Analyst Show Flashes from 2008 CES
The Consumer Electronics Show (CES) is the largest tradeshow in the world for consumer technology. It first started in New York City in 1967 with 200 exhibitors and less than 20,000 attendees. Since then, CES has grown more than eleven-fold. Now 2,700 exhibitors, fill 1.8 million square feet of exhibit space to showcase their latest products and services to more than 140,000 attendees. Current Analysis' coverage of CES includes reports written from analysts in our Digital Home, Mobile Devices, and Wireless Services consumer modules, and also our Digital Media and Wireless infrastructure modules. In the reports, the analysts give their view of announcements made at the show providing perspective on the relative merits of the announcements as well as its importance to the vendor and the market as a whole. Highlights from a selection of the reports appear below. Client with subscriptions to the respective modules can read the full reports by clicking the Client Access links. |
Contents
Panasonic and Comcast Preview AnyPlay P-DVR Utilizing New Tru2way Technology
| Analyst: Bruce McGregor | Digital Home - U.S. | Client Access |
Announcement Summary
January 8, 2008 - During his CES keynote address, Comcast CEO Brian Roberts shared his vision for the future of video services with a preview of the Panasonic AnyPlay device that utilizes the cable industry’s open standard, called Tru2way (the new brand name for the OpenCable Applications Platform [OCAP]), which allows for cable’s video content to be played on more devices beyond today’s closed network set-top boxes.
Competitive Positives
• The Panasonic AnyPlay P-DVR’s unique feature is that the device can be taken outside the home to play up to 60 hours of Comcast digital cable recorded programming with a built-in 8.5-inch folding LCD display screen and integrated stereo speakers for a quality mobile viewing experience.
• The AnyPlay device is made possible with the cable industry’s commitment to open up its video platform, which until now was closed to outside development. This will offer residential cable customers the freedom to transfer video content to multiple devices without the need of a leased cable set-top box.
• Along with Panasonic, many leading electronics manufactures including Digeo, LG, and Samsung are developing devices using the open two-way cable platform and Java-based Tru2way technology.
Competitive Concerns
• The AnyPlay P-DVR will not be available to Comcast’s over 14.6 million digital video subscribers until early 2009. With the home entertainment market moving at a feverish pace to provide more innovative video services, Comcast could be too late to make a substantial impact.
• Comcast has put forth many changes and it could have over-promised what it has the resources to accomplish; it has taken the company longer than anticipated in the past to get new services off the ground.
• The AnyPlay P-DVR previewed at CES 2008 comes with some limitations compared to other existing DVRs available right now to U.S. consumers, including its inability to record in high-definition and just 60 hours of recording storage. Rivals such as TiVo and DISH Network offer DVRs that can record over four times as much video content.
Sprint Adds to the XOHM Ecosystem and Hints at Service Models
| Analyst: Bill Ho | Wireless Services - U.S. | Client Access |
| Analyst: Peter Jarich | Wireless Infrastructure | Client Access |
Announcement Summary
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January 8, 2008 – Sprint announced new ecosystem partners for its XOHM mobile WiMAX service. In particular, it was announced that Amdocs was awarded a multi-year contract to support service activation, customer management and billing, with SwapDrive supporting online data backup applications, McAfee delivering online security products and eTelecare Global Solutions providing, “voice and e-support customer care.” Device support from ASUSTek, OQO and ZYXEL was also announced.
Analytical Summary
• Current Perspective: Slightly positive on Sprint’s further expansion of its XOHM ecosystem as the company is now bringing together a larger and more comprehensive set of vendors. Aside from the earlier infrastructure and device vendors already announced, the additional details regarding new vendors and devices (converged devices) as well as core network components (e.g., billing, security, apps) are welcome in order to enhance the view of XOHM execution and build momentum towards its commercial launch. In addition, more specifics on services were divulged, alluding to service models beyond the standard subscription approaches prevalent in the wireless industry today. Despite this, XOHM’s future is still in question as important details such as timing are lacking on a commercial (vs. soft) launch.
• Vendor Importance: High to Sprint as the company is still committed to a successful XOHM offering. As such, it needs to foster the WiMAX ecosystem that can help further its vision and shoulder the burden of marketing it to the buying public. Moreover, any positive XOHM announcements positions the company favorably as executing on a high stakes and controversial bet, while distracting people from the fact that Sprint’s commitment could be wavering or could be altered when new CEO Dan Hesse ultimately makes the ‘go, no go’ decision.
• Market Impact: Wireless Services -U.S.: High on the wireless services segment because Sprint is rolling along. One of the fundamental points that Sprint has pushed is that WiMAX provides it a competitive advantage in delivering mobile-DSL like speeds ahead of competitors. Since LTE as a technology is still in development and at least two to three years away, any successful data service adoption will likely provide strong differentiation against other wireless competitors. Moreover, the promised new data service business models, if well-received, may set consumer trends for other service providers, wireline and wireless.
• Market Impact: Wireless Infrastructure: High on the WiMAX infrastructure and broader WiMAX markets. Though initial mobile WiMAX momentum may be driven by emerging market applications, Sprint has becomes a high-profile example of what the technology is capable of. Thus, while the market will move forward with or without Sprint, Sprint’s ability to pull multiple device, network and application vendors into its ecosystem is important for showing what the technology can do as well as the market’s support for WiMAX. In short, Sprint’s new partners could help other operators looking at WiMAX to see the technology as more attractive.
Airvana Turns to Motive to Manage Femtocells, Motive Shows Restrained Support
| Analyst: Peter Jarich | Wireless Infrastructure | Client Access |
Announcement Summary
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January 8, 2008 -- Motive announced that it had signed an agreement to supply Airvana with its Home Device Manager (HDM) solution for allowing wireless operators to manage large-scale networks of femtocell devices. In particular, Motive’s HDM provides device management, device diagnostics, and problem resolution functionality. Following a similar partnership with Ubiquisys, Airvana marks Motive’s second public femtocell reference.
Analytical Summary
• Current Perspective: Slightly negative on Airvana’s supplier agreement with Motive Inc., providing the company with access to Motive’s Home Device Manager solution. Successful femtocell services will involve the deployment of millions of operator-owned devices. Operators, in turn, will want some solution for managing and rolling out these devices: remote activation and upgrades, device diagnostics, device management, etc. Motive supports Airvana in this respect. Yet, the deal does not provide any real differentiation in the market since it is not exclusive and every other vendor will need to be able to deliver the same functionality. What’s more, though femtocells are a consumer product, a network-related announcement is bound to get lost in the buzz of CES and Motive’s value as a partner is compromised by the fact that its financials are weak and it is openly seeking strategic alternatives, suggesting an uncertain future.
• Vendor Importance: Moderate to Airvana, because the vendor – just like every other femtocell vendor – will need to provide its operator customers with a solution for remote device management. Again, femtocell operators will want insight into the operations of their customers’ home base stations, if only to support stable services and zero-touch installs. To this end, Airvana needed to embrace the help of a vendor such as Motive. Yet, to the extent that every femtocell vendor needs these assets, it was inevitable that Airvana would recruit just such a partner; it does not represent a major new strategic or differentiating initiative.
• Market Impact: Low on the femtocell market, because following Ubiquisys’ announced work with Motive, Airvana’s move could bring the topic of femtocell device management, activation, and diagnostics to the fore, forcing other vendors to talk up and explain their own strategies. However, to the degree that these capabilities are a requisite component of any complete femtocell solution, most competitors should be in a position to deliver a story.
Motorola Announces Video and Music Phones
| Analysts: Avi Greengart, Brad Akyuz | Mobile Devices | Client Access |
Announcement Summary
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January 6, 2008 -- Motorola unveiled the new ROKR E8, Z10, and RAZR2 V8 Luxury Edition at CES 2008 in Las Vegas. The ROKR E8 is a music-oriented phone with a virtual touchpad. The new Z10 has a kick-slider form factor and offers advanced video capturing and editing capabilities. The ROKR E8 and Z10 will be commercially available in unspecified markets in Q1 2008. The unlocked RAZR2 V8 is now exclusively available through Motorola’s online store with a $679 price tag.
Analytical Summary
• Current Perspective: Slightly negative on Motorola’s two new phones, which should be modestly successful if priced right, but do not go nearly far enough to invigorate Motorola’s lackluster lineup and were launched at CES without any pricing information. The Z10 is a European multimedia phone with Motorola’s nice “kick slider” (banana phone) form factor that slots below similar offerings from Sony Ericsson and Nokia; if it is priced below them, it should sell. The ROKR E8 has a “morphing keyboard” that changes based on user activity. It is not nearly as flexible as a touchscreen, but the haptics that let users know a “button” has been “pressed” are implemented extraordinarily well. If priced at $99 or below, it should be a hit. Above that mark, there are equally capable music phones already on the market from Samsung, Nokia, and others. Motorola was not willing to give us even the slightest indication of pricing, but executives insisted that they believe the E8 will compete effectively with any music phone on the market, which did not make us feel better about the likely price range.
• Vendor Importance: High to Motorola, because CES is the first opportunity for Motorola to launch products in the post-Zander era, and the vendor has yet to find a hit device that will bring back the glorious RAZR days. Instead, the company has instead settled on a “drumbeat strategy” (Motorola’s term) of steady product launches. For this to work, each product must be successful, rather than the hit-driven business model that forgives some misses.
• Market Impact: Low to moderate on the consumer handset market, because there are already better devices from competitors catering to the mobile music and imaging crowd, and the new Z10 and ROKR E8 are not revolutionary enough to make another “RAZR effect” for Motorola. However, the E8’s implementation of haptics will be widely imitated regardless of how the music phone fares in the market, as it allows touchscreen-style devices with eerily lifelike tactile feedback.
CableLabs Crashes the Consumer Electronics Party with ‘‘Tru2way’’ Branding
| Analyst: Yoav Schreiber | Digital Media Infrastructure | Client Access |
Announcement Summary
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January 7, 2008 -- CableLabs, the cable television industry’s R&D consortium, has adopted the “tru2way” brand to succeed “OpenCable Platform” for the marketing and branding of the interactive video platform to enable televisions, set-top-boxes (STBs), and other devices to receive two-way digital cable services such as video on demand (VoD) and interactive advertising. The tru2way technology has been licensed by several dozen application developers and equipment manufacturers, and it has received commitments from major cable operators for deployment support by the end of 2008.
Analytical Summary
• Current Perspective: Slightly positive on CableLabs officially announcing that its “OpenCable Platform” for two-way access to digital cable services has been rebranded “tru2way” because, with the new brand name, impressive industry backing, and supported products – all announced at CES – CableLabs has bolstered its lobbying campaign to gain FCC favor over a rival proposal by the Consumer Electronics Association (CEA). With broad support for tru2way technology, interactive digital cable applications would be able to operate seamlessly on diverse cable systems, providing a competitive playing field for retail market digital STBs. A common middleware layer will also enable cable platforms to be as flexible as equivalent telco-based IPTV platforms.
• Vendor Importance: Moderate to CableLabs, since the announcement was anticipated by the industry and the new brand name does not materially alter the positioning of the proposed CableLabs tru2way standard vis-à-vis the CEA’s “digital ready plus” (DCR+) proposal. However, by announcing the momentum of industry backing and deployment commitments from major cable operators to support the tru2way platform by the end of 2008, CableLabs has established market-based facts on the ground that favor its proposition.
• Market Impact: Moderate to high on the overall cable infrastructure market, including the cable headend, STB, and consumer electronic device arenas, as well as the rival IPTV middleware segments. Regardless of the outcome of a potential FCC Notice of Proposed Rule Making (NPRM), with major cable operators such as Time Warner, Comcast, Cox, and Cablevision committed to supporting tru2way technology in service areas covering more than 90 million U.S. homes in 145 markets by the end of 2008, broad industry adoption is almost a foregone conclusion. For example, at CES 2008, Panasonic already unveiled a tru2way-powered portable DVR for Comcast customers.
Sony Ericsson Launches Three New Phones for the U.S.
| Analyst: Avi Greengart | Mobile Devices | Client Access |
Announcement Summary
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January 6, 2008 -- Sony Ericsson announced the launch of the Z555, W350, and W760 at CES. All are expected in the U.S. in Q1 (Z555) or Q2 (W350, W760). The W350 is a Walkman phone with a bar/flip design, the Z555 combines gesture control with a one-of-a-kind diamond design, and the W760 packs GPS, HSDPA, music, and motion controls into a slider.
