Newsletter
Google Left Banner
HP’s MediaSmart Strategy Accelerates Internet Enabled Television
09 Jul, 2007
HP is pursuing direct content rights for its MediaSmart platform, which provides Internet connectivity for the television. The MediaSmart platform is a LCD television that acts as an access point on a home network, providing access to both home network stored content, and content delivered directly from the Internet. There is no need for an additional set top box. Connectivity is provided through an Ethernet port on the television. The MediaSmart platform is currently offered on a 37 inch LCD television. HP reports that the MediaSmart line will expand later this year to include 42- and 47-inch models and 802.11n Wi-Fi connectivity.
This product is an early indicator of the future of television. The idea of Internet connected TV’s is interesting, but not really the core issue of this development. As Multichannel News reports, the real interesting issue is HP’s pursuit of direct content rights for the MediaSmart platform. They have already secured rights for the CinemaNow library of films and features, and they are pursuing others. HP intends to have “… a pretty extensive library of content,” for the platform, says Alex Thatcher, senior product marketing manager for HP’s Digital TV Solutions group. This development illustrates the growing trend of consumer electronics manufacturers joining the ‘living room’ battle for eyeballs now being waged by cable MSOs, telcoTV providers, and the growing number of Internet options available to consumers. Apple intends to be a major player in this competitive battle, using AppleTV as their major weapon. Television manufacturers may have an interesting advantage. Should they decide to insert a ‘start-up’ menu that supersedes any other view when a television is turned on, they may be in a position to influence consumer’s viewing decisions first. If they have their own negotiated content options and partnerships, will they steer consumers towards more self serving options? Could we see future accusations against HP or Toshiba or Sony that are analogous to past accusations that were made against Microsoft and their purported unfair advantage on PCs with MS Windows? Or maybe the future will offer Comcast or FiOS branded televisions/media centers, in much the same way wireless firms brand mobile wireless devices. We may be witnessing the start of the fight over the ‘TV operating system’, and who controls what consumers view upon turning on the television.
digg this story
googleCable Rates Will Rise from FCC STB Mandate
05 Jul, 2007It didn’t take long for cable rate hike discussions to begin, following the FCC July 1st deadline for cable set top box changes, officially called Commercial Availability of Bidirectional Navigation Devices. Now cable MSOs are saying this mandate could cause cable bills to rise $2 to $3 per month. Comcast has committed to spread the cost across all subscribers, while other MSOs are debating whether to only spread the cost among new subscribers who’s STB’s will fall under this new mandate.
The presence of IPTV and DBS competitors is probably working to keep these rate hikes somewhat in check. Cable MSOs know they can’t get over zealous in trying to capitalize on this new policy. They have been accused of doing just that in the past, prior to the days of facing formidable competitors.
Read this USA Today story for more details.
About Telecompetitor
Telecompetitor is a leading industry blog covering the telecom competitive landscape. We provide insight, analysis, and commentary on the issues and implications of the evolving telecom competitive landscape.
a publication of
Channel
Webinars/Events
Upcoming Events
NTCA Wireless Symposium
Jan 7-9, 2009 - Austin, TX
Featured Article
Should Telephone Service be Free?
12 Oct, 2008
Comcast announced a new promotion last week that offers 12 months of free basic cable service for new customers who also sign up for an additional service. Customers who don’t want an additional service can get Comcast’s basic service of about 20 -30 channels for $10/month. The promotion is tied to the digital TV transition of February 2009 and entices potential customers to avoid the transition “hassle” by getting “free” cable service. “The simple fact is that basic cable is the easiest path through the digital transition and now consumers can get it for free,” said Derek Harrar, General Manager and Senior Vice President, Video Services for Comcast in a company statement. This move is similar to strategies pursued by other video service providers, who are hoping to leverage the digital TV transition for new subscriber additions.
But is this strategy a leading indicator for the future? Should basic core services like basic cable and basic telephone service be offered for free, used as a “carrot” to entice customers to buy “more important” services like broadband? Maybe a very basic phone service, with no LD, access to landline 911, and maybe outgoing service only (to avoid telemarketers) should be a free component of a bundled offering. Such a wireline service may appeal to a customer who previously cut the cord for wireless only, but also needs broadband. There is a growing portion of the population who find the value of traditional wireline phone service elsewhere – either through wireless or broadband/IP services. But, if they could get the security of landline 911, and an extra dial tone in their home as a free value add for subscribing to broadband (or video from a telco’s perspective), maybe a telco’s bundled offering may look more attractive than a comparable cable offering. I realize this idea is not appealing to the hundreds of ILECs who are a part of the current access/settlement system (in fact, it couldn’t work in the context of today’s regulatory structure), but I wonder whether it’s inevitable. In this possible future scenario, the current settlement system adapts to broadband as the underlying service, as opposed to voice.
This scenario cuts both ways. From a cable company’s perspective, a growing portion of the population is turning to the Internet as a source for their video content, and no longer see value in paying for a broad package of video as a part of a traditional subscription pay-TV service. But, if they could receive basic TV (which includes local broadcast affiliates) as a free value add for buying broadband, maybe the cable bundle is more attractive. In a true IP/broadband world, very basic phone and video service is relatively easy to deliver, and has little impact on bandwidth and network performance. Maybe the digital transition is opening the door to a future where free basic services are a regular component of a bundled offering. Thoughts?