Archive for the ‘Internet TV’ Category
TV coming as a service over Broadband/Internet… everybody is rolling up their sleeves and getting ready. Biggest hurdle – negotiating content license with Content Creators & Publishers.
A group of deep-pocketed companies, including Microsoft and Verizon, are exploring delivering TV service over the web, a move that could disrupt the economics of cable TV and lead to a new generation of “virtual” cable companies that provide TV without owning the pipe into the home.
Neither is close to rolling out their own web TV service, but both are determined to secure the rights so that they have the option of doing so in the future. They’re not alone: Cable operators are looking at web delivery to leap the confines of their wired network, and video-on-demand services such as Hulu, Apple and Amazon, as well as other brands not generally associated with TV, are looking to enter the TV market.
The notion of an “over-the-top” video service that bypasses cable and satellite networks has been around for a long time but generally has been held back by two main factors: programmers’ reluctant to license new players and cable, telco and satellite operators’ control over the access to the home. They’ve also been held back by the limitations of the web itself: The infrastructure just isn’t there to support as many live simultaneous streams of content as a popular live event like, say, the Super Bowl would create.
“Somebody is going to pull the trigger this year. It may not be 250 channels in HD, but it will be at a minimum a good handful of channels with subscription on-demand and the ability to get the content on lots of devices,” said Braxton Jarratt, CEO of Clear Leap, which also provides enabling technology for web-delivered TV.
Steve Jobs was quoted saying the following at the launch of iPad2 earlier this week:
The Logitech Revue has two primary peripherals – MiniController and the TV Cam. Per Logitech’s 10-Q for the quarter ending 12/31/2010 – Revue and peripherals sales were $23.4million.
Assuming all of this was only Revue and using an ASP of $250 (instead of $299, since they dropped it during the Holidays) – it would result in an approximate sale of 93,400 Units in little less than 3 months ….
Note R&D expenses were incurred for Revue development – with the development being outsourced? 10-Q makes special note of increase in Consulting Fees due to Revue. And also Marketing & Selling expenses were higher due to Harmony and Revue. All those loft parties apparently did no good …
A detailed analysis at some point with a better model may be more useful. Below are the significant statements pertaining to Google TV and Revue (mentioned 23 times) in the 10-Q.
For home entertainment systems, we offer the Harmony line of advanced remote controls, Squeezebox wireless music solutions and, in the United States, a
line of Logitech products for the Google TV platform, including the Logitech Revue companion box, Logitech Mini-Controller and Logitech TV Cam with HD Vid service. For gaming consoles, we offer a range of gaming controllers and microphones, as well
as other accessories.
Adoption of the new accounting guidance primarily impacted the revenue recognized from Logitech Revue and our
LifeSize video conferencing products. The adoption had no impact on revenue recognized from the remainder of our peripherals, as they are not multiple-deliverable revenue arrangements.
The sale of Logitech Revue consists of two deliverables: the hardware with essential software delivered at the time of
sale, and unspecified additional software upgrades to the essential software on a when-and-if-available basis. Logitech allocates arrangement consideration to each of these deliverables using a selling price hierarchy. Under the new accounting
guidance, the selling price is based on VSOE of fair value, if available, TPE if VSOE is not available, or ESP if neither VSOE nor TPE is available. The relative selling price of the hardware with the essential software is based on ESP. The relative
selling price of future upgrades to the essential software is based on TPE. Amounts allocated to the delivered hardware and essential software are recognized at the time of sale provided the other conditions for revenue recognition have been met.
Amounts allocated to the future unspecified software upgrade rights are deferred and recognized ratably over the estimated 24-month life of the hardware. There was no impact to prior period financial statements from adopting the new accounting
guidance as it relates to Logitech Revue, because there were no sales of the Logitech Revue prior to adoption of the guidance.
