Kylo browser).

    Google is contemplating an entirely novel strategy for its set-top box, seeking to insert it alongside the existing MVPD's set-top box by daisy chaining them together via HDMI connections. In other words, the MVPD's set-top's HDMI output would be connected to the Google TV set-top's HDMI input, and then its HDMI output would be connected to the TV. The authorized TV channels would still be delivered, but Google TV would collect data from the MVPD's set-top and introduce an entirely new UI for users to control their TV experience, to include searching and browsing channels. It would also add a host of new interactive web-type capabilities around the content.
     
    Since the Google TV box would have a full browser and connect to the Internet via the user's WiFi or wired access, it would also bring all of the rest of the Internet to the TV as well, including the full breadth of online video (yes, that would mean one more thing for Hulu to block). My understanding is that on the whole, the Google TV experience is extremely impressive and well conceived. In short, it will get the attention of any MVPD executive who has a look at it and will certainly get them to thinking about how able - or unable - they are to deliver a similar experience themselves to their subscribers.

    A key reason that Google is planning to insert its box this way is because it believes that in order to deliver a compelling Internet experience on TV requires a new web-based, and open platform. For Google that of course means Android, which it is vigorously proliferating on smartphones as well. Throw in Google's Chrome browser that it is promoting for online usage and you get a glimpse of how Google's multi-platform strategy comes together. While Sony would be making the box, you have to believe it will have Google branding on it, a first for the company in the living room too.

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  • Spotlight is on Video as Mobile World Congress Begins

    As the biggest annual mobile conference - the Mobile World Congress - gets underway today in Barcelona, new initiatives from some of the biggest names in technology underscore the growing importance of smartphones and of mobile video specifically. Among the most important headlines:

    - Microsoft's CEO Steve Ballmer is unveiling Windows Phone 7 which includes Xbox LIVE games, Zune video and audio, plus enhanced sharing. With Phone 7 Microsoft is continuing to vie for position in a crowded smartphone operating system landscape.

    - Sony Ericsson is launching "Creations" allowing users to create and publish video, audio and images from their mobile phones in collaboration with professional developers.

    - AT&T and 11 other mobile service providers, which together have about 2 billion subscribers, are introducing a new applications store designed to appeal to developers and compete head-on with Apple's App Store.

    - Symbian is taking the wraps off its new Symbian 3 open source release, which includes support for HDMI, so that users can connect their Symbian phones to their TVs and watch 1080p video, in effect creating a Blu-ray player in your pocket.

    - Intel and Nokia are merging their respective Moblin and Maemo software platforms to create MeeGo, a unified Linux platform to run across multiple devices.

    - Adobe is providing an update that by mid-2010, its AIR runtime for building rich applications will be available for Android and that Flash 10.1 will be generally available for various mobile platforms, including Android. In addition, Adobe is announcing that Omniture, which Adobe recently acquired, will add mobile video measurement within its SiteCatalyst product.

    While each announcement, plus countless others, have their own significance in the burgeoning mobile ecosystem, the one that's most relevant to mobile video specifically is the coming availability of Flash 10.1, especially for Android. Mobile video has been hampered to date with the lack of Flash player support on iPhones, so its pending launch on Android phones threatens to scramble the relative appeal of these devices for users eager to watch video from sites like Hulu on their smartphones.

    Late last week I got a glimpse of how significant Flash on smartphones is from Jeff Whatcott, SVP of Marketing at Brightcove, which today is announcing an optimized version of its platform for Flash 10.1, to be released in the middle of 2010. Adobe has made the beta of Flash 10.1 available to content providers, and Jeff has a video showing how it works with Brightcove for its customers like NYTimes.com and The Weinstein Company.

    Brightcove has done 3 things - optimized its template for mobile devices (so navigation and interactivity is seamless on the small screen), enabled auto-detect of mobile devices (so the correct Brightcove template is served) and leveraged cloud-based transcoding (so a mobile-ready H.264 encoded video is streamed). The goal is for Brightcove's customers to be able to deliver an optimized mobile and Flash experience identical to their online experiences, with minimal additional work flow. Brightcove provides the appropriate logic for mobile templates to its customers which they embed in their pages. When a user visits from a mobile device and clicks to watch video, the right Brightcove-powered experience is delivered.

