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OTT Wars: Apple, Amazon and Google

Jesse Ward — Tue, 07 Sep 2010 19:19:02 +0000

Apple's new video device and service

The video device market is heating up as new entrants battle it out for the consumer’s attention and a share of the $180 billion global TV advertising market.

Last week Apple unveiled a new generation of Apple TV, an Internet-connected set-top box which will stream content from Apple’s iTunes store, eliminating the need for storage or syncing. The new Apple TV is a small black box that features an HDMI port capable of 720p output, OpticalAudio and Ethernet.

Apple will offer first-run HD movie rentals for $4.99 and HD library titles for $3.99. Apple also offers standard definition movies for $3.99 for new releases and $2.99 for library titles. Rentals be watched within 30 days; once you begin watching a movie, you need to finish it within 24 hours.

Perhaps most importantly, Apple has negotiated for streaming TV rentals from News Corp.’s Fox, The Walt Disney Co.’s ABC, ABC Family and Disney Channel, and BBC America. HDTV rentals will cost 99 cents per show and be available for 48 hours after purchase.

The box also will come with access to Netflix’s streaming-video service, as well as YouTube and Flickr content.

Apple also introduced a new feature called AirPlay, slated for release in November, which will allow users to seamlessly switch devices without losing their place in a video, and to stream music wirelessly to multiple outputs simultaneously.

The new Apple TV will retail for $99 and be available for purchase in about four weeks.

In related news, hours after Apple showcased its new Apple TV device and streaming service, Amazon cut its price on a similar set of TV shows to 99 cents from $2.99. Unlike Apple which rents the videos, Amazon lets its customers buy the shows, which can be downloaded or streamed. The company currently has a catalog of 75,000 movies and TV shows. Amazon has also been rumored to have a new subscription TV and movie service waiting in the wings.

Not to be outdone, Google CEO Eric Schmidt announced last week that its much anticipated GoogleTV service will launch this fall in the United States and worldwide next year. Google is taking a different approach to its device which will integrate the user’s Pay-TV video service with DVR recordings and the Internet. Google has yet to release how much the device will cost, but the service will be free.

“We will work with content providers, but it is very unlikely that we will get into actual content production,” Schmidt told journalists after a keynote speech to the IFA consumer electronics trade fair in Berlin.

Although many of these devices may not appeal to the masses, or cause widespread Pay-TV cord cutting, it’s important for video service providers to closely monitor developments in over-the-top (OTT) content.

When introducing his company’s new device, Apple CEO Steve Jobs now famously referred to it as Apple’s “hobby,” perhaps an attempt to keep expectations low. Although Apple’s release is not revolutionary, it’s another sign that the video marketplace is evolving. Hollywood studios are, not surprisingly, reluctant to work with set-top manufacturers, but they are testing the waters with companies like Apple that have proven track records in this new digital media marketplace.

For more, attend TelcoTV 2010 which will feature an entire track devoted to Content Strategies including the session “OTT content, friend, foe or both?”.

Google Launches VoIP Application

Jesse Ward — Mon, 30 Aug 2010 19:40:59 +0000

Last week Google launched Web-based VoIP calling integrated with its Gmail e-mail offering (see the video after the jump). The Gmail VoIP application allows users to call cell phones or landlines from within their Gmail contact lists. According to the company, calls to the U.S. and Canada will be free for at least the rest of the year and calls to other countries are subject to these rates.

The service is now available to all 200 million active Gmail users nationwide. Google noted on its Twitter account that the offering was well received with more than one million phone calls placed in the first day.

Users will not need a Google Voice account to take advantage of the new free calling service, but if they do have one calls made from Gmail will display this number as the outbound caller ID. Google Voice users also can receive calls made to their Google Voice phone number right inside Gmail.

Google’s desktop VoIP application was first rumored back in April. The move is Google’s latest foray into the telecommunications industry. Two years ago Google launched PC-to-PC-based video chatting from within its Gmail service. The company followed this up with Google Voice in mid-2009, which offers a variety of value-added features including the ability to receive voicemail messages in e-mail format and one phone number that rings multiple phones.

Apple and Google Developing Rival Pay-TV Services

Jesse Ward — Mon, 30 Aug 2010 13:39:42 +0000

The Financial Times is reporting that Google is developing a pay-per-view system that will allow users to stream movies for about $5 each. Google, the parent-company of You Tube, is reportedly in negotiations with major Hollywood studios and the service could go live before the end of the year.

The service will likely integrate with the soon-to-be-released GoogleTV platform which is slated to be embedded in a variety of televisions and set-top boxes made by Sony and Logitech.

Google faces stiff competition from the likes of Netflix, which early this month signed a five-year deal worth nearly $1 billion to stream movies from Paramount, Lionsgate and MGM, and Apple, which offers movie rentals through its iTunes service and is rumored to be developing a new TV rental service.

Apple is reportedly negotiating with television networks to rent their TV series for as little as 99 cents an episode. The iTunes store currently sells TV episodes for $1.99 and $2.99 apiece, but its rental activities are limited to movies. The content negotiations and announcements are expected to coincide with the release of a new revamped version of its video platform, Apple TV, in September.

For more on Google, see this Financial Times article (subscription required) or CNet.
The New York Times has more on Apple’s content negotiations.

Goodbye Nexus One

Kevin McGuire — Mon, 19 Jul 2010 13:13:40 +0000

Google’s Nexus One has been one roller coaster of a ride. You’ll remember from the initial announcement, confirmed earlier this year, that Google had intended to sell the N1 directly to consumers, bypassing the pesky issue of dealing with carriers. Then in April, Google announced that the N1 won’t be coming to Verizon. Now we can say goodbye to the N1 saga, at least here in the U.S. Here’s what Google had to say:

Earlier this year, we announced that we will be closing the Nexus One web store. This week we received our last shipment of Nexus One phones. Once we sell these devices, the Nexus One will no longer be available online from Google. Customer support will still be available for current Nexus One customers. And Nexus One will continue to be sold by partners including Vodafone in Europe, KT in Korea, and possibly others based on local market conditions.

So there you have it. I suspect the next announcement will be the complete end to the N1, in all countries. Methinks that Google will focus on their core competencies and abandon hardware altogether. Given the success of the iPad, I’d be shocked if they didn’t devote more resources to their Chrome OS product.

Google Launches ‘Fiber for Communities’ Website

Jesse Ward — Fri, 16 Jul 2010 14:48:32 +0000

Back in February, Google announced plans to build experimental, ultra high-speed networks in communities across the U.S. chosen from public submissions. More than 1,100 communities and 194,000 individuals submitted requests, representing all but three U.S. states (Delaware, Florida and South Dakota). Google is still busy plowing through the applications, and it won’t be announcing the winners until year-end.

In the meantime, the Internet titan is capitalizing on the public and media interest in its project. Google has launched a Web site called Google Fiber for Communities to inform the public about fiber networks and Google’s project. The site also will serve as a communications and advocacy platform to encourage federal and local support for “changes designed to bring ultra-fast broadband to more communities.”

Currently, the sparse website encourages visitors to contact their government representatives to support pending federal legislation that requires installation of conduit (for fiber optic cable) in federal transportation projects. Google also advocates for cities to support conduit installation to ease the laying of fiber optic cable.

Visit the Google Fiber for Communities website.
See Google’s official blog post.

Google Voice Desktop App Preview

Kevin McGuire — Fri, 02 Jul 2010 13:24:39 +0000

Remember way back in October of 2009 when Google said “Google Voice is a free web application, one intended to supplement and enhance existing phone lines, not replace them.” And the way GV worked at the time made that seem plausible. After all, you couldn’t make calls directly from GV– it required that you entered the number you wanted to dial, then a number where it could call you to complete the connection. In April we learned that GV was testing a new desktop client. And today, a new TechCrunch video demonstrates this “unreleased” software, and makes one wonder about the definition of “supplement.” Video after the break.

As the video clearly shows (after the first few missteps), Google has an application that, like Skype, will allow you to make calls from your Internet-connected computer. While being tethered to the computer would be a barrier to many, if Google is serious about GV, then I would suspect we might see SIP gateways or ATAs in the future. The question, however, is what is Google’s end game. According to TechCrunch, Google may be scrapping the project as it doesn’t want to focus on products outside of the browser. Even if it is relegated to GoogleLabs, I’d just be shocked if the software at this stage of development isn’t ever released.

Considering the author used only the internal mic and speakers to make the call, it sounds pretty decent. You be the judge.

Nation’s First ‘White Spaces’ Smart Grid Trial

Jesse Ward — Mon, 28 Jun 2010 17:20:46 +0000

Plumas-Sierra Rural Electric Cooperative & Telecommunications (PSREC), Google, and Spectrum Bridge Inc. are partnering together for the nation’s first trial of a smart grid wireless network trial utilizing TV “white spaces” spectrum– the unused TV broadcast channels made available by the transition from analog to digital TV.

Through the project, PSREC aims to more efficiently manage its supply and demand of electricity, and provide broadband access to an underserved community. PSREC serves Plumas, Lassen, and Sierra counties in California, and portions of Washoe County in Nevada.The wireless network will deliver broadband connectivity to remote substations and switchgear, allowing PSREC system operators to manage the electrical system remotely. Lori Rice, Chief Operating Officer at PSREC, said, “Plumas, Lassen and Sierra Counties are located in the Sierra Nevada Mountains and present some very technical challenges with respect to wireless coverage. The ability to use White Space has proven to be an effective option for dealing with difficult terrain and offers another option for wireless connectivity.”

PSREC has also deployed Google’s PowerMeter technology, an energy monitoring tool that helps consumers save energy and money using information provided by a smart meter. With the White Spaces network and Google PowerMeter, consumers can view real-time detailed energy consumption data from anywhere, online.

The FCC has declared that TV White Spaces are well suited for wireless data networks and can be used to deliver cost effective broadband connectivity for a wide variety of consumer, business and government applications. A significant criticism of the use of white spaces is the potential interference with other licensed TV broadcasts and other protected users. The Spectrum Bridge TV White Spaces Database will help to ensure that this network does not interfere with other users of the white spaces spectrum. The database dynamically assigns non-interfering frequencies to white spaces devices, and, according to reports, adapts in real-time to new TV broadcasts, as well as other protected TV band users operating in the area.

