Freeview: More evidence of flat-rate video devices
Freeview, a set-top box that allows buyers to get 30 channels of digital television for a one-time payment of £99 (about $180) has swept to success with more than 300,000 units sold in two-and-a-half months. The company has received two million requests for information and 700,000 phone calls from consumers.
TiVo, Replay, and anyone else looking at monthly fee-based business models need to take note of this. Hardware is something people see as a bounded purchase, unless it is deeply discounted to attract customers to on-going services (the cell phone model). Software services providers, too, should consider one-time pricing for their products or, at least, one- or two-year upgrade and service/support agreements rather than adding another monthly charge to the customer's credit card.
[RatcliffeBlog: Business, Technology & Investing]
But how does this work? Do I keep buying additional set top boxes - each one associated with a finite set of content and services? "There's one for pizza, one for sports and here's my 'photo album' box." That's absurd!
Customers need general purpose boxes that can be programmed with any DRM, download any kind of content, offer a wide range of interactive entertainment activities and gaming and all sorts of government, commercial or medical services.
Not 12-15 boxes - each one dedicated to another task!
Yes the business model is right, the attitude towards customers is right - but this has got to be a pervasive approach. You can't just sell 'some stuff' on one box and expect end-users to buy lots of different boxes! I can see having game oriented boxes, phone, TV and stereo oriented boxes - as we're all prepared for that. But more than one box for movies, TV shows and digital services - is pushing it.
Lots of folks have more than one set top box - but it's because you need one for every TV. It's bad enough when your TiVO movie is on the TV system upstairs, but you wanna watch it downstairs, but getting only SOME services in one box and other movies on another - is crazy!
Maybe is each of these boxes were on the same multimedia Home LAN and could use tcp/ip to freely movie media and services throughout the home and one's digital lifestyle - but we know we ain't there yet and some would argue - tcp/ip will never suffice for true broadband media performance.
But that's for another discussion.