    All of the above activity is happening in the shadow of the now-dominant iPhone (and coming release of the iPad) which do not support Flash. As non-iPhone devices - and content providers - progressively incorporate Flash this year, it seems like the smartphone market is poised for another new turn. Flash is the dominant video player and as users look to replicate their online experiences on their smartphones, the void of Flash on iPhones will become even more pronounced. I don't underestimate Steve Jobs or Apple's ability to compete, but this will be one place where it feels like the iPhone will be at a real disadvantage. Apple is keen to prevent Flash from extending its online hegemony to mobile as well, so it will be interesting to see how it chooses to play this.

    What do you think? Post a comment now (no sign-in required).

     
  • 4 Items Worth Noting from the Week of August 31st

    Following are 4 news items worth noting from the week of August 31st:

    1. Nielsen "Three Screen Report" shows no TV viewing erosion - I was intrigued by Nielsen's new data out this week that showed no erosion in TV viewership year over year. In Q2 '08 TV usage was 139 hours/mo. In Q2 '09 it actually ticked up a bit to 141 hours 3 minutes/mo. Nielsen shows an almost 50% increase in time spent watching video on the Internet, from 2 hours 12 minutes in Q2 '08 to 3 hours 11 minutes in Q2 '09 (it's worth noting that recently comScore pegged online video usage at a far higher level of 8.3 hours/mo raising the question of how to reconcile the two firms' methodologies).

    I find it slightly amazing that we still aren't seeing any drop off in TV viewership. Are people really able to expand their media behavior to accommodate all this? Are they multi-tasking more? Is the data incorrect? Who knows. I for one believe that it's practically inevitable that TV viewership numbers are going to come down at some point. We'll see.

    2. DivX acquires AnySource - Though relatively small at about $15M, this week's acquisition by DivX of AnySource Media is important and further proof of the jostling for position underway in the "broadband video-to-the-TV" convergence battle (see this week's "First Intel-Powered Convergence Device Being Unveiled in Europe" for more). I wrote about AnySource earlier this year, noting that its "Internet Video Navigator" looked like a content-friendly approach that would be highly beneficial to CE companies launching Internet-enabled TVs. I'm guessing that DivX will seek to license IVN to CE companies as part of a DivX bundle, moving AnySource away from its current ad-based model. With the IBC show starting late next week, I'm anticipating a number of convergence-oriented announcements.

    3. iPhone usage swamps AT&T's wireless network - The NY Times carried a great story this week about the frustration some AT&T subscribers are experiencing these days, as data-centric iPhone usage crushes AT&T's network (video is no doubt the biggest culprit). This was entirely predictable and now AT&T is scrambling to upgrade its network to keep up with demand. But with upgrades not planned to be completed until next year, further pain can be expected. I've been enthusiastic about both live and on-demand video applications on the iPhone (and other smartphones as well), but I'm sobered by the reality that these mobile video apps will be for naught if the underlying networks can't handle them.

    4. Another great Netflix streaming experience for me, this time in Quechee VT courtesy of Verizon Wireless - Speaking of taxing the network, I was a prime offender of Verizon's wireless network last weekend. While in Quechee, VT (a pretty remote town about 130 miles from Boston) for a friend's wedding, I tethered my Blackberry during downtime and streamed "The Shawshank Redemption" (the best movie ever made) to my PC using Netflix's Watch Instantly. I'm happy to report that it came through without a single hiccup. Beautiful full-screen video quality, audio and video in synch, and totally responsive fast-forwarding and rewinding. I've been very bullish on Netflix's Watch Instantly, and this experience made me even more so.

    Per the AT&T issue above, it's quite possible that occupants of neighboring rooms in the inn who were trying to make calls on their Verizon phones while I was watching weren't able to do so. But hey, that was their problem, not mine!

    Enjoy the weekend (especially if you're in the U.S. and have Monday off too)!

     
  • First Intel-Powered Convergence Device Being Unveiled in Europe

    Convergence devices that bring broadband video and Internet applications to the TV (e.g. Roku, Xbox, Apple TV, Vudu, etc.) are a white-hot area of interest as many industry participants - including me - believe their eventual mass adoption will provide a major catalyst to broadband video usage and prompt further disruption in the value chain.

    Intel has eyed a big role in this emerging market for a while, becoming a strong public proponent of the "digital home" concept. Building momentum over the past year, Intel has made announcements with Yahoo (for the "Widget Channel" framework), Adobe (to port and optimize Flash for TV viewing) and with a number of large content providers (demonstrating enhanced viewer experiences).

    At the heart of Intel's early initiatives is the company's much-heralded Media Processor CE3100, the first in a family of "system on a chip" convergence-oriented processors. Next week the first CE3100-powered device, the "Mediaconnect TV" will be shown at the IBC show in Amsterdam. The box is a collaboration between a Dutch company, Metrological Media Innovations and a British interactive services provider, Miniweb (a spinoff of BSkyB). This has been previewed recently and is sure to gain more visibility next week. To learn more about Intel's convergence vision, yesterday I spoke to Wilfred Martis, the GM of Connected AV Products for Intel's Digital Home Group.

    Intel sees 4 different types of home products that can be fitted with its media processor chips: set-top boxes, digital TVs, optical players (e.g. Blu-ray devices) and "connected AV" products, which are defined as standalone boxes that connect broadband to the TV, but without any guaranteed quality of service (QoS) for the video. This segmentation actually closely follows a slide I've been presenting lately which maps the various efforts for bringing broadband to the TV.

    The connected AV devices are of course what "over-the-top" providers like Netflix, Amazon, iTunes, YouTube, etc. are counting on to deliver their services into the home over open broadband connections. On the one hand, Intel seems to be looking to empower these providers. As Wilfred says, Intel is trying to create a standard toolset and app environment akin to what we've seen on leading smartphones (mainly the iPhone) that helps drive creative new TV-based applications. Yet at the same time, as Wilfred notes, Intel wants to be a friend to incumbent video service providers, allowing them to deliver broadband content side-by-side with their walled-garden channels in their set-top boxes.

    While Intel is clearly in this for the long haul, and has the resources to cultivate the market, other non-Intel devices continue to get a foothold. It's interesting to contrast, for example, the success that Roku is enjoying to date and ponder how the convergence device market will develop over the next several years. As I detailed a few weeks ago, Roku is successfully pursuing a classic "Crossing the Chasm" strategy, leveraging low pricing and loyalty to its content partners' brands to move lots of its product.

    Still, integrating with Roku - and other current convergence devices - requires a one-off integration that assumes resources and prioritization (even when APIs exist). Some content providers will determine integrating is worthwhile, while others will not.

    Intel's strategy is meant build on existing technologies and applications, making it more straightforward for content providers and applications developers to deploy on its devices (it's worth noting that Amazon, Blockbuster, Facebook and others plan to launch Widget Channel apps imminently). As Wilfred explains, when Intel's architecture is in convergence devices, incumbent software like browsers, plug-ins, drivers and the like are intended to work seamlessly. In addition, by providing abundant processing power, developers don't have to go through the arduous task of de-optimizing their apps for slower environments. And they get the performance headroom to continuously add updates.

    The price for all this is of course, price. I don't know what the unit cost of the CE3100 is at volume, but my guess is that whatever it is would quickly sink any manufacturer's prospects of selling their box at anything close to a $99 price point, as Roku is. It's an age-old computing dilemma: beneficial as it is to have lots of processing power, there's a cost to it.