“We are pleased to be working with Spectrum Bridge and Plumas County to give consumers access to their energy information, and are excited to see this innovative use of TV white spaces,” said Rick Needham, Director of Green Business Operations at Google. “This project demonstrates the incredible potential of this spectrum to revolutionize not only wireless communications but also rural energy.”

In addition to providing a smart electric grid, the network will provide broadband access to one community. “The Plumas-Sierra White Spaces trial is further proof that TV White Spaces is a great tool to extend broadband connectivity to underserved areas and make possible applications like Smart Grid, in ways that couldn’t be done cost-effectively before,” said Jeff Schmidt, Director of Engineering at Spectrum Bridge.

For more, see this press release.

Google Voice Open to All

Kevin McGuire — Wed, 23 Jun 2010 14:56:40 +0000

About a year ago, Google launched Google Voice, a service with cool features such as transcribed voice mail and call control. At that point, it was a limited preview, and required an invitation to join. In May, Google announced it was targeting students, allowing anyone with a .edu email address to have immediate access. Today, Google Voice is now open to anyone — well, anyone living in the United States that is.

“Over the past year, we’ve introduced a mobile web app, an integrated voicemail player in Gmail, the ability to use Google Voice with your existing number and more. Over a million of you are now actively using Google Voice, and many of the features released over the past year (like SMS to email and our Chrome extension) came as a result of your suggestions, so thanks!”

So head on over to Google Voice and try it out. Maybe it will spark some ideas of things you might offer to your customers, but at a minimum, you should see what your competition is up to.

Update: According to Bloomberg (and others), Frontier is suing Google Voice over a patent dispute. Stay tuned to see how this turns out!

What is Google TV?

Jesse Ward — Wed, 16 Jun 2010 14:13:43 +0000

Google released a video yesterday which showcases its upcoming Google TV product in action (see the video after the jump). As you might remember, the Internet giant first announced the product at its annual I/O Conference back in May. Unfortunately the demo was rife with technical interference issues which inhibited attendees from seeing the product in action. (This seems to be a common problem for new product demos as attendees often blog live from the event, and utilize wireless connections which interfere with the product on display.) Have no fear because Google breaks it down for us in this two and half minute video.

As we reported back in May, Google TV is not trying to replace pay-TV services, rather it bills itself as enhancing the customer’s existing viewing experience by unifying the customer’s subscription TV service, the Internet and DVR recordings. This concept is not new, but the implementation is innovative. Note that you can watch live TV and also surf the Web via a picture-in-a-Web-browser format.

GoogleTV Unifies Pay-TV and Web Video

Jesse Ward — Thu, 20 May 2010 19:03:27 +0000

Today, at Google’s annual I/O conference, the search giant announced that it is leading a group of companies, including Sony and Intel, in a new initiative called Google TV. (see the video after the jump)

“TV meets web. Web meets TV” is the slogan Google is going with for this new endeavor. GoogleTV promises to bring Internet video to your TV set, and it offers a new, slick interface to navigate and search traditional television programs and online content, including Hulu, Amazon and Netflix.Google touted the capabilities in it’s blog posting:

Google TV uses search to give you an easy and fast way to navigate to television channels, websites, apps, shows and movies. … If you know what you want to watch, but you’re not sure where to find it, just type in what you’re looking for and Google TV will help you find it on the web or on one of your many TV channels. If you’d rather browse than search, you can use your standard program guide, your DVR or the Google TV home screen, which provides quick access to all of your favorite entertainment so you’re always within reach of the content you love most.

GoogleTV runs on an Android, open-source platform which will enable Android apps to work on the TV set. GoogleTV will also utilize Google Chrome for the browser and incorporate Adobe Flash.

The Internet giant has partnered with Sony and Logitech to put Google TV inside of televisions, Blu-ray players and stand-alone, companion boxes which will work alongside the customer’s existing pay-TV subscription service. These devices will go on sale this fall, and will be available at Best Buy stores nationwide. Dish Network is also on board with plans to offer an advanced integration with existing set-top boxes

Google made it clear that its end goal is advertising. During its keynote presentation, the company noted that TV boasts more than 4 billion users worldwide, and U.S consumers spend 5 hours a day, on average, watching TV. The real kicker was when Google announced that 70 billion dollars is spent annually on television advertising in the U.S. The search giant is hoping for a piece of this pie.

Many companies already offer Internet video on the TV, including Boxee, Roku and Vudu. Historically it’s been a difficult sell to mainstream customers

Of note, YouTube made a complimentary announcement this morning. YouTube’s Director of Product Management, Hunter Walk unveiled YouTube Leanback, a personalized channel that you can access on Web, and through Google TV. The point of Leanback is to give the user a customized and easy viewing experience ideal for TVs. The interface also enables full access to HD videos.

For more on GoogleTV, see New York Times and TechCrunch, and watch the official GoogleTV video below.