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.

Microsoft Mediaroom Advances

Microsoft has announced that it has added NPVR features and new applications to Mediaroom. It also stated that there are now 2.5 million IPTV subscribers served by Mediaroom.

Microsoft's NPVR feature called Mediaroom Anytime include:

• Restart Anytime offers the ability 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 enables 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.

It also announced the following applications:

• BBC Worldwide TopGear.com is demonstration application that allows fans to access and interact with content found on http://www.topgear.com.
• Turner Sports and the PGA of America, together with ES3™, built an application that allows viewers to switch dynamically between camera feeds, watch golfing instructional videos and click from static to video advertisements.
• The Associated Press red carpet events, built by ES3 and the AP, is a celebrity news application which features up-to-the-minute information, photos and video clips at the carpet events.
• Live Capture of Photos and Video lets viewers upload photos and videos to the Microsoft Live Mesh cloud storage Web site and view their personal content via the TV.
• Visual Voicemail lets TV users check their voice mail and play back messages, even at pitch-controlled, fast-forward speeds.
• TV Dashboard, designed and created by ES3, shows local news and information that Mediaroom subscribers can access while watching TV.

These are all good features that move Mediaroom beyond the stage where it was duplicating cable TV services. They will provide good differentiation for service providers using Mediaroom.

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.

Korean NPVR Charges

The broadcasters have required Korea Telecom and Hanaro Telecom to charge 900 wan ($.50 US) within the first week after they are originally broadcast. After that they are available for no charge. To make this more palatable to viewers in Korea, the telecom companies are offering 300 bonus points for each chargeable program watched as a form of rebate.

NPVR is a big issue between the broadcasters and the Telco IPTV services. NPVR is making progress in Europe but has been stalled by the broadcasters in the U.S. This is the first per view charging scheme that I have seen. This is a onerous approach that is likely to generate consumer resistance. A reasonable monthly subscription fee for unlimited access is likely to be a better approach if it is necessary to charge for the service.

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.