    This raises the fundamental question of how the convergence device market will shape up over the next several years: will low-cost, "powerful-enough" devices continue to gain, or will boxes with robust processing render them obsolete at some point soon? My guess is that in the short term at least, low cost is going to lead the way. However, over the long term, it's hard to avoid the idea of significant computing power sitting next to the TV. However the business model for who pays to get it there remains in question.

    What do you think? Post a comment now.

     
  • January '09 VideoNuze Recap - 3 Key Themes

    Following are 3 key themes from VideoNuze in January:

    Broadband video marches to the TV - At CES in early January there were major announcements around connecting broadband to TVs, either directly or through intermediary devices (a recap of all the news is here). All of the major TV manufacturers have put stakes in the ground in this market and we'll be seeing their products released during the year. Technology players like Intel, Broadcom, Adobe, Macrovision, Move Networks, Yahoo and others are also now active in this space. And content aggregators like Netflix and Amazon are also scaling up their efforts.

    Some of you have heard me say that as amazing as the growth in broadband video consumption has been over the last 5 years, what's even more amazing is that virtually all of it has happened outside of the traditional TV viewing environment. Consider if someone had forecasted 5 years ago that there would be this huge surge of video consumption, but by the way, practically none of it will happen on TVs. People would have said the forecaster was crazy. Now think about what will happen once widespread TV-based consumption is realized. The entire video landscape will be affected. Broadband-to-the-TV is a game-changer.

    Broadband video advertising continues to evolve - The single biggest determinant of broadband video's financial success is solidifying the ad-supported model. For all the moves that Netflix, Amazon, iTunes and others have made recently in the paid space, the disproportionate amount of viewership will continue to be free and ad-supported.

    This month brought encouraging research from ABC and Nielsen that online viewers are willing to accept more ads and that recall rates are high. We also saw the kickoff of "the Pool" a new ad consortium spearheaded by VivaKi and including major brands and publishers, which will conduct research around formats and standards. Three more signs of advertising's evolution this month were Panache's deal with MTV (signaling a big video provider's continued maturation of its monetization efforts), a partnership between Adap.tv and EyeWonder (further demonstrating how ecosystem partners are joining up to improve efficiencies for clients and publishers) and Cisco's investment in Digitalsmiths (a long term initiative to deliver context-based advanced advertising across multiple viewing platforms). Lastly, Canoe, the cable industry's recently formed ad consortium continued its progress toward launch.

    (Note all of this and more will be grist for VideoNuze's March 17th all-star panel, "Broadband Video '09: Building the Road to Profitability" Learn more and register here)

    Broadband Inauguration - Lastly, January witnessed the momentous inauguration of President Barack Obama, causing millions of broadband users to (try to) watch online, often at work. What could have been a shining moment for broadband delivery instead turned into a highly inconsistent and often frustrating experience for many.

    In perspective this was not all that surprising. The Internet's capacity has not been built to handle extraordinary peak load. However on normal days, it still does a pretty good job of delivering video smoothly and consistently. As I wrote in my post mortem, hopefully the result of the inauguration snafus will be continued investment in the infrastructure and technologies needed to satisfy growing demand. That's been the hallmark of the Internet, underscored by the fact that 70 million U.S. homes now connect to the 'net via broadband vs. single digit millions just 10 years ago. I remain confident that over time supply will meet demand.

    What do you think? Post a comment now.

     
  • Recapping CES '09 Broadband Video-Related Announcements

    CES '09 is now behind us. As has become typical, this year's show saw numerous broadband video product and technology announcements. As I wrote often last week, the key theme was broadband-enabled TVs. Assuming TV manufacturers deliver on their promises, Christmas '09 should mark the start of real growth in the installed base of connected TVs.

