Thursday, January 11, 2007

Broadband video-to-TV trend seen roiling business models

By Kenneth Li (1.9.07)
http://today.reuters.com/news/articlenews.aspx?type=technologyNews&storyID=

Technology unveiled at CES last week allows people to more easily access Internet and PC content via their TVs potentially driving demand for bandwidth to supply high definition streaming content as well as creating new potential business partnerships.

At the Consumer Electronics Show in Las Vegas this week, electronics manufacturers from Sony Corp. to start-ups such as Sling Media unveiled a raft of new products to allow consumers to play Internet videos, or media files stored on PCs, directly on their TV screens.

"There are a lot of companies looking to bypass cable," said Bob Greene, executive vice president of Liberty Media Holding Corp.'s Starz Entertainment network.

Consumers are currently unwilling to pay more for a device that lets them view PC content on TV screens, according to a poll of 5,000 U.S. homes by Forrester Research. Moreover, the bandwidth constraints of current broadband services essentially rule out any downloading or streaming of high-definition programs.

Some big cable operators have conceded they need to craft a response to the growing trend in watching PC-based Internet videos on big screens, one media executive said. On a panel discussion, Chase Carey, chief executive of No.1 U.S. satellite TV provider DirecTV Group Inc., said he saw more opportunities than challenges. DirecTV is also in discussions with top online video sites YouTube and News Corp.'s MySpace to allow viewers to watch clips directly on TV screens.

No comments: