How can we leave the living room?
We can see that the Analog to Digital Living Room Long Term Trend is in place as people are upgrading to High Definition Digital Television, [Corning Glassware (GLW) is a play on this.] and installing Home Theater Systems [Dolby (DLB) is a play on this]. Content providers such as Comcast (CMCSA), DirectTV (DTV), and the Dish Network (DISH), also help keep people in their seats.
Now there are even more ways to keep people in their living rooms.
DVRs, or Digital Video Recorders, allow users to record and watch their favorite shows, even in high definition. These devices are very user friendly, and users of products such as Tivo (TIVO) have a cult following. The NDS Group (NNDS) is also another play on this.
Tivo has recently teamed up with Amazon.com (AMZN) to provide a service called Amazon Unbox, that allows movies and shows to be directly downloaded from Amazon to the Tivo DVR.
Netflix (NFLX) and BlockBuster (BBI) offer another alternative to home entertainment. These companies ship DVDs by postal mail and provide another source of home entertainment.
Netflix (NFLX) recently teamed up with Roku. Roku provides a special set-top box that allows subscribers of Netflix to stream a selection of movies directly to their television (which could be a widescreen High Definition Television). [I recently tried out the Roku system, and it is easy to setup and convenient and there are no extra service fees from Netflix. Quality at this time is close to the VHS level, but streaming is very good using broadband.]
Apple (AAPL) has attempted a similar type of Set Top Box with AppleTV but that product has not taken off.
Gaming consoles, from makers such as Nintendo (NTDOY.pk), Microsoft (MSFT), and Sony (SNE) also provide even more reasons for people to stay in their living room.
With all these forms of entertainment in the living room, how will people leave their living room?
Showing posts with label tivo. Show all posts
Showing posts with label tivo. Show all posts
Friday, June 6, 2008
Wednesday, May 21, 2008
Netflix (NFLX) Wants to Dominate the Digital Living Room with Roku Partnership
We all know Netflix (NFLX) as the company that provides DVDs by postal mail. Some time ago, they added a feature where you can logon to their Netflix.com site, and watch selected movies through the internet browser without affecting the normal DVD by mail schedule.
However, watching a full two hour movie in front of one's Computer will not be a good experience. People have invested much money in their couches, high definition TVs and home entertainment sound systems. The next step is delivering content, such as DVD content from the home computer and internet to the comfort of the Digital Living room.
Apple (AAPL) attempted to market a similar solution using AppleTV but this product has not taken off.
Tivo (TIVO) is offering another option. Aside from providing Digital Video Recorder Functionality (DVR), Tivo is also working together with Amazon Unbox program where users of Tivo can download movies purchased or rented from Amazon.com (AMZN).
Netflix's Solution to the Digital Living Room
Now, Netflix is part of the competition for the Digital Living Room, Netflix is also now taking this route with its partnership with Roku. For $99, Roku is providing a special set top box where special on-demand movies from Netflix can be streamed directly to your living room television.
This service will not affect the normal DVD by postal mail service of Netflix.
Will this product work? I have recently ordered a Roku box and will try it out.
More details on the Roku Netflix Player here.
The battle for the Digital Living Room continues, and let us keep track of the trends in this area.
However, watching a full two hour movie in front of one's Computer will not be a good experience. People have invested much money in their couches, high definition TVs and home entertainment sound systems. The next step is delivering content, such as DVD content from the home computer and internet to the comfort of the Digital Living room.
Apple (AAPL) attempted to market a similar solution using AppleTV but this product has not taken off.
Tivo (TIVO) is offering another option. Aside from providing Digital Video Recorder Functionality (DVR), Tivo is also working together with Amazon Unbox program where users of Tivo can download movies purchased or rented from Amazon.com (AMZN).
Netflix's Solution to the Digital Living Room
Now, Netflix is part of the competition for the Digital Living Room, Netflix is also now taking this route with its partnership with Roku. For $99, Roku is providing a special set top box where special on-demand movies from Netflix can be streamed directly to your living room television.
This service will not affect the normal DVD by postal mail service of Netflix.
Will this product work? I have recently ordered a Roku box and will try it out.
More details on the Roku Netflix Player here.
The battle for the Digital Living Room continues, and let us keep track of the trends in this area.
Saturday, July 21, 2007
The Geek Portfolio
A long time ago, the word "Geek" meant "a person often of an intellectual bent who is disliked." Today, the word suggests "an enthusiast or expert in a technological field or activity" such as a Computer Geek. The label "Geek" is often worn with pride. ("Geek Squad", for example, refers to Best Buys (BBY) computer services group.)
If we had to create a "Geek portfolio" what companies might be in it?
1. Red Hat Linux (RHT) -- A good section of Computer Geeks were anti-Microsoft. One of the companies which represented the anti-Microsoft movement is Red Hat Linux. Linux is a Unix based operating system that is very different from any Microsoft Windows Operating System.
2. Sun Microsystems (SUNW) -- Sun Microsystems is another anti-Microsoft play. Among the many things they do, they create the Solaris Operating system, again, a Unix operating system that is very different from any Microsoft Windows variant. They also develop the language Java, which is a computer programming language that can easily be moved from one platform (for example, Microsoft Windows), to another (for example, the Linux operating system).
3. Shanda Interactive (SNDA) and NCTY (The9 Limited) -- Both Shanda Interactive and The9 Limited are Chinese Online Gaming companies. Yes, there are a lot of Chinese online computer geeks who like to play online games. Do you know what "WoW" (World of Warcraft) or "MMORPG" (Massively Multiplayer Online Role Playing Game) means?
