Sunday, December 30, 2012

This cloud will not be lonely

June 13, 2011
For an informed view on connected entertainment in the UK & Ireland, visit Cue Entertainment 


The wind of change blew through the home entertainment market last week and brought The Cloud with it to cast doubts on the future of the dedicated set-top box (STB).

BSkyB announced Sky Go, an online service that will be free to current Sky customers anywhere in the UK and Ireland. In California earlier in the week, Microsoft, Sony and Apple set out plans that will involve the purchase by consumers of yet more branded hardware and will have a profound effect on how we access content.

The very future of the STB is under threat from some of the biggest names in consumer electronics, as streaming premium video direct to the home via high-speed broadband becomes a viable proposition. When former Asda boss Alan Leighton takes over as Chairman of STB manufacturer Pace later this year, his promised strategic review will need to consider more than supply chain problems and lower margins.

The battle for connected eyeballs between the avatars of connected TV, Xbox and PlayStation could equal any role-playing game in its ferocity. The casualties that ensue could be dramatic, especially for leading STB manufacturers such as Pace, Cisco and Huawei.

The Xbox took centre stage at the Electronic Entertainment Expo (E3) gaming conference in Los Angeles at the start of the month in a presentation that delivered its core message loud and clear: Microsoft wants a bigger slice of the home entertainment market and the Xbox 360 is at the heart of its strategy.

“We are transforming entertainment in the living room by bringing you more entertainment experiences and new ways to enjoy them,” said Xbox Live VP Mark Whitten at E3. He added that long-form content from sources such as the pioneering 4oD service would soon be available on Xbox through YouTube, alongside video from Sky in the UK, Canal+ in France or Hulu Plus and Netflix in the US.

Possibly the most visible threat to the existing ecosystem will be the addition of the Microsoft search engine Bing to the Xbox Live interface. Most observers have scoffed rightly at the idea of using a keyboard to enter search queries into an Electronic Programme Guide (EPG), and Microsoft is not about to challenge this view. Xbox Live adds Kinect voice control to the EPG so that users say simply what they wish to watch, and Bing plays it.

The demonstration at E3 showed how almost every function of the Xbox is accessible by voice commands. “Xbox Bing X-men”, for example, brings up on screen not just games but the “X-Men” films and animated series. Say “Xbox Play X-Men First Class” and the film streams to your screen. “TV on Xbox becomes more amazing when you are the controller,” said Whitten.

The instant and relevant results displayed by Microsoft’s Bing search engine could consign the remote to the place it has traditionally occupied – behind the cushion on the sofa. Xbox Live is now the most powerful STB you can buy – and apparently you can use it to play games as well.

Sony delivered a similar message in Los Angeles. Consumer Products & Services President Kazou Hirai said, “The world of entertainment has undergone a significant change since we launched PlayStation Network (PSN). We can attest to the importance of having that connected experience across all our products; devices that are connected to content and, of course, connected to each other.”

PlayStation 3 has long been the console of choice for users who want the best of all worlds – partly because of the in-built Blu-ray drive, which has helped to build demand in the US to the point where 49% of owners view Blu-ray titles on their PlayStation 3 at least once a month, according to research organisation NPD. Perhaps as the result of the recent difficulties experienced by PSN, the focus at E3 was on delivery of PlayStation content to other devices including Android smart phones and tablets, and especially the PlayStation Portable’s successor, the PlayStation Vita.

“We have created our next generation portable to be one that breaks traditional boundaries of entertainment,” said Hirai, who promised new ways to interact with “your world, your friends and your entertainment.” The PS Vita will use the AT&T network and 23,000 WiFi hotspots in the US to connect to the cloud and to other devices. The focus is on the connected experience using earth-bound wireless services rather than cable and satellite connections that tie the device to an outlet on the wall.

