Today Roku launched two new players to complement the original $99 Roku player. Perhaps somewhat obviously, the two new players come in at $79 and $129, allowing Roku to test whether there's price elasticity in this market.
I'm not sure this was a necessary move. The cheaper box (called Roku SD), simply removes HD playback from the original Roku Player (now called Roku HD). The $129 version offers wireless-n wi-fi streaming to deliver dramatically better video quality. I don't personally need that since I hook up my Roku player -- which is in constant demand in my home -- via ethernet. (Yes, being a nerd has its advantages including a fully self-wired home that has over 24 ethernet ports in it.) So while I can see the value of the more expensive box for wi-fi users who have wireless-n routers (do you know if you do? betcha don't know), I think muddying the waters with 3 boxes instead of a maximum of 2 just feels like unnecessary complexity. A bit like Amazon announcing it would sell two versions of the Kindle in the US, one that's domestic only and one that can roam abroad, a decision doesn't appear likely to last very long.
We've been flogging the media industries for years at Forrester. So much so that we sometimes assume that people remember all the ways we've warned, cajoled, and exhorted for more than a decade. But based on the things we're seeing the pundits finally say, it's clear that "the end is near" is a pressingly recent recognition on the part of many. For examples, see Malcolm Gladwell's review of Chris Anderson's book Free; Mark Bowden's lament over the loss of journalism ethics in The Atlantic; or programmer/essayist Paul Graham's thoughtful reflection on Post-medium Publishing.
Don't get me wrong: we welcome these and more voices to a conversation we've been trying to start for some years now. (If you think I'm just posturing, I direct your attention to former Forrester VP Mary Modahl's July 1994 piece entitled Publications Get Wired where she first blew up the "print isn't going away" myth.) But there are some very fundamental things that are getting lost in most of the discussions we are hearing. Namely, people are stuck on processes, historical reinterpretation, future prognostications, and personal feelings at the passing of an era.
In the end, however, none of that will matter as the fundamental economics of digital media assert themselves. Basically, it's now cheaper to make, distribute, and consume media. That changes everything.
I recently wrote about Social TV -- what we call it when people use social media like Facebook and Twitter to augment the TV experience. There were some doubters (there always are).
If you need proof that people are using social media to make TV more engaging, then look no further than this week's MTV VMA awards. Though everyone seemed to be talking about Kanye West, the real trendsetter of the evening was Twitter.
From the show's start to the finish, 1.3 million Tweets related to the VMAs were posted. The traffic to Twitter tripled during this rush. More interesting, the Twitter phenomenon was almost exclusively real-time, meaning that although there were another 700k posts that evening and into the next morning, but most of the heat came during the event as people in attendance and people watching reacted in real-time to what they were experiencing and feeling.
This is the boon linear TV has been waiting for: imagine, a way to get people to watch TV at the same time as everyone else -- because if they don't, they'll miss the whole Tweet-party! That's what my Forrester report on Social TV was about, and I thank the VMA viewers for proving my point.
I was in the middle of an ICTC (my new acronym for InterContinental Telepresence Conference) when I got an urgent message from Brian Chen at Wired News. Without any announcement, it seems, Apple had cut the price of its 160 GB Apple TV to $229, dropping the smaller model altogether. What did this mean?
I've been following the Apple TV since its announcement 2.5 years ago. I bought one of the first, and I spent hundreds of dollars on TV shows testing it (I have all the episodes of Battlestar Galactica, seasons 1, 2, 3; and you don't). That said, I haven't used the Apple TV in months, even after I hacked it using Boxee. It's because the Apple TV doesn't make watching top shows easy enough to compete with cable, Hulu, and Netflix.
Brian wrote a very solid piece in Wired News yesterday, click here to see the article. He managed to get in a lot of the big picture points I raised, which is always hard to do since I go there so quickly and barely pause to breathe. The point is this: The Apple TV is on its way out.
You've got to be hating life if you're a videocamera maker like Sony or Kodak and you've just been bested yet again. First, it was the immensely successful Flip video cameras that sold more than 2 million devices without a significant brand name simply because the camera was so darn easy to use. ( Personal anecdote, I recently spent a day at a major CE maker with a group of industry analysts -- they let us try their new Flip camera competitor and one of the smartest guys in the room couldn't figure out how to turn it on. Said a nearby analyst: "Hmmm, no wonder Flip beat them to this market.")
Now the game just got more complicated because Apple has decided to add video camera capability not to the iPod Touch line, but to its Nano iPods. Pause for reverential awe. This was a brilliant move. (see Wired's take on it here).