4. Comcast (CMCSA) or AT&T (T) -- Geeks need their high speed internet connection, wireless data service, and specialty shows on Cable. Also, the Unix operating system was created by employees of AT&T and Bell Labs (Ken Thompson, Dennis Ritchie, Douglas Mcllroy and others.)
5. Research in Motion (RIMM) -- Producer of the popular handset Blackberry.
6. Corning Glassware (GLW) -- A computer geek may want multiple flat screen high definition monitors and TV sets. Some may even have two large LCD monitors for each computer. Corning is involved in the flat screen LCD market, and they also produce products for the Optical Networking world. Geeks need higher broadband speeds that Optical Networking provides!
7. Discovery Holding (DISCA) -- Discovery Holdings makes programs such as Animal Planet, Discovery Channel and Science Channel.
8. Blackboard Inc (BBBB) -- Blackboard makes education software and applications for the studious geek. They are helping bring education into the 21st century.
9. Yahoo (YHOO) -- They manage lots of internet services such as Yahoo Messenger, Yahoo mail, Yahoo groups, and other social networking activities.
10. IAC/Interactive Corp (IACI) -- Provides a variety of services and internet sites, including sites such as evite.com where invitations to many of life's activities are done electronically. I've been invited to a wedding using evite!
11. Google (GOOG) -- Digital information is everywhere, and Google is there to help bring it to you. They also own YouTube.com, where people can share and view internet videos.
12. Tivo (TIVO) -- Their brand of Digital Video Recorder (digital version of VHS) changed the lives of many people around the country. It became so popular, that "Tivo" became a verb, which means, to record something on cable or satellite TV digitally. Those who have Tivo swear by it, and their lives are truly transformed.
13. Gamestop (GME) -- Video and computer gaming geeks need Gamestop so they can purchase their next gaming console or game.
14. Domino's Pizza (DPZ) -- Geeks need their greasy brain food for late night sessions.
15. Pepsi (PEP) -- Maker of Mountain Dew, other sodas, and snacks. Geeks need some sugar and caffeine to keep them going.
16. Dolby (DLB) -- Audiophile geeks need Dolby.
17. Apple (AAPL) -- Computer geeks like the Mac (another anti-Microsoft play), and many others like iTunes, ipod, and the new iPhone, the latest Geek product from Apple.
18. Ebay (EBAY) -- For Collector Geeks who want to either find a good deal, or hard to find items.
19. Marvel Entertainment (MVL) -- For Comic Book Geeks!
20. Hasbro (HAS) -- Toys for future geeks, includes the Transformer robots.
21. I-Robot (IRBT) -- Produces robots for civilians and the military. Don't true geeks want a vacuum cleaner that is a robot that cleans your floor for you?
22. Bidu (BIDU) and Rediff (REDF) -- There are Chinese and Indian Geeks as well who like to use Bidu's and Rediff's internet services.
23. Garmin (GRMN) and Navteq (NVT) -- Garmin makes GPS products and Navteq makes the digital maps. Doesn't every geek want their automobiles to have GPS? Also, more people are using online services to find directions using Navteq maps. Maybe some geeks have never used a paper map before.
24. McGraw Hill (MHP) -- They publish textbooks and other related products.
25. Thermo Fisher Scientific (TMO) -- Good place to get balances, beakers, test tubes and other related products.
26. Canon (CAJ) -- They make many electronic products including Digital Cameras for Photography geeks.
27. Sandisk (SNDK) -- Geeks need to store their data on portable devices.
28. Shutterfly (SFLY) -- Online scrapbook geeks need a place to put their digital photos.
29. Adobe (ADBE) -- They make Adobe Photoshop and other digital photo and video editing products. Adobe also makes Flash, a special technology for the Internet/Web.
30. Toei (4816) -- Japanese anime company including "Dragonball Z, One Piece, Bobobo-bo Bo-bobo, Yu-Gi-oh, Sailor Moon, Voltron, old Transformer Cartoons, etc."
31. Best Buy (BBY) -- Electronic retailer that Electronic geeks would like.
32. Netflix (NFLX) -- For Movie Geeks.
Credits
The ideas above are my own plus a lot of help from the wonderful stock picking social networking site, Stockpickr.com. It's free to join!
If we had to create a "Geek portfolio" what companies might be in it?
1. Red Hat Linux (RHT) -- A good section of Computer Geeks were anti-Microsoft. One of the companies which represented the anti-Microsoft movement is Red Hat Linux. Linux is a Unix based operating system that is very different from any Microsoft Windows Operating System.
2. Sun Microsystems (SUNW) -- Sun Microsystems is another anti-Microsoft play. Among the many things they do, they create the Solaris Operating system, again, a Unix operating system that is very different from any Microsoft Windows variant. They also develop the language Java, which is a computer programming language that can easily be moved from one platform (for example, Microsoft Windows), to another (for example, the Linux operating system).
3. Shanda Interactive (SNDA) and NCTY (The9 Limited) -- Both Shanda Interactive and The9 Limited are Chinese Online Gaming companies. Yes, there are a lot of Chinese online computer geeks who like to play online games. Do you know what "WoW" (World of Warcraft) or "MMORPG" (Massively Multiplayer Online Role Playing Game) means?
4. Comcast (CMCSA) or AT&T (T) -- Geeks need their high speed internet connection, wireless data service, and specialty shows on Cable. Also, the Unix operating system was created by employees of AT&T and Bell Labs (Ken Thompson, Dennis Ritchie, Douglas Mcllroy and others.)
5. Research in Motion (RIMM) -- Producer of the popular handset Blackberry.
6. Corning Glassware (GLW) -- A computer geek may want multiple flat screen high definition monitors and TV sets. Some may even have two large LCD monitors for each computer. Corning is involved in the flat screen LCD market, and they also produce products for the Optical Networking world. Geeks need higher broadband speeds that Optical Networking provides!
