Category Archive: hardware

The internet is coming to a living room near you


We have come to expect the Internet wherever we are and whenever we want. Mary Meeker predicts that by the end of the year, we could reach 10 Billion mobile Internet devices. Yes, that’s a B.  While we still have the power of a PC in the palm of our hands, one main area has yet to be conquered–the living room.

Nintendo Network/ModemMany have tried to create linkages into the living room, but few have succeeded. In 1988, Nintendo launched the Family Computer Network Systems. With the purchase of a special cartridge, the Famicom could interact with other terminals or a central computer to monitor and trade stocks. Unfortunately, by the time I got my NES, it only came with a pad to stomp on and gun to shoot ducks with.

Perhaps the next largest leap came from Tivo. With its emphasis on UX, they brought us the concept of time-shifting our content.  With a simple phone line, owners would be able to sync their cable stream to the programming list. However, Tivo’s glory days were short-lived.  Why pay for a Tivo if your cable operator was willing to give you a free set top box?

In the end, the thought of connecting stand alone devices is such a huge mental leap that not even excellent UX can overcome it.

However, the tides are shifting.  Over the past year, I’ve seen a multitude of new ways to connect the living room to the Internet. From simply plug-and-play devices like Roku, to elaborate Microsoft media center setups, people are realizing that the Internet isn’t just for streaming videos of cute cats playing the piano or seeing charlie biting his brother’s finger. The Internet is able to provide consumers with a lean-back 10-foot experience.

With the GoogleTV coming around the corner, and companies like Boxee that are constantly augmenting their content libraries, the Internet is finally making its way to the living room.

Last spring, my friends and I embarked on an independent study project looking at the this very space. In it, we tested the preferences of lead-users to prove/disprove hypothesis. Here are some of our findings:

  • Short-Form Content (like Youtube) belongs on the computer monitor
  • Most mass market consumers do not know the difference between streaming v. downloading content
  • There is little room for new content platforms, new companies should seek to become embedded with CE manufacturers
  • Apps for Connected TVs will provide little differentiation. Companies can only lose from not keeping up with its competitors
  • Consumers want a recommendation engine for content

You can review our final presentation here:

View more presentations from vincenthuang.

Digital Media News, February 6-19

by DMEC Careers Della Huff and Chris Finegold

Internet and Social Networks

  • Google acquired social search engine Aardvark for approximately $50 million. The service, started by several former Google employees, enables users to ping its community by asking questions and receiving immediate answers from friends and contacts connected to them. Link
  • Google has won approval to enter the speculative energy trading business. The Federal Energy Regulatory Commission issued an order giving the company the authority to buy and sell wholesale electricity just like a utility. Link
  • Zynga is opening an office in India, in the hopes of capitalizing on the rapidly growing market. Zynga says that India has 81 million internet users, and is projected to become the third biggest online market by 2013 (behind the United States and China). Link
  • The decision to leave Flash off the iPad is exasperating a feud between Apple and Adobe and putting the spotlight on the up-and-coming HTML5 standard for video and interactive graphics. Link
  • Content and Distribution

  • Some (as yet unnamed) TV networks, including CBS, have reportedly agreed to allow Apple to cut the price of their TV episodes from $1.99 to $1 on the iTunes Store in connection with the launch of the company’s iPad. Link
  • HBO is preparing to launch an online streaming service for cable, satellite and telco TV service subscribers to its pay-TV channels, The New York Times reported. The HBO GO service has launched in beta for Comcast and Verizon FiOS TV subscribers; HBO counts about 35 million subscribers overall. Link
  • After getting Netflix to agree to wait 28 days before renting any new release Warner Bros. DVDs, kiosk rental chain RedBox has agreed with the studio to honor the same window, ending a testy feud between the two companies. Link
  • NBC Universal’s NBCOlympics.com website drew 13.6 million visitors in the first four days of the games, an increase of 250% from the traffic seen during the opening weekend of the 2006 Winter Olympics. Link
  • Online video start-up Veoh is finally shutting down operations, laying off remaining employees and planning a chapter 7 bankruptcy filing. The company has burned through more than $70 million in funding from a long list of prominent investors. Link
  • Mobile

  • Google CEO Eric Schmidt announced that the company was adopting a “mobile first” strategy in his Mobile World Congress keynote, creating software and applications with mobile as a top priority. He said Google is now shipping 60,000 Android-based handsets a day worldwide. Link
  • Verizon Wireless announced a landmark deal with Skype to allow Verizon smartphone users to make international calls at bargain basement “Skype Out” rates. Future plans include integrating Skype into FiOS TV or Verizon’s 4G LTE service. Link
  • AT&T has reversed its stance and will allow live TV streaming over its 3G network to iPhones using Sling Media’s streaming service. Link
  • T-Mobile’s new 3G-powered HTC HD2 handset, launching on the Windows mobile platform March 24, will include premium content services including Blockbuster On Demand movies, Paramount Pictures films and Barnes & Noble eReader titles. Link
  • Hardware

  • Sony’s answer to the iPad is the $199 Dash Personal Internet Viewer due out in April, a Wi-Fi capable tablet device with a 7″ touch screen. Sony is leveraging existing content partnerships struck through its Bravia line of TVs to bring lots of popular services including Netflix movies, eHow videos and Pandora music stations. A partnership with Chumby will also deliver over 1,000 internet apps. Link
  • Sony introduced its first standalone 3D-ready Blu-ray player. It will be available this month and will retail for around $200. Link
  • 3-D TV the future of Home Entertainment?