Not only because it hits Flip in a sensitive spot -- right in the high school and college market where Flip was such a hit -- but because it further disrupts the videocamera market, opening it to more innovation and rapid change. You no longer have the three tiers of videocameras (disc or tape storage, digital decent, and then your lousy phone camera), instead, you have a fourth competitor. A personal media device that is now capable of actual personal media. Oh, and did I mention it's made by Apple? Right, just checking.
Video on Demand (VOD) has been a disappointment. As offered by most cable systems, video on demand should have made it easier for you to rent movies for home viewing than Blockbuster or Hollywood ever could because you never have to leave the house to get a VOD movie. But most VOD systems have failed to delight customers for reasons I won't get into right now other than to say that even if the movie selection is decent, the interface to find the movies is terrible. So most people don't use VOD.
Apple saw this opportunity and assumed its iTunes music business could easily extend into video, first with a pay-per-download model (one I first wrote about in 2007, explaining why it would not work -- I was right), and eventually with a VOD model, once the content owners could see their way to taking that plunge. But the iTunes VOD business relies on people buying Apple devices -- something millions of people do -- and people wanting to watch movies on those devices -- sadly, something far fewer people do.
This has caused me to encourage Apple to port its iTunes video service to non-Apple devices that are connected to the TV. I wrote about this a few times recently, explaining that video services need to connect to the TV to have a chance and that LG and Samsung Blu-ray players (and more recenlty, connected TVs) were doing that quite well. It would be a natural fit for iTunes to deliver content to those devices. But, alas, that's not how Apple rolls, as the Cupertino company prefers to make its money from high-margin devices.
It's discussion time, folks. I want to hear what you think about the potential for Facebook and Twitter on the TV screen. No, stop laughing, I'm serious.
I ask because I published a report for Forrester earlier this month called Five Things We Want From Social TV (click here to read). It was partly in response to Verizon FiOS's new Facebook and Twitter TV widgets which were released in early July. (Look at a demo on YouTube here). Here's the summary so you know what I wrote about:
Thanks to Verizon, the first meaningful Facebook widget in the US has come to the TV. Some question whether the active Social Computing experience has any place in the so-called "lean back" living room experience. Those people are wrong. Once Facebook, Twitter, and other Social Computing platforms are properly ported to the TV screen, a new explosion of media and technology convergence will occur, affecting the product strategies of device makers, content providers, and pay TV providers. In this report, we propose the five things that Social TV providers should prioritize — steps that will lead to a converged future of Social Computing and TV viewing.
All my cards are on the table: I obviously believe in this because I said it would be a new explosion of media and technology convergence and them's fightin words.
Today Digeo went live with its Moxi Mate, the companion to its Moxi HD DVR, designed to provide whole-home DVR functionality. I sat down with Greg Gudorf, CEO of Digeo, a few weeks back and he previewed the box for me. A couple of my reactions were: 1) the quality of box-to-box streaming is phenomenal; 2) they even designed it so you can turn the panel lights off at night, assuming it will be a bedroom accessory.
The real secret power of this, however, comes with the free inclusion of PlayOn software, which allows your PC to stream online video from Netflix, Hulu, YouTube (and really any other online media content you want including music and photos) to your Moxi Mate box. This is a clever end run around the problem of trying to get the rights to integrate Hulu content into the box directly. (As we saw with Boxee, this is not something Hulu is excited to enable as it threatens their relationships with content owners.)
Love the device. But the fight over how media content will get around the home has only just begun, let the games begin!
Good play by Amazon. There is a lot of buzz around mCommerce right now - what is it? what does it mean? how fast will "it" grow? what role will it play in the multi-channel retail experience?
One of the top reasons consumers give for buying in a physical location after conducting research online is immediacy - can get it/buy it now. On a cell phone in a physical location, comparison pricing has the potential to either finalize the deal (if the store does indeed have the lowest price) or take the customer out the door - either to another store or online.
SnapTell - already popular with cell phone users - adds to Amazon's growing portfolio of mobile services (which I find impressive already) - and is a bit of a defensive move. I think they may yet bring a few people back to online (or one of their retail partners) with this service.
I confess I spent much of a recent illness on the couch watching movies and catching up on TV shows. I still claim it was time spent on your behalf, gentle reader, because in the process I put some of my video gadgets to the test, trying to see which one would earn the majority of my viewing. I post the results in greater detail on my OmniVideo blog, feel free to read that post to find out which box I like best and why. But what I found more interesting than which box occupied my time, was the realization that I am starting to develop specific habits for meeting my content needs.
Here's what I mean: Imagine you feel an urge to watch some video right now, this very instant. What are the first two or three ways you imagine satisfying that need? Okay, go ahead and imagine you're at home if you're not, so you'll have some options to consider. Here are some options that may come to mind: