p48 Final Analysis JulAug09v3 28/7/09 15:10 Page 44
Final analysis > Kate Bulkley Digital TV Europe
July/August 2009
“
People familiar with the internet and devices including the iPod and the
iPhone want their TVs to work the same way. That means intuitive recom-
mendation engines and easy-to-navigate screens.”
iPhone effect hits pay-TV
There
is no getting around the fact The iPhone factor is also about allowing of course simply small applications but how
that Apple’s iPhone has effect- many developers to write apps for the phones, close are they to TV middleware? Osadzinski
ed big changes in the mobile phone industry, opening up creativity while Apple holds onto a says they are very close and that one builds on
but the iPhone effect is reverberating else- gatekeeper role to make sure the new app – the other. This is at least one reason why
where, not least in the pay-TV business. whether a song identification service or a Kudelski is keen to increase its control of
In the mobile world, handset leaders game – doesn’t crash the system. Open TV, the middleware company that
including Nokia and Motorola have rushed to If this kind of flexibility doesn’t make its allows on-demand and online services for pay-
change the look and feel of smart-phones to way into the set-top box, savvy customers will TV operators. “UIs have to evolve and the last
compete against the slick and sexy iPhone. look elsewhere. If their pay-TV operator does- thing we want to do is develop our own APIs
From touch screens to launching their own n’t provide what they want, they can use the and middleware when we have OpenTV,
versions of Apple’s app store, the industry is PC or, increasingly, the built-in browsers that which is already doing that,” says Osadzinski.
trying to ride Apple’s wave of coolness. are popping up on TV sets. The bottom line Getting control of the 70% of OpenTV
But soon the attributes of Apple’s easy-to- for cable and satellite operators is clear: if they shares that Kudelski does not already own has
use and fashionable handset could come to a don’t provide a compelling customer experi- proven quite tough, due to opposition from
TV set near you. “The iPhoneisaton of pay-TV ence they will lose their customers to others Discovery Group, the largest independent
is underway,” says Ivan Verbesselt, senior vice- who will. investor in the middleware company.
president of marketing at conditional access Of course all of this is coupled with the Kudelski says it is interested in controlling
and interactive TV specialist Nagravision, part ongoing convergence of internet and TV tech- OpenTV for its software development capabil-
of the Kudelski Group. For Kudelski the road nology to create something new. And with the ities (perhaps also for the US$114m (€80m) of
forward seems to be to follow the iPhone lead emergence of IPTV providers and over-the- cash on its balance sheet) but Discovery wants
and get better user interfaces and applications top services including YouTube and Hulu, the a higher price for its stake than Kudelski has
into their clients’ hands as fast as possible. competitive heat will only increase. so far offered. Of course perhaps as important
For example, the days of simple (and pretty Over-the-top services increasingly will be for Kudelski is the large installed base of set
inflexible) programme grids are on the way built into set-top boxes and TV sets. Yahoo! TV tops that include OpenTV. This gives the
out. People familiar with the internet and is one example. Sony loading its own user owner a way to get quick and wide exposure
devices including the iPod and the iPhone interface onto its new, broadband-enabled TV for its current and future applications.
want their TVs to work the same way. That sets to give its customers instant access to Given the pressure on pay TV to secure its
means intuitive recommendation engines Sony movies and music videos is another. current and future customers, OpenTV could
and easy-to-navigate screens. And the next “There will be more than a small battle for be considered important ammunition and a
phase of the revolution could be just around control of the user experience,” says Alex good way to catch the iPhone trend. For others
the corner: the widgetisation of the TV. Osadzinski, executive vice president of prod- keen to stay ahead of the curve of TV widgeti-
How far away are we from selling TV apps uct at Nagravision, and formerly a Silicon sation, the watchwords surely have to be inno-
much like iPhone offers mobile apps? Likely Valley venture capitalist. Osadzinski joined vation and flexibily.
not so far away at all. The point is that, as in Kudelski less than a year ago to help it figure For the pay-TV industry as a whole, catch-
the mobile space, customers will start to out what new products it needs to focus on. ing the iPhone wave is a priority that it can ill
expect better and more flexible navigation and “Set-top boxes are not dead but they will start afford to miss. ●
access to all kinds of content. What is required appearing with built-in user interfaces or serv-
for TVs, set-tops and their EPGs are new user er-based UIs.” Kate Bulkley is a broadcaster and writer
interfaces that bring together linear, VOD, The ability to “do TV widgets” is going to specialising in media and telecommunica-
PVR and web properties in one place. become increasingly important. Widgets are tions. tellkatenow@aol.com.
Visit us at www.digitaltveurope.net
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