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Netflix Won’t Stream 1080p in 2010, But What About Roku?
Netfix plans to start streaming some of its VOD content in 1080p later this year, doesn’t plan to support 1080p streaming in 2010, according to a CNET report, which was updated after the company reportedly said its own road map had incorrectly identified 1080p streaming as a goal for this year. Timing, catalog size and other details of the plan aren’t public yet, and a company spokesperson told us that he couldn’t comment on any specifics. Two weeks ago, though, the company told us that it is currently streaming about 1000 titles in 720p. That’s a small percentage of the total amount of content available for streaming.
The eventual migration to 1080p isn’t too surprising. YouTube launched support for 1080p streaming at our NewTeeVee Live conference last fall, and Microsoft rolled out 1080p streaming for its Xbox Live service late last year as well. In fact, the Xbox could be one of the first devices to bring Netflix in 1080p to the TV set in the living room. Microsoft’s game console has been supporting Netflix streaming for more than a year now.
However, the move puts pressure on Roku, whose set-top boxes used to be one of the only ways to access Netflix streaming without the help of a PC. None of the Roku boxes currently available for sale support 1080p. Adding the capability to play back full-scale HD content could significantly raise the price point of the company’s devices, which currently sell for $80 to $130, depending on the configuration of the device. Chip sets capable of playing back 1080p could push the price of a Roku box closer to $200, but Roku recently announced that it plans to actually lower the price of its hardware to make it more attractive to consumers. We have reached out for Roku to comment, but haven’t heard back yet.
Related content from GigaOm Pro: Not Your Grandfather’s Streaming Video Business (subscription required)
Revision3 Serves 1.5B Minutes of Video in 2009
The network that Diggnation built had a great 2009, according to a release from today — Revision3 delivered over 1.5 billion minutes of video to its viewers while growing revenue by 30 percent. (No wonder they felt confident enough to offer Conan O’Brien a series.)
The release cites a 50 percent increase in ad sale deals (with some advertisers reporting over 500 percent return on investment) as well as improved viewership numbers for Tekzilla and Scam School, both of which have reached the million monthly views mark along with DIGGnation (which will hit its fifth anniversary later this year).
Rev3 has bounced back from its 2008 layoffs and emerged as an industry leader proactively partnering with seemingly anyone, from Roku to Clearleap to Transpond, and those distribution deals have put its shows on TVs and airplanes. Ten new shows, including recent favorite INST MSGS, came out during 2009.
Vid-Biz: iPad and Flash, Ooyala, Super Bowl
iPad Can’t Play Flash Video, But It May Not Matter; while Flash is present on nearly every Apple desktop and laptop computer, Apple has concerns over its vulnerability to viruses and other malware, as well as the way Flash-based content can voraciously consume battery life. (NY Times) Which causes Robert Scoble to ask, “Can Flash be saved?” (Scobleizer)
To Deliver, iPad Needs Media Deals; the iPad’s glories as a media consumption device open up a whole new frontier for developers and publishers, but they also raise large questions about the business models that will drive that content to the screen. (NY Times)
Ooyala Live Video Platform Gets Visibility With Grammy Awards; the 2-year-old online video services company’s live streaming platform was used for the Grammy Awards pre-show, the “red carpet” and back-stage activity. (Beet.TV)
Will Your Big Screen Super Bowl Party Violate Copyright Law?; TV broadcasts and movie showings can only be displayed so long as “no such audiovisual device has a diagonal screen size greater than 55 inches, and any audio portion of the performance or display is communicated by means of a total of not more than 6 loudspeakers.” (Ars Technica)
VEVO, The Recording Academy and CBS Team Up for Grammys Music Video Channel; Music video site will feature noteworthy footage from 52 years of Grammy Awards. (Press release)
Brightcove CEO Talks Video, Provides Tech Support; Michael Arrington interviews Brightcove CEO Jeremy Allaire at the World Economic Forum in Davos, Switzerland. (TechCrunch)
Roku’s New Channels: SmugMug, Dream TV; the set-top maker may or may not hit 100 channels this year, but it’s got two more, with the addition of SmugMug photos and DreamTV video. (Zatz Not Funny!)
Virgin Doubles On-Demand Views; new figures released by Virgin Media show over 750 million on-demand views, with 59 percent of its TV customers watching catch-up content. (Broadband TV News)
iPad: No Flash Video, No Problem — There’ll Be Apps for That
In arguing that Apple’s iPad could change the way people consume video, the biggest hurdle to my thesis was that the iPad doesn’t support Adobe’s Flash, which has become the de facto vehicle for delivering video from a number of popular web sites. How could the device revolutionize online video viewing when it doesn’t support the main way that people currently view video online video?
