PlayOn banned from Roku

PlayOn is client software that turns a game console into a digital video player, allowing consumers to access certain online video sites such as YouTube, Amazon VOD, and others. One site that you won't get access to, however, is Netflix. Here's the article from electronista:

Fearing legal repercussions, Roku Developer Program Manager Patrick announced on the company's official forums that PlayOn-compatible channels have been removed and can no longer be added. Those who already subscribed to the channel may be able to keep it, though for how long isn't known. Roku says this is because neither Roku nor the developer of the channel are affiliated with PlayOn.

For now, Roku remains as a streaming option on PlayOn's website. PlayOn offers streaming content from Hulu, Comedy Central, Spike, PBS, ESPN, CBS, ESPN3, Nickelodeon, TBS and BET. The first year costs $40, with every year after that priced at $20.

Read more.

Broadband-connected TiVos being deployed by cable operators

In our recently-completed Set-top Boxes: Outlook report, we wrote the following:

Consumers report strong interest in the concept of connected consumer electronics, including set-top boxes that link not only to television offerings from their service provider, but also to content hosted on home computers and streaming from the Internet. There is strong demand data for the concept of a set-top box that can pull in content from a variety of sources.

Perhaps more interesting – at least from a service provider’s desire to create new revenue streams – is the percentage of consumers willing to pay additional fees each month for this kind of feature. The percentage of consumers expressing a willingness to pay up to $5.99 per month for such a feature is comparable to the known take rate for Verizon’s Home Media DVR feature, a multi-room DVR and networked set-top box features. Verizon charges FiOS TV subscribers an additional $4 per month for the benefit.

When consumers are asked what features they would find valuable from a connected set-top box, the ability to stream music is the top application. Not too far behind this feature is access to email and customized weather. Access to premium Web video such as TV shows and movies appeals to about half of consumers interested in connected set-top boxes.

There are plenty of ways for cable operators to facilitate delivery of online applications to the set-top box, including transcoding in the network (ActiveVideo Networks or Clearleap, or a homegrown solution being deployed by Verizon), and we've been wondering if browsers will start appearing on more advanced set-top boxes (there is a growing consensus that browsers will be found on many connected consumer electronics). Or, the operator could simply buy a web-enabled set-top box box and deploy it (Digeo, Entone, TiVo, etc.).

There is an interesting announcement from RCN regarding its selection of TiVo as its primary DVR platform. The key to this announcement is the fact that RCN customers with TiVos will be able to access online video through services such as Amazon Video On Demand and other features.

In addition, notes the article from Multichannel News, the TiVo DVR from RCN will let users access trademark TiVo features such as Season Pass and WishList (to automatically record shows based on keywords or other parameters) searches and receive personalized suggestions. Subscribers will be able to schedule recordings via the Web or with mobile devices.

The RCN-TiVo DVR will offer interactive applications, such as viewing pictures and listening to music stored on a home PC, accessing millions of songs from Rhapsody, and receiving weather reports and traffic updates.

RCN is not TiVo's only TV operator win this year, however. CED magazine reports that Earlier this year, Evolution Broadband announced a deal with TiVo to use the latter’s Series 3 high-definition set-top boxes. With its recent waiver from the Federal Communications Commission, the TiVo deal will allow Evolution to offer small- to medium-size cable operators access to Internet content from the likes of Amazon and Netflix, which provides them with a VoD-like service without the expensive network equipment.

Things are definitely getting interesting.

Watching Amazon Video On Demand on a Connected CE Device

Since I updated the Netflix connected CE devices, here's a list of the devices where the Amazon Video On Demand Service is available:

• Xbox 360 (content must be downloaded to the PC first)
• TiVo
• Roku Digital Video Player
• Sony BRAVIA TV
• Panasonic VIERA CAST TV

TiVo gets Blockbuster content

Seems like everyone is courting TiVo. Between Netflix, Amazon, and now Blockbuster, there's more content on demand available on a broadband-connected TiVo box. Blockbuster will also hawk TiVos in some stores.

Time for Starz and Netflix to shine

Digitization of media is rapidly changing the interaction between media companies and consumers. As recently as 2006, ABC was accused of being a heretic when it started to release full episodes of its primetime TV shows online for free. Today, the practice is ALMOST mainstream.

Media companies realize (some just a little bit faster than others) that digitization and prevalence of inexpensive broadband (at least in the US, and I do use term "inexpensive" loosely) has given consumers options. Media companies have also realized that consumers with options can’t be easily herded to a specific time (such as primetime) or medium (such as a TV channel or a destination site). Today, consumers no longer have to chase the media. It is the media that has to chase the consumers and present itself to them wherever, whenever and however CONSUMERS want it.

The latest testament to this trend is the deal that Starz announced with Netflix. Starz would make its Starz Play service available as part of the Netflix’ “Watch Instantly” feature. This deal makes the service available to Netflix’ 8.4 million users (as of Q2 2008). It is a bold move for Starz and jives well its overall goal: to make its content available to any consumer on any device. By comparison, the other major premium content player – HBO – has been dragging its feet. Its HBO on Demand service is only available to current HBO TV subscribers, only available in one market (in Wisconsin) and is only available on PC.

It is understandable that HBO is trying to protect its valuable user base, but in terms of next generation of distribution strategy, Starz is designing a new concept car while HBO is pimping its horse and buggy.

The move is also a shot-in-the-arm for Netflix. Securing rights to digital distribution of premium content is a single biggest roadblock to Netflix’ success. With the Starz deal in place, Netflix can now add 1,000 more titles to its 12,000-title “Watch Now” library with another 1,500 titles that would be added by the end of the year. Netflix also bundles Starz content into its all-inclusive, $8.99-per-month service tier**, creating potential to upsell existing customers and augmenting allure for new ones.

**STARZ-only service tier is also available through Netflix for $7.99/month

Goodbye, Unbox - Hello, Amazon Video On Demand

On September 3, Amazon announced that its Unbox video download service was being replaced with Amazon Video On Demand. A big difference between the two services is that Amazon Video on Demand now includes streaming ad-supported movies and TV shows (Unbox was purely a transactional business). Content can be viewed within a Web browser instead of just through the Unbox player (although downloaded content will still be viewed with this). The service has also expanded beyond PCs and TiVo to include Macs and Sony TVs equipped with the Sony BRAVIA Internet Video Link.

Amazon's moves highlight a couple of the key trends we reported in the Internet Video: Direct-to-Consumer Services (Second Edition) report:

• Internet video services that rely soley on transactional revenues should expand to include ad-supported content; and
• Getting content to the TV (through network-connected consumer electronics devices) will be a key factor in growing this business significantly.