At the Moscone Centre in San Francisco, 400 miles northwest of the E3 venue, Apple CEO Steve Jobs explained the mysteries of iCloud to devotees attending the World Wide Developers Conference (WWDC). “It stores your content and wirelessly pushes it to all your devices,” he said, which might seem a “me-too” idea at first sight but embedded in his remarks were two important ideas that make iCloud stand out from the crowd.

The concept of “pushing” content to the user, rather than “retrieving it” from the cloud is the first thing to note. The second is the idea that your Apple devices are all part of a single ecosystem. Each gives access to all your files wherever you may be without the need for the user to be involved actively in copying files from one device to another.

Most services treat cloud storage as an extra hard drive on the subscriber’s device, somewhere that is secure, stored in a data centre many miles away and available for users to download whenever they wish. Once Apple receives a file at one of the data centres built specifically to support iCloud, it “pushes” it back out to every other Apple device registered in the user’s name. Photos taken on an iPhone in Ibiza, for example, will be accessible almost immediately on an Apple TV back home in Ipswich without any intervention on the part of the user.

To avoid filling local drives, iCloud leaves only the previous 1,000 files on each device although the originals remain available up to the five-gigabyte limit. This push technology is not an original concept but as with most Apple ideas, this time “it just works.”

Then there is Match, a subscription service that matches the music you own that didn’t come from iTunes with tracks from the library of almost 18 million tunes that Apple has already encoded. This avoids the need to spend weeks uploading existing mp3 files to your space in the cloud, since it is probable that Apple already has a high-quality streaming version in its library, ready to play on any device you own. Only the thrash metal tracks laid down by your school chums in 1987, or similarly obscure recordings, will need uploading.

The iTunes Match music service starts later this year in the US, but negotiations with the labels and PRS in the UK could hold the service back here until 2012. There is no technical reason why iTunes Match should not apply to video as well. Is it possible that one day in the future, digital copies of every film ever made will be held at data centres around the world, ready to stream to any (Apple) device that asks for it? If you think not, then be mindful that the music industry thought that way too.

Sky Go is a combination of Sky Player and Sky Mobile TV and from July 6 the service will deliver live linear channels and VOD content to two registered mobile devices per Sky household, free of charge. Existing subscribers will be able to receive Sky News, the five Sky Sports channels and ESPN on their smart phone or tablet at no extra charge. Customers with laptops and other computers have access to more than 30 live channels and “an extensive library of on-demand content” – so far unspecified. Non-Sky customers pay between £15 and £40 monthly for Sky Go and the existing Sky Player services on Xbox and Fetch TV remain unchanged, other than re-branding as Sky.

Sky acquired the public WiFi network known as The Cloud earlier this year and Sky Go will leverage its 4,500 hotspots to ensure widespread access for subscribers. However, any Sky customer connecting through the 3G network will find that although access to Sky Go might be free, substantial data charges will almost certainly apply.

The Sky Go announcement underscores the depth of the challenge that confronts conventional STB manufacturers, which include Amstrad, makers of the Sky+ box. Frankly, with so much intelligence built in to smart phones, tablets and domestic TVs, do we need them any more?

The STB is just an add-on device that connects new services to existing TVs and provides conditional access to premium content from subscription services. The TiVo box made for Virgin Media by Cisco records up to three channels at a time on one terabyte of hard disk storage. It includes the catch-up TV service from BBC iPlayer, a remote control that needs a pilot’s licence to operate and a list price tag of around £200 for new customers, much less for existing subscribers.

Given the imminent arrival of connected online services and delivery of content from the cloud, these boxes seem overpriced and curiously outdated – particularly if you are lucky enough to have a high-speed Virgin Media connection.

The PlayStation 3 sells at about the same price as the TiVo but includes a Blu-ray player. The Xbox 360 is available for around £160. These devices offer considerably less on-board storage than the TiVo or Sky+ boxes but that will hardly matter when content in the cloud becomes more widely available.

Microsoft claims that Xbox 360 gives you “more reasons to stay on the sofa”. They might well be right.

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