Monday, July 02, 2007

Industry Insider: Motorola's Peter Boonstra

I recently conducted an online interview with Peter Boonstra, Motorola's product manager in charge of Follow Me TV™, which is the company's whole-home DVR solution. We touched on the next generation of cable HD set-top boxes, the new FCC regulations regarding the unbundling of security from cable boxes (designed to spur retail competition) and the evolution of multi-room DVR. In the coming weeks I'll be interviewed on Motorola's blog in return about HDTV technology and content from the consumer perspective.

Practically speaking, what do the new post-July 1st regulations regarding the unbundling of integrated security/CableCards from the cable set-top box mean for new and existing cable HD customers?

In terms of technology and consumer experience, CableCARDs shouldn’t change a thing for cable HD customers. If existing customers choose to upgrade a set-top (for example, from an HD-only set-top to an HD DVR), they’ll end up with a CableCARD set-top. But having a CableCARD or “host” set-top won’t change functionality. In fact, most cable companies are shipping the new host set-tops with the CableCARD already embedded, so consumers likely won’t notice the difference at all. In the future, having unbundled security will make it possible to have set-top portability, meaning consumers can take their set-tops with them wherever they go, whether that set-top is bought at retail or leased through an operator.

The good news for consumers is that many of the new host set-tops from Motorola are also OCAP-ready. OCAP stands for Open Cable Application Platform, and the platform will allow cable operators to develop and deploy new TV applications faster. So if you’ve been looking for a way to access your HD DVR set-top from anywhere in house, OCAP is likely to get that feature (Motorola calls it “Follow Me TV”) to you sooner rather than later.

What are the benefits to consumers in leasing an HD STB from their cable provider rather than buying one in retail?

For the vast majority of consumers, leasing an HD set-top from a cable operator is the best option today. First you have to compare the cost of spending a few dollars a month versus paying several hundred dollars to buy an HD set-top at retail. However, the argument goes beyond price. A set-top that’s leased can easily be replaced, fixed or upgraded. And as OCAP is rolled out, those upgrades can be done with a software download right to the set-top.

There will always be a niche group of customers who want to buy high-end set-tops they can tinker with. But most consumers don’t want to have to think about how they watch TV; they’d rather just watch it. And for those people, leasing a set-top makes the most sense.

What new advancements are we going to see out of the next generation of HD and HD-DVR STBs? Integrated Ethernet ports? VoIP and/or broadband Internet modems? Wi-Fi connections? DVD players and/or recorders?

It’s pretty clear that integration with the Internet is on its way, but I think we’ll see other applications first from the cable and telecom operators. We’ve seen operators in the labs testing out new OCAP applications like traffic and weather tickers, more interactive program guides and light gaming. I also think Follow Me TV is going to become a lot more common later this year and in 2008. Verizon currently uses Motorola’s Follow Me TV solution to power its Home Media DVR service. I believe we’ll see the cable operators start to add similar functionality. This includes the ability to create an extended network between set-tops, computers, and other IP-based devices in the home to enable seamless sharing of content (like viewing PC-based digital photos on your HD TV or listening to your digital music on the stereo attached to your set-top.)

Now that the triple-play (voice, video and data) has become a reality, I think we’ll also see more services that take advantage of that bundle. As a simple example, with IP-based telephony (VoIP), it’s a logical next step to offer services like caller ID on your TV and Web access to your voicemail.

Sony has developed the Bravia Internet Video Link that lets users download/stream content from the web directly to their TVs. Does Motorola have anything similar in the pipeline that could be integrated into an HD STB?

Sure. The difference is that we are constantly working with operators to determine what technology to roll out and when. It’s a balancing act. If operators roll out a new feature too soon and it doesn’t get high adoption, then they have to readjust their financial resources. If you look at what’s most in demand right now, it’s probably HDTV, DVR and VOD. That means that those applications are probably getting highest priority with operators.

With multi-room DVR, how soon will cable companies offer consumers the ability to not only record and watch HD content on the primary HDTV but also on the secondary HDTVs?

Everyone recognizes the importance of HDTV. I think when whole-home DVR rolls out on a wider scale, which is probably later this year and in 2008, HDTV will be part of it.

Do some cable companies give their customers the ability to attach an external hard drive to their HD-DVR to record additional HD content and perhaps even permanently store it? The technology exists today but my understanding is that most cable customers with HD-DVRs can’t actually utilize it (I don’t believe I can with my Motorola Moxi HD-DVR).

Yes, Motorola will soon be enabling the external SATA port on the HD DVR to allow recording of additional content.

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