Microsoft Adds NPVR to Mediaroom

Microsoft introduced the NPVR Mediaroom Anytime feature set, which provides the ability to:

• Restart Anytime offers the ability for viewers to rewind or restart the currently airing program from any point.
• Live Anytime allows viewers to scroll backward in the Interactive Program Guide to watch previously aired programs. These previously aired programs also can be made accessible through the service provider's video on demand library.
• Download Anytime extends Microsoft Mediaroom-powered services to more consumers by enabling viewers to download on-demand movies and programs to their set-top boxes so they can watch them anytime regardless of bandwidth constraints. For example, viewers could watch high-definition programs on low-bandwidth networks.

In addition, Microsoft announced that the Mediaroom platform has reached nearly 2.5 million subscriber homes worldwide, an increase of more than 1.5 million new connections in the past year.

These NPVR functions are important IPTV services. They are very popular where they have been introduced in Europe and China. The U.S. providers are waiting to see the final results of the battle between Cablevision and the studios over this service.

Cablevision Wins NPVR Ruling

Lightreading published an article about Cablevision winning an appeals court ruling that supports its NPVR service. The ruling allows Cablevisiion to offer its NPVR service that was blocked by a law suit by major U.S. TV networks and film studios. Cablevision has not announced any plans to restart the service.

This ruling is subject to an appeal to the U.S. Supreme Court. NPVR is a key feature for the cable and Telco IPTV services in the U.S. NPVR is needed to bring the personalization that viewers get from the Internet to the TV. It will also have a profound effect on the networks that support IPTV services.

Cablevision Closing Hollywood Release Windows

Cablevision, the New York metro area cable provider, has come up with a twist together with Popcorn Home Entertainment that permits Cablevision viewers to watch video on demand movies on the same day that the DVD is released rather than waiting until the later video on demand release window is reached, typically 30 to 45 days later.

The trick is that the viewer must order the DVD at the same time as he or she makes the video on demand request. The DVD will be delivered a few days after the video on demand version is viewed.

Universal Studios Home Entertainment titles such as The Bourne Ultimatum, The Kingdom, Eastern Promises, Sydney White, and the American Gangster will be available under this service. New releases are available for the price of $19.95 plus shipping and library titles cost between $9.95 and $15.95 plus shipping.

MPAA research showed that a significant number of people would buy the DVD as they leave the movie theater if it were available. This research indicates that this new service should be reasonably popular.

Cablevision Hits a Wall with NPVR

Cablevision, the cable provider in the New York suburbs, took an aggressive approach to Network PVR (NPVR) services that ran into strong resistance from the content industry. NPVR is a service where the service provider (Cablevision) records broadcast TV channels and provides the ability to replay specific programs at a later time.

Cablevision felt that it had the right to do this, but the networks disagreed. They sued and Cablevision lost. It is now appealing that decision.

There is an interesting summary of the current situation on LightReading at http://www.lightreading.com/document.asp?doc_id=121644&site=cdn

This argument is particularly important for IPTV providers. The IPTV networks are better suited than cable networks to support NPVR and other on demand services. NPVR can give the telcos a significant advantage over the cable companies.

It has been clear for a long time that the networks had deep reservations about NPVR services. Cablevisions actions have polarized the issue and made an evolution to a full NPVR service very difficult to achieve in the U.S.

FastWeb in Italy has been successful with a slower approach. It started with a service that emulated a home based PVR in that the viewer had to declare in advance that he or she wanted to record a program. FastWeb would record that program and allow only that viewer and any other viewers that requested that the program be recorded to view it later. This was no worse that if the viewer owned a Tivo, so the broadcasters in Italy accepted it.

Last year FastWeb took the next step and deployed an NPVR service that provides access to broadcast programs from the previous three days for any viewer, whether or not he or she requested it in advance.

If Cablevision's suit is not successful, a similar step by step process will have to occur in the U.S. as well.