    Here are the noteworthy announcements that I caught, in no particular order (I'm sure I've missed some; if so please add a comment and include the appropriate link):

    Intel and Adobe to Extend Flash Platform to TVs

    Adobe and Broadcom Bring the Adobe Flash Platform to TVs

    Samsung and Yahoo Bring the Best of the Web to Television

    Yahoo Brings the Cinematic Internet to Life and Revolutionizes Internet-Connected Television

    LG Electronics First to Unveil "Broadband HDTVs" That Instantly Stream Movies From Netflix

    LG Electronics Launches Broadband HDTVs with "Netcast Entertainment Access"

    Sony Debuts Integrated Networked Televisions

    Vizio Announces New and Exciting "Connected HDTV" Platform with Wireless Connectivity

    Netflix Announces Partnership with Vizio to Instantly Stream Movies to New High Definition TVs

    MySpace Partnerships Bring Web Site to TV Set

    Macrovision to Bring Instant Access to Digital Content Directly to Internet-Connected Televisions

    Move Networks Improves Delivery of High Definition Internet Television to Intel-based Mobile Internet Devices and Netbooks

    NETGEAR Unveils Two New Internet-Connected Set-Top Products to Enrich TV Entertainment for Internet Families and Serious Media Enthusiasts

    Amazon Video on Demand Brings Customers New-Release Movies and TV Shows to the Roku Digital Video Player

    Cisco Brings Manufacturers Together to Make Connected Home Products Simple to Set-up and Easy to Use

    Sling Media Introduces SlingGuide: Redefining Search and Discovery for Satellite, Cable and Terrestrial Broadcast Programming

    blip.tv and ActiveVideo Networks Sign Deal to Bring Original Online Shows Directly to Television

    Hillcrest Labs and Texas Instruments Showcase RF4CE Remote Controls with Freespace Technology

     
  • Where Does Advertising Fit In with Broadband-Enabled TVs?

    If you haven't noticed, the theme at VideoNuze this week has been broadband-enabled TVs, since this has been one of the main themes of this week's CES. On Monday, when the dust has settled, I'll recap some of the key deals. For today though, I want to inject a small dose of reality into the hype that's starting to build up around broadband-enabled TVs.

    First off, I'm thrilled to see an ecosystem of technology leaders, TV set manufacturers, content providers and aggregators taking shape around broadband-enabled TVs. It's looking increasingly inevitable that broadband access is going to be a staple feature of HDTVs in the years to come. Just as you wouldn't consider buying an HDTV without multiple HDMI ports today, at some point in the future you'll be unlikely to buy one without broadband capability. That's pretty cool.

    Still, what's missing from the flurry of this week's announcements is how the exciting new broadband path to the TV will actually be monetized by video content providers. I know that mundane questions like this aren't what people tend to focus on at glitzy CES, but they are critical nonetheless. With services like Netflix or Amazon VOD - which have been in the middle of several announcements - it's obvious enough how they'll benefit. The more pertinent question is how video that is ad-supported is going to work, especially since ad-supported video will always represent the lion's share of the average consumer's viewership time.

    The broadband video ad model itself is still nascent, and this week's J.P. Morgan report shows that there's no shortage of lingering skepticism still overhanging it. Nonetheless, I'd argue we're at least at a point now where most market participants have a pretty good handle on broadband video advertising's basics - serving technologies/vendors, formats, expected delivery quality, CPMs, user preferences, click-throughs, etc. In short, I believe the foundation is pretty well in place for a strong ramp up of spending (notwithstanding the larger economic issues) as the broadband video world exists today.

    But how much of that foundation will still be valid for broadband-enabled TVs vs. how much will need to be re-built (as is the case with mobile video)? Many of the answers are driven by the chips from Intel, Broadcom and others that are going into these TVs. Understanding their respective capabilities and how they'll support broadband video advertising's existing ecosystem is key.

    Here's why: in the broadband world to date, the computer's vast processing capabilities (along with the supporting cast of browser, media players, plug-ins, cookies and of course robust broadband access) has played an incredibly important, yet largely unsung role in raising the user experience bar to a point where broadband video has been massively adopted. Of course, this massive adoption has been THE key ingredient for the broadband video ad model to take off. And client-side capabilities only become more important in the highly syndicated broadband video world that I envision in the future. Ad servers need to know which site is playing the video so the right ad is dynamically served and everyone gets compensated properly. The new broadband TV chips need to support all of this and more.

