Boxed in

With a number of new parties entering the set top box (STB) space recently, threats from games consoles and internet based platforms are asking questions of the STB market. Digital Broadcast investigates.

Accessing video content is now possible via a vast number of methods. Networks born on the web – particularly YouTube – are increasingly available on different platforms including TV STBs and traditional broadcasters are continually expanding their accessibility online.

The technologies enabling these crossovers are adding improved functionality and better user experiences. Microsoft’s Xbox 360 platform has internet connectivity (by WiFi if you like), a hard drive, HD capability, a proprietary social community platform (Xbox Live) and a dedicated online content store (Xbox Live Marketplace).

While all this might sound like a PVR, VOD platform and more all rolled into one the company maintains that it is not looking to position the Xbox 360 as a home media hub.

“The Xbox is a gaming device. Microsoft has been very clear in positioning the Xbox as just that,” says Gabrielle Di Piazza, managing director, Microsoft media, entertainment and communications. “We also provide entertainment through the Xbox but we are not confusing the two things. The Xbox is a gaming device first, but we also want to provide an entertainment offering as part of the experience.”

Di Piazza claims that the Xbox Live Marketplace portal offers the largest supply of downloadable HD content in the US and currently boasts 16-17 million users daily. The company is also continuing to add to the number of applications.

“We have announced that the Xbox can be used as a STB for our IPTV Mediaroom offering but I don’t think we should be talking about exchanging the STB for an Xbox,” concedes Di Piazza.

So although other devices are gaining STB functions, even the manufacturers of these new platforms admit that the STB is not about to be superseded with an all-in-one solution.

“Creating a single home entertainment hub is preferable from a consumer perspective, but has the potential to present problems for the service providers involved,” says Shane McCarthy, group account director, Pace. “There is certainly some attrition now between the PC, games console and the STB in terms of which is in the best position to take home entertainment to the next level. But the real benefit of the STB is that it is designed to manage content whereas the PC and games console are not.”

As consumers continue to receive their principal TV service in ever diversifying methods, the ability of a separate device to cater for all these different signals remains limited. The Xbox’s ability to act as a STB is not just restricted to IPTV services, but to those IPTV services using the Microsoft Mediaroom platform.

“I think consoles and STBs will coexist; neither will be the dominate player. Game devices such as the Nintendo Wii, Xbox360, and Playstation 3 have all been made network capable to create networked gaming communities,” says Mike Tometzki, senior director, client device strategy, Irdeto.

“This also enables them to become media servers and therefore allows push content via fire-walled player portals. In some systems like the PS3, DVB tuners via USB connections are being added allowing for freeview only content.”

Tometzki expects to see both types of devices embrace increased storage with both pursuing 1Tb capacities. He also expects to see more STBs including Blu-ray drives as the available catalogue expands. However, he believes that connectivity will be the key differentiator for the STB moving forward.

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