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Well, the NetFlix Player (by Roku) has been out for about a month now and I was wondering who out there has purchased one yet. I held out, but this weekend I decided to order it and test it out. After all, hands on reviews are the best way to go I think.

While I was writing a story on NetFlix for the subscription-based IPTV Bulletin that I’m editing, I did some research on the competition, namely Apple TV and Vudu. They are all set-top boxes designed to deliver movies and TV shows directly to TV sets, not PCs. It’s not a very crowded market, so I’m hoping to get hands-on with all of them in the future.

In the meantime, here’s the comparison table I did.

The biggest plus about the NetFlix Player is its low price. Just $99 means it’s an impulse buy and not something you have to consider stretching your credit card debt such as with Apple TV (up to $329). Plus, you don’t have to pay per download like you do with Vudu and Apple TV. Again, this lowers the overall cost proposition for consumers.

I don’t think the NetFlix Player will be a killer device, but I think it’s definitely changing the game through its low prices.

So, I’m wondering… Have you bought the NetFlix Player?  If no, why not?

P.S. Seems like NetFlix Player shipments are delayed about two weeks, so I’ll have to wait a bit longer than I thought. However, this may be good news for Roku and NetFlix since it seems like demand is outstripping supply.

[tags] Vudu, Roku, NetFlix, NetFlix player, Apple, Apple TV [/tags]

Now that Apple has announced that it is renting movies off iTunes and improved Apple TV, it looks like the rental/download market is getting ready to blow up. According to analyst firm ABI research, video downloads will grow from 215 million in 2008 to over 2.4 billion in 2012. About half of all downloads will be for online movie rentals.

Today, the online movie rental business is slow-going. There’s Amazon Unbox, NetFlix Watch Now, iTunes and a few other scattered video download businesses. Additionally, competition will come physical rentals like NetFlix and Blockbuster, as well as cable and satellite companie. So the competition will be fierce and now everyone’s trying to get a piece of the pie now before a clear video download winner emerges.

Additionally no one is sure what the business model will be: subscription, rent-to-own, rent. And what kinds of restrictions should be set on downloadable movies, such as copying to DVDs or portable media players.

[ABI Press release]

[tags] movie rentals, online movies, iTunes, Apple, Apple TV, video downloads, online movie rentals, Internet video [/tags]

In a bid to remain atop the online movie rental business, NetFlix said it will deliver movies directly to TV sets later this year. Currently NetFlix only lets subscribers to its “Watch Instantly” service view rentals on PC screens.

This new service will come in the form of a new set-top box that connects to the TV and computer, much like Apple’s Apple TV product. In many ways, the device isn’t a new approach or anything really startling–the main thing is that it’s coming from NetFlix which already had a deep library of movies, an existing DVD by mail rental business and the PC viewing option. Those things make it a very compelling strategy and is may make it a success for NetFlix.

In essence, NetFlix is understanding that it’s critical to deliver content (movies, TV shows, etc.) to TV screens since many people are getting HDTV sets and most do their viewing on the big screen in the living room.

Having yet another set-top box, however, seems like the biggest flaw in this plan. People will not rush to buy another box unless it offers something compelling that they can’t get anywhere else. And customers can definitely get movies in many other ways, without getting a new box and hooking it up to a PC, like the NetFlix service requires.

For example, want to watch a recent hit movie like Pirates of the Caribbean? There’s On-Demand, DVDs, free TV, premium channels like HBO, and online pirated versions available. Will consumers really flock to a device that just delivers movies? Tivo seems like it has the right approach with its partnership with Amazon for its Unbox movie delivery service. However, Unbox (and even Apple TV) have not been huge hits.

Another downside is that the movies that NetFlix delivers to TVs will likely not be HD-ready. Many people will still want to rent the physical DVDs, especially if they own Blu-Ray or HD-DVD players.

Guess we’ll have to wait and see how NetFlix tackles this interesting new delivery to the home.

[tags] Apple TV, Apple, NetFlix, Amazon, Tivo, Unbox [/tags]

Nick Wingfield from the Wall Street Journal writes about how no one’s really figured how  to watch Internet video on TV sets.  So far, products like Apple TV and Akimbo haven’t reached mass usage for a number of reasons such as they’re hard to use, hard to install, high cost and low value proposition because content can be found elsewhere.

Wingfield goes through the problems and talked to vendors to discuss possible solutions. For example, the problem of too many set-top boxes. Consumers need to know that a new stand-alone box gives them something they can’t get anywhere else. Things like new high def DVD players have the potential to keep a coveted place underneath the TV set. Also, game systems like PlayStation 3 and Xbox 360 act as set-tops since they can download music and movies.

The solution to this is incorporating features into existing devices or one new converged box. However, there’s no consensus on what that box might be. Will it be Tivo? A cable box with a DVR and Internet functions?

According to Scientific Atlanta, cable companies may end up winning this battle. Cable and satellite TV providers already provide the majority of DVR devices to U.S. consumers, so it seems possible that Internet connectivity will soon be a part of set-tops. Kip Compton, general manager at Scientific Atlanta said that cable companies will begin rolling cable boxes that can access Internet video next year.

However, others believe that cable companies won’t want to do this because consumers will be able to watch TV free by accessing content on the Internet. And that may impact their revenue.

Cable and satellite companies, however, need to think beyond their quarterly earnings cycle and think longer term. Consumers will be happier and increased usage in Internet video may mean better integration of digital media advertising and may spur other revenue that we haven’t even thought of.

IPTV services may have the biggest jump. In the U.S. AT&T’s U-Verse and Verizon’s FiOS TV services use IP networks to deliver broadcast TV programming. So integrating other IP features should be relatively easier than it would be for cable or satellite providers.

So far, however, IPTV providers are just ramping up in the U.S. so they’re just trying to roll out broadcast and VOD services and gain new customers. Advanced Internet features aren’t yet a big part of IPTV, either in the U.S. or the rest of the world where IPTV is much more mature.

SanDisk announced a USB product that bridges the distance between a PC and TVs allowing viewers to transfer files from the computer to the device and into a cradle connected to the TV.

The TakeTV Video Player, is meant to make it easy to transfer TV shows and movies from PC to TVs but adds yet another equipment residing next to the TV. I guess until TV sets come with USB ports, we’ll need to have a device like this. The device is available in 4GB ($99) and 8GB ($149) versions.

I’m not convinced that this is the best way to get content to your TV, but it might prove to be quick and a good low-cost way. The alternative is to a) run a wire from your PC to TV b) burn a DVD and play it on your TV or c) use a media center extender like NetGear or even Apple TV.

With the SanDisk method, you can get decent content (without going through BitTorrent) and a somewhat easy way to bridge the famous “ten-foot” gap between the PC and TV.

The bad news? You can’t take protected content, like stuff from iTunes or Amazon Unbox.

SanDisk also unveiled Fanfare, a new online video service where users can download TV shows and movies.  Content partners include CBS, Showtime Networks, Smithsonian Networks, The Weather Channel and Jaman.com. Fanfare content will also be downloadable to mobile phones, handheld computers and TVs.

[Via Forbes,  SF Chronicle and others]

[tags] SanDisk, FanFare, TakeTV, PC-to-TV [/tags]

So you want to watch HD programming but you don’t want to pay over $1,000 to buy an expensive HD TV set? Well, there’s another option: your laptop.

Pinnacle has a USB device that comes with an HD tuner and DVR software so that you can catch over-the-air HD programming on your computer. Pinnacle PCTV HD Pro Stick ($99) comes with a full remote control, the ability to watch SD and HD programming, an A/V adapter for analog video capture and support for Windows Media Center. The cheaper non-Pro Stick version ($79) doesn’t come with the A/V adapter or remote control.

Now, ReplayTV has a similar device going on sale in November 2007 for $99. Last month, ReplayTV said it was releasing its “Personal HD” solution, a USB device with a multi-tuner and ReplayTV software.

I have a soft spot for ReplayTV since it was the first DVR I ever used. And I owned for for over 5 years. But about a year ago, I decided to upgrade to a Tivo because a) I wanted newer technology and more importantly b) I wanted to use my home network rather than have a home telephone line to get my DVR updates. My Panasonic ReplayTV ShowStopper didn’t support Ethernet and I no longer had a home phone.

Anyway, now ReplayTV is making hardware again (a USB device) even though it announced a few years ago it was no longer making hardware and making DVR software only.

ReplayTV is touting the ability to encode video into portable devices, like iPods, as well as the ability to stream shows over the Apple TV. But the Pinnacle Pro Stick encodes to iPods too.

ReplayTV’s solution comes with “one year of ReplayTV Electronic Program Guide service” which turns into $19.95 per year. Pinnacle also charges recurring fees after one free year of the electronic program guide, but it doesn’t list the price on their website.

