[opendtv] How set-tops got stuck in a TV transition

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 7 Sep 2010 15:23:41 -0500

I think Rich Merritt misses the point that, with very few exceptions, all of 
these new web-based schemes, with their own STBs, are merely trying to create 
their own walled-in medium. But he correctly (IMO) groups together the congloms 
and the MVPDs as being those who currently control the content.

The one exception I had in mind was the Sony Vaio I saw some time ago. That 
allowed access to the entire web, to OTA, to BluRay discs, allowed recording on 
its hard drive. An unsually unwalled design.

This one comment from a reader is right on the money:

------------------
9/3/2010 4:05 PM EDT

The problem with DVR boxes is that they are built to restrict access, not to 
enable it. It is only very recently that they have added whole-house 
functionality and search capability, something that my Windows Media Center box 
has done for years. The DVR is a box that is under the complete control of the 
cable company, so why should I pay for it?

CableCARD was supposed to break this monopoly, but the cablecos dragged their 
feet on it and forced so many restrictions that it was unusable. The interest 
generated by the recently-released Ceton InfiniTV card is an indication of the 
frustration of technically-capable users with this situation.

Larry M.
------------------

Of course, he does assume that a DVR must be under the control of a MVPD. Then 
again, in this country, that is very close to the truth.

Bert

---------------------------------
http://www.eetimes.com/electronics-news/4207341/How-set-tops-got-stuck-in-TV-transition

How set-tops got stuck in a TV transition
Rick Merritt
9/3/2010 9:52 AM EDT

SAN JOSE, Calif. - When Steve Jobs held aloft his new $99 AppleTV box this 
week, most people applauded it as a dirt cheap deal. But Ira Bahr got excited 
because he thought it was relatively expensive.

"Apple gives me hope someone will actually pay $99 for a set-top box," said the 
chief marketing officer for Dish Network who has been locked in a price war 
with other satellite, cable and telco TV providers.

Indeed, the set-top box has become the Rodney Dangerfield of the consumer 
electronics industry. "I have customers calling in that want a digital video 
recorder or an upgrade to high definition but are outraged if they have to pay 
for a set top," said Bahr in a keynote address to about 200 people at Set-Top 
Box 2010 in San Jose.

"Today we are no more interesting [to consumers] than an electric or gas 
company-it's just not exciting anymore," said Bahr, noting Comcast now gives 
away Apple iPods to entice new users to take its service and set-top.

Service providers like Dish are doing all they can to add pizzazz to their 
little black pizza boxes.

Dish is a partner in the GoogleTV initiative, aiming to deliver an Intel 
Atom-based set-top this fall that plugs users into a new service more closely 
linked to the Web and Web-like search. And Dish's set-top maker Echostar 
acquired Sling Media to provide video to PCs and handsets as well as TVs-the 
three-screen nirvana the industry is now seeking.

Sounds like all the right moves. But the trouble is the days of cable and 
satellite TV networks are numbered. Something new is slowly being born.

David Grubb, chief technology officer for Motorola Home was right to dub this 
the Internet era in his conference keynote. Television will become one 
application for TVs that increasingly will be multifunction devices, he said.

This shift is bound to happen, but today's cable, satellite and telco TV 
providers and their vendors cannot truly embrace it. They are locked into 
Clayton Christensen's dilemma of trying to serve their existing networks and 
customers.

Plenty of so-called over-the-top boxes have emerged in the last few years 
trying to ride the new paradigm, but they have lacked clout and content. Roku's 
Anthony Wood claims he invented the field two years ago with his $99 Netflix 
player that now comes in a standard definition version for as little as $59.

These so-called buddy boxes are stuck in secondary roles as long as the 
majority of premium content is still locked into release windows on broadcast 
TV. Even Steve Jobs with all his Hollywood clout from Pixar had to content 
himself with an AppleTV box that would deliver only some select programs from a 
handful of content owners the day after their broadcast release.

The fact is today's cable, satellite and telco TV networks still own the 
mainstream pipes to the consumer. Someday Joe Six-Pack will only need a good 
broadband connection and a TV-centric browser-likely with some new kind of 
remote control and search engine-to access any new or archived video you might 
imagine.

But 2010 sits in an awkward spot when the old networks still have plenty of 
life and the new Internet set-tops still have plenty of problems.

Many have tried and failed to make Web pages optimized for 640x480 pixel 
screens look good on a 1080-processive flat-panel TV. Junk drawers are full of 
novel keyboards and remotes for easily navigating the Net from the couch. And 
no one has yet delivered the browser-centric program guide for the Web TV era.

For its part, Hollywood is still clutching its content libraries and release 
windows in fear of a free-Internet future. It's high time Hollywood and set-top 
box makers stop flirting and get married. The Internet TV era is theirs for the 
taking if they can let go of their old attachments to yesterday's cable and 
satellite networks.

I suspect Apple has not delivered an iTV, in part because these technical and 
business problems are so difficult. It also has its hands full with other quite 
successful businesses.

There's lots of work to be done enabling Web-a-vision. This transition could 
take a decade. So for awhile, the old set-top is stuck with its sad sack status 
of being the box that doesn't get any respect.
 
 
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