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what happens in vegas…..

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On the eve of the 2009 CES show, perhaps it’s time for a few more thoughts on what should prove to be The Big Story at this year’s show: televisions and set-top boxes with internet access baked in, for direct internet video access.

For the last few years, numerous companies in the ‘computer’ business (on either the hardware or software side) have made repeated attempts to market solutions involving the PC as viable long-form internet video delivery platforms - with little to no success. Lately, though, perhaps enough anthropologists and/or behavioral scientists have been hired to finally convince at least a few of these companies that despite all the bells and whistles, a computer might never be a television after all (as they say in the south, “you can put a brick in the oven, but that don’t make it a biscuit”).

So while certain companies might have enjoyed a substantial technological head start in internet video, through a stubborn insistence on leveraging the home computer, the opportunity was missed. But no matter: here comes the CE industry - as of Thursday in Las Vegas, it’s their market now.

Apple undertook a conscious expansion into the CE industry several years ago with the iPod (in fact, dropping ‘Computer’ from their corporate name) - is it too late for other computer-centric companies to make a similar move? 

The recent Intel/Yahoo initiative is a particularly interesting case in point.  Both companies, as Yahoo Connected TV vice president Patrick Barry poetically puts it, “emerged from the ocean of the PC”.

Intel Intel has been especially forward-thinking regarding the convergence of the home computing and consumer electronics industries for some time now, having launched the Intel Digital Home Group several years ago.  The interdisciplinary Digital Home Group, active in both processor design and standards development, is particularly close to my heart, as it’s made up of social scientists as well as computer scientists.

Yahoo We’ve been pretty hard on Yahoo lately, but they do have some heavy OEM hitters lined up to implement their embedded internet TV ‘widgets’ system: Sony, TiVo, and Samsung. Also worth noting, the Connected TV initiative intends to follow a purely advertising-supported model, and studies routinely show consumers prefer advertising to subscription fees.  Lastly, yet another issue (and one that holds true for all internet video contenders) is the remote: as Netflix CEO Reed Hastings recently noted, a Nintendo Wii-like pointing remote will likely be required as internet-enabled television hardware matures.

At any rate, given their recent setbacks, this could be Yahoo’s last best shot at redemption - so look for them to bet the farm (or “throw the long ball”, for you American football fans) on this one.

One Comment

A friend of mine just emailed me one of your articles from a while back. I read that one a few more. Really enjoy your blog. Thanks

Comment by Jeff Atkinson | January 6th, 2009 6:53 pm | Permalink



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The articles posted on digitmissive.com reflect the personal views and opinions of Brian Ales and/or Andreas Wuerfel, and as such do not necessarily reflect the positions of our employers, clients or their affiliates. Furthermore, any views or opinions expressed by visitors commenting on articles posted on digitmissive.com are theirs and theirs alone, and do not necessarily reflect ours.