Tag Archives: pay-tv

Boxee: Hulu’s Dilemma

Boxee is getting so successful that many of its users are seriously considering to stop their Pay-TV subscriptions.

Boxee is a cool open source software for Media Centers based on Mac or Ubuntu. This software transforms a Mac Mini, Apple TV or any Linux small-form PC into a social network  set-top-box. With a great user interface, Boxee enables you to enjoy on your TV not only your media library but also online video such as YouTube and Hulu, as you interact with your buddies.

Hulu -the joint venture of NBC Universal and News Corp- offers a sensational online catalog of  TV shows from their parent companies and others, that has made their user growth in 2008 stunning.

Such is the success of the Boxee-Hulu combination that Hulu’s content providers have requested Hulu to be removed from Boxee,  in an attempt to stop cannibalizing their traditional revenues from TV ads and Cable networks.

Again the traditional Innovator’s dilemma in front of a disruptive threat. Innovate first and cannibalize yourself? or wait and risk to be eaten by others with less to lose?

NBC and News Corp might worry about Online TV in the short-term, but in the long-run it will ony bring good news:

  • CPM of Online TV should be higher than traditional TV. As marketers say, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half”. Online TV ads can be targeted to specific viewers.  Interactive responses can be measured. That should  reduce wasted ads, and therefore advertisers will be ready to pay more for an Online TV Ad.
  • Online TV might display less ads per show than traditional TV, but ads are at least seen.  A way to avoid all the wasted ads wiped out by DVRs and Tivos.
  • Online TV can enable Content Providers to sell subscriptions for premium content and VoD directly to the user without any Cable intermediary.

If Hulu is able to build a stronghold in online TV, they will capture all the benefits of a richer online TV in the long-run.

The ones to worry about Boxee are the Cable and IPTV operators that will need to ad significant value to avoid being by-passed by over-the-top solutions such as Boxee, and dumped by their customers. There is time. Boxee is great, but still for Mac or Linux geeks, a minority.

“The question is not whether Telcos want to be a dumb or a smart pipe. They are already a dumb pipe. The question is do they want to be something else on top?”

Max Foresite – Telecom, Internet & Media Analyst

Online Movies 2019

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In 2019, while Music downloads are mostly free, people is ready to pay for Movie downloads.

The Music industry has changed in the past ten years and artists make their work known by distributing it for free. Their revenues come from fans fees, live performances, merchandising, ad endorsements and downloads of live concert videos.

Movie producers maintain theaters as their main source of revenue, but they also cash on HD downloads, at a few dollars each, and TV-rights from Pay-TV broadcasters. TV movie channels have survived due to the high number of people that still find “zapping” as the way to discover what to watch this evening.

With set-top-boxes powered by 128 cores CPUs, 250 GB RAM and flash drives of  32 TB, fed by a broadband connection of 8 Gbps, the premium content is now delivered in Ultra-HD at 4320p with 20.2 audio channels and 60 frames per second. HDTV 1080p is the standard quality, except from some lower resolution user-generated-content sites at 720p.

The Immersive Game Consoles just announced promise to deliver a new genre of  immersive games, but also immersive movies and immersive communications within a 3D virtual reality environment.

TV shows continue to be ad sponsored, and also available streamed from the Net with the option to download them for only $0.99,  free from inserted and overlay ads. 

The cash cows for Pay-TV operators are live sport events, broadcasted in HD and Ultra-HD and enriched with interactive features like multiple-angles and “watch-with-friends”. 3D VR immersive live events broadcasts are not available yet, but it will come in the next ten years before 2030.

This post is a fictitious prediction of what could be written about online video and movies in ten years from now. I can not guarantee it will happen but I am ready to take bets of $1.29, $0.99 or $0.69

 

Pay-TV Market in Spain: IPTV wins

One out of two new Pay-TV users in Spain sign up with Telefonica’s IPTV service, Imagenio. Orange IPTV Service is the second one attracting new users with a 21% share in 2007. The table below is based on data from Spanish business newspaper, Expansion.

If we classify by technology, the table shows that 70% of the new Pay-TV users choose IPTV (Telefonica, Orange), 22% Cable (Ono, TeleCable, R, Euskaltel) and only 8% opt for Satellite (Sogecable).

By providing interactivity and on-demand services such as Catch-up TV, IPTV is quickly taking market share from satellite. New services, like watching the next chapter from popular TV series before its broadcast, are bringing users to IPTV and Cable. Interactive TV services are in its infancy, so expect new killing apps coming.

The Triple-play bundle with voice and broadband is also an advantage that IPTV and Cable operators are exploiting, to win users to Satellite.