Media CentersMedia Centers

T-109.7510T-109.7510

Research Seminar on Research Seminar on Telecommunication BusinessTelecommunication Business

Antti-Jussi Kangas

ContentsContents

► IntroductionIntroduction►TechnologyTechnology►Possibilities and risksPossibilities and risks►Vendors and strategiesVendors and strategies►ConclusionsConclusions

IntroductionIntroduction

►Technology develops fastTechnology develops fast Digital media formats (music, video, photos)Digital media formats (music, video, photos) Mass storage devices for consumersMass storage devices for consumers Broadband connection a common good Broadband connection a common good

►At the same time prices downAt the same time prices down

↓↓►A demand for electronics goodsA demand for electronics goods►And for convergence of technologies?And for convergence of technologies?

IntroductionIntroduction

Electronics goods in Finnish households(modified from Tilastokeskus 2005)

IntroductionIntroduction

►Media center combines technologies Media center combines technologies under a common system and user under a common system and user interface:interface: Digital TV and radioDigital TV and radio CD/DVDCD/DVD Digital music and video (mp3,wav,MPEG,wmv)Digital music and video (mp3,wav,MPEG,wmv) Digital photosDigital photos Internet browsingInternet browsing

►Living room experience Living room experience

TechnologyTechnology

►Technology can Technology can be divided into:be divided into: HardwareHardware SoftwareSoftware

Hardware configuration of media center

(BuildMediaCenter.com 2005)

HardwareHardware

►Essential components:Essential components: TV / radio tuner cardTV / radio tuner card Sound / video processing cardSound / video processing card Media readersMedia readers Control devicesControl devices ConnectivityConnectivity Output devicesOutput devices

SoftwareSoftware

►Commercial products and open source Commercial products and open source projectsprojects Platforms: Windows XP and LinuxPlatforms: Windows XP and Linux

► Important that software is compatible Important that software is compatible with hardwarewith hardware

Possibilities and risksPossibilities and risks

►Different perspectives:Different perspectives: End userEnd user Media center vendorsMedia center vendors Content providersContent providers

End usersEnd users

Possibilities:Possibilities:► The services included The services included

with one systemwith one system TV watching / TV watching /

recordingrecording CD / DVD play / recordCD / DVD play / record Digital music / video Digital music / video

play / recordplay / record Internet browsingInternet browsing Digital media libraryDigital media library More in future..More in future..

Risks:Risks:► User must be User must be

somewhat techno-somewhat techno-orientedoriented

► Software – Software – Hardware not 1 to 1 Hardware not 1 to 1 compatiblecompatible

► Upgradeability?Upgradeability?→ → possible ”lock-in”possible ”lock-in”

Media center vendorsMedia center vendors

Possibilities:Possibilities:►New products in New products in

their portfoliotheir portfolio► Special media Special media

center hardware center hardware (silent cases, TV (silent cases, TV tuners, remote tuners, remote controls..)controls..)

→ → more revenuemore revenue

Risks:Risks:► Have to follow Have to follow

current technological current technological evolutionevolution

→ → avoid wrong avoid wrong standardsstandards

► Co-operation Co-operation between HW and SW between HW and SW vendors to avoid vendors to avoid support failuresupport failure

Content providersContent providers

Possibilities:Possibilities:►New business New business

models:models: Consumers’ digital Consumers’ digital

media librarymedia library Online supply for Online supply for

digital content (CDs, digital content (CDs, DVDs, TV series..)DVDs, TV series..)

Risks:Risks:► Availability problemAvailability problem

Enough bandwidth?Enough bandwidth?

►Digital Rights Digital Rights ManagementManagement

Vendors and strategiesVendors and strategies

►Both commercial vendors and open Both commercial vendors and open source developers (in software)source developers (in software)

►Commercial products better supportedCommercial products better supported►Strategies differ between vendorsStrategies differ between vendors►Common success factors for allCommon success factors for all

Vendors (commercial)Vendors (commercial)

►Microsoft biggest with Windows XP Microsoft biggest with Windows XP Media Center Edition, software and OS Media Center Edition, software and OS integrated (10 million licenses by integrated (10 million licenses by 3/2006)3/2006)

►Apple’s Mac mini (no TV tuner support)Apple’s Mac mini (no TV tuner support)►Some others SnapStream, Meedio, Some others SnapStream, Meedio,

SageTVSageTV

Vendors (open source)Vendors (open source)

►MediaPortal for Windows XP platformMediaPortal for Windows XP platform►MythTV for Linux platformMythTV for Linux platform►Mostly used by techno-oriented do-it-Mostly used by techno-oriented do-it-

yourself people with home made yourself people with home made media center PCsmedia center PCs

Product samplesProduct samples

Meedio Pro UI MediaPortal UI

Apple’s Mac mini Microsoft’s Windows MediaCenter Edition

StrategiesStrategies

►Commercial software vendors, especially Commercial software vendors, especially MS, does MS, does bundlingbundling with HW producers. with HW producers.

►Apple Apple differentiatesdifferentiates with its brand with its brand►Smaller companies offer Smaller companies offer free trial-periodsfree trial-periods

and and lower pricelower price with some differentiation with some differentiation►Open source development concentrates Open source development concentrates

on do-it-yourself solutionson do-it-yourself solutions

Success factorsSuccess factors

►Usability!Usability! No new technologies involved, old ones No new technologies involved, old ones

combined for usable living room experiencecombined for usable living room experience►Services must have Services must have qualityquality (good user (good user

experience)experience)►UpgradeabilityUpgradeability with new technology with new technology►CompatibilityCompatibility and and connectivityconnectivity with with

standards and devicesstandards and devices►PricePrice

ConclusionsConclusions►There seems to be a demandThere seems to be a demand

Media center sales have grown (MCE Media center sales have grown (MCE exceeded XP standard edition in sales in exceeded XP standard edition in sales in 2/2006)2/2006)

►Many software and hardware producersMany software and hardware producers Segmentation by average-users (easy Segmentation by average-users (easy

usability) and advanced user (home made usability) and advanced user (home made solutions)solutions)

►Success factors will most likely affectSuccess factors will most likely affect►Killer application / service could set it Killer application / service could set it

really movingreally moving►Finally customers decideFinally customers decide

Thank you!Thank you!Any questions?Any questions?