The one bright spot for ReplayTV is the multiple-tuner support, but that will only work if additional tuners are installed. But out of the box, it doesn’t come with an additional tuner. ReplayTV says it works with tuners from companies like Hauppauge, ATI, and Pinnacle, however.

Overall, this an interesting trend. Portable HD DVRs on your laptop. It’s not quite a replacement of your TV and set-top DVR. But it can eliminate the need to buy a Slingbox if you’re just looking for a laptop solution.

The real competition will come with the DVR software. I’d give the edge to ReplayTV, since they’ve been doing this a lot longer than Pinnacle–but I haven’t actually played with either of these products. It’s just a gut instinct. An easy-to-use interface, good searching ability and managing your recorded shows can really make a difference to some users. Just look at how users love their Tivos primarily for its user interface.

But how big is this market? It seems very niche. Will end users really flock to these USB HD sticks? The price is good but the real downside is not getting all the cable HD channels if you’re just using the over-the-air HD signals. But adding a cable connector to your laptop really ties it down. There’s nothing as huge and bulky as a coaxial cable hanging from your laptop.

[Via ReplayTV press release]

[tags] ReplayTV, Tivo, USB HD [/tags]

Forbes has a pretty good article detailing how Apple got the new Apple TV device wrong, calling it an “iFlop”.

When Apple first announced a new living room device to stream and buy movies from your TV, people had high hopes. Apple’s iPod and iTunes work so well and have tremendously successful. How could Apple not get a next-gen TV device right?

Says Forbes:

“Six months later iTV is a flat-out iFlop. Renamed Apple TV upon launch, the ballyhooed box has sold perhaps 250,000 units–far behind the 1 million sold for the iPhone, which was priced twice as high and has been on the market less than half as long. Apple, which declined to let FORBES interview Jobs and other execs for this story, provides detailed sales data for the iPod and other digital wonders but won’t reveal any numbers for Apple TV; apparently the truth is too humiliating. A company spokesman declined to respond to written questions.”

Surprisingly. Jobs said at a May tech conference that the Apple TV was a “hobby” and even Apple isn’t giving much shelf space to Apple TV in their own stores. Apparently Apple has been trying to drive the price of its video downloads, much to the chagrin of the studios. Apple wants to sell movies for about $10, while the studios want $20 per download.

The movie studios got their way with Vudu, a start-up video download service, which allows users to rent movies for 24 hours (Apple TV has no rental option) and charges $20 for purchasing downloaded movies.
Apple also had problems pricing Apple TV.

According to the Forbes article:

“It wanted to keep the price low at $300, but that resulted in cheaping out on components. The first box had a tiny hard drive (40 gigabytes to store fewer than 50 hours at standard-definition TV resolution) and an older, slower Intel chip. Even then the box’s insides cost a total $237, says research firm Isuppli. That left a scant $62 in gross profit, or 20%, to be split by Apple and retailers (barely half Apple’s typical 37% gross margin). The stores went along, but when Apple TV faltered, they had even less incentive to push the new product.”

Worse yet, is Apple’s relationship with Hollywood. NBC Universal dropped plans to put its new Fall TV shows on iTunes and switched to Amazon. Again, the issue was pricing—NBC wanted higher prices, while Apple stood firm on its price.

Bonus: Unfortunately, Forbes requires free registration to read their articles online. Try BugMeNot to get access to free user names and passwords for sites that require free registration.

[tags] Apple, Apple TV, Vudu [/tags]

Bloggers are spreading rumors that Apple may be acquiring Miglia, makers of TV Max+ and other products that allow customers to view TV on Macs. This would give the soon to be released Apple TV product recording ability.

The rumor spread because last week, Elgato pulled its license for its EyeTV product from Miglia. And Apple removed all Miglia products from the Apple Store.

Miglia allows Macs to record TV in MPEG-4 formats, including H.264 and DivX formats. It also has RCA, coaxial, and S-video inputs for video capture. Combine these products with the USB port on Apple TV and viola! Instant DVR capability. Unless you forget about Apple TV’s paltry 40 GB storage space which would barely be able to hold a week’s work of American Idol shows in HD.

Bloggers are also speculating that Apple can use Miglia to enable recording through iTunes, as well as Apple TV.

Nevertheless rumors are rumors. And people are saying that Miglia is chatting with Apple in a “friendly way”.

Since Apple never pre-announces products or news, (unless you count this) guess we’ll have to wait and see.

[tags] Apple, Apple TV, DVR, PVR, Miglia, EyeTV, Elgato, digital video recorder [/tags]