    One needs look no further than cable's VOD experience to date to recognize how important the building blocks for an effective advertising model are. While billions of VOD streams are now consumed, very little of it is monetized due to still-inadequate ad capabilities. Years after VOD's launch, these monetization constraints are curtail content providers' interest in participating in VOD. In fact, I'd argue that broadband has actually been a beneficiary of VOD's deficiencies: faced with a choice of where to allocate resources, many content providers have shifted attention to broadband because its monetization mechanisms are so robust.

    Anyway, you get the point. Broadband-enabled TVs are very exciting. But to reach their potential, they must deliver a robust user experience and allow advertising to work effectively. In these penny-pinching, resource-constrained times, something that's cool is no longer enough to gain interest. People need to understand how they'll make money from it.

    What do you think? Post a comment now.

     
  • Yahoo Gets Traction in Broadband-to-TV Market

    At CES, Yahoo is making its presence felt in the budding broadband-to-the TV space with its "Yahoo Widget Engine." It has announced deals with TV manufacturers Samsung, LG, Sony and Vizio (see next post). It's an impressive list, and these Yahoo-enabled TVs are expected in the market later in '09.

    Some of you may recall that the Yahoo Widget Engine debuted last summer as part of a broader alliance with Intel called the "Widget Channel". The two companies have come together to create an applications framework running on new Intel media processing chips. An SDK allows 3rd party developers to use web-standard technologies to develop applications for TVs and other CE devices. That's a mouthful, but the news coming out of CES appears to show that Yahoo/Intel are making progress building out the ecosystem of both TV manufacturers and 3rd parties applications.

    In addition to Yahoo content like news, weather, finance and Flickr, there's 3rd party content from USA Today, YouTube, eBay and Showtime. And there are premium movie and TV programs from Netflix, Amazon VOD and Blockbuster. The list of others involved goes on.

    All of this is very positive for the budding broadband-to-the-TV space and clearly demonstrates how much emphasis the non-incumbent video service provider (cable/satellite/telco) world is placing on "over the top" services. As expected, these incumbents have a big disruptive bull's-eye on their foreheads. For the numerous 3rd parties that have never had access to the consumers' TV, broadband's openness provides their first-ever entry pass.

    As exciting as all this is, the jumble of TV, content, technology and aggregation brands coming to market is prime to create mass confusion for consumers being targeted with these services. Here's the scenario: a prospective TV buyer walks into a Best Buy just looking for a new HDTV, but pretty quickly starts hearing about all these different services and brands. Within minutes the consumer's head is going to be swimming. Which service and content is free and which costs extra? How does it all connect? What if I already have Netflix, Flickr or YouTube passwords - do they automatically work? Do I need to change something that's already in my house, like my home network? And who do I call if something's not working right? One sure winner with these new broadband TVs coming out is the Geek Squad!

    Still, this is exciting stuff. A whole new world of broadband on the TV content and applications is finally poised to see the light of day and with it will come all kinds of new opportunities.

    What do you think? Post a comment now.

     
  • Vizio is Latest to Announce Broadband/TV Integration

    Broadband video integrated TVs got another big boost as Vizio, one of the top 3 flat panel brands in the U.S. announced its new "Connected HDTV" platform at CES this afternoon. The move comes on top of Netflix's LG announcement, and other chip-based announcements from Adobe with Intel and Broadcom. More broadband TV announcements are sure to follow.

    The new Vizio TVs will incorporate the Yahoo Widget Engine and support for Adobe Flash Lite. Importantly, the TVs will allow access to a very broad range of content including Netflix Watch Instantly, Amazon VOD, Blockbuster OnDemand, Accedo, Flickr, Pandora, Rhapsody and Yahoo. For Netflix and Amazon specifically, the Vizio deal continues building out the portfolio of 3rd party devices that play their video libraries.