    At this point everyone has heard about 3-D TV. It made a lot of noise at CES with some companies announcing their hardware and with some content providers announcing programming in 3-D. But when it comes to actually talk about it: will someone use it? Is it useful? Is it entertaining?

    A few facts so we are all on the same page:

    • This technology is going out really soon since all major manufacturers are announcing their releases and talked about it at CES 2010.
    • You WILL have to use glasses and manufacturers WILL charge for every extra pair (around $50 Mmmm).
    • There are already content providers that have promised to have content around June 2010 (DIRECTV will have three channels on air). This content includes live sports events (world cup included) and obviously movies.

    Okay so let’s talk about good things and bad things about this technology.

    Something good is that this it’s not the usual technology that we see currently in some products. For example TV shows that offer 3D scenes with those awful red and blue glasses or DVDs like Coraline. 3DTVs will be able to reproduce the 3D content in HD and with the flickering technology, the same one that we see today in Avatar for example. This means a huge quality increase for what we already identify as home 3D. Actually another good thing that we mention before we’ll have content to enjoy in a few months.

    But where is the added value of a product like this? Why is it going out now? The reality is that the new boom of 3D at theaters is boosting the release of these devices. The problem is that there are many issues to solve yet and we have already seen that we need sometime to see what happens. A good example being Blu-Ray and HD-DVD. There are no clues that is going to be the next standard (yes, there will be different 3D standards too) so my recommendation is no, don’t buy it yet.

    Who will enjoy the most this product and it’s a large enough market? There are some numbers that say in 10 years we’ll have 200 million units in the hands of eager 3DTV fans. I don’t think is that easy. Let’s start thinking about potential users and the content that will be available: sports. The world cup it’s a good example and it applies to my knowledge. Basically since I live the US I watch all my soccer on TV and I can assure you that there is no added value to what a fan is looking for when watching a game in 3D capacity. It just doesn’t add value. It’s a cool feature and nothing else. You don see the plays in a better way, you don’t obtain a better perspective of the game, etc. And I think this apply to almost every sport that is broadcasted.

    Other users? Movie fans. Yes, there could be a market there, but again. There is almost zero content. Studios are just trying to release 3D versions of films and just one big hit won’t assure that this will go on. Still not a huge market.

    So, where there will be a market for this product to be successful not immediately but faster? My best guess are video games. Yes, as gamer I see some cool features in having a 3D game in front of my eyes. Gamers usually value visual improvements more than other TV users. But the downside is that there are almost zero news about game studios taking advantage of this new technology. Why? They usually wait to see what happens, which is a wise decision.

    We’ll have to wait to know how 3DTV enters the market but in the meantime, let users figure out for you if this will be a worthy technology. For me, once I’ll be able to play winning eleven in 3D, I surely get mine!

    Cross posted on Miguel’s Blog

    Blu-Ray wins the HD Format War, or: How I Learned to Stop Worrying and Love the Single Format

    According to Gartner Research, the battle for high definition home video will soon be won by Sony-backed Blu-Ray technology. While I was too young to remember the battle over video cassets (VHS vs Betamax), as a consumer later in life I definitely benefited from having only one format to worry about.

    The same will be true for HD video, I’m sure. Like a lot of people I know, I’m holding out on the leap to purchase a HD-DVD player because like changing lanes in traffic I don’t want to get stuck in the slow lane. Now I’m not about to go out tomorrow and by a $200 Sony player based on Gartner’s word alone, I’m sure they have some idea what they are talking about.

    At the very least, Gartner’s pronouncement could turn out to be a self-fulfilling prophecy. Just ask The Little Train that Could.

    It’s official; Portland is connected

    I’m up in Portland for a few days over winter break, and I’m downtown after having lunch with an old coworker.  I figured I could slip into the main library for a few minutes, check my email and peruse the shelves until my ride gets here.  My first stop was the info desk… “hi, do you have wireless internet access in here?” I asked.

    “No,” she said, “but there is outside.”  Huh?  “There is free wi-fi all over downtown, but it doesn’t get inside the buildings very well.”

    I was certain I heard her right, but I couldn’t help remember the countless articles I’d read over the years about the struggles to implement WiMax, city-wide wi-fi or any other kind of ubiquitous internet access coverage in any of the country’s more wired cities.  Yet here it was, right under my nose in my former home town.  And sure enough, here I am penning this entry from a park bench outside the library in the chilly 42 degree northwest air.  At least it’s not raining.

    Wi-Fi is alive and well in Portland, Oregon!  (And by the way, the Portland airport has free wi-fi too!)