7. Discovery Holding (DISCA) -- Discovery Holdings makes programs such as Animal Planet, Discovery Channel and Science Channel.
8. Blackboard Inc (BBBB) -- Blackboard makes education software and applications for the studious geek. They are helping bring education into the 21st century.
9. Yahoo (YHOO) -- They manage lots of internet services such as Yahoo Messenger, Yahoo mail, Yahoo groups, and other social networking activities.
10. IAC/Interactive Corp (IACI) -- Provides a variety of services and internet sites, including sites such as evite.com where invitations to many of life's activities are done electronically. I've been invited to a wedding using evite!
11. Google (GOOG) -- Digital information is everywhere, and Google is there to help bring it to you. They also own YouTube.com, where people can share and view internet videos.
12. Tivo (TIVO) -- Their brand of Digital Video Recorder (digital version of VHS) changed the lives of many people around the country. It became so popular, that "Tivo" became a verb, which means, to record something on cable or satellite TV digitally. Those who have Tivo swear by it, and their lives are truly transformed.
13. Gamestop (GME) -- Video and computer gaming geeks need Gamestop so they can purchase their next gaming console or game.
14. Domino's Pizza (DPZ) -- Geeks need their greasy brain food for late night sessions.
15. Pepsi (PEP) -- Maker of Mountain Dew, other sodas, and snacks. Geeks need some sugar and caffeine to keep them going.
16. Dolby (DLB) -- Audiophile geeks need Dolby.
17. Apple (AAPL) -- Computer geeks like the Mac (another anti-Microsoft play), and many others like iTunes, ipod, and the new iPhone, the latest Geek product from Apple.
18. Ebay (EBAY) -- For Collector Geeks who want to either find a good deal, or hard to find items.
19. Marvel Entertainment (MVL) -- For Comic Book Geeks!
20. Hasbro (HAS) -- Toys for future geeks, includes the Transformer robots.
21. I-Robot (IRBT) -- Produces robots for civilians and the military. Don't true geeks want a vacuum cleaner that is a robot that cleans your floor for you?
22. Bidu (BIDU) and Rediff (REDF) -- There are Chinese and Indian Geeks as well who like to use Bidu's and Rediff's internet services.
23. Garmin (GRMN) and Navteq (NVT) -- Garmin makes GPS products and Navteq makes the digital maps. Doesn't every geek want their automobiles to have GPS? Also, more people are using online services to find directions using Navteq maps. Maybe some geeks have never used a paper map before.
24. McGraw Hill (MHP) -- They publish textbooks and other related products.
25. Thermo Fisher Scientific (TMO) -- Good place to get balances, beakers, test tubes and other related products.
26. Canon (CAJ) -- They make many electronic products including Digital Cameras for Photography geeks.
27. Sandisk (SNDK) -- Geeks need to store their data on portable devices.
28. Shutterfly (SFLY) -- Online scrapbook geeks need a place to put their digital photos.
29. Adobe (ADBE) -- They make Adobe Photoshop and other digital photo and video editing products. Adobe also makes Flash, a special technology for the Internet/Web.
30. Toei (4816) -- Japanese anime company including "Dragonball Z, One Piece, Bobobo-bo Bo-bobo, Yu-Gi-oh, Sailor Moon, Voltron, old Transformer Cartoons, etc."
31. Best Buy (BBY) -- Electronic retailer that Electronic geeks would like.
32. Netflix (NFLX) -- For Movie Geeks.
Credits
The ideas above are my own plus a lot of help from the wonderful stock picking social networking site, Stockpickr.com. It's free to join!
Monday, June 4, 2007
Tivo Experience
Not everyone may know about Tivo. But for those people who do have Tivo, they will swear by the product and proclaim that Tivo has truly changed their life.
What is Tivo?
Tivo is the leader and innovator of a category of products called DVRs, Digital Video Recorders. Essentially, a DVR is similar to the old VCR, but shows are saved in a digital format in the DVR's internal hard drive (and with a capacity normally much better than a VHS tape). But the features of DVRs go beyond that.
In the Tivo (which I consider the best of all the DVRs, since I am a user of Tivo), there is a channel guide with program information which is updated on a regular basis. Users of Tivo can select programs through the guide, or they can search for the program. Once they find the program, a user could just press the button to record. No more having to manually set up Start Time, End Time, Channel. (No more Blinking 00:00 time lights either.) You just tell Tivo what program to record (even in the future), and it records it.
Tivo users also have the option to choose to record an entire season called "Season Pass". A Tivo user could select taping all reruns of "Friends", and the system automatically tapes the entire series.
When Tivo users want to watch a program, they simply go through a listing of all taped programs (with proper labels and episode information) and choose which program they wish to watch. They can fast forward to the parts they want, and they can even program a button to skip 30 seconds, very useful for fast forwarding commercials).
When watching Live TV, the Tivo users can even rewind Live TV to replay any part they missed. They can also pause Live TV during a Big Game so you can go to the door and pay the pizza delivery person.
Some Tivo's have a Dual Tuner Feature where you can record two shows in parallel. Tivo Series 3 supports High Definition. (Once you use Tivo Series 3 to record HD programs, you'll realize that you won't want to watch standard definition anymore.)
The Tivo is an easy to use standalone box which doesn't require a PC. The Tivo box is the size of a DVD player, and downloads program information either through a home network (wired, or wireless) or through a dialup phone number. Obviously, Tivo will require a connection to the content (Cable, satellite, or over the air).
Some Tivos even have a DVD writer built in (not Tivo Series 3).
If a Tivo user connects through the PC, that user will be able to access some information on the PC, including displaying photos. This Tivo Server feature will most likely be able to support many value added features similar to a Window Media Server or Apple iTV. You can access some Yahoo (YHOO) functionality from the Tivo interface as well.
