Parks Associates Blog

Monday, November 29, 2010

DISH Network's Google TV Offering - Get Ready to Pay a $4 per month "DVR Integration Fee"

From Videonet, DISH is charging $4 per month for a ‘DVR Integration Fee’. That effectively pays for the pairing protocol that enables a Google TV search that simultaneously covers content on the satellite DVR, DISH Network VOD and the Internet. Consumers can also schedule recordings and buy on-demand movies directly from the search bar.

Any DISH Network customer buying a Logitech Revue (effectively a Google TV set-top box) or Sony Internet TV powered by Google TV from retail outlets can take advantage of the DVR integration (with the $4 fee). However, the satellite operator is offering the Logitech Revue to its subscribers directly for $179, a significant discount on the quoted $299 recommended retail price. The new package will work with DISH Network ViP series HD DVRs including the ViP 622, ViP 722 and ViP 722k.

Speaking of the Logitech Revue, I had a Geek Squad installer come on Saturday to fully configure the Logitech Revenue product. As I had mentioned in a previous post, I think that installation issues are going to be a significant challenge for these so-called "smart-TV adapters," particularly those of us who already have an AV receiver and are trying to route the Google TV's audio through the existing home theater/surround sound speakers. The Geek Squad installer requested a fiber-optic cable upon his arrival, and fortunately there were some leftovers from the 2008 full installation of the HDTV and home theater system. He tinkered with set-up for about 45 minutes, and even managed to connect the camera for the Logitech Vid videoconferencing system. The one drawback to this videoconferencing solution is that it is currently not compatible with Skype, which my family already uses for video chatting. I'm hoping that they overcome this hurdle.

Once properly connected, I did see much greater utility out of the whole Google TV experience, and had fun pulling up some YouTube videos and using the picture-in-picture feature to simultaneously watch an NFL game yesterday while tracking my fantasy football team. I'm not sure how pleased my wife was, however!

Another nice find was ESPN3's availability, one of few major networks that has not blocked playback. The U.S. women were playing on Friday, attempting to qualify for the World Cup. The only place to watch the game live was ESPN3. The game pulled up pretty easily, and the quality was pretty good.

The best feature so far, however, has got to be the ability to play my favorite Internet radio station on the whole-home speakers. This has been something I have been trying to accomplish for years with different media adapters, etc. That was a really pleasant feature.

So, Google TV does have some nice capabilities, but I have not recommended it to people who have asked because of 1) the installation challenges; and 2) the current problems that Google is having convincing the broadcast networks NOT to block access to streaming TV shows and other content. Because of this, the Web-surfing-on-TV features are definitely "geek chic," but they are not mainstream applications for the regular Joe who is looking to enhance his/her television viewing experience.

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Tuesday, November 02, 2010

Best Buy Offering Free Google TV Installation with a Purchase

Logitech was kind enough to send a review unit of their Revue Google TV "smart TV adapter" a couple of weeks ago, and I tried it out at the office. For a direct connection to an HDTV, it's a very simple process, and I was able to open a number of the Web-based apps and see what the experience was like.

However, there is no TV service at our office, so to really get a true test, I had to bring the Revue home. This is where the installation process got tricky, and it's stalled any further testing.
What I'm struggling to figure out is how the Revue product bridges between the set-top box and the AV receiver. The FiOS set-top box only has one HDMI port, which goes straight into the receiver and provides the video feed to the TV. If I unplug this and plug the Revue box in, I lose the picture.

Second, I already have many different connections into the receiver, so I'm trying to figure out where I would add another and reconfigure the settings to properly display the Google TV user interface.

I wonder if other people considering a "smart TV" this holiday season will find the installation questions too much of an inhibitor to actually go forward with a product purchase. In fact, our Digital Media Evolution II survey from Q2 2010 provides just this insight. When consumers not interested in a connected TV are asked why, the results are:
  • 31%: I would be concerned about privacy;
  • 25%: My TV is not located near an Internet connection;
  • 24%: I don't want an additional cable connected to my TV;
  • 20%: I'm afraid that my TV will stop working because of a virus;
  • 19%: I wouldn't know how to connect the TV to the Internet; and
  • 17%: Connecting the TV would be too complicated/time consuming.

