Over the Top Assault A Competitive Guide To Broadband Video Todd Spangler Multichannel News
10/4/2010 12:01:00 AM http://www.multichannel.com/article/457989-Over_the_Top_Assault.php Don't expect subscription TV services to get swept to their doom by an Internet hurricane anytime soon. Today, Internet-connected TV services are supplemental to — not a replacement for — cable TV. But there’s a steadily rising tide of “over-the-top” video services and devices that could make life uncomfortable for cable, satellite and telco TV providers by piping content directly to the big flat-screen in the living room. These include new initiatives from tech behemoths Apple and Google and a stepped-up focus by Netflix to expand its lineup of on-demand TV shows and movies. Even if Internet-distributed content doesn’t fully destroy the pay TV model, it threatens to chew away at the edges of what is now a mature business by driving consumers to lower-priced tiers. And the landscape could change dramatically if U.S. regulators adopt rules forcing programmers to license content to online distributors. “When incumbents are challenged by a credible alternative, they lose market share,” said Will Richmond, industry analyst and VideoNuze publisher. “New choices will always lead to some fragmentation in the market.” Among industry execs sounding the alarm: Verizon Communications chairman and CEO Ivan Seidenberg, who believes Internet video distribution will become a big problem. “Cable has some life left in its model … The bundled offering of 300 or 400 channels is the only way customers can buy that [content],” he said at a Goldman Sachs investor conference last month. “But that’s going to get disintermediated over the next several years.” Below: a table outlining major broadband-to-the-TV options available today, and how likely they are — or aren’t — to siphon off subscribers of traditional TV service. SERVICES Product/Technology: Amazon Video on Demand How Does It Work?: 50,000-plus TV shows and movies, available via streaming to PCs, several Internet-connected TVs, Blu-ray Disk players, set-tops, game consoles Pricing & Availability: TV shows $0.99-$2.99 per episode to rent or own (some free); available now Partners *: Sony, Panasonic, Roku, TiVo, Samsung, major studios and networks Cord-Cutter Outlook: A la carte model has narrower appeal than subscriptions; no live-TV programming Probability of Success = Low Product/Technology: iTunes How Does It Work?: iTunes Store off ers 65,000-plus TV shows and 10,000-plus movies for rent or purchase Pricing & Availability: TV shows to rent for $0.99 or purchase; HD movies to rent for $3.99; available now Partners *: ABC/Disney, Fox, BBC America for rentals; major studios and networks Cord-Cutter Outlook: No live TV; 99-cent next-day rentals don't have wide support Low Product/Technology: Google TV How Does It Work?: Allows users to search for and access linear TV listings, YouTube and other Internet video and run Internet-based applications on TV Pricing & Availability: To be determined; devices scheduled to ship fall 2010 Partners *: Sony, Dish Network, Logitech, Best Buy Cord-Cutter Outlook: Initial approach is to enhance existing TV services and provide expanded access to Net video Very Low Product/Technology: Hulu How Does It Work?: Free Web content includes 2,600 current primetime TV shows and 1,000 movies; premium service Hulu Plus available on various devices Pricing & Availability: Hulu Plus: $9.99/mo.; currently in private beta Partners *: Sony 225 content providers, including owners NBC, Fox and ABC Cord-Cutter Outlook: Content is largely broadcast shows; no live sports or news; may be "good enough" for some at an attractive price point Low to Medium Product/Technology: Netflix How Does It Work?: 20,000-plus movies and TV shows available to stream to more than 100 devices, including many TVs, Blu-Ray disc players Pricing & Availability: Subscription plans start at $8.99/mo.; available now Partners *: TiVo, Roku, Sony, LG, Panasonic, Apple, Nintendo Wii, Microsoft Xbox, Best Buy Insignia Cord-Cutter Outlook: Content still lags availability on TV; no live TV (except Starz's linear channel on PCs) but model could incorporate live events Low to Medium Product/Technology: Wal-Mart's Vudu How Does It Work?: 3,000-plus HD streaming movies on demand, many available in 1080p HD, through compatible Internet-connected TV Pricing & Availability: Rentals $0.99-$5.99; purchases $4.99-$24.99 Partners *: LG, Samsung, Sharp, Toshiba, Vizio; major movie studios Cord-Cutter Outlook: Content catalog is mostly movies; aimed at high-end niche Very low DEVICES Product/Technology: Apple TV How Does It Work?: Small Internet set-top provides streaming access to rentals of TV shows and movies, plus Netflix, YouTube, purchased iTunes content Pricing & Availability: $99; was to start shipping September Partners *: ABC/Disney, Fox, BBC America for show rentals Cord-Cutter Outlook: Rental model unproven and content selection limited; Netflix feature not differentiated Low Product/Technology: Boxee How Does It Work?: Application and Web content guide designed for TV displays; touts nearly 40,000 TV shows primarily from broadcast networks Pricing & Availability: Boxee-based set-top from D-Link: $199; to be available November 2010 Partners *: MLB.tv, Pandora, Comedy Central Cord-Cutter Outlook: Content is not differentiated; will have difficulty crossing over to non-tech audience Low Product/Technology: Microsoft Xbox 360 How Does It Work?: Game console provides access to Netflix, ESPN3.com, movies and TV shows on-demand Pricing & Availability: $299; available now Partners *: Netflix, ESPN, major studios and cable networks Cord-Cutter Outlook: Access to ESPN3 is unique but not enough to prompt cable cancellations Low Product/Technology: Panasonic Viera Cast How Does It Work?: Internet service that provides video, information, entertainment Pricing & Availability: Free with select HDTVs, Blu-ray Disc players; available now Partners *: Netflix, YouTube, Fox Sports, Amazon, Pandora, Bloomberg Cord-Cutter Outlook: A Most attractive feature may be Netflix streaming Low Product/Technology: Roku How Does It Work?: HD Internet set-top that provides access to Netfl ix on-demand and other content Pricing & Availability: Starts at $59; available now Partners *: Netflix, Hulu Plus, Amazon, MLB.tv, UFC Cord-Cutter Outlook: A Device's appeal is mainly as a Netflix client Low Product/Technology: Samsung How Does It Work?: Samsung Apps platform provides access to video, games and information services Pricing & Availability: TV Free with select HDTVs, Blu-ray Disc players; available now Partners *: Blockbuster, Netflix, YouTube, Vudu, Yahoo Widgets, Pandora, eBay, Twitter, Skype Cord-Cutter Outlook: Content lineup currently not differentiated from other Internet-connected CE devices Low Product/Technology: Sezmi How Does It Work?: Hybrid broadcast/Internet-delivered service with access to local TV stations, some VOD and Internet content and cable programming Pricing & Availability: TV Receiver system $150; broadcast-only service $4.99/mo. available in 36 markets; $19.99/mo. with 23 cable networks in Los Angeles only Partners *: Local TV stations and groups; Best Buy; major movie studios; some cable programmers Cord-Cutter Outlook: Service designed as cheap alternative to cable/satellite TV but traction to date is unclear Low to Medium Product/Technology: Sony PlayStation 3 How Does It Work?: Net-connected gaming console provides access to Internet video content, including some original programs Pricing & Availability: From $299; available now Partners *: PlayStation Network service provides rentals/purchase of movies and TV shows; as well as Twitter, Facebook and other apps; Netflix streaming Cord-Cutter Outlook: Device's main selling proposition as a game machine rather than TV service Low Product/Technology: TiVo Premiere DVR How Does It Work?: Digital video recorder that provides access to Internet-delivered movies, video clips, TV shows and apps Pricing & Availability: Starts at $299; available now Partners *: Amazon, Netflix, Blockbuster, YouTube, Music Choice, Hulu Plus, 1,000-plus Internet content publishers Cord-Cutter Outlook: DVR's core value still relies on traditional TV Very Low Product/Technology: LG NetCast How Does It Work?: Internet-delivered TV shows, movies on-demand and information Pricing & Availability: Free with select HDTVs, Blu-ray Disc players; available now Partners *: Netflix, Roxio CinemaNow, Yahoo Widgets, Pandora, Vudu, YouTube Cord-Cutter Outlook: Content lineup not differentiated from competing Internet-connected CE devices Low -- ======================================== George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 Mail: antunes at uh dot edu _______________________________________________ Medianews mailing list Medianews@etskywarn.net http://lists.etskywarn.net/mailman/listinfo/medianews
