Sunday, January 7, 2007

PC to TV Will Be Big at CES


Porting Web video to TVs will be a big theme at this year's Consumer Electronics Show, it appears. Sling Media is epxected to introduce SlingCatcher, which uses the in-home Wi-Fi network. The SlingCatcher also will also be able to transmit programming on a Slingbox-connected TV to another TV set, either to one in the same house via a home network or to one in a remote location via the Internet. SlingCatcher will be available in mid-2007 for less than $200, according to Sling Media Chief Executive Blake Krikorian.

Together with other similar initiatives from Apple Computer and Microsoft, among others,this sort of capability will need to be put into place before we can gauge the actual extent of consumer receptivity to all sorts of "direct to consumer" video. So far, not that many people claim to have used or paid for legal fare. But most observers think technical impediments (not being able to easily view on a TV, in particular) keep most people from experimenting with the new formatpaid video content. All that is going to change, though, and innovations such as SlingCatcher are the necessary forerunners of such developments.

Of course, demand is half the equation. Equally important is the supply side. Television executives, for example, now are asking if future TV programming will be delivered over the Internet, bypassing today's traditional cable and satellite providers, and seem increasingly open to the idea. Chief among the obstacles is the lack of Internet connections to TV sets, bandwidth-limited video quality, lack of business models, and the challenge of navigating through thousands of video programs, otherwise known as "search and discovery."

About all we can surmise at this point is that once these obstacles are removed, there will be a potential alignment of demand and supply. The bad news for cable TV operators, broadcasters and telcos is that "over the top" delivery disintermediates today's channel partners. This is probably a five year preparation phase. After that, watch for a slugfest between over the top video and cable, telco, satellite and broadcast delivery methods.

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