[opendtv] Re: PR: Majority of New HDTVs Powered By ATI

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Wed, 24 Nov 2004 12:01:55 -0500

At 4:46 PM -0500 11/23/04, Gary Hughes wrote:
>There will always be a split between content that makes sense to store
>centrally and content that is better stored locally. And you, the
>consumer,
>need not know where. If you select to watch the copy of Sopranos that
>you
>'recorded' (which may be no more than setting a flag in a database at
>the
>head end) does it matter if it is a bitstream recorded live on your disk
>or
>the SVOD version prefed to the headend?


Absolutely.

The cable company will charge you each time you look at the episode 
on their server, and they must compensate Viacom for the right to put 
that asset on their server, most likely sharing any revenues that are 
generated.

NONE of this applies if the episode is cached on a PVR in your home.

>
>>  1. People will want to cache their favorite programs, rather than=20
>>  paying a small premium to watch them on demand from a remote server.
>>=20
>The reality today is that the "premium" is the $1-2 incremental cost to
>have access to VOD. At least that is what Comcast charge me. That gives
>me access to the 'non-premium' VOD content. If I paid for regular HBO I
>would get HBO content OD. And so on.

So there is an incremental cost in this case as well. But in this 
case you are already paying the monthly fee for HBO content - this is 
not the same as paying for a specific PPV event.

>The jury is still out on this one and anyone who claims to have THE
>answer
>is either a fool or a liar. SVOD revenues and costs are handled very
>differently
>than VOD, BTW. Unfortunately, legal issues may override technical issues
>here.

Clearly there are differences, but the bottom line is still the same 
- you are paying something additional for the content, be it a VOD 
event, or an SVOD package.

>
>>  3. MUCH DEEPER on-demand services will be offered directly by content=20
>>  owners more cheaply via the Internet as broadband speeds increase.=20
>>  Ironically, the cable companies are providing the broadband=20
>>  infrastructure to bypass their own entertainment networks.
>>=20
>It is already starting in cable space as content providers are beginning
>to make back catalogs available via SVOD. Cable systems may act as a mix
>of content providers, content brokers (I can get it for you wholesale)
>or carriers.=20

Don't you think this is just a transitional situation? Once the 
content owner can go direct to the consumer, why would they want to 
split the revenues with the cable company. And then there is the 
reality that many  content owners are not dealing with the cable 
guys, and many others cannot get or afford access to cable.



>
>>  Integration of services is CRITICAL in the STB (or receiver) when we=20
>>  start to talk about the evolution of digital media appliances. In=20
>>  order to sell  STBs with PVR capabilities you need the traditional=20
>>  STB functions (tuners), an electronic program guide, and cache=20
>>  storage.
>>=20
>Absolutely. The winners may well be whoever figures out how to integrate
>the various navigation and searching functions, along with related
>information sources. 'Live' content, on demand and cached content,
>rental
>content, personalised news or sports magazines... one interface to unite
>them all.
>
>If anyone is attending SCTE's Emerging Technology '05 conference, come=20
>along and heckle when I present "The Headend in the Basement" :-)

Yup. Now dovetail this with the notion that many players are vying to 
build components of your Headend in the Basement. Some will try to 
own/sell you everything. Others will try to build "OPEN" systems to 
which you can add components from multiple vendors. And some of us 
will try to roll our own.

Given the fact that we are just beginning the process of networking 
all of the smart appliances in our homes, I would say that the 
marketplace will remain volatile, at least as long as the market for 
PCs has been volatile. Over time, the most popular features will be 
adopted by all of the companies vying for your business.

Regards
Craig
 
 
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