Millions of people love watching Internet video on their PCs. So why can't the technology industry figure out how to get them to watch Internet video on their television sets?It isn't for lack of trying. For several years, Silicon Valley has bombarded the market with gadgets that let you tune into online video in your living room. Plug one of these set-top boxes into your TV, and you can download a selection of movies and TV shows, or perhaps browse video sites like YouTube.
It seems like a no-brainer: Consumers get a greater breadth of on-demand content than cable offers, and in the comfort of their living room or bedroom, the industry argues. WSJ's Nick Wingfield reviews some of the gadgets that are bringing TV shows, movies and a broad range of other video from the Internet to the living room.
Yet consumers aren't buying. Internet video players like Apple Inc.'s Apple TV and Akimbo Systems Inc.'s Akimbo Player haven't managed to reach an audience beyond the early-adopter crowd. And multipurpose devices that let you watch Internet video -- such as TiVo Inc.'s digital video recorders -- haven't found a mass market either, analysts say.
What's the holdup? Generally speaking, the video players are just too complicated to hook up, too expensive and too limited in what they can do. There are skeptics, too, who think Internet video players are trying to solve a problem that simply doesn't exist -- especially as cable companies enhance on-demand video services.
The issue with these next-generation set-top boxes is they're hard to use, hard to install and the return on investment isn't particularly large because the content is available elsewhere.
Still, tech companies can't stay away from the idea, because of the booming popularity of Internet video. In August, Internet users in the U.S. viewed 9.13 billion online videos, up 26% from 7.24 billion in January, estimates research firm comScore Inc.
Users watched more than a quarter of those videos on Google Inc.'s YouTube, but online video from traditional entertainment companies is exploding, too. Over the past two years, broadcasters have begun streaming nearly all of their most popular shows free with advertisements on their Web sites. (A stream doesn't allow users to keep a permanent copy of the show.) NBC alone says it streamed 50 million shows from its site during October.
The solution is to blend the boxes (one set-top box) and keep it simple. Content must be accessed through both wired and wireless delivery infrastructures. The focus should be on HD programming
Key Assumptions:
TV must be the center of the consumer video experience, and today's service must be redefined
Access to broadcast content is critical for success
On demand, high def is in, linear, standard def is out
Open access to robust wireless networks will be prevalent
Advertising will be key value driver in the future
Price of storage is going to virtually zero;
Access to broadcast content is critical for success
On demand, high def is in, linear, standard def is out
Open access to robust wireless networks will be prevalent
Advertising will be key value driver in the future
Price of storage is going to virtually zero;
The video entertainment service of the future -- one box, a TV, and many service providers (telcos, ISPs, portal etc.) which want, need, or aspire to be in the video business.
antweaver
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