Clearly, this industry has some configuration and usage information to deliver to consumers, and give Best Buy credit. They have set up a site to explain the differences between "Internet-connectable" and "smart TVs."

For a single HDTV with no connection to an AV receiver, I don't think configuration will be much of a hassle. However, for those of us who invested in a home theater set-up, there's no sense creating a "smart TV" environment if we can't enjoy things like Netflix movies or Pandora in a 5.1 surround environment.

This is where Best Buy's press release from last week comes into play. For a limited time, customers who purchase a Sony Internet TV or Blu-ray player powered by Google TV will receive complimentary Geek Squad set-up and consultative services.

I could really use this service right now. I'd rather let the professional deal with the installation, proper configuration, and any necessary programming (remotes, etc.) rather than deal with the tangle of wires sitting behind the home entertainment console.
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Friday, January 23, 2009

AT&T's ConnecTech - Tech Support

When people ask me about which particular segments of the digital lifestyle market will continue to grow despite our current economic conditions, one area that I continually point out are the digital home tech support services. These can include the retail-based services (best known by Geek Squad), the remote PC support space, warranty services, home network management software, security services (Symantec, McAfee, Radialpoint, F-Secure, etc.), remote management and residential gateway software providers (2Wire, Cisco, Jungo/NDS, etc.) and even pre-purchase/subscription advice services like Retrevo.

There was an interesting article in Smart Money this past week about the tech support market, with some pretty significant numbers provided. I estimate that the remote PC support business in 2008 was already $650 million - just in the U.S.! Others put Geek Squad's business at between $1 and $2 billion!

There are plenty of third-party services that are out there, but I'm really intrigued by what service providers can be doing to add value to basic broadband and television service offerings, increase customer satisfaction, and even build new revenue streams. We've written about the opportunities for service providers to take advantage of the digital home tech support space in several recent reports, notably Enabling Solutions for a Rich Broadband Experience and Networks in the Home: The Global Service Provider Play. We also had an interesting conversation at our CONNECTIONS™ Summit at CES about the evolution of tech support services. Bill Stanley from Telcordia followed up that panel with some responses to additonal questions I asked about how they are working with the service provider industry.

What I find interesting about the way that service providers are approaching the tech support space is that vendors are telling me that their conversations have moved away from the folks who are in charge of the customer support call centers and to the people heading up marketing efforts. I think that this may provide a clue as to how these services are being positioned within the service provider community - more as revenue-generating services than cost-saving efforts. We shouldn't downplay the role that enhanced customer support tools are going to play in helping to reduce call center volume and costs - I think that OPEX savings are going to be a critical element to making the service provider business more efficient. On the other hand, I think that some forward-thinking service providers see a real opportunity to create some new businesses that focus on helping their subscribers deal with the complexities of the digital home.

Starting with BT's Home IT Advisor service, I'm seeing more telcos get into the business of deploying tech support services. The most recent offering is AT&T's ConnecTech service, which has been advertised heavily in Dallas - I seem to hear their radio commercial every morning on my drive to work. ConnecTech is aimed at consumers, whereas their Tech Support 360 provides support for small and medium businesses. Among the services offered ConnecTech are:
  • PC and home network installation;
  • Computer services and in-home support;
  • Television and home theater set-up and consultation; and
  • Phone and remote support.

Verizon also has Expert Care is a subscription-based ($14.99/month) service for PC support. They also have put together a number of "Protection Paks" that include insurance/replacement services for consumer electronics, phone, and other home equipment (in the case of a power surge, for example).

Verizon actually cites our numbers about the number of U.S. households that experience a PC-related problem in any given year - 41 million households experiencing issues with Internet security, 20 million+ having problems with home PC hardware and software, etc. Those figures were generated in our 2006 survey Managing the Digital Home: Installation and Support Services. We are about to go to field with our next study on consumers and technical support services: Customer Support in the Digital Home. I'm really interested to see what the consumer demand is for a variety of tech support services.

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