By Calvin Hsieh, Research Director
The three products mentioned in the previous post (Apple TV, Google Phone and Intel’s Canmore) appear to have virtually nothing to do with today’s TV. That’s because we are still used to talking about TV as a device receiving a signal with a display. If we expand the definition of TV, then the possibilities are broader than ever. Beyond traditional broadcasting, we have many media sources and content available each day for different purposes. Taking this perspective, let’s look at these three products and what kind of sparkle of inspiration we can receive from them.
The first version of Apple TV was announced in January 2007. Originally, Apple made Apple TV as a DMA (digital media adapter) to bridge the connection between the PC/Mac and a TV. Thus, you can manage your digital media with iTunes S/W and then enjoy them on your TV in the living room. One year later, at the MacWorld Expo, Apple CEO Steve Jobs admitted that Apple TV was not a successful product. Apple then tried to find out what consumers really wanted—and that was simply “movies, movies, movies.” So the second version of Apple TV has a distinctly different business model from the previous one. Apple offers HD video content online for rental or purchase, and then viewers download the digital files. The most valuable thing from Apple is not new hardware; it is a new business model. The business model is Apple’s new product, not the actual hardware.
Google Phone with Android OS was first released in September and is made by HTC, which has become famous for Windows Mobile phones. HTC has some patents on the software end and dedicated experience in smart phones, and thus no wonder the company was selected to develop the first Google Phone. In fact, Google Phone is a milestone showing that LBS (local-based service) and unlimited access to internet content will arrive soon. Until now, telcos that are running mobile communications businesses have earned money from customer access to GSM or 3G for voice or data. By the way, they have also charged for content or application services including games, enterprise mailing, ring-tones, music and so on. Under this kind of situation, telcos are not only an access provider but also a channel or content station. For any independent content provider, they need to pass through the telcos to deliver and sell content to consumers. However, if your mobile phone can directly access the internet once it’s turned on, then lots of free or charged content or services are already waiting there, without the telco. A similar example can be applied to TV cable/satellite providers. You pay a monthly fee to the service provider to see HBO or Discovery Channel at home. This also means HBO must have an agreement with the service providers before their audience can see the show. Think about it, one day you might directly visit HBO’s site to see what you really want and pay HBO for it. And the service provider can only charge you the fee to access the Internet. This would mean no blocking anymore. Tomorrow’s post is the wrap-up—so stay tuned.
