A Connected World TV From Vizio

No, it’s not my new video podcast, but an actual hdtv from Vizio with build in wifi networking. The so-called digital convergence has been talked about for years, but here is the first product I have seen that might actually make it a reality. The Television has built in wireless networking and support for Blockbuster, Netflix, Pandora, Amazon Video and an open architecture that will allow for future upgrades and additional services. It even has a remote control with a QUERTY keyboard. Large media companies are in fits over services like Hulu and Boxee but clearly pandoras box has been opened and this kind of connectivity between the Internet and common devices like a television is where things are going. It shouldn’t matter so much to the big media companies, however, as they should realize their bread and butter is the content not the delivery mechanism. The real problem is the incredibly complex and integrated businesses and licensing model this is all based on. Like many other business models, this one is going to have to be completely deconstructed and rebuilt from scratch for the new connected world.

So the question we always want to answer here at Connected World Media, what does this mean to your business? It means the world of the big screen TV may be opening up for you. In the past there was virtually no way anybody but the largest businesses with the most money could get onto television. TV advertising is just too expensive for most businesses. But now, the TV is open to the Internet and services that nearly any business can participate in. Already there is opportunity with YouTube as Apple TV will show those videos. I can’t imagine it won’t be too long before the Vizio connected TV starts supporting YouTube and possibly other Internet video services. You could develop a Boxee application and gain access via that route. Bottom line, there are effective and inexpensive ways for your company, your brand to get onto peoples big screen TV’s. But don’t hit them with the same old garbage from your marketing department (sorry marketeers). You had better be engaging, relevant and entertaining.

Blockbuster's Online Play

Blockbuster is taking the only logical step left to save it’s business. As I wrote about already, the online film rental market is not there yet and the opportunity is open for someone to take the lead. I think Blockbuster is taking the right road with a hardware box, but it remains to be seen what the user experience is. They may be building upon the Movielink service they purchased but Movielink was never a very good service and was saddled with lots of arcane DRM. This will surely doom the service unless they have changed things.

In general I don’t trust Blockbuster to pull of either the hardware or the service. It’s not what they do and unless they have a very good partner to help them, I foresee failure. If they can put more pressure on Apple, however,  to get more movies on iTunes or Netflix to accelerate their online initiative, their effort will be worthwhile for end users.

It’s funny to read statements in the article like Blockbuster needs to be careful not to canabolize their brick and morter business. That’s old school thinking. That business is already dead. The best way to survive in a changing world is to put yourself out of business before someone else does. Blockbuster does have a strong brand name and a window of opportunity here to make the leap. Are they savy enough to pull it off?

Netflix and Apple TV – Great and Flawed

As a movie lover, I love  my Netflix subscription. I can get practically any movie ever made including many indie ones that never show near me. I pay one simple monthly fee and can watch as many movies as I can handle. I can take as much time to watch the movie as I need and return it at my convenience. It’s the kind of business model that’s made Netflix a winner and has put undue pressure on Blockbuster. What could be better?

Well, if I didn’t have to wait for the mail to get a movie. If I could sit in the comfort of my couch and order up movies instantly. Enter Apple TV. Especially with the new Take 2 version of Apple TV where rentals are part of the equation, the speed an simplicity of watching movies on demand is unparalleled.

Netflix and Apple have equal but opposite problems. Apple  has a fantastic distribution system but not nearly enough movies. Netflix has all the movies and then some, but an outdated and slower delivery method. I’m waiting for one or the other to deliver the knockout punch. If Netflix could only deliver online more effectively. Their current system for watching movies online is cumbersome, only works with Windows and is available for very few movies. So, it’s useless. Apple has very few movies available and at the rate they add movies, it will take a lifetime to match the Netflix selection. Also, Apple has some of the more draconian and lame DRM rules for rented movies. Lastly, at $3.99 per movie, it only takes 3 iTunes movie rentals to equal a basic Netflix subscription which gets you unlimited movies per month and no stupid DRM rules.

Now Apple is the 10,000lb gorilla in this match and should be able to knock out Netflix easily, but so long as Apple and Hollywood keep their heads in the ground, they’re never going to do it. I actually blame Hollywood on this one as they are mostly short sided and paranoid. I think Apple does want to knock out Netflix but Hollywood won’t let them. Hollywood execs are more scared of Steve Jobs than they are of the so-called movie pirates. Fear is never a winning business strategy.