We achieved retail sales growth in all product families during the three months ended December 31, 2010 compared
with the same period in the prior fiscal year, with double digit percentage growth in pointing devices, video, gaming and digital home. Digital home is a new product family combining Harmony Remotes, Logitech Revue with Google TV and peripherals
associated with the Google TV platform.
To date the platform has not met widespread consumer acceptance and our sales of Logitech Revue and related products have
been below our expectations.
In the three months ended December 31, 2010, our retail average selling price increased 3% compared
with the three months ended December 31, 2009, and increased 16% compared with the three months ended September 30, 2010, reflecting in part the launch of Logitech Revue in October 2010
In the Americas region, retail sales increased 31% and 35% and retail units sold increased 6% and 16% in the Americas
region in the three and nine months ended December 31, 2010 compared with the same periods in the prior fiscal year, reflecting strong sales of products with higher average selling prices and in particular, Logitech Revue. All product lines
produced double digit percentage sales increases in both the three and nine month periods ended December 31, 2010 compared with the same periods in the prior year. Sales of the Digital Home product line were especially strong, based on the
newly-launched Logitech Revue.
The launch of
Logitech Revue and the associated peripherals contributed sales of $23.4 million to our new Digital Home product family in the three months ended December 31, 2010.
Marketing and selling expenses increased 43% and 46% in the three and nine months ended December 31,
2010 compared with the three and nine months ended December 31, 2009, primarily due to the addition of LifeSize sales and marketing personnel in December 2009, and variable demand generation activities focused on Harmony remotes and Logitech
The increased advertising and marketing spending related primarily to approximately $27 million of variable demand
generation activities in connection with our Harmony Remotes and Logitech Revue, as well as other new product launches.
Consulting fees related to our development of Logitech Revue for Google TV also contributed to the increase in research and development expense compared with the prior year.
Netflix, with +20m customers, has meaningful & significant subscribers. And I think it is getting to ready to use that muscle. They are a business, much like Google:
– With no original content from them – they license, aggregate and distribute
– With no network infrastructure, with zero investments in networks (but they do partner/pay CDN operators)
However they do have the power of subscribers to back them up!
But you can summarize it in a sentence: If the broadband guys insist on gouging us to get video to our customers, we’re going to make a very public stink.
Hastings says the list will detail “which ISPs provide the best, most consistent high-speed Internet for streaming Netflix,” and offers a preview: Charter is tops, right now.
But if you invert Hastings’s description, you get what he really means: We’re going to tell some broadband customers that they’re getting screwed and should switch to a new provider. Heads up, Time Warner Cable, Comcast, etc.
Intel has been attempting to enter the living year for over a decade now – and finally it is beginning to happen. Their dream has been for an Intel-powered CE device to be the center of the living room. They tried with the StrongARM line of processors right after their acquisition from DEC (late 1997). The StrongARM business was sold to Marvell in 2006. Intel, then followed by launching Viiv, to create an Entertainment PC for the living room. Sadly that effort also went nowhere …
Things are beginning to change. Intel is finally entering the living room – I can say this is true for my home and any of the households who have bought any of the following: the Boxee box, Logitech Revue, Sony GoogleTV products. All three of these are powered by the Intel 4100CE chip – code named Sodaville. The Sodaville chip has an Intel Atom processor.
The thrust is not only on the consumer front but also via service providers such as Comcast. There have been reports of Comcast running trials with a Set Top Box (STB) being powered by the CE4100 (you can read a review of the SOC by Anandtech).
The one thing that history does tell us in this case – Intel will not give up!
WSJ and NYTimes recently reported on Google requesting partners to delay launch of GoogleTV products. May be the existing partners have also given up? The pictures below were taken yesterday showing the GoogleTV demo in the SonyStyle front display window at Atlanta’s flagship mall – the Lenox Mall.
GoogleTV product may be ready or not, having a front window display in a premium shopping mall that shows a cryptic error message with a blank screen furthers the negative image of Sony and Google.