    From a consumer standpoint, I think it's becoming increasingly clear that by late '09 into '10, buying an HDTV will almost always include the experience of bringing the set home, connecting it to your home wireless network and browsing a growing collection of paid and free broadband video choices. I envisioned for a while that 3 devices - game consoles, Blu-ray players and IP-enabled TVs - would be leading the charge into the "over-the-top" market. With these CES announcements and more to come, TVs could well become the most prolific of the three in the long run.

    What do you think? Post a comment now.

     
  • Black Arrow Shoots for Multiplatform Ad Success

     
    Black Arrow has an ambitious goal of managing and serving ads across broadband video, DVR and VOD platforms. With audience fragmentation causing chaos in the advertising world, such a solution, when fully implemented, would have enormous value to content companies and service providers (cable, satellite, telco).

    Black Arrow has been around for a while but went under the radar for the past few months. Now it's re-emerging, with new CEO Dean Denhart installed about 6 months ago.

    Dean briefed me last week on news the company announced today, which included closing a $12M B round from existing investors Comcast, Cisco, Intel, Mayfield and Polaris and officially launching their ad platform.

    The company is trying to differentiate itself from many others serving ads in the broadband video space by tackling the thorny problem of also inserting in both the DVR and VOD environments. DVR insertion today is non-existent and for VOD it's not scalable. To succeed, the company will need to integrate its servers with the service providers, which is no easy feat. As many of you know, the rap on cable operators - and I've experienced this first-hand - is that selling into them wears out early-stage companies, using up precious time and capital in long drawn-out testing, selling and negotiation cycles.

    If Black Arrow survives this process and proliferates its gear into headends, it will have a formidable competitive advantage against competitors. And on the encouraging side, in the cable world at least, a nascent set of standards dubbed "DVS 629" governing digital ad insertion is now being worked on. Black Arrow is following these closely. Dean explained that the company has proven in its technology and in 2008 it will be pursuing field trials and initial rollouts with major operators. Certainly having Comcast as a lead investor can't hurt its chances.

    Black Arrow's real appeal to content companies will only begin when it has significant deployments. Dean explained that while the cable sell-in process continues to unfold, it will follow a parallel track of managing ads for broadband, with the longer-term value prop of multi-platform support. And it's taking a wait-and-see approach on which business model to use to fund the capex for proliferating its servers. An analogous and interesting approach is the one Akamai has mastered - i.e. not charging ISPs. Instead it positions its gear contributing to top-line growth and opex reductions. This strategy has been a massive success for Akamai, helping it achieve widespread deployments and a huge entry barrier for competitors.

    I really like this company's vision; however achieving it in full is going to take tenacity, patient and deep-pocketed investors and a few good breaks.

     
  • Telcos Embrace Video at NXTcomm

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    I made a quick trip to NXTcomm earlier this week to moderate a panel, have some meetings and walk the show floor. For those of you not familiar, NXTcomm is the joint event of the Telecommunications Industry Association (the association for telecom technology vendors) and the U.S. Telecom Association (the association of telecom service providers). This show, which drew about 20,000 people, grew out of Supercomm and GlobalComm conferences, is now the telco industry's main confab.

    What struck me the most was how much the show focused on video and entertainment. I was at Supercomm years ago and remember it being a bunch of telco engineers inspecting the latest gear for routing phone calls. No more. As new NXTcomm executive director Wayne Crawford explained in an interview with Telephony magazine, "NXTcomm has a much broader conference program in terms of different types of technologies represented a and much more of its emphasis is placed on technology as it relates to the entertainment industry.

    Boy, was this emphasis was evident on the show floor. All the big vendors, Microsoft, Intel, NEC, Nortel, Tandberg and others had major booth visibility around video. The telco industry is coming after the IPTV and broadband markets hard, and all of these vendors are providing the enabling gear. Having attended the Cable Show last month, NXTcomm doesn't yet have the glitzy booths of a Viacom or NBCU, but it wouldn't surprise me if they did by next year or the year after. Video is a major priority of the telco industry. Very exciting to see.

     
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