Entertainment Technology Advisor

Apple's ITV preview last week caused yet another round of "the broadcast networks are dead" proclamations from all corners of the digital content and technology world. This time it's that media streamed through Apple's device will make network television obsolete. Not to diminish the preview, but haven't we been hearing this for more than a decade?

It seems that many are prone to the either/or debate rather than in tune with the nuances that play out in reality everyday. It isn't either Apple or ABC. It is more like coexistence and probably even partnership. With all of the broadcast networks on iTunes they stand to benefit from a streaming device as well.

The way we believe this device and more importantly the company backing it (after all streaming media devices are not new to the world) will help change broadcasting is by further turning the model upside down.

As it stands now broadcasters have the advantage because they continue to attract the largest audience, and thus the lion's share of advertising dollars. In a world where content is distributed via cable, satellite, IPTV, mobile TV, and via the Internet to PCs theoretically broadcasters lose their advantage.

But think about it upside down. In a world where everyone can be a content developer, and there are hundreds of millions of streams flying around the world how can anyone rise above the noise? If you have the exclusive rights to over the air broadcast spectrum you can use that to make noise via an exclusive channel.

While studies are showing that TV viewership is declining, I still believe there will be a huge portion of the population that comes in after a hard day's work and likes to sit down and be fed some mindless entertainment. Nearly every top rated show on every network has some Internet tie-in whether it's extra content, background, contests, etc. If broadcasters think of the network as a means of driving loyal viewership to Internet content then there is no reason they should get left behind. As our good friend Tom Adams pointed out CBS made it from radio and Westinghouse did not. Some will make it some won't, but I doubt we’ll see the proclaimed death of broadcast television anytime soon.

But then, I could be wrong!
Christine

A relative newcomer to the device software technology scene, Encirq recently took some time to give us a tour of their data management technology. Their software development framework is intended to address the growing data management challenges faced by device software development teams over the last decade. The two application areas we touched on in our discussion were digital television and mobile handsets.

Their most vivid example of where a data framework could have a huge impact is the interactive program guide. Anyone who has attempted to search a typical IPG has, no-doubt, experienced problems. The minor of which might be annoying delays in navigation. The major of which might be that each data source has to be searched separately (i.e. the viewer conducts a VOD search, then a DVR search, then a broadcast feed search, and if you are one of those rare people with a home network included that is yet another data source to be searched).

Encirq's Data Foundation Framework takes aim at such challenges with a software development framework and run-time services that they say simplify creating applications, increase their performance and add intelligence to the device. Although the markets are quite different, the underlying data management problems in digital set top boxes and mobile handsets share many common characteristics. This allows the company to aim its solution at both by addressing the need to manage growing amounts of data with the limited amount of processing power and the limited amount of memory inherent in both device categories. By providing software that allows developers to build applications that integrate and manage more data within the device's limited resources, some of the company's early customers have seen incredible results in terms of reduced development time, higher performance and minimized bill of materials costs. Encirq backs up their claims with customer information that says they have been able to reduce the amount of application memory required by over 45%. Developers have also claimed better efficiency such as lines of code for a mobile application going from above 4000 to approximately 750.

Encirq has its work cut out for it. The software development framework concept is certainly compelling as a way to reduce development cost and time, but as with any new technology they have to convince some conservative organizations that using yet another technology is going to help them make money. It is not going out on a limb to say that we expect the wireless market to be the leaders in taking up the device data framework concept --whether it is with Encirq or another provider -- rather than pay television operators. We'll be following Encirq closely to see how open pay television operators are to leveraging newer technologies to streamline delivery of enhanced applications and services.

Christine

When Microsoft announced last month that Electronic Arts' FIFA 07 and Konami's Pro Evolution Soccer 6 would be exclusive on the Xbox 360 for twelve months there was a collective yawn from the U.S.

Pundits who are trying to handicap the video game console race didn't seem to think much of it. The announcement takes on new importance with Sony delaying the European PS3 launch until March 2007.

Had that launch date been met the damage could have been minimized. European PS2 loyalists might have been satisfied to entertain themselves with the PS3 launch library, and happily waited for the exclusivity to run out. Now there will be no titles and no units for a few months longer.

As we build our updated console forecast we have to reassess what this means to the market. We were confident Sony could hold off Microsoft over the long term particularly in Europe. But this delay is even more damaging than the previous delays. This opens the European market to Microsoft.

Reducing the number of units to the U.S. market might increase its "cool" and make it a "must have" item. But many parents will make purchase decisions based on price and availability, making the reduction in unit numbers a huge plus for Microsoft.

The diode in the Blu-ray laser is said to be the culprit behind the delay. It is easy to understand the long term strategic thinking in making sure the PS3 launches with the promised Blu-ray drive. It is part of a broader Sony strategy to promote the technology.

However, video game consumers are not concerned with long term strategy, or whether the machine can play movies with the latest technology. At its heart the PS3 is game machine and its users are gamers not movie enthusiasts. The Blu-ray drive should be pushed to the high-end DVD market, not the video game market. It is a huge red flag amongst all of the other red flags from Sony. Has the company lost sight of who the buyer is? If it refuses to rethink the movie technology on its game machine, maybe so.
Christine

I think we can all agree that there is a lot of "me too" going on in the world of game promotion. We would not be inundated with sequels and licensed content from Hollywood if the game industry were not so set on doing the same thing over and over. Who can blame them, it has worked so far. I think we can also all agree that the game market would be expanding a lot faster if there was some creative thinking going on in the world of game promotion. Not to bag on the marketers, I know they can only market what they are given. However, it does seem that there is some creativity flowing in the casual games market.

Big Fish Games announced today a new promotional strategy that allows its own customers to make money by promoting their favorite games to a network of friends. This company sat down and thought it out. They have marketed, promoted, advertised and otherwise made every effort to get their games in front of the consumer, and judging by the numbers we talked about they have been very successful. Then they asked themselves, what is the next step in growing our business? The answer they came up with is their customers. It is a logical step. With a loyal customer base that gives the company and its games high marks wouldn't they be a great asset in getting others to join in?

The My Big Fish games announcement is a rewards program that allows users to create their own Game Space on the My Big Fish web site. The player can then write reviews, make recommendations, and invite friends to join in. When a friend makes a purchase the first person gets a 25% commission. If that friend brings in more people, the first person then gets paid the equivalent of 25% of the commission the second person earned and so on.

The company acknowledges the potential problems that could arise by creating a network of consumer salespeople. They are under no illusions that there are some negative connotations to the set up. However, in an industry that has seemingly become allergic to risk, Big Fish is one of the few companies stepping up to develop strategies to expand the market beyond the traditional demographic and into new and potentially lucrative markets.

Imagine if instead of IGN, Gamestop and the myriad gaming magazines writing reviews of video games, each player could write their own review. Then they might recommend the games to their own network of friends with they help technology enabled by a game publisher. Instead of courting journalists to edge of ethical standards, and hoping that makes for good reviews at the time of launch, a whole network of game fans could be promoting the game. This might even lead to gamers bringing non-gamers into the fold. The industry can't seem to do it so maybe gamers could. The risk is that bad games would die quickly, and perhaps publishers don’t want consumers to know a game is bad before they make their money back. But like I said, it seems like risk is a virus to be avoided at all costs these days.
Christine

Hi all,
Digging around the tech news yesterday I came across Sony's mylo. mylo is Sony's cute little acronym for 'my life online' (and that is the name of an upcoming teen drama on the CW - just kidding). otis, of course, stands for 'oh this is stupid' (but feel free to replace the 's' with whatever word you like).

mylo is a personal communications device that allows the user to connect to available WiFi networks to send e-mail, IM, surf, play music, etc. The pocket-sized form factor includes a 2.4 inch color LCD screen and a slide-out standard keyboard (small, of course). Software-wise, mylo will include Google Talk, Y! Messenger, and Skype. mylo, in short, seems like the perfect answer to the whatever-generation-letter-we're-on-now lifestyle. But, there are a couple of possible barriers to making mylo a real winner in the marketplace.

The first is price. Sony says mylo will be available in September at sonystyle.com and Sony Style retail locations for around $350 - which is quite a price tag considering the device's intended market.

The second is functionality. Most of the needs soothed by mylo are already being supplied by other devices: phones, (BlackBerry) and clones, iPods, and other digital media gadgets. And, these other gadgets provide functionality missed out on by mylo: true network service, massive onboard storage, and so forth.

So, is mylo otis? Well just as iPod put a loveable face on digital music players (which DID in fact exist prior to its introduction) mylo just might bring some personality to personal communicators. Apple, as you know, is a master at branding - and so is Sony. If the company does its homework it just may have a product that it can evolve into the must-have platform for the latest plugged-in generation.

Now, Sony, we just gotta have a talk about that name. Let's see: Walkman, Playstation, mylo. Ah, who knows, maybe it'll be big with the kids...
More later,
M