Media Centers T Research Seminar on Telecommunication Business Antti-Jussi Kangas

Contents ► Introduction ► Technology ► Possibilities and risks ► Vendors and strategies ► Conclusions

Introduction ► Technology develops fast  Digital media formats (music, video, photos)  Mass storage devices for consumers  Broadband connection a common good ► At the same time prices down ↓ ► A demand for electronics goods ► And for convergence of technologies?

Introduction Electronics goods in Finnish households (modified from Tilastokeskus 2005)

Introduction ► Media center combines technologies under a common system and user interface:  Digital TV and radio  CD/DVD  Digital music and video (mp3,wav,MPEG,wmv)  Digital photos  Internet browsing ► Living room experience

Technology ► Technology can be divided into:  Hardware  Software Hardware configuration of media center (BuildMediaCenter.com 2005)

Hardware ► Essential components:  TV / radio tuner card  Sound / video processing card  Media readers  Control devices  Connectivity  Output devices

Software ► Commercial products and open source projects  Platforms: Windows XP and Linux ► Important that software is compatible with hardware

Possibilities and risks ► Different perspectives:  End user  Media center vendors  Content providers

End users Possibilities: ► The services included with one system  TV watching / recording  CD / DVD play / record  Digital music / video play / record  Internet browsing  Digital media library  More in future.. Risks: ► User must be somewhat techno- oriented ► Software – Hardware not 1 to 1 compatible ► Upgradeability? → possible ”lock-in”

Media center vendors Possibilities: ► New products in their portfolio ► Special media center hardware (silent cases, TV tuners, remote controls..) → more revenue Risks: ► Have to follow current technological evolution → avoid wrong standards ► Co-operation between HW and SW vendors to avoid support failure

Content providers Possibilities: ► New business models:  Consumers’ digital media library  Online supply for digital content (CDs, DVDs, TV series..) Risks: ► Availability problem  Enough bandwidth? ► Digital Rights Management

Vendors and strategies ► Both commercial vendors and open source developers (in software) ► Commercial products better supported ► Strategies differ between vendors ► Common success factors for all

Vendors (commercial) ► Microsoft biggest with Windows XP Media Center Edition, software and OS integrated (10 million licenses by 3/2006) ► Apple’s Mac mini (no TV tuner support) ► Some others SnapStream, Meedio, SageTV

Vendors (open source) ► MediaPortal for Windows XP platform ► MythTV for Linux platform ► Mostly used by techno-oriented do-it- yourself people with home made media center PCs

Product samples Meedio Pro UIMediaPortal UI Apple’s Mac mini Microsoft’s Windows Media Center Edition

Strategies ► Commercial software vendors, especially MS, does bundling with HW producers. ► Apple differentiates with its brand ► Smaller companies offer free trial-periods and lower price with some differentiation ► Open source development concentrates on do-it-yourself solutions

Success factors ► Usability!  No new technologies involved, old ones combined for usable living room experience ► Services must have quality (good user experience) ► Upgradeability with new technology ► Compatibility and connectivity with standards and devices ► Price

Conclusions ► There seems to be a demand  Media center sales have grown (MCE exceeded XP standard edition in sales in 2/2006) ► Many software and hardware producers  Segmentation by average-users (easy usability) and advanced user (home made solutions) ► Success factors will most likely affect ► Killer application / service could set it really moving ► Finally customers decide

Thank you! Any questions?