Digital Media Strategies

We cover all of the major media sectors, including advertising, TV and video, music, games and social media.

January 9, 2010 18:01 dmercer
We met with Boxee which was demonstrating its first set-top box, developed by D-Link and based on Nvidia’s Tegra 2 chip. This is a powerful platform allowing full HD capability. The box will not include an integrated HDD in order to keep the price below $200, but supports USB drive attachments. It will ship in 1H10 in the US and Canada. Boxee let slip to us that they also expect it to be available “shortly after” in Europe. Boxee currently has 750,000 users through its PC-based platform. This device is certain to give a boost to those numbers and looks like a compelling new entry into the connected TV market. Meanwhile, Yahoo continues to make progress with its connected TV offer. In spite of our scepticism over the widget strategy, based on our own user research, Yahoo expects to have shipped between 3 and 5 million TVs globally by the end of Q110. 60% of sales have been in Europe and the remainder in the US. The company’s target is to have shipped in between 10 and 12 million devices by 2011. Like other connected TV companies their goal is to develop a large scale platform from which monetisation of app stores, advertising and other opportunities can be realised. As things stand today Yahoo appears to be fairly well positioned, but it will come under threat from many alternatives over the next few months, and TV manufacturers will be wary of becoming too dependent on a single partner. One competitor could be Sonic Solutions’ Roxio/CinemaNow platform, which is being repositioned as a white label service for retailers and device manufacturers. Indeed, as we were meeting Sonic was in discussion with one of the major US retailers. It makes sense that retailers would be interested in selling connected TV services in addition to the devices on which they make small margins. We can expect to see a great deal of activity in this space in the US and Europe over the coming year as the connected TV landgrab continues. Client Reading: Consumer Imperatives for Digital TV Media Browsers Add to Technorati Favorites

February 18, 2009 23:02 dmercer
So I came looking for mobile/home convergence, and found it, but the overall impression is that it’s not something that is a high priority for the mobile industry right now. Given global handset volume declines of 10% or more, perhaps that’s understandable. Colleagues assured me Barcelona’s taxi lines were a lot shorter this year, a sure sign of falling attendance at any industry event. As expected we saw a number of signs of handsets moving towards true HD support. Nvidia’s demonstration of 1080p video output from an internally developed MID form factor device onto a full HD 50” TV was the most impressive sign of what is to come. The company’s Tegra processor was also used to demonstrate some impressive 3D graphics capabilities. End user devices are expected to reach the market during the second half of this year. The sticking point, as so often, is the practical issue of getting high definition media from the mobile device onto large screens. There is clearly going to be the inevitable standards battle as early HD handsets support HDMI output, Silicon Image tries to push a new handheld-centric variant called MHL, and others continue to promote wireless approaches such as WiFi. But while various solutions were being offered, and are apparently getting close to commercial viability, I did not get the impression that the mobile industry majors (operators, top 5 handset vendors) see this as a desperately important issue for the near term. Realistically it will be a couple of years at least before handsets begin to emerge widely as sources of HD content for the home, but that is clearly the path they are on. Twitter: twitter.com/dmercer15 Client Reading: High Definition TV, Video and Digital Media Devices: Global Market Forecast Add to Technorati Favorites submit to reddit

January 13, 2009 13:01 dmercer
Last year we questioned whether the CES wow factor would make a return. Perhaps it is going too far to say the 2009 event fulfilled those wishes, but I got the sense that, in spite of the gloomy economic background, there was greater depth and commercial potential to the innovations than in recent years. And again perhaps it is reading too much into what inevitably are subjective impressions, but it may have been the challenging economy that encouraged exhibitors to demonstrate their readiness to benefit from the next technology transitions when the upturn finally appears. Of course there was nothing really new, and it would be wrong to go to CES or any other event with excessive expectations. Most innovations are evolutions or enhancements of existing technologies. The key is to look for genuine progress towards significant commercial opportunities, and this was clearly evident in connected TV, 3D and portable devices. While previous shows have seen a degree of experimentation in internet and web-enabled TV, this year there was a sense that widespread commercial rollouts are finally imminent. There is certainly no consistency in the approach to web TV, and, as we have seen, early implementations may be missing the real driver of consumer demand. But at least the products will be out there on retailer shelves, and vendors can start to learn what works and what doesn’t. 3D is at an even earlier stage in its lifecycle, although some would argue that its gestation began several decades ago. With so many false dawns behind it, 3D scepticism is understandable. But doubts over user acceptance should not cloud the fact that technical implementations are clearly improving year after year. The very best, such as Nvidia’s 3D gaming demonstrations, are very impressive indeed and well suited to their applications. Others, such as Panasonic’s 3D Blu-ray, can be extraordinarily good when the content production chain has been well designed, but are weaker with legacy material. As we move through the next decade 3D will certainly be playing an increasing role in some form or other in the digital home. The other broad trend is the increasing power of portable and mobile devices. Our research is tracking the role of personal technologies in bringing Internet applications to the digital home. As truly portable computing becomes ever more powerful, as evidenced by Nvidia’s new ION motherboard, growing numbers of consumers will see such devices as their primary digital home content gateway, connecting ad hoc to the large TV screen as required. These trends, while they will have near-term commercial impact, will also drive major new revenue streams for technology vendors and content providers alike over the coming decade. For that reason CES 2009 fulfilled its purpose to provide a vision of the future of consumer technology. The fact that fewer people – 110,000 attendees is the latest estimate – were there to see it is a sure sign that the industry is in the midst of a downturn, but it should not divert us from the fact that new technologies will inevitably replace old ones, fuelling new growth opportunities as soon as the economy allows. Twitter: www.twitter.com/dmercer15 Client Reading: Digital Media Devices Global Market Report Add to Technorati Favorites

January 10, 2009 22:01 dmercer
I saw Panasonic's demonstration of Blu-ray-based 3D system this morning. Demos are running in two small theatres on the Panasonic booth. They consist of 10 minutes of various movie, sports and games clips. Viewers are required to wear glasses. The material runs from a BD disc in a modified Blu-ray player. I’ve heard many positive reactions to 3D Blu-ray here at the show. It certainly seems to have a wow factor for some viewers. While the demos are certainly impressive, I have two general concerns. The first, which I highlighted yesterday (http://www.strategyanalytics.com/blogs/343/), concerns headwear. The second concerns the impact of the quality of the material. It was quite noticeable during the Panasonic demonstration that some material is considerably more effective in 3D than others. Perhaps it’s just my eyes, but some of the early sports clips involving many rapid and complex movements lacked clarity and could become quite difficult to watch for any length of time. By contrast, the brief clips from this year’s Beijing Olympics were immensely impressive. Apparently these were captured with special dual-camera systems from Panasonic, and the investment clearly paid off. But that is the point: before 3D begins to penetrate the sports and other broadcast sectors producers will need to make significant investment in upgrading cameras and other studio equipment. No doubt that is something Panasonic, one of the leading vendors in this market, is looking forward to. Likewise with movie content, fast action scenes still clearly present a challenge. Most of the other movie clips were impressive, and this is encouraging for the 3DBD opportunity which will clearly depend primarily on movie content. Panasonic is hoping for a 2010 launch, but much will depend on whether it can persuade other CE players and partners to unite around a single standard. That will be absolutely vital if 3DBD is to become successful because content providers will not want to adapt their productions to incompatible technology platforms. It also looks like something I wrote yesterday may have to be revised slightly. Samsung is demonstrating technology that turns any HD content into 3D, again with the user having to wear glasses – these link to a TV emitter via infra-red, similar to Nvidia’s system. The demo includes Xbox games, so it looks like 3D console gaming could be closer than we thought. The technology depends on processing chips within the TV, so it will be some time before it becomes widespread. In the meantime I’m sure Microsoft will be looking at alternative approaches to upgrading its Xbox platform for 3D. Client Reading: Digital Media Devices Global Market Report Add to Technorati Favorites

January 10, 2009 04:01 dmercer
We saw impressive demonstrations today of Nvidia’s new GeForce 3D Vision glasses. These use two LCDs which synchronise with special 120Hz monitors via infra red emitters. Although Nvidia claims that 3D effects are apparent with most existing PC games, it has currently approved around 300 games. The certification process is a major investment for the company, but necessary in order to ensure user confidence. True 120Hz monitors are now available from Viewsonic and Samsung. Viewsonic has branded its 22” model FuHzion, and it retails for $349. The company believes this price point is now right for the mass market. Personally I think they are being over-cautious – It’s not so long ago since standard 15” and 17” LCD monitors were priced well above this level, so $349 for a 22” with the latest technology seems almost a bargain, at least for hard core gamers who are looking for the best possible experience. Games are the obvious place to start for the coming 3D revolution, since many games have 3D capabilities built in from day one. It will begin with the hard core PC games community and spread out to other PC and eventually console users. The latter will depend of course on whether the major platform owners choose to introduce 3D technologies, and they may be reluctant to do so until 3D capabilities are more widespread in the HDTV market. Our position has always been that most consumers are reluctant to use specialised eyewear when watching TV. Philips and other companies have demonstrated much improved eyewear-free solutions in recent months. But there’s no doubt the various glasses-based approaches are also improving and becoming more comfortable and effective. The ideal solution in television and video will not depend on glasses, but if that can’t be deployed to the mass market any time soon, Nvidia’s technology and others like it may begin to gain wider acceptance. Client Reading: Digital Media Survey: An analysis of US Online Premium Video Users Add to Technorati Favorites