Research
and Markets has announced the addition of the “Game
Console Vendors to PayTV Operators: You’ve Been Served!” report to their offering.
This report predicts that console-affiliated media portals such as Microsoft’s Xbox
LIVE and Sony’s PlayStation Network will soon become formidable competitors to incumbent
PayTV services. Leveraging broadband-enabled game consoles as Over-the-Top video platforms
– thus bypassing cable and satellite TV operators – these companies will offer a compelling
alternative to traditional TV programming by providing a more immersive, interactive
video experience.
This report points to several facts which portend of how powerful these offerings
will be:
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Even before today’s launch of Experience, Microsoft’s Xbox LIVE had amassed some 15,000
movies (1,000 of which are HD) and some 13,000 TV shows for download-to-own. Xbox
LIVE was the first online video portal to offer HD downloads for TV viewing
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The Netflix partnership adds 12,000 movies and TV programs to the mix, all for free
streaming to Netflix subscribers. This enables Xbox 360 users to access on-demand
movies and TV shows within the Xbox Experience social environment with a click of
their remote.
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Sony’s PlayStation Network has collected close to 1,000 movies and hundreds of TV
programs for download-to-own. As well, it has announced plans to expand dramatically
its video library in the next few months in order to compete with Xbox LIVE.
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Sony’s CEO Howard Stringer noted, “Sony’s unique position in electronics and entertainment
will enable us to provide specialized offerings for Sony customers directly to their
televisions outside conventional distributors and without the need for any set-top
box.”
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Even Nintendo, staunchly dedicated to pure gaming experiences, is working with Fujisoft
to introduce ‘Everybody’s Theater Channel’ to Japanese Wii users in December 2008.
Console Vendors and OTT Video Delivery – Let the Games Begin!, this latest analysis
of the Over-the-Top video space, discusses the evolution of console-affiliated media
portals within the context of each vendor’s strategic imperatives; offers a comparative
analysis of current and likely portal video offerings; provides updated global forecasts
for broadband-capable and broadband-enabled game consoles through 2012; and forecasts
consumer demand for this category of Over-the-Top video services.
Welcome to the age of quantum media, a time in which established media production,
aggregation, distribution, and consumption is undergoing rapid disaggregation; a time
in which the established media value chain seems to be coming apart at the seams.
In the quantum age, cable and satellite operators are no longer the only game in town.
Their longstanding lock on the home is set to be contested as a new wave of competitors
emerge, many using the open Internet to bypass incumbent PayTV control points and
deliver video programming directly to consumers. TDG long ago coined this as ‘Over-the-Top’
or ‘OTT’ video delivery, and of the various platforms capable of enabling OTT video,
today’s game consoles are among the most potent. These devices are uniquely positioned
to lead the OTT charge: they are currently used by more than 90 million households
worldwide; they are video-friendly, easily connected to the Internet, connected to
the living room TV, and favored by younger consumers with little loyalty to a broadcast
network or their local cable company.
This report focuses on the emergence and impact of OTT broadband video via broadband-enabled
game consoles and console-affiliated media portals, in particular Microsoft’s Xbox
360/LIVE/Experience, Sony’s PS3/PlayStation Network/Home, and Nintendo’s Wii/Wii Channels.
Using each company’s strategic position as a backdrop, this report offers a comparative
analysis of current and likely portal video offerings; provides updated global forecasts
for broadband-capable and broadband-enabled game consoles thru 2012; and forecasts
consumer demand for this category of Over-the-Top video services. It is truly a unique
report, going well beyond simply “counting the consoles” by revealing the new measure
of success for console vendors: Internet attach rates and media sell-thru (specifically
video).
Read the original here:
War for the Living Room TV Escalates