Tivo and Amazon have also teamed up with Amazon Unbox. This will allow users of Tivo to purchase shows from Amazon and have them downloaded direct to the Tivo box to be watched later.
With Tivo Series 3, you don't even need a cable box. Typically, with older Tivos, a cable box may be connected to the Tivo. But Tivo Series 3 allows Cable Cards to be inserted into the Tivo instead of a Cable set-top box. The cable card essentially replaces the Set-Top Box (you won't get video on demand, however). This removes clutter from the entertainment system and simplifies things.
Users of Tivo pay a monthly subscription fee. Sometime ago, users were offered a lifetime subscription, but this offer is no longer offered. Some people go to Ebay to buy a Tivo with Lifetime subscription attached.
Tivo's Effect
Tivo and the DVR has truly changed the way people live. Before, people would reschedule their life so they can try to catch their favorite show. A lucky few may have planned in advance and setup their VCR to record a few programs here and there.
But now, Tivo users can live their life without being attached to the broadcast TV schedule. Tivo users can watch what they want, anytime they want. Those who have Tivo never watch Live TV again.
For parents, it can be very helpful too. Parents can tell their children to not watch any television during school nights, and on the weekend, they can watch shows they missed on Tivo.
Tivo users save a lot of time too as they learn to fastforward shows or fast forward commercials.
And Tivo, if you don't need the TivoServer feature, doesn't require a PC. And the Tivo looks to be much easier to setup than a Windows Media Server or even an Apple TV.
Adoption
If Tivo is so good, then why don't more people use it?
Good question and this is a challenge for Tivo (as well as all the players in the Digital Living Room). As I discussed in a previous post, many companies are fighting for market share in the Digital Living Room. One person even wished that some Tivo functionality can be combined with Apple TV (who has a near monopoly with iTunes, and has a deal with YouTube to show YouTube videos.
The industry still has ways to go and may require consolidation and partnership and interoperability. But as my description of Tivo above shows, we are getting closer to a life changing digital living room. Tivo certainly has already changed many peoples lives.
What is Tivo?
Tivo is the leader and innovator of a category of products called DVRs, Digital Video Recorders. Essentially, a DVR is similar to the old VCR, but shows are saved in a digital format in the DVR's internal hard drive (and with a capacity normally much better than a VHS tape). But the features of DVRs go beyond that.
In the Tivo (which I consider the best of all the DVRs, since I am a user of Tivo), there is a channel guide with program information which is updated on a regular basis. Users of Tivo can select programs through the guide, or they can search for the program. Once they find the program, a user could just press the button to record. No more having to manually set up Start Time, End Time, Channel. (No more Blinking 00:00 time lights either.) You just tell Tivo what program to record (even in the future), and it records it.
Tivo users also have the option to choose to record an entire season called "Season Pass". A Tivo user could select taping all reruns of "Friends", and the system automatically tapes the entire series.
When Tivo users want to watch a program, they simply go through a listing of all taped programs (with proper labels and episode information) and choose which program they wish to watch. They can fast forward to the parts they want, and they can even program a button to skip 30 seconds, very useful for fast forwarding commercials).
When watching Live TV, the Tivo users can even rewind Live TV to replay any part they missed. They can also pause Live TV during a Big Game so you can go to the door and pay the pizza delivery person.
Some Tivo's have a Dual Tuner Feature where you can record two shows in parallel. Tivo Series 3 supports High Definition. (Once you use Tivo Series 3 to record HD programs, you'll realize that you won't want to watch standard definition anymore.)
The Tivo is an easy to use standalone box which doesn't require a PC. The Tivo box is the size of a DVD player, and downloads program information either through a home network (wired, or wireless) or through a dialup phone number. Obviously, Tivo will require a connection to the content (Cable, satellite, or over the air).
Some Tivos even have a DVD writer built in (not Tivo Series 3).
If a Tivo user connects through the PC, that user will be able to access some information on the PC, including displaying photos. This Tivo Server feature will most likely be able to support many value added features similar to a Window Media Server or Apple iTV. You can access some Yahoo (YHOO) functionality from the Tivo interface as well.
Tivo and Amazon have also teamed up with Amazon Unbox. This will allow users of Tivo to purchase shows from Amazon and have them downloaded direct to the Tivo box to be watched later.
With Tivo Series 3, you don't even need a cable box. Typically, with older Tivos, a cable box may be connected to the Tivo. But Tivo Series 3 allows Cable Cards to be inserted into the Tivo instead of a Cable set-top box. The cable card essentially replaces the Set-Top Box (you won't get video on demand, however). This removes clutter from the entertainment system and simplifies things.
Users of Tivo pay a monthly subscription fee. Sometime ago, users were offered a lifetime subscription, but this offer is no longer offered. Some people go to Ebay to buy a Tivo with Lifetime subscription attached.
Tivo's Effect
Tivo and the DVR has truly changed the way people live. Before, people would reschedule their life so they can try to catch their favorite show. A lucky few may have planned in advance and setup their VCR to record a few programs here and there.
But now, Tivo users can live their life without being attached to the broadcast TV schedule. Tivo users can watch what they want, anytime they want. Those who have Tivo never watch Live TV again.
For parents, it can be very helpful too. Parents can tell their children to not watch any television during school nights, and on the weekend, they can watch shows they missed on Tivo.
Tivo users save a lot of time too as they learn to fastforward shows or fast forward commercials.
And Tivo, if you don't need the TivoServer feature, doesn't require a PC. And the Tivo looks to be much easier to setup than a Windows Media Server or even an Apple TV.
Adoption
If Tivo is so good, then why don't more people use it?
Good question and this is a challenge for Tivo (as well as all the players in the Digital Living Room). As I discussed in a previous post, many companies are fighting for market share in the Digital Living Room. One person even wished that some Tivo functionality can be combined with Apple TV (who has a near monopoly with iTunes, and has a deal with YouTube to show YouTube videos.
The industry still has ways to go and may require consolidation and partnership and interoperability. But as my description of Tivo above shows, we are getting closer to a life changing digital living room. Tivo certainly has already changed many peoples lives.
Sunday, June 3, 2007
Current HDTV Cycle
Before we look far into the future, let us not forget the current HDTV cycle. People have been adopting HDTV High Definition sets for sometime now.
Current beneficiaries include:
1. GLW -- Corning Glassware
They are involved in Display Technologies.
2. BBY -- Best Buy
Popular Retailer of Electronic equipment including HDTV sets.
3. SNE -- Sony, producer of BluRay products (BluRay is a High Definition DVD)
4. TOSBF -- Toshiba is a maker of more affordable HD-DVD DVD players.
5. NFLX -- Netflix. DVDs by mail company suppotrs BluRay and HD-DVD dvds.
Near term HDTV upgrade cycle:
For those who have experienced HDTV for the first time, you know it is hard to go back to standard definition TV. More and more content will be in High Definition and customers will start to demand it. Those with DVRs will want to be able to play HDTV content (TIVO and Cable and Satellite DVRs have models which support HDTV recordings). People will demand internet video be in high definition video. Consumers will start retiring their old standard definition camcorders for High Definition Camcorders. Consumers will want the Blu-Ray vs. HD-DVD debate to settle down so consumers will be able to finally buy a BluRay or HD-DVD player to enjoy the movies.
There's an HDTV upgrade cycle coming, and let us pay attention to this trend.
Current beneficiaries include:
1. GLW -- Corning Glassware
They are involved in Display Technologies.
2. BBY -- Best Buy
Popular Retailer of Electronic equipment including HDTV sets.
3. SNE -- Sony, producer of BluRay products (BluRay is a High Definition DVD)
4. TOSBF -- Toshiba is a maker of more affordable HD-DVD DVD players.
5. NFLX -- Netflix. DVDs by mail company suppotrs BluRay and HD-DVD dvds.
Near term HDTV upgrade cycle:
For those who have experienced HDTV for the first time, you know it is hard to go back to standard definition TV. More and more content will be in High Definition and customers will start to demand it. Those with DVRs will want to be able to play HDTV content (TIVO and Cable and Satellite DVRs have models which support HDTV recordings). People will demand internet video be in high definition video. Consumers will start retiring their old standard definition camcorders for High Definition Camcorders. Consumers will want the Blu-Ray vs. HD-DVD debate to settle down so consumers will be able to finally buy a BluRay or HD-DVD player to enjoy the movies.
There's an HDTV upgrade cycle coming, and let us pay attention to this trend.
Thursday, May 31, 2007
New Advertising Models in the Digital Living Room
In a previous post, I mentioned that one of the losers of the Digital Living Room is the Traditional Advertisers. With DVRs and Tivos (TIVO), it becomes very easy to fast forward the commercials.
According to Business 2.0, NextMedium, a startup company, "automates and standardizes the process of product placement in TV shows, movies, and videogames." You can't fast forward the advertisement because the actors are using the product or mentioning it on the actual show. Remember the scene in the new War of the Worlds where Dakota Fanning explains Tivo to Tom Cruise?
According to Business 2.0, NextMedium, a startup company, "automates and standardizes the process of product placement in TV shows, movies, and videogames." You can't fast forward the advertisement because the actors are using the product or mentioning it on the actual show. Remember the scene in the new War of the Worlds where Dakota Fanning explains Tivo to Tom Cruise?
Wednesday, May 30, 2007
Losers of the Digital Living Room Revolution
There will be losers in the Digital Living Room Revolution.
1. LOSER: DVD retailers (even HD-DVD or Blu-Ray?):
REASON: Video on Demand may become so prevalent, people will choose to download movies instead of drive to their neighborhood Blockbuster, or even to their mailbox to pick up movies from Netflix. Even DVR maker Tivo (NASDAQ: TIVO) has a current system with Amazon to download shows directly to the Tivo box.
TIME FRAME: I think Netflix (NFLX) is still viable at this time, and maybe Netflix may still be viable because they can mail HD-DVD and BluRay DVDs. Video on Demand is still in the innovation and early growth stages and will need much greater adoption before DVDs become obsolete.
2. LOSER: Gaming Retailers such as Gamestop (GME)
REASON: Eventually, there will be Gaming on Demand where customers can directly download Games without having to go to a retailer. Companies might even come up with Gaming Servers where customers can log on to the site, and play their game at home.
TIME FRAME: It will be a while before Gaming on Demand becomes big enough to be a big threat to Gaming Retailers such as Gamestop (GME). Since we are still at the beginning of the Gaming cycle (3 major consoles out), I'd buy Gamestop but carefully watch the developments in Gaming on Demand. (author holds: GME)
3. LOSER: Traditional Broadcasters
REASON: As IP Protocol TV (IPTV) becomes more prevalent, broadcast and cable channels will have less drawing power. There will be much more selection and many more choices for the average consumer.
TIME FRAME: We are still very early in this cycle. We are in the innovation stage. However, even traditional browser based entertainment/videos, games are reducing the time people spend watching traditional Broadcasters.
4. LOSER: Traditional Advertisers
REASON: As people adopt DVRs and Tivos in much larger numbers, the power of the traditional advertiser goes down. With DVRs, people can easily forward commercials. TIVO and DVR users usually gush over the technology and it truly changes the viewing habits of those who use it.