Analytical Summary
• Current Perspective: Positive on Sony Ericsson’s three new phones, all of which should be competitive at their price points, because in combination with the W580i already on the market, Sony Ericsson is clearly seeking to claim ownership of the music category at AT&T for anyone who does not want to pay iPhone prices. The W350i is a particularly nice entry-level phone, with a hybrid bar/clamshell design that gives full access to music controls and is reminiscent of Ericsson phones from years past.
• Vendor Importance: Very high to Sony Ericsson’s U.S. operations, because the company has a very small footprint in this market – just a handful of phones at a single national carrier. To stay relevant in the U.S. market, Sony Ericsson needs each of its phones to be a hit.
• Market Impact: Low to moderate on the consumer handset market, because Sony Ericsson is poised to own the non-iPhone music market at AT&T. However, outside of AT&T, the handsets will have a relatively minor impact.
Yahoo! Joins the Open Platform Bandwagon, Launches Yahoo! Go 3.0
| Analysts: Deepa Karthikeyan, Emma Mohr-McClune | Wireless Services - U.S.
| Client Access |
Announcement Summary
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January 7, 2008 -- Yahoo! launched a major enhancement of its Yahoo! Go client software, in early beta. The downloadable client software allows users to customize and personalize their home page with both Yahoo! services such as My Yahoo!, Yahoo.com, Flickr, and OneSearch as well as widget access to Internet services such as MySpace, eBay, and MTV going forward. The beta client is currently only available to U.S. customers, and it is only applicable to a select range of higher-end devices in the immediate term. However, Yahoo! promises to ramp up both Yahoo! Go 3.0’s global rollout and handset applicability in the coming weeks and months.
Analytical Summary
• Current Perspective: Slightly positive on Yahoo! Go 3.0, which promises a major evolution of the out-dated and under-utilized Yahoo! Go 2.0. The much-improved client software application promises a significantly modernized UI, new customizable tools for widget access to services such as eBay, MySpace, and MTV going forward, and interactive click-to-call mobile advertising functionality. However, the application is still in beta, which indicates that it is not running in optimal mode and it is currently available only on a few high-end handsets.
• Vendor Importance: High to Yahoo!, specifically its mobile ambitions, as Yahoo! Go 3.0 signals the company’s aggressive re-entry into the mobile realm, after a period of relatively low innovation and commitment. Yahoo! Go 3.0 also shows Yahoo!’s embrace of game-changing wikinomics, with a Mobile Developer Platform for third-party developers. Yahoo! Go 3.0 will allow Yahoo! to better offset archrivals’ growing momentum in the mobile market, notably Apple (with the iPhone) and Google (with Android).
• Market Impact: High on the U.S. mobile market, as the launch opens Yahoo!’s platform to third-party widgets and applications. Although the client is still in beta and only available on a limited selection of higher-end devices, it gives Yahoo! additional ammunition to tackle archrival Google, whose Android announcement garnered immense support from the industry last year and strengthens its reputation as a mobile content and messaging one-stop shop.
Comcast CEO Opens Up about Bold New Strategies to Improve Its Triple Play Services
| Analyst: Bruce McGregor | Digital Home - U.S. | Client Access |
Announcement Summary
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January 8, 2008 -- Comcast CEO Brian Roberts announced his company’s host of new initiatives, with a focus on its push for more video content through Project Infinity, at his keynote address to thousands of CES attendees. Project Infinity is Comcast’s commitment to engage its growing pay TV competition head on, with its subscribers given wider access to more premium video programming through both the TV and the PC. Other highlighted projects in development for the cable provider were the Tru2way open video architecture, a first look at the AnyPlay portable DVR through its new electronics partner Panasonic, the SmartZone unified messaging platform, and an upgrade to Fancast.com’s interactive capabilities.
Analytical Summary
• Current Perspective: Positive on Comcast’s bold new initiatives, because they are pushing the leading U.S. cable provider to the next level with more competitive features in its triple play of services, with special attention paid to its video offering. At CES, the cable company announced numerous planned improvements for its residential offerings, including faster broadband speeds, a great abundance of high-definition programming, and better integration of its VoIP offering with unified online messaging.
• Vendor Importance: Very high to Comcast, specifically for accomplishing its long list of new services, because the marketplace is exploding with greater competition from the telcos, satellite TV providers, and online providers such as Amazon.com, Netflix, and Apple: companies that are all after the consumers’ home entertainment dollars. Comcast’s just-announced Project Infinity is a tremendous undertaking, with the cable company promising to offer its subscribers access to more than 1,000 HD choices in 2008 and ultimately making a pledge of all the video content the consumer desires, including movies, TV shows, and user-generated content.
• Market Impact: High on the digital home services market, because Comcast’s competition must be aware of its announced moves with the Comcast 3.0 next-generation services. The company is making a commitment to meeting the growing expectations of consumers’ to have a more integrated and robust digital home solution of entertainment and communications. Comcast is making the necessary countermoves to take on satellite TV’s claim of a higher selection of linear HD channels, with upgrades to its video-on-demand (VoD) platform, and it will soon make HD movies available for online download via its “wideband” offering, supported by DOCSIS 3.0 network upgrades of up to 100 Mbps deployed over the next two years.
Microsoft Xbox 360 and Microsoft Mediaroom Begin to Move Forward with Integration Plans
| Analysts: Larry Hettick, Bruce McGregor | Digital Home - U.S. | Client Access |
Announcement Summary
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January 6, 2008 – Microsoft announced that the company is working with British Telecom by bringing together the IP video service, BT Vision, with Microsoft’s Xbox 360 games and entertainment system. All BT broadband customers will have the unique opportunity to receive high-definition gaming, television and movies through an Xbox 360 console with an all-in-one entertainment experience. BT Vision, which is powered by the Microsoft Mediaroom Internet Protocol TV (IPTV) platform, plans to make the device and service offering available to customers sometime in the middle of 2008.
Analytical Summary
• Current Perspective: Slightly positive on Microsoft’s announcement of DVR capability to allow customers served by a Mediaroom infrastructure to watch the same or different recorded programs from multiple TVs in the home while simultaneously recording other shows because the feature is already available with DISH networks and TIVO, making the feature tablestakes for most video service providers. We are also taking a positive stance on the company’s development partnerships because even with Microsoft’s extensive resources in the IPTV content and application world, more help is better than less help.
• Vendor Importance: High to Microsoft because Tier 1 video service providers expect an infrastructure that supports multiroom DVR and because by extending its ecosystem of partners who will work on Mediaroom features, Microsoft can bring further value-added services without the time and expense needed to develop the features on its own.
• Market Impact: Low on most digital home users because if Microsoft had not yet provided the multiroom DVR, service providers would have found a company that could provide the feature. However, this announcement will have a moderate impact on the market for Microsoft’s partnerships because its selected partners will likely provide the market with added competitive features on the Mediaroom platform.
Microsoft Mediaroom Upgrades Take On TIVO and Shows IPTV Advantages
| Analyst: Larry Hettick | Digital Home - U.S. | Client Access |
Announcement Summary
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January 6, 2008 – Microsoft announced that it was adding a “DVR Anywhere” feature that allows customers served by a Mediaroom infrastructure watch the same or different recorded programs from multiple TVs in the home simultaneously while recording other shows. The company also announced that it is partnering with ChoiceStream Inc., emuse technologies, ES3, Showtime Networks Inc. and Turner Broadcasting Systems on new TV applications and scenarios that are enabled by the Mediaroom platform. Finally, it announced a partnership with Broadcom; the two companies will work together to enable the Microsoft Mediaroom client software to operate on next-generation set-top boxes utilizing the Broadcom BCM7405 system on a chip.
Analytical Summary
• Current Perspective: Slightly positive on Microsoft’s announcement of DVR capability to allow customers served by a Mediaroom infrastructure to watch the same or different recorded programs from multiple TVs in the home while simultaneously recording other shows because the feature is already available with DISH networks and TIVO, making the feature tablestakes for most video service providers. We are also taking a positive stance on the company’s development partnerships because even with Microsoft’s extensive resources in the IPTV content and application world, more help is better than less help.
• Vendor Importance: High to Microsoft because Tier 1 video service providers expect an infrastructure that supports multiroom DVR and because by extending its ecosystem of partners who will work on Mediaroom features, Microsoft can bring further value-added services without the time and expense needed to develop the features on its own.
• Market Impact: Low on most digital home users because if Microsoft had not yet provided the multiroom DVR, service providers would have found a company that could provide the feature. However, this announcement will have a moderate impact on the market for Microsoft’s partnerships because its selected partners will likely provide the market with added competitive features on the Mediaroom platform.
Nokia to Create U.S. Version of N95 8GB
| Analyst: Avi Greengart | Mobile Devices | Client Access |
Announcement Summary
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January 7, 2008 - Nokia announced the optimized Nokia N95 8GB for 3G HSDPA networks in the Americas. The new Nokia N95 8GB boasts a stunning 2.8 inch QVGA screen with support for up to 16 million colors, 8 GB of built-in memory, A-GPS positioning for improved location access and enhanced battery life. It will retail for $749 and will start shipping 1Q08 to Nokia Nseries retailers across the United States, the Nokia flagship stores in New York and Chicago as well as online e-tailers.
Analytical Summary
• Current Perspective: Slightly negative on Nokia announcing a U.S. version of the N95 8 GB at CES, and nothing else, as this announcement just brings the U.S. N95 to full parity with Nokia’s European versions. It is expensive, relatively bulky, and lacks carrier distribution. That said, the N95 is one of the most advanced handsets on the market today in any of its variants, and having in-built storage along with 3G capabilities is a welcome correction to Nokia’s mistake of not offering a version with 850/1900 3G frequencies in the first place.
• Vendor Importance: Moderate to Nokia because the N95 is flying off the shelves in Europe, but the U.S. market is where the company is weakest both in terms of sales and brand ranking.
• Market Impact: Very low on Smartphones because this is an evolutionary change to a product that is extremely expensive and does not have carrier distribution.
Verizon Gets 2008 Off to a Fast Start with Launch of 15 Mbps and 20 Mbps Symmetrical FiOS for Business Tiers
| Analyst: Cindy Whelan | Business Network Services - U.S. | Client Access |
Announcement Summary
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January 7, 2008 – Verizon announces availability of high-speed symmetrical FiOS Internet for Business service. Small and medium businesses in Verizon markets across 18 states now have the option of 15 Mbps or 20 Mbps symmetrical service with either dynamic or static IP addresses for monthly prices starting at $99.99 and $139.99, respectively. FiOS Internet service is available as part of a voice bundle or as a stand alone Internet access service, and includes free installation for one computer, 24x7 business-class technical support, 20 MB of web space and unlimited remote dial-up access for employees on the road. Verizon has also revamped its pricing structure for its high speed Internet plans, lowering prices by as much as 35%.
Analytical Summary
• Current Perspective: Positive on Verizon’s announcement that it has extended its 15 Mbps and 20 Mbps symmetrical Verizon FiOS Internet service to businesses in all Verizon FiOS markets across 18 states because the availability of the symmetrical tiers will give businesses with data-intensive requirements (such as transferring video and image files) a service option that far exceeds the uplink speed of offers from competing providers. The lower prices for Verizon's asymmetrical FiOS business tiers will have a broad appeal across its base of current and potential customers.
• Vendor Importance: High to Verizon because the availability of 15 Mbps and 20 Mbps symmetrical FiOS for Business service tiers surpasses broadband speeds presently available from cable operators and other competitors, giving Verizon a very strong marketing and technology differentiator. While DOCSIS 3.0 will offer the cable operators the ability to increase their cable broadband speeds, these upgrades are not expected to reach critical mass within most cable operators’ networks much before the end of 2008, giving Verizon ample time to attract business users with its new FiOS for Business service tiers and prices.
• Market Impact: Moderate on the small business services market because availability of symmetrical FiOS for Business service will be very attractive to businesses with data-intensive needs that are currently using lower speed cable or DSL services within the FiOS footprint. But this is a relatively small subset of the SMB market and FiOS availability is still limited. Symmetrical services are not new to the business market, but previous DSL-based offers (excluding higher-end services based on bonded DSL) supported a maximum speed of 1.5 Mbps. Verizon’s leap to 15 Mbps and 20 Mbps symmetrical service along with asymmetrical service options of up to 50 Mbps/20 Mbps and up to 30 Mbps/15 Mbps (depending upon the market served) gives business customers that are within a FiOS service area the opportunity to significantly increase their connection speeds.
Motorola Taps (Device) Strengths with Mobile Video Moves
| Analyst: Peter Jarich | Wireless Infrastructure | Client Access |
Announcement Summary
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January 3, 2008 – Motorola announced the launch of its DVB-H compatible DH01 mobile TV device and DVB-H mobile TV network solution portfolio. A standards-based mobile TV solution, the network offer includes DVB-H transmission, video headend and service delivery components (including interactive applications) as well as design and deployment services. The new DH01 device will support DVB-H broadcast video, a 4.3 inch screen and SD/MMC card support.
Analytical Summary
• Current Perspective: Neutral on Motorola’s new DH01 DVB-H device and DVB-H network portfolio, because following the hype of the last few years, multicast mobile video remains a hot topic, and one that could finally be poised for broader success. What’s more, it plays into Motorola’s diverse assets and expertise, ranging from mobile devices to digital cable headends. Yet, while the notion of an end-to-end multicast video solution may be appealing to (even required by) operators, the fact that Motorola’s announcement focuses almost exclusively on its new DH01 media player (a player with limited market potential) suggests that its commitment to DVB-H network solutions may be minimal.
• Vendor Importance: Moderate to Motorola, because the company has always claimed to be a DVB-H supporter. If ever there was a time to make good on these claims with actual product offers, this is it: there is a growing expectation that video will be the “killer app” for mobile service usage; years of mobile multicast TV trials should set the stage for more successful commercial services going forward. Ultimately, however, a focus on multicast TV is simply an extension of Motorola’s existing work with mobile devices and application delivery, nothing that represents a new strategic focus.
• Market Impact: Low on the wireless infrastructure and mobile TV market, because to be sure, mobile video players such as NSN, Alcatel-Lucent and Ericsson will take note of potential for new competition. Yet they will also point to the fact that Motorola’s interest (and offer) comes late in the game – at a point where they have already racked up commercial wins and trials. Combined with the fact that Motorola’s announcement is largely focused on its new device, the network side of the offer is unlikely to be taken too seriously.
Microsoft TV Partners with BT to Launch Integrated IPTV and Gaming Solution
| Analyst: Yoav Schreiber | Digital Media Infrastructure | Client Access |
Announcement Summary
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January 6, 2008 – Microsoft and BT announced that BT Broadband customers will gain the option of accessing the BT Vision IPTV service from either an Xbox 360 console or a set-top-box (STB). BT Vision, which is powered by Microsoft Mediaroom, plans to make this service available to existing and future Xbox 360 console owners in the middle of 2008. The announcement was made during the keynote address by Microsoft Chairman Bill Gates and Microsoft President of Entertainment & Devices Division at the 2008 International CES.
Analytical Summary
• Current Perspective: Very positive on BT’s announcement that it will be the first operator to deliver an integrated Microsoft Mediaroom and Xbox 360 solution for accessing the BT Vision IPTV service. By delivering an integrated consumer entertainment and communication experience, Microsoft TV is leveraging its unique core assets such as its widely deployed Xbox 360 gaming solution as well as strong partnerships with leading telecom operators worldwide to further differentiate its Mediaroom offering from rival IPTV offerings. As the momentum in IPTV subscriber growth increases, Microsoft TV is expanding the platforms available for accessing IPTV services, enabling operators that select Mediaroom to deliver enhanced interactive entertainment experiences as well as access to larger pools of subscribers.
• Vendor Importance: High to Microsoft TV, as the company needed to announce a telco operator partnership to follow through on its CES 2007 announcement to integrate the Xbox 360 with its IPTV offering. With Mediaroom now running on 1 million STBs worldwide, Microsoft can exploit its advantage of over 13.4 million deployed Xbox consoles to further accelerate Mediaroom subscriber penetration. The announcement has a high importance to BT which needs to demonstrate accelerated IPTV subscriber growth (beyond its current ~100,000 base) by tapping into the more than 1 million Xbox 360 users in the U, in order to reach its medium-term goal of securing 2-3 million BT Vision customers.
• Market Impact: Very high on the digital media infrastructure (DMI) market, since Microsoft has used its traditional CES keynote address to announce this widely anticipated move. To meet the enhanced Mediaroom/Xbox 360 challenge, rival IPTV middleware vendors will be forced to bolster the integrated entertainment and communication experiences of their interactive platforms. IPTV service providers will be required to compare Mediaroom’s enhanced platform versatility vs. rival IPTV solution offerings.
