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Comcast and TiVo Launch First Joint Market
23 Jan, 2008
The long awaited marriage between TiVo and Comcast is official. Boston is the first market where TiVo licensed software starts appearing on Comcast DVRs. The TiVo “premium” service will cost Comcast customers an additional $2.95/month over their existing $12.95/month DVR subscription fee. In addition to standard TiVo functionality, the Comcast version allows subscribers to browse and search for content by keyword on both linear and VOD programming. The Comcast TiVo service will not offer some of TiVo’s broadband content initiatives, including Amazon Unbox. Comcast says additional markets will be coming on line during 2008.
The Comcast/TiVo alliance is a high profile tru2way partnership. True2way is the rebranded CableLabs ‘OpenCable’ initiative, whose goal is to provide a platform for easy integration of third party applications to cable networks. Comcast appears to be taking the lead with tru2way, having brought much attention to it at the most recent CES. Tru2way may prove to be quite an interesting development. If its goal of easy integration between third party developers/consumer electronics and cable networks proves to be reality, we could see a slew of innovation and new products for cable MSOs. Such a reality could offer some differentiation, and perhaps build competitive advantage for the cable industry. We’ll have to wait and see though. Even the TiVo/Comcast partnership was a long time coming. It took three years to get to market – an eternity in today’s rapidly evolving marketplace. Is it too late to matter?
Check out this Boston Globe (source for post image) post for more details about the Boston market launch.
Also, check out Will Richmond's analysis at VideoNuze.
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googleComcast to Launch Portable DVR
07 Jan, 2008
Comcast and Panasonic announced the pending launch of the AnyPlay portable digital video recorder (DVR). The AnyPlay allows Comcast subscribers to take their recorded video content with them on a portable media player. The AnyPlay also acts as a HD set top box when connected to the subscriber’s television. In addition to watching recorded content, subscribers can play DVDs and CDs on the device. The device features an 8.5-inch folding display, stereo sound, and a 60 GB hard drive for video storage. Actual launch of the product isn’t scheduled until early 2009. When launched, AnyPlay will join Comcast’s competitor Dish Networks, who offers a similar product today, PocketDISH.
This Comcast announcement illustrates the continuing push for competitive advantage among triple play competitors. AnyPlay is the first commercial introduction of the cable industry’s new “tru2way” standard (formerly known as Open Cable Platform). Tru2way is a middleware platform that the cable industry hopes will lead to the development of numerous consumer electronic devices that interface directly with cable triple play networks. The end game here is differentiation, and cable hopes that tru2way and products like AnyPlay will help set them apart from their DBS and TelcoTV competitors.
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Should Telephone Service be Free?
12 Oct, 2008
Comcast announced a new promotion last week that offers 12 months of free basic cable service for new customers who also sign up for an additional service. Customers who don’t want an additional service can get Comcast’s basic service of about 20 -30 channels for $10/month. The promotion is tied to the digital TV transition of February 2009 and entices potential customers to avoid the transition “hassle” by getting “free” cable service. “The simple fact is that basic cable is the easiest path through the digital transition and now consumers can get it for free,” said Derek Harrar, General Manager and Senior Vice President, Video Services for Comcast in a company statement. This move is similar to strategies pursued by other video service providers, who are hoping to leverage the digital TV transition for new subscriber additions.
But is this strategy a leading indicator for the future? Should basic core services like basic cable and basic telephone service be offered for free, used as a “carrot” to entice customers to buy “more important” services like broadband? Maybe a very basic phone service, with no LD, access to landline 911, and maybe outgoing service only (to avoid telemarketers) should be a free component of a bundled offering. Such a wireline service may appeal to a customer who previously cut the cord for wireless only, but also needs broadband. There is a growing portion of the population who find the value of traditional wireline phone service elsewhere – either through wireless or broadband/IP services. But, if they could get the security of landline 911, and an extra dial tone in their home as a free value add for subscribing to broadband (or video from a telco’s perspective), maybe a telco’s bundled offering may look more attractive than a comparable cable offering. I realize this idea is not appealing to the hundreds of ILECs who are a part of the current access/settlement system (in fact, it couldn’t work in the context of today’s regulatory structure), but I wonder whether it’s inevitable. In this possible future scenario, the current settlement system adapts to broadband as the underlying service, as opposed to voice.
This scenario cuts both ways. From a cable company’s perspective, a growing portion of the population is turning to the Internet as a source for their video content, and no longer see value in paying for a broad package of video as a part of a traditional subscription pay-TV service. But, if they could receive basic TV (which includes local broadcast affiliates) as a free value add for buying broadband, maybe the cable bundle is more attractive. In a true IP/broadband world, very basic phone and video service is relatively easy to deliver, and has little impact on bandwidth and network performance. Maybe the digital transition is opening the door to a future where free basic services are a regular component of a bundled offering. Thoughts?