Post by dkennedy on May 26, 2005 8:35:41 GMT -5
EchoStar To Roll Out Portable DVR Device
Thursday, May 26, 2005
BY REINHARDT KRAUSE
INVESTOR'S BUSINESS DAILY
Satellite TV broadcaster EchoStar (DISH) is about to find out whether portable video players will strike consumers' fancy as much as Apple Computer's iPod.
EchoStar Communications, the No. 2 satellite broadcaster behind DirecTV, (DTV) plans this summer to unveil the first portable DVR in the U.S. To be called the PocketDish, the gadget would store TV programs as well as audio, photos and Internet content.
EchoStar already offers several set-top boxes with built-in DVRs, digital video recorders.
The PocketDish will link to its set-top boxes/DVRs via USB 2.0 wiring, the computer wiring that allows for fast downloading.
The company has issued only a few hints about PocketDish and won't release details, but executives hope the product gives EchoStar a leg up in its battle with cable and satellite TV rivals.
Several analysts question whether the PocketDish can be an iPod-like success, but they credit EchoStar at least for trying something new.
"EchoStar and other cable and satellite operators are dabbling (with new features). And they're smart to do that, because you never know what devices or technologies will take off," said Philip Swann, publisher of TVPredictions.com. "But to use the iPod's success as a portent for an i-Video-type of success is dead wrong."
Industry people say EchoStar's PocketDish supplier is France-based Archos. EchoStar quietly invested nearly $10 million in Archos earlier this year.
EchoStar was the first pay-TV company to offer subscribers DVRs, the fast-emerging product pioneered by TiVo. (TIVO) DirecTV and cable firms followed.
Cable TV firms have ramped up their DVR marketing in the past 18 months. About 1 million of Time Warner Cable's (TWX) subscribers lease its DVRs. Comcast (CMCSA) has 625,000 DVR users, analysts estimate.
DVRs let viewers pause, rewind and replay live broadcasts by recording content onto a hard drive. It also lets users skip commercials.
Unlike portable music players like the iPod, there's no proven demand for portable video devices, says Michael Greeson, an analyst at Diffusion Group. Sony's (SNE) Walkman and many portable CD players preceded iPod, he points out.
"Video players don't have that lineage," said Greeson. "Consumers aren't as familiar with them."
The PocketDish will download a full-length movie in less than 10 minutes from an EchoStar DVR, say people who know details of the product. It will feature hard-disk drives with up to 40 gigabytes of storage. That's far less than a conventional DVR, but is enough to store 180 hours of standard TV content or 25 hours of TV recorded in the ultrasharp, high-definition format.
EchoStar's PocketDish will be a spinoff of the Archos AV 700, say industry sources. That device uses Linux software and has a 7-inch screen, but isn't sold in the U.S.
Archos' main product is a digital music player.
EchoStar is readying three versions of PocketDish — with 2-inch, 4-inch and 7-inch screens.
People who know about the product say users won't be able to transfer content stored on the PocketDish to other devices.
Since it's so small, the PocketDish won't have the processing power of a regular DVR, which might lower picture quality.
PocketDish will work with several video formats, including MPEG-4. This standard squeezes more content onto hard-disk drives than earlier MPEG technologies.
Started in 1998, Archos specializes in mobile data products. Its U.S. unit is based in Irvine, Calif.
Swann says portable music players are more practical than portable video devices.
"To watch video on a portable player, you have to stop what you're doing," he said.
Yet he says portable DVD players have sold and PocketDish could appeal to consumers who also like that product. In the U.S., DVR unit shipments nearly doubled to 6.3 million in 2004, says market tracker In-Stat.
Swann doubts the PocketDish or similar device would prod many more consumers to subscribe to EchoStar or any pay-TV service, though DVRs are becoming more popular.
"People make decisions on cable vs. satellite based on price and channel lineup," he said.
Diffusion's Greeson says EchoStar could improve the PocketDish's chance for success with aggressive promotions, such as deep price discounts.
Mobile phone companies are in a similar situation in trying to market mobile video services, such as TV content downloadable to cell phones.
"The jury is still out on mobile video," Greeson said.
Thursday, May 26, 2005
BY REINHARDT KRAUSE
INVESTOR'S BUSINESS DAILY
Satellite TV broadcaster EchoStar (DISH) is about to find out whether portable video players will strike consumers' fancy as much as Apple Computer's iPod.
EchoStar Communications, the No. 2 satellite broadcaster behind DirecTV, (DTV) plans this summer to unveil the first portable DVR in the U.S. To be called the PocketDish, the gadget would store TV programs as well as audio, photos and Internet content.
EchoStar already offers several set-top boxes with built-in DVRs, digital video recorders.
The PocketDish will link to its set-top boxes/DVRs via USB 2.0 wiring, the computer wiring that allows for fast downloading.
The company has issued only a few hints about PocketDish and won't release details, but executives hope the product gives EchoStar a leg up in its battle with cable and satellite TV rivals.
Several analysts question whether the PocketDish can be an iPod-like success, but they credit EchoStar at least for trying something new.
"EchoStar and other cable and satellite operators are dabbling (with new features). And they're smart to do that, because you never know what devices or technologies will take off," said Philip Swann, publisher of TVPredictions.com. "But to use the iPod's success as a portent for an i-Video-type of success is dead wrong."
Industry people say EchoStar's PocketDish supplier is France-based Archos. EchoStar quietly invested nearly $10 million in Archos earlier this year.
EchoStar was the first pay-TV company to offer subscribers DVRs, the fast-emerging product pioneered by TiVo. (TIVO) DirecTV and cable firms followed.
Cable TV firms have ramped up their DVR marketing in the past 18 months. About 1 million of Time Warner Cable's (TWX) subscribers lease its DVRs. Comcast (CMCSA) has 625,000 DVR users, analysts estimate.
DVRs let viewers pause, rewind and replay live broadcasts by recording content onto a hard drive. It also lets users skip commercials.
Unlike portable music players like the iPod, there's no proven demand for portable video devices, says Michael Greeson, an analyst at Diffusion Group. Sony's (SNE) Walkman and many portable CD players preceded iPod, he points out.
"Video players don't have that lineage," said Greeson. "Consumers aren't as familiar with them."
The PocketDish will download a full-length movie in less than 10 minutes from an EchoStar DVR, say people who know details of the product. It will feature hard-disk drives with up to 40 gigabytes of storage. That's far less than a conventional DVR, but is enough to store 180 hours of standard TV content or 25 hours of TV recorded in the ultrasharp, high-definition format.
EchoStar's PocketDish will be a spinoff of the Archos AV 700, say industry sources. That device uses Linux software and has a 7-inch screen, but isn't sold in the U.S.
Archos' main product is a digital music player.
EchoStar is readying three versions of PocketDish — with 2-inch, 4-inch and 7-inch screens.
People who know about the product say users won't be able to transfer content stored on the PocketDish to other devices.
Since it's so small, the PocketDish won't have the processing power of a regular DVR, which might lower picture quality.
PocketDish will work with several video formats, including MPEG-4. This standard squeezes more content onto hard-disk drives than earlier MPEG technologies.
Started in 1998, Archos specializes in mobile data products. Its U.S. unit is based in Irvine, Calif.
Swann says portable music players are more practical than portable video devices.
"To watch video on a portable player, you have to stop what you're doing," he said.
Yet he says portable DVD players have sold and PocketDish could appeal to consumers who also like that product. In the U.S., DVR unit shipments nearly doubled to 6.3 million in 2004, says market tracker In-Stat.
Swann doubts the PocketDish or similar device would prod many more consumers to subscribe to EchoStar or any pay-TV service, though DVRs are becoming more popular.
"People make decisions on cable vs. satellite based on price and channel lineup," he said.
Diffusion's Greeson says EchoStar could improve the PocketDish's chance for success with aggressive promotions, such as deep price discounts.
Mobile phone companies are in a similar situation in trying to market mobile video services, such as TV content downloadable to cell phones.
"The jury is still out on mobile video," Greeson said.