Communications report 2011–12 series Report 1—Online video content services in Australia



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Key device manufacturers


The emerging interest in accessing OVC has created opportunities for device manufacturers; both in partnership with the ISPs and in their own right (see Table 7).
Set-top boxes are becoming increasingly integrated with ISP plans, with many providers offering meter-free access to content streamed or downloaded through proprietary devices.

Similarly, content service providers are partnering with the manufacturers of games consoles and internet-enabled televisions to provide compatible video content and device-specific plans.


This section focuses on the key device manufacturers offering online video access devices in Australia and outlines the nature of industry partnerships currently in operation. Portable devices, such as smartphones and tablets, will be considered later.

Internet-enabled televisions


Internet-enabled televisions (IETVs) are becoming increasingly popular as consumers become more aware of the capabilities of these devices and seek to upgrade their household entertainment equipment. Many of these televisions come with built-in firmware that enables the user to access online content without a set-top box, providing access to additional content for no extra charge, while others have formed partnerships with service providers to offer bundled packages and other promotions.
Sony has differentiated itself in the device manufacturing market by providing an OVC service via a range of devices, including televisions, Blu-ray players, Smart STBs, since March 2010. By purchasing from a range of IETVs, Blu-ray players or home theatre systems, Sony customers can gain access to over twenty channels of catch-up television, music videos and movies on-demand, as well as a wealth of internet content streamed direct to their device. Sony also secured the exclusive distribution rights of the Google TV set-top box, offering it free of charge with the purchase of a Sony Bravia television in June 2012.42 In September 2012, distribution rights were extended to Sony Centres and made available to customers without the need to purchase a Sony IETV.43
Other television manufacturers have entered the video access market more recently to compete with the Sony product. Panasonic, with its OVC service Viera Connect, offers users access to FTA catch- up television sites, in addition to a range of channels, movies and television programs using the cloud. Samsung has also been active in this sphere, offering access to FOXTEL OVC directly from the interactive screen of its 2011 and 2012 Smart TVs, and providing interactivity with its smartphone and tablet devices via a free application.44
There is likely to be more competition introduced to the market in the near future, with Apple believed to be developing an IETV to complement its Apple TV, iPhone and iPad devices.45


Table Selected OVC access devices/services available on the Australian market

Company

Device/service

Content

Revenue models

Cost to consumer*

Business partnerships

Microsoft

Xbox LIVE

Offers access to recent film content for streaming or download plus access to games, YouTube, some catch-up television, FOXTEL content (additional monthly charge) depending on level of subscription (see cost column).

Subscription by the month and PPV for movie content. Some content available free of charge.

Packages: Free—Provides access to games, video rentals, limited catch-up TV, Gold Now—$79.95 p/a as above with catch-up, access to FOXTEL service and SBS On Demand, YouTube, Gold Family—$129.95 p/a.

Gold level subscribers are able to access FOXTEL services for additional monthly fee. Content is unmetered on BigPond services.

Hybrid Television Services (ANZ) Pty Limited

TiVo set-top box

Users can access FTA television, as well as service platform CASPA that offers film and television programs on demand. The content is a mix of fairly new and archive material and the majority is international in origin.

Subscription and PPV.

STB between $320 and $699 plus data streaming charges, plus PPV via CASPA.

HTS Australia is owned by the Seven Media Group, which has exclusive distribution rights. A partnership between HTS and eight ISPs allows customers to access TiVo/CASPA content free of metering charges.

Sony

Sony BRAVIA TV

Sony Blu-ray

Sony PlayStation

Internet-ready television. Offers access to FTA channels, catch-up television from SBS, