Media Centers

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Media Centers

• T-109.7510
• Research Seminar on Telecommunication Business

Antti-Jussi Kangas
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Contents

• Introduction
• Technology
• Possibilities and risks
• Vendors and strategies
• Conclusions

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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?

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

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Technology

• Technology can be divided into
• Hardware
• Software

Hardware configuration of media
center (BuildMediaCenter.com 2005)
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Hardware

• Essential components
• TV / radio tuner card
• Sound / video processing card
• Media readers
• Control devices
• Connectivity
• Output devices

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Software

• Commercial products and open source projects
• Platforms Windows XP and Linux
• Important that software is compatible with
  hardware

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Possibilities and risks

• Different perspectives
• End user
• Media center vendors
• Content providers

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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

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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

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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

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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

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Vendors (commercial)

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

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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

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Product samples
Meedio Pro UI
MediaPortal UI
Apples Mac mini
Microsofts Windows Media Center Edition
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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

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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

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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

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Thank you!Any questions?