More progression toward hybrid TV services in the U.S.? Entone's FusionTV™

Last week, I had written about the potential role of Sezmi and SkitterTV in developing hybrid television services that marry high-definition broadcast channels with online video and interactive feature. Today, Entone introduced FusionTV™, a managed service that provides telco operators with the ability to offer "over the top" (OTT) content blended with linear HDTV programming.

The IPTV Edition of FusionTV is based on Entone's recently announced WebVOD solution which allows IPTV operators to offer web-based VoD services with a software download to Entone's media hubs.

What about advanced hybrid television services in the U.S.? Skitter.TV and Verismo Networks

For now, much of the attention about hybrid television services that combine over-the-air programming with IP video-on-demand and streams from other online video sources has been focused on Europe, and rightfully so. In fact, many "IPTV" efforts in Europe are themselves hybrids, among them BT Vision and Telefónica. Between operator-deployed hybrids such as IPTV and retail-based hybrid approaches, we anticipate that Europe will have more than 60 million households receiving hybrid television services by 2015.

But what about the U.S. market? Up until now, hybrids have been a more difficult proposition, as pay-TV has been the norm. In fact, our recently-released Digital Living Forecast Workbook indicates that pay-TV services will reach approximately 87% of all U.S. households by year-end.

However, there are at least two drivers for the consideration of hybrid services:

1. Consumers are getting more fed up with high television prices and may consider ways to either reduce or eliminate their pay-TV services altogether. In fact, our study All Eyes on Video reveals very little satisfaction for the cost of pay-TV services, with the exception of subscribers to AT&T U-verse or Verizon FiOS services. I suppose these folks are still in the honeymoon stage.
2. Second, the hybrid services themselves are becoming more compelling, both in price and features. Take Sezmi for example - for as low as $4.99 a month (and a $149.99 one-time hardware purchase from the local Best Buy), subscribers receive their local channels an HD DVR, and access to VoD. For $19.99, subscribers receive 80 cable TV channels.

I think that hybrid approaches will be something about which we'll be hearing a whole lot more, particularly with events such as TelcoTV November 9-11. We're already seeing some pre-announcements, including Skitter Inc. and and Verismo Networks.

Skitter.TV is a hybrid IPTV/over-the-top video platform enabling telecom service providers and entertainment content companies to encode, configure, deliver and monetize streaming media services. Skitter.TV provides a broadband media experience on computers, televisions, mobile devices and gaming consoles. The end-to-end video and audio solution includes head-end hardware and software for integrated Web video, live (linear) cable network and broadcast TV, digital audio, and video-on-demand content, delivered over IP via DSL, fiber optics or wireless networks. Skitter.TV's end-user software and program guide offer consumers premium-quality high definition (HD) or standard definition (SD) multiscreen entertainment service that combines live TV, over-the-top Web video, on-demand content, digital audio and apps, all in one unified, remote-control-driven environment.

Verismo Networks announced its next-generation high-definition VuNow Internet TV platform that allows Multi System Operators (MSOs), Internet Service Providers (ISPs) and Telcos to bring linear channels combined with value-added internet applications over the Internet to their subscribers. By using the internet as a distribution method, service providers can rapidly expand their existing footprint and reach new global markets with minimal investment in their infrastructure.

Sezmi and Oregan Networks Offer Solutions for Interactive TV in Developing Markets

It's interesting that two different releases crossed my desk this morning, both related to interactive television services in developing markets (Malaysia and Latin America), but with different approaches.

Oregan Networks and Telefónica announced a collaboration whereby Oregan's Web hardware an software solutions will be used to bring online video and other Web content to Telefónica's customers via a set-top box. Although 64% of Telefónica's subscriber base is in Latin America, IPTV and other pay-TV services are notably limited in their deployments in this region. According to a recent Parks Associates study, however, television services in the Latin America market will grow by double digits over the next five years, outpacing service growth in Asia and other emerging markets.

Sezmi, a provider of a hybrid digital television offering in the U.S., has extended its reach into Malaysia with an agreement with YTL Communications, the Internet arm of YTL Corporation, Malaysia’s leading utilities and infrastructure company. The service will provide for wireless delivery of all consumer entertainment and communications services to homes and mobile devices in Malaysia by the end of 2011.

The wireless “quadruple play” service will offer voice, data and television services to the home and mobile devices over a hybrid broadcast and 4G wireless network. This hybrid television component of the offering is based on Sezmi’s television solution, which has already been deployed in the U.S. market.

Sezmi is now available at Amazon

Sezmi announced that its television service is available to viewers in 36 markets across the U.S. through Amazon. Amazon is the second major retailer to offer Sezmi's TV service, after Best Buy.

The Sezmi personalized television system costs $149.99 and includes a one-terabyte HD Media Recorder that automatically organizes live, recorded, on-demand and online content, along with the industry-leading indoor television reception system for receiving local HD broadcast channels and cable channels. The monthly subscription service comes in two tiers, the first of which is Sezmi Select for $4.99 per month. Sezmi Select customers receive HD DVR capabilities, live local broadcast channels, an ever-growing on-demand store that features thousands of free and pay-as-you-go movies and shows, and access to rich Internet content such as YouTube™ and video podcasts, along with the personalized user interfaces for each member of the household. The second tier, Sezmi Select Plus, is priced at $19.99 per month and includes everything in the Select package, with the addition of a tremendous content lineup of live and on-demand cable channels from the most watched cable networks.

Sezmi's Breakthrough Personalized Television System, Protected by SecureMedia

Technology leader in open content protection software, SecureMedia, will be providing the digital content protection for Sezmi's redefined TV stands out from the traditional television offerings with a highly personalized, intuitive user experience at an affordable cost.

With a line-up of content from broadcast networks, cable networks, internet video, and on-demand movies and TV shows, Sezmi is the first to directly combine a broadband experience with traditional broadcast and cable TV programming.

Winner of both the TelcoTV 2008 Vision Awards and the 2008 IPTV World Series Award, SecureMedia's Encryptonite One™ System provides the end-to-end digital content protection that enable access to Hollywood blockbusters, new and existing TV channels and Internet video.

For more information, visit http://www.sezmi.com/.
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