We need bigger TVs, or just one box...............................
multichannel.com
Fun with Set-Top Boxes
By Gary Arlen, Contributing Curmudgeon
How many boxes did you say you wanted on top of your TV set?
All of a sudden, consumer-electronics makers are rushing to secure another place in that narrow territory. It's not just DVD players and DBS receivers: A new wave of Internet-access devices is headed this way.
Not that customers are scurrying to buy WebTV or NetChannel boxes. Yet.
But when -- or if -- such devices start moving off retail shelves, their presence could make it even harder for cable vendors that want to put another bit of boxy plastic atop (or beneath, or beside) that TV screen.
What makes this so interesting is the ebb and flow of electronics companies in this embryonic era. Remember the "Open TV" joint venture, with the catchy name, "ThomsonSun Interactive Alliance" (reflecting the partnership of Sun Microsystems and the global electronics-maker that owns RCA in the U.S.)? The alliance started as an interactive TV venture, migrated to a digital TV vendor (using some of Thomson's digital DBS TV technology), and began focusing on overseas sales. Where is it today? Who knows?
Open TV's president and top marketing executive suddenly and very quietly left a few weeks ago. The Silicon Valley firm has put a complete lid on its status. But the departures came on the heels of Sun's acquisition of Diba Inc., a developer of "information appliances," including settop-box technology. It's a strong hint that Sun is flexing its Java muscle, and that it will use Diba as its preferred front-end supplier.
In the lucid way that Silicon Valley executives like to talk, Sun chairman and CEO Scott McNealy said, "By leveraging the Java software platform and Javaenabled microprocessors with Diba's experience in assembling technology components into complete solutions, Sun hopes to enable [original-equipment manufacturers] to take advantage of the market's vast potential sooner, rather than later."
Did you hear that, Microsoft? Better hurry up with your settop digital-equipment alliances! Those WebTV systems (now officially owned and operated by a Microsoft subsidiary) won't be alone in the retail world for long; of course, there's no telling how many of those 110,000 WebTV devices that have been sold so far are actually straddling a TV set today.
But that's only part of the sudden rush to the settop. CurtisMathes -- which positions itself as a highend TV-set maker, although I've rarely seen anything with that name outside of an engineer's test bench -- is plunging into the Internet settop business with no less a partner than MCI. And, oh yes, it's another Javaenabled box.
CurtisMathes' new UniView Internet receiver is a $399 device. The price (with an extra fee for a wireless keyboard) is initially well above that of the WebTV and NetChannel boxes.
Like WebTV, CurtisMathes has set up an Internet-access package -- called Xpressway selling for $19.95 per month. The arrangement uses the MCI backbone to connect initially into 20 major markets, where CurtisMathes has launched pilot retail sales.
The Xpressway package includes an interactive TV program guide for an extra fee; that feature was developed with TV Data Corp. There are also parental controls, including Surfwatch filtering software and access to Vchip technology. The UniView boxes include telephony, fax and print capabilities, thanks to the MCI alliance. There is also a credit-card reader for future electronic-commerce options.
Meanwhile, the Network Computer Inc. juggernaut begins its rollout (although mainly targeted toward business applications), supported by Oracle Corp. and Navio Communications Inc. NetChannel Inc. -- with its own RCA alliance into the retail world, plus its close relationship with NCI -- will add Navio Internet-access tools to its settop package later this year.
Clearly, the nearterm settop battle for Internet mind share is already shaping up as a duel between the SunOracle cluster and the inevitable Microsoft brigades. Into this battleground, the cable settop box will march.
Will the Silicon Valley pacts with experienced electronics retail allies pave the way, or create a barrier for the broaderband cable settops? Or will they capture and coop that strategic settop real estate?
It's another reminder that even in cyberspace, what really matters is location, location, location.
IWay Patrol columnist Gary Arlen left a book and videotape atop his TV set, but four devices are wired underneath it. |