TIME FRAME: DVRs and Tivo (TIVO) are being adopted in greater numbers (though not as fast as the adoption of the VCR?). By 2010, it is said that 30% of US households will adopt it.
5. LOSER: Traditional Desktop PC manufacturers?
REASON: As the Digital Living Room becomes more advanced, and as more internet activity moves towards the digital living room, less people may be using their Desktop PC. Digital Living Room Devices such as Tivo (that sit between an HDTV set and the broadband connection) can interact, but do not require the Desktop PC. The nature of these Digital Living Room Device (such as Tivo or a set-top Box or AppleTV) does not necessarily have to be the traditional Microsoft (MSFT) or Apple (AAPL) Desktop PC.
More losers may exist but the above should hopefully give us an idea what may be in store for certain businesses. Those in danger of obsolescence have to act now or they may end up being the dinosaur of the technology world.
1. LOSER: DVD retailers (even HD-DVD or Blu-Ray?):
REASON: Video on Demand may become so prevalent, people will choose to download movies instead of drive to their neighborhood Blockbuster, or even to their mailbox to pick up movies from Netflix. Even DVR maker Tivo (NASDAQ: TIVO) has a current system with Amazon to download shows directly to the Tivo box.
TIME FRAME: I think Netflix (NFLX) is still viable at this time, and maybe Netflix may still be viable because they can mail HD-DVD and BluRay DVDs. Video on Demand is still in the innovation and early growth stages and will need much greater adoption before DVDs become obsolete.
2. LOSER: Gaming Retailers such as Gamestop (GME)
REASON: Eventually, there will be Gaming on Demand where customers can directly download Games without having to go to a retailer. Companies might even come up with Gaming Servers where customers can log on to the site, and play their game at home.
TIME FRAME: It will be a while before Gaming on Demand becomes big enough to be a big threat to Gaming Retailers such as Gamestop (GME). Since we are still at the beginning of the Gaming cycle (3 major consoles out), I'd buy Gamestop but carefully watch the developments in Gaming on Demand. (author holds: GME)
3. LOSER: Traditional Broadcasters
REASON: As IP Protocol TV (IPTV) becomes more prevalent, broadcast and cable channels will have less drawing power. There will be much more selection and many more choices for the average consumer.
TIME FRAME: We are still very early in this cycle. We are in the innovation stage. However, even traditional browser based entertainment/videos, games are reducing the time people spend watching traditional Broadcasters.
4. LOSER: Traditional Advertisers
REASON: As people adopt DVRs and Tivos in much larger numbers, the power of the traditional advertiser goes down. With DVRs, people can easily forward commercials. TIVO and DVR users usually gush over the technology and it truly changes the viewing habits of those who use it.
TIME FRAME: DVRs and Tivo (TIVO) are being adopted in greater numbers (though not as fast as the adoption of the VCR?). By 2010, it is said that 30% of US households will adopt it.
5. LOSER: Traditional Desktop PC manufacturers?
REASON: As the Digital Living Room becomes more advanced, and as more internet activity moves towards the digital living room, less people may be using their Desktop PC. Digital Living Room Devices such as Tivo (that sit between an HDTV set and the broadband connection) can interact, but do not require the Desktop PC. The nature of these Digital Living Room Device (such as Tivo or a set-top Box or AppleTV) does not necessarily have to be the traditional Microsoft (MSFT) or Apple (AAPL) Desktop PC.
More losers may exist but the above should hopefully give us an idea what may be in store for certain businesses. Those in danger of obsolescence have to act now or they may end up being the dinosaur of the technology world.
YouTube will work with AppleTV; Tivo has a Profit
In Today's news in the Digital Living Room:
1. Apple Announces that YouTube videos can be seen using the Apple TV product
2. Tivo posts (1st ever?) quarterly profit.
Apple (AAPL)
Tivo (Tivo)
Google (GOOG, owner of YouTube)
1. Apple Announces that YouTube videos can be seen using the Apple TV product
2. Tivo posts (1st ever?) quarterly profit.
Apple (AAPL)
Tivo (Tivo)
Google (GOOG, owner of YouTube)
Tuesday, May 29, 2007
Current Contenders in Todays Digital Living Room
When I say Digital Living Room, I am imagining a setup such as this:
1. High Definition TV Set
2. Comfortable seating to enjoy the Digital Living Room.
3. Broadband Connection.
4. A computer like device that interacts with the Broadband connection and the TV.
5. Interaction with a home network or an alternate computer (Optional)
6. Good sound system (nice, but not a requirement)
Before we get to the Digital Living Room of tomorrow, we have to look at today's technology and look at all the current contenders.
Contenders:
1. DVRs and Tivo (TIVO):
DVR is an acronym for Digital Video Recorders. While a VHS recorder recorded in a VHS tape format, the DVR records programs in a digital format in its internal hard drive. DVR's typically have a much better interface than the old VHS system. They normally incorporate a detailed Channel Guide, and a user can typically just choose which program to record very easily without having to manually set start and stop times. Certain other DVRs have much more user friendly features. Many offer to time delay live TV (want to pause the Big Game while you step out and pay the Pizza delivery guy? You can do that). Many offer you to easily forward through prorgams and commercials.
Tivo is a particular type of DVR (along with its software), and is often mentioned as the leader and innovator in the field. TIVO is publicly traded on the Nasdaq. Tivo has many other special features including a special program with Amazon to automatically download programs to the Tivo Box, and special features to access a networked PC's multimedia content including pictures.
2. Set-Top Boxes:
Many cable and satellite companies offer set-top boxes. These often connect directly to the broadband connection and the TV. They often translate the incoming signals (from Cable or Satellite) and send the data to the HDTV set including offering many digital channels and High Definition content. Some have the additional features such as offering video on demand. Some even incorporate a DVR to record programs in their internal hard drives.
DTV (Direct TV) and DISH (EchoStar Communications) are both satellite providers.
CMCSA (Comcast) is a cable provider who offers a set top box with video on demand, HD content and a DVR.
NNDS (NDS Group) and CSCO (Cisco, through their acquisition of Scientific-Altanta) are set top box makers.
T (AT&T) offers AT&T U-Verse, what they market as an IPTV solution. It offers similar functionality to Comcast who offer Video on Demand, Detailed Channel Guide and DVR capability.
Many other companies exist. What I list above are some examples.
3. Gaming Consoles such as Nintendo Wii, Sony PlayStation PS3, Microsoft Xbox:
Aside from being gaming consoles, these consoles can be entertainment centers as well. The PS3 contains a full Blu-Ray Player. Some people even choose to buy a PS3 not for the gaming capability, but to be able to watch Blu-Ray movies (can be cheaper than buying a dedicated Blu-Ray DVD player). The Nintendo Wii, even has the capability of integrating the Opera Internet Browser. Now, with the Nintendo Wii, you can browse the web using the Nintendo Wii controller from the comfort of your Living Room couch and enjoying a large screen HDTV set.
Microsoft (MSFT), Nintendo (NTDOY), Sony (SNE)
4. Windows Media Center
Windows Media Center is a Microsoft (MSFT) produced application that is designed to serve as a home entertainment hub. With tuner cards, Windows Media Center is capable of acting as a DVR. The Media Center can also have access to different media on the PC.
Working with a Windows Media Center Extender, media can be displayed on a display such as an HDTV set. Windows Media Center Extenders are "set-top boxes that are configured to connect via an Ethernet or Wireless network to a computer running Microsoft Windows XP Media Center Edition or Windows Vista Home Premium/Ultimate to stream the computer's media center functions to the Extender device. This allows someone to be able to use the Media Center and its features (such as view photos, videos, listen to music, watch live television and use DVR functions, watch recorded TV, etc.) on their television or other display device." (Wikipedia) The Xbox gaming console can act as a Windows Media Center Extender
5. Apple iTV:
Apple's iTV is a device much like a set-top box that connects directly to the HDTV set. This device can wirelessly (or through wires) sync up through a local computer which contains media including iTunes media. Now instead of watching the media in front of a small computer screen, this media can be viewed directly on an HDTV set in the living room.
AAPL is publicly traded on the Nasdaq.
6. Sling Media's SlingCatcher:
The company which brought you the SlingBox now brings you the SlingCatcher. This device can bring internet content to the Living Room HDTV display.
Sling Media is a privately held company.
More on this subject in the future.
1. High Definition TV Set
2. Comfortable seating to enjoy the Digital Living Room.
3. Broadband Connection.
4. A computer like device that interacts with the Broadband connection and the TV.
5. Interaction with a home network or an alternate computer (Optional)
6. Good sound system (nice, but not a requirement)
Before we get to the Digital Living Room of tomorrow, we have to look at today's technology and look at all the current contenders.
Contenders:
1. DVRs and Tivo (TIVO):
DVR is an acronym for Digital Video Recorders. While a VHS recorder recorded in a VHS tape format, the DVR records programs in a digital format in its internal hard drive. DVR's typically have a much better interface than the old VHS system. They normally incorporate a detailed Channel Guide, and a user can typically just choose which program to record very easily without having to manually set start and stop times. Certain other DVRs have much more user friendly features. Many offer to time delay live TV (want to pause the Big Game while you step out and pay the Pizza delivery guy? You can do that). Many offer you to easily forward through prorgams and commercials.
Tivo is a particular type of DVR (along with its software), and is often mentioned as the leader and innovator in the field. TIVO is publicly traded on the Nasdaq. Tivo has many other special features including a special program with Amazon to automatically download programs to the Tivo Box, and special features to access a networked PC's multimedia content including pictures.
2. Set-Top Boxes:
Many cable and satellite companies offer set-top boxes. These often connect directly to the broadband connection and the TV. They often translate the incoming signals (from Cable or Satellite) and send the data to the HDTV set including offering many digital channels and High Definition content. Some have the additional features such as offering video on demand. Some even incorporate a DVR to record programs in their internal hard drives.
DTV (Direct TV) and DISH (EchoStar Communications) are both satellite providers.
CMCSA (Comcast) is a cable provider who offers a set top box with video on demand, HD content and a DVR.
NNDS (NDS Group) and CSCO (Cisco, through their acquisition of Scientific-Altanta) are set top box makers.
T (AT&T) offers AT&T U-Verse, what they market as an IPTV solution. It offers similar functionality to Comcast who offer Video on Demand, Detailed Channel Guide and DVR capability.
Many other companies exist. What I list above are some examples.
3. Gaming Consoles such as Nintendo Wii, Sony PlayStation PS3, Microsoft Xbox:
Aside from being gaming consoles, these consoles can be entertainment centers as well. The PS3 contains a full Blu-Ray Player. Some people even choose to buy a PS3 not for the gaming capability, but to be able to watch Blu-Ray movies (can be cheaper than buying a dedicated Blu-Ray DVD player). The Nintendo Wii, even has the capability of integrating the Opera Internet Browser. Now, with the Nintendo Wii, you can browse the web using the Nintendo Wii controller from the comfort of your Living Room couch and enjoying a large screen HDTV set.
Microsoft (MSFT), Nintendo (NTDOY), Sony (SNE)
4. Windows Media Center
Windows Media Center is a Microsoft (MSFT) produced application that is designed to serve as a home entertainment hub. With tuner cards, Windows Media Center is capable of acting as a DVR. The Media Center can also have access to different media on the PC.
Working with a Windows Media Center Extender, media can be displayed on a display such as an HDTV set. Windows Media Center Extenders are "set-top boxes that are configured to connect via an Ethernet or Wireless network to a computer running Microsoft Windows XP Media Center Edition or Windows Vista Home Premium/Ultimate to stream the computer's media center functions to the Extender device. This allows someone to be able to use the Media Center and its features (such as view photos, videos, listen to music, watch live television and use DVR functions, watch recorded TV, etc.) on their television or other display device." (Wikipedia) The Xbox gaming console can act as a Windows Media Center Extender
5. Apple iTV:
Apple's iTV is a device much like a set-top box that connects directly to the HDTV set. This device can wirelessly (or through wires) sync up through a local computer which contains media including iTunes media. Now instead of watching the media in front of a small computer screen, this media can be viewed directly on an HDTV set in the living room.
AAPL is publicly traded on the Nasdaq.
6. Sling Media's SlingCatcher:
The company which brought you the SlingBox now brings you the SlingCatcher. This device can bring internet content to the Living Room HDTV display.
Sling Media is a privately held company.
More on this subject in the future.
Monday, May 28, 2007
The Digital Living Room Revolution
In Cody Willard's Blog, he mentions that there is great "secular growth in the browser-based Internet-video cycle [as it] accelerates over the next few years. " While I agree with Cody Willard in this, I think this is only going to be part of a much larger scale Revolution: The Digital Living Room Revolution.
Viewing videos using traditional Internet Browsers (Internet Explorer, Firefox) is great. I can easily imagine a teenager sitting in front of their PC or workstation (or maybe in an Internet Cafe) going to YouTube and browsing videos and user generated content.
However, I think there are limits. I don't see grandparents regularly going to YouTube and browsing content. I don't see families sitting together enjoying YouTube. (Nielsen ratings says that there are more men than women who use YouTube, and those 12-17 years old are the key demographic.) Even if movies are streamed and viewed using an Internet Browser, I don't think many people would want to sit in front of their PC watching a 2 hour movie.
To reach a much wider audience, and to achieve a true widespread, paradigm shifting Revolution, the interface has to change. I believe the Revolution will be centered around the Digital Living Room.
I can imagine a future with the Digital Living Room (includes HDTV sets, a good sound system, and a very easy to use computer-like interface to the internet):
1. No longer will people be restricted to Cable Channels or Broadcast Television. Users or new companies can generate new content and videos and stream these directly to a family sitting on their couch watching their HDTV set. I can imagine a user using a simple remote interface (a modification of the Nintendo Wii's interface?) to change IP channels in the same way as a user today would change channels on a regular TV.
2. DVD players (even Blu-Ray or HD-DVD) becomes obsolete as video on demand gains wide acceptance. People can watch any program they want anytime they want without having to go to the video store.
3. Stores selling games for Game Consoles such as the Playstation PS3 becomes obsolete as gamers can download games directly to their system.
4. Instead of using the telephone, users can communicate with each other directly in high definition video calls.
5. Instead of having simple email, people can have video emails in High Definition.
6. The nature of retailing changes as people can evaluate and buy items with the aid of High Definition videos. Since the interface is easy to use and accessible to a wide audience, many more people would be able to buy items through the internet.
7. New developers could develop value added applications such as having a streaming ESPN sports ticker while watching their favorite sitcom on another channel.
These are just a few examples of the Digital Living Room. While there are some hints of this technology at this present time, there are many steps before this vision can take place.
In my next few posts, I intend to explore the current state of todays Digital Living Room and speculate what might happen in the future.
Viewing videos using traditional Internet Browsers (Internet Explorer, Firefox) is great. I can easily imagine a teenager sitting in front of their PC or workstation (or maybe in an Internet Cafe) going to YouTube and browsing videos and user generated content.
However, I think there are limits. I don't see grandparents regularly going to YouTube and browsing content. I don't see families sitting together enjoying YouTube. (Nielsen ratings says that there are more men than women who use YouTube, and those 12-17 years old are the key demographic.) Even if movies are streamed and viewed using an Internet Browser, I don't think many people would want to sit in front of their PC watching a 2 hour movie.
To reach a much wider audience, and to achieve a true widespread, paradigm shifting Revolution, the interface has to change. I believe the Revolution will be centered around the Digital Living Room.
I can imagine a future with the Digital Living Room (includes HDTV sets, a good sound system, and a very easy to use computer-like interface to the internet):
1. No longer will people be restricted to Cable Channels or Broadcast Television. Users or new companies can generate new content and videos and stream these directly to a family sitting on their couch watching their HDTV set. I can imagine a user using a simple remote interface (a modification of the Nintendo Wii's interface?) to change IP channels in the same way as a user today would change channels on a regular TV.
2. DVD players (even Blu-Ray or HD-DVD) becomes obsolete as video on demand gains wide acceptance. People can watch any program they want anytime they want without having to go to the video store.
3. Stores selling games for Game Consoles such as the Playstation PS3 becomes obsolete as gamers can download games directly to their system.
4. Instead of using the telephone, users can communicate with each other directly in high definition video calls.
5. Instead of having simple email, people can have video emails in High Definition.
6. The nature of retailing changes as people can evaluate and buy items with the aid of High Definition videos. Since the interface is easy to use and accessible to a wide audience, many more people would be able to buy items through the internet.
7. New developers could develop value added applications such as having a streaming ESPN sports ticker while watching their favorite sitcom on another channel.
These are just a few examples of the Digital Living Room. While there are some hints of this technology at this present time, there are many steps before this vision can take place.
In my next few posts, I intend to explore the current state of todays Digital Living Room and speculate what might happen in the future.
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