Is cable missing the IP revolution?
Internet Protocol is undoubtedly the most versatile innovation of the 20th century. More versatile than FM radio or TV, and more powerful than any other computer networking protocol before it, IP has brought communications science fiction to life. And in the 21st century IP is not just for computers anymore. Wireless telephony, digital photography, and yes, even television make use of IP without a traditional PC as the middleman.
For years analysts, columnists, and novelists have predicted that the computer will replace the TV in the American living room. Finally this is coming true. However it is not a PC with a keyboard or mouse folks are adding to the entertainment center but standalone microprocessor-based computing devices like advanced set-top boxes and DVR’s. Standalone appliances like Apple’s iTV are just entering the marketplace to help bridge the gap between desktop and notebook computer, and TV.
But where is cable in all of this? More than a year ago Motorola unveiled beta test of a really nifty network of linked DVR’s and slave boxes that could share programming around the home. At the time TiVo had similar features actually up and running in the marketplace. [Incidentally Motorola’s linked DVR presentation was largely prerecorded. The “demo” was more of a theory than a proof-of-concept.]
Cable remains afraid of IP technology even though MSO’s operate the largest IP networks in the nation. VOD, which for reasons I won’t explore in this brief blog entry, would be far better served with IP content delivery to smarter set tops than channelized server browsing. Cable’s 90’s VOD model is lagging far behind other technologies and its age is showing quickly.
Apple Computer, Inc. of course will be serving up downloadable HD content in no time. Once Apple has overcome the awkward linking of the Mac to the TV it will have a very viable option for TV content delivery. Do you think Netflix will be mailing DVD’s around the country forever? It is working on online delivery to the TV as well. Cable, meanwhile, remains committed to the sluggish real-time VOD channel.
We as cable operators, have a tremendous opportunity, but a shrinking window of time to capitalize on the powerful IP network we maintain before others make better use of it and sell directly to our customers. In speaking with other operators, and hardware and software vendors I hear “fear of opening the door to competing video services” as the number one reason for steering clear of IP video services. The door is already open to the competition and they are lining up to come in. IP is the new Digital Cable – it’s the future. Cable needs to start embracing IP delivery now for its advanced video services to keep the edge over these new competitors’ promising IP advances.