While you probably won’t be able to stream video from Hulu or Netflix on the device at launch, I’d argue that the lack of available web video on the iPad (i.e. video delivered in Adobe Flash or Microsoft Silverlight) is only a short-term problem. That’s because I believe that over the long term, such content — and more — will be made available through iPad apps.
Roku: 500,000 Units Sold, Raising Capital, Eyeing IPO
Roku is seeking to raise an additional $30 million to ramp up those plans, in a financing round that it expects to close in the first quarter. Existing investor Menlo Ventures is already on board for that round, having bought out Netflix’s stake in the set-top maker last year. To date, Roku has raised $24 million from Wood, Netflix and Menlo.
Roku sold more than 500,000 of its broadband set-top boxes to date, and expects that number to top 1 million by the end of 2010, which will help drive revenues over the year. It now sells three models of its Roku player, priced from $79 to $129 depending on the configuration of the device.
Is Nintendo Missing Out on Video?
Nintendo America President and COO Reggie Fils-Aime recently told CNBC that the company isn’t even close to releasing a second-generation Wii console. Consumers don’t want HD as much as they want a compelling experience, he argued, and more than 26 million Wii owners seem to support that statement. Fils-Aime was interviewed by CNBC about the launch of Netflix VOD on the Wii, and, pressed on the issue by CNBC’s Maria Bartiromo, had to come up with a good reason why Wii owners won’t be able to watch any HD video with the console anytime soon.
Fils-Aime’s answer must have made Netflix CEO Reed Hastings, who was tele-present for the on-screen interview as well, cringe. “The vast majority of content available on Netflix is not HD content,” the Nintendo exec explained, adding that Wii consumers aren’t losing anything without HD. It’s true that Netflix’s HD VOD catalog is small, but it’s growing. The company told us that it’s currently streaming around 1,000 titles in 720p. Add to this the fact that even for SD titles, devices like Sony’s PS3 or the Roku box allow far higher bitrates, and it becomes clear there’s little room to grow for Nintendo in the world of connected devices.
Netflix to Stream on the Wii — But Only in SD
Netflix subscribers, after months of rumors, will soon be able to view its “Watch Instantly” streaming service on the Wii gaming console, the NY Times is reporting. But while the deal will open up the service to a whole new group of potential subscribers, there are limitations that could hamper adoption among Wii owners.
For one thing, those hoping for the same high-quality video that they get on the Xbox 360, Sony PlayStation 3 or any other connected device should curb their enthusiasm, since the Wii will only support standard-definition streaming. As we reported earlier this week, the Wii simply doesn’t have the horsepower to stream HD video. The BBC, which introduced its iPlayer on the gaming console late last year, is only able to stream video on the Wii at around 700 kbps, compared to the 1.5 Mbps or 3.2 Mbps that can be found on a typical broadband PC connections.
Could Ben Silverman Make Web Video Mainstream?
Former co-chairman of NBC Entertainment Ben Silverman has got the pedigree of launching unassuming hits like The Office and Ugly Betty. He’s got the financial and technology backing of Barry Diller’s IAC. And he’s got massive distribution through one of the largest Web portals in the world, Yahoo. But has he got the wherewithal to produce scripted, original programming that could finally make web video go mainstream?
Silverman’s new production company, Electus, will have web production and development help from IAC’s CollegeHumor, and it will get a first look and international distribution rights for content produced by a newly formed production company from Arrested Development stars Will Arnett and Jason Bateman called “DumbDumb.” But most importantly, Electus already has distribution and advertising wrapped up through a deal with Yahoo to create co-branded content for the Web portal and its advertisers.
Forget TV Everywhere, How About Netflix Everywhere?
It seems Netflix has already reached a tipping point in the consumer electronics market, as it signed up five more CE manufacturers to enable its streaming services on their devices. Panasonic, Sanyo, Sharp, Toshiba and Funai (the CE maker behind the Philips, Magnavox, Sylvania and Emerson brands in the US) have all agreed to add the Netflix “Watch Instantly” streaming service to some of their Internet-connected HDTVs and Blu-ray players.
Netflix streaming has become nearly ubiquitous on consumer electronics devices in the past few years; the service was already available on a number of devices, including the Roku Player; Microsoft Xbox 360 and Sony PlayStation 3 gaming consoles; Blu-ray players from Insignia, LG, Samsung and Sony; Internet-connected TVs from Insignia, LG, Samsung, Sony and VIZIO, and TiVo DVRs. Altogether, Netflix expects to have its streaming service on more than 100 different CE devices this year.
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