CES 2008

Microsoft Mediaroom Upgrades Take On TIVO and Shows IPTV Advantages

| Jan 8, 2008 | Digital Home - U.S. | Show Update

| Analyst: Larry Hettick

Current Perspective: Negative/Neutral
Vendor Importance: High
Market Impact: Low/Moderate

Event Summary

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.

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Current Perspective

Competitive Positives and Concerns

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