If the industry press is to be believed, Tuesday's announcement that Sony would be producing TVs with Tru2way compatibility was a watershed event--the electronics world equivalent of the Magna Carta or the Treaty of Versailles. But let's step back a bit and examine what this really means.
Tru2way is a digital cable technology developed by CableLabs that's designed to be built directly into TVs, eliminating the need for an outboard set-top box. In theory, you'd be able to buy a Tru2way-compatible TV, bring it home, connect it to your coaxial cable, and instantly be able to receive your entire lineup of digital cable and high-def channels--including all the interactive video-on-demand and pay-per-view channels that currently require a cable box.
(Credit:
CableLabs)
If this sounds familiar, it's because many of the same promises were made several years ago with a technology called CableCard. TVs that shipped with a CableCard slot were called "Digital Cable Ready" (DCR); they required a smart card, provided by your local cable operator, to receive digital and HD channels. The problem with CableCard was that it was an interim solution that satisfied nobody. Everyone--cable companies, hardware manufacturers, government regulators, and consumers--found CableCard technology lacking. Among the problems:
- CableCard was effectively a one-way technology, so it was incompatible with any interactive services, including video-on-demand and pay-per-view services that customers have grown to like, and cable companies depend on as a major revenue stream.
- CableCard was incompatible with Switched Digital Video (SDV) technology, which more cable providers are--or will soon be--utilizing to deliver more HD channels despite bandwidth limitations. As a result, CableCard devices such as the TiVo HD DVR need an outboard tuner (basically, a second cable box) to receive those channels, which often include the newest and most desirable HD stations.
- The CableCard installation and setup still required the cable companies to "roll a truck" to the customer's home--so it didn't save the company any time or money versus a cable box setup.
- Original CableCard setups were limited to just one tuner, so dual-tuner applications--such as picture in picture and the ability to record one show while watching another--were unavailable. (This issue was addressed with dual slots on the TiVo HD, as well as the multi-stream "M-card," which allowed for dual tuning--it was rarely deployed by cable operators.)
- CableCard setups are notoriously finicky, and often require one or more follow-up visits from the cable technician.
- The electronic programming guide (EPG) interface on most CableCard TVs was either bare bones or nonexistent. That was bad for users who've grown used to increasingly sophisticated EPGs (on TiVo and satellite DVRs). It also frustrated cable providers who were used to controlling that interface on their own boxes, where--for better or worse--they could add advertisements, customized graphics, and other "branding" that so excites multimillion dollar corporations.
- TVs with CableCard support often charged a slight premium over their non-CableCard counterparts--meaning that consumers were often paying more, but (as evidenced by the laundry list of issues above) getting less.
Not surprisingly, there was an immediate clamor for "CableCard 2.0" to address all of those issues. And that's effectively what Tru2way is: the next-gen CableCard, without the physical card. (You may have heard it mentioned during its years of development, when it was alternately referred to as "OpenCable" or "Open Cable Application Platform (OCAP)".) And--on paper, at least--it seems as if CableLabs and its partners finally got it right this time.
Tru2way is designed from the ground up to be interactive, customizable (for the cable provider), and plug-and-play. Switched digital video, video-on-demand, pay-per-view, HD channels, dual-tuner support--it should all work without a hitch, and deliver an identical experience on your local cable system, no matter which Tru2way TV you're buying.
There are plenty of other potential advantages. Tru2way TVs should be able to offer additional functionality, such as built-in DVRs. (A handful of CableCard DVR/TV combos were released, but they never took off, thanks largely to the problems outlined above.) And including the tuner inside the TV would offer the potential for better picture quality, since a TV signal native to the TV would no longer be reliant on the so-so video processing found on most set-top boxes.
Beyond the TV, Tru2way functionality could be built in to third-party DVRs (TiVo is already said to be working on a "Series4" DVR that utilizes the technology) and accessories. Among the other possibilities: a Tru2way Slingbox with a built-in tuner; an adapter that turns the Xbox 360 or PS3 into a cable-ready DVR; true home theater PCs; and portable TV viewers (such as the Comcast/Panasonic player shown in January).
So what's not to like? Nothing--except that none of this yet exists in the real world. Until you can actually buy one of these Tru2way products at Best Buy, Circuit City, or Amazon.com, it's all theoretical.
Sony joins Panasonic, Samsung, and RCA on the Tru2way roadmap, but whether any of these companies will actually deliver a real world Tru2way product before the end of the year remains to be seen. And even if they do, there are plenty of other questions. How much will cable companies charge you for the privilege of connecting a Tru2way product to their pipe? (Our guess: exactly the same fee they charge for renting the box you have now.)
And why will companies like TiVo bother developing Tru2way boxes if the consumer will be forced to use the drab cable company interface versus the far superior TiVo UI? Just imagine, for instance, if a future Apple TV offers Tru2way compatibility, but instead of its slick Apple home screen, you're stuck with a Comcast/Time Warner/Cox EPG the minute you toggle to live TV. For most users, that would eliminate the whole reason for upgrading in the first place.
Color us skeptical
The bottom line is this: Tru2way certainly looks to offer the potential for cable customers to return to the simple, halcyon days of "cable ready" TVs--just one wire, just one remote. But until we see the products hit stores in the real world, and see how--or if--they work as advertised on cable systems around the country, color us skeptical. In the meantime, we'll be waiting patiently in the downstairs rec room, sitting on hold with tech support, trying to get the CableCard PC up and running.
What do you think: Will Tru2way make for a better cable TV experience? Or will it be the latest consumer electronics scheme to overpromise and underdeliver?
Update (5/29/2008): Be sure to read the detailed comment below from reader MegaZone (who runs the Gizmolovers website). He offers some important corrections and expansions to my CableCard/Tru2way analysis.
TiVo is gearing up to dish out Disney movie rentals, as the digital video recorder company expands its lineup of movies from major studios.
Under an agreement with Disney-ABC and CinemaNow, TiVo subscribers can download the movies for 24-hour rental. TiVo expects to offer the Disney rentals later this year to its broadband-connected TiVo Series2 and Series3 subscribers. Price for the service was not disclosed.
The Disney movies will add to TiVo's more than 30,000 titles from Amazon Unbox, Music Choice, and other content providers.
TiVo's efforts come as Blockbuster is reportedly looking at set-top boxes for consumers to stream movies directly to their TV. DirecTV is reportedly cooking something up, as well.
Intacct announced Monday it raised a $15 million round of venture funding, led by Bessemer Venture Partners.
The on-demand financial management and accounting applications company also received a portion of the round from its existing investors Emergence Capital, Sigma Partners, and Sutter Hill Ventures. That brings total funding for Intacct, which was founded in 2000, to approximately $80 million.
Intacct, which also raised a $14 million round last summer, plans to use the funding to accelerate its growth via product line additions and enhancements to its channel and sales force, said Mike Braun, Intacct's chief executive. He added that although the company is profitable on an operational basis, the recent rounds will help it ramp up its growth at a quicker pace.
Oracle on Tuesday announced new on-demand CRM software aimed squarely at Salesforce.com.
The new software, Oracle CRM on Demand 15, is a revised version of a product acquired via Oracle's purchase of Siebel Systems in 2005.
Oracle's on-demand software, designed to help companies manage customer resources, will include a browser-based interface and can be customized to run on mobile devices such as BlackBerrys, and included in personalized Google and Yahoo pages.
Oracle's CRM on Demand 15
(Credit: Oracle Corp.)Another aspect of the release is the inclusion of what Oracle calls "Social CRM" capabilities, including social networking and collaboration tools. ZDNet's Phil Wainewright explained more in a post earlier on Tuesday:
The lead component of Oracle CRM's new social capabilities is a new feature called 'Sticky Notes'. This allows a user to mark any object -- for example an account in a given salesperson's portfolio -- with a comment and then subscribe to the message stream related to that object. Team members can then follow and participate in the conversation around that object, which is all co-ordinated within new functionality called the 'Message Center'.
While Salesforce.com has enjoyed years of leadership in the on-demand business software market, Oracle and others are launching rival products. In Oracle's case, analysts say recent sales wins for Salesforce.com have refocused the company's efforts. "That was a wake-up call. They have come to a realization that there is money to be made from delivery of software as a service," Trip Chowdhry, an analyst with Global Equities Research, told Reuters.
Renting movies on DVD could soon be a thing of the past, as cable operators experiment with new ways to get movies and even TV shows to viewers quicker, using their video-on-demand platforms.
On Monday, Comcast announced that it would provide some Hollywood hit movies on its video-on-demand, or VOD, service the same day they're offered on DVD. It also announced that some new television series will premiere on its VOD service at least one week before airing on regular TV.
Time Warner Cable started experimenting with a similar program in March 2007 in Austin, Texas, and Columbus, Ohio. It struck deals with Warner Bros. and New Line Cinema to offer new releases on its VOD service in those markets the same day the movies are released on DVD.
In an effort to appeal to subscribers who also want to own their movies, Cablevision Systems is taking a slightly different approach. Also on Monday, Cablevision launched a new service with Popcorn Home Entertainment that enables people to buy DVDs through the Cablevision VOD service and have them shipped to their home. With the purchase of the DVD, customers are also given immediate access to the movie via VOD.
Typically, there's a lag time between when movies hit video rental stores and retail outlets on DVD and when they're available by cable operators through video-on-demand. Studios make a lot of money from DVD sales and rentals, so they have resisted releasing new movies, especially big hits, on VOD at the same time they release it on DVD.
But movie viewers seem to like the convenience of video-on-demand. Comcast, which is the largest cable operator in the country, said its subscribers select a VOD program more than 100 times per second. That amounts to roughly 275 million video-on-demand selections per month.
NetSuite's IPO auction has apparently attracted strong interest from investors, as the company prepares to set the final IPO price after market close Wednesday.
The on-demand enterprise applications company, backed by Oracle's Larry Ellison, has raised its pricing range by 46 percent from its initial pricing range of $13 to $16 a share that was announced on December 5.
The range was raised Tuesday to $16 to $19 per share. And it was raised a second time Wednesday to $19 to $22 a share, according to a Securities and Exchange Commission filing.
NetSuite could begin trading as early as Thursday, under the ticker symbol "N" on the New York Stock Exchange.
Investors are apparently eager to snap up the 6.2 million shares that NetSuite is offering. NetSuite could raise as much as $136.4 million, should the initial public offering be priced at the high end of the range.
As the day progresses and the close of the market draws near, it will be interesting to see whether NetSuite again raises the price range before setting the final IPO price. And although, as the company notes, it reserves the right to change the final pricing date, it can't push it back much further given the holiday crunch time that's approaching.
Larry Ellison's on-demand applications company, NetSuite, is getting ready to hit the road with its story for investors. The company set its initial pricing range on Wednesday, noting it hopes to raise up to $99.2 million.
NetSuite set an initial range of $13 to $16 a share for the 6.2 million shares it plans to release in its IPO, according to NetSuite's filing with the Securities and Exchange Commission.
The stock is slated to trade on the New York Stock Exchange, under the ticker symbol "N."
NetSuite's IPO is currently planned for December 21, but The Wall Street Journal, citing observers, notes the offering could launch sooner, should investor interest be strong.
Investors have been glomming onto technology issues in a big way this year, with VMware, for example, rocking up to $55.50 a share on its first day of trading from its IPO price of $29 a share. On the international scene, business-to-business site Alibaba tripled its share price on its debut on the Hong Kong market.
NetSuite, however, may have initially run into some turbulence with its offering plans when it filed in July. Ellison's Tako Ventures, which is a wholly owned subsidiary of Lawrence Investments, and a family members hold a 74 percent stake in NetSuite. NetSuite had previously indicated that Tako would retain control of the company post-IPO. As a result, that would have meant that Ellison, CEO of Oracle, could nix a buyout of NetSuite, even if NetSuite investors or its management wanted to pursue that route.
But NetSuite since modified those plans in October, noting in a later SEC filing that Ellison planned to transfer Tako's stake into a "lock box," in which he would no longer have direct control over the company. Tako's stake was 60 percent at the end of the September quarter.
In the filing, the company noted: "We have been told that Mr. Ellison is making the transfer in view of his position and duties at Oracle, to effectively eliminate his voting control over the election of our directors and other matters, and to avoid potential future conflicts of interest that might otherwise arise."
Ellison may not have control over NetSuite, but that pain will likely be offset from the financial pop he'll get from the IPO.
It's been nearly a year since Dave Duffield unveiled his on-demand enterprise applications company Workday, with the launch of his Workday Human Capital Management software.
And since that time, Duffield and Co. have been toiling away to build out the rest of his on-demand enterprise resource planning (ERP) vision. The PeopleSoft founder has added another piece to his project.
A beta version of Workday Financials was released Monday. The software includes core accounting features such as accounts payable, accounts receivable and financial accounting and reporting.
In the to-be-added category, the company plans to add such features as support for multinational currency, cost allocations and multidimensional planning and budget modeling in future releases of its Workday Financial Management.
The company also offers Workday Resource Management, as well as Workday Revenue Management, as part of its ERP suite. Additional features for both will be added in future releases.
Journalists tend to generate a lot of dog references by the public. Lapdog, bulldog, bloodhound, you get the picture...
But here's another description to throw into the mix: Pavlov's Dog.
The saliva content in the newsroom usually hits the high water mark when the Salesforce.com press kits arrive, historically bearing chocolate.
But today, a lot of saliva went to waste. The Salesforce press kits arrived, touting the company's Summer '07 release, but no chocolate. Instead, a small, white box of mints came with the delivery.
Do you think the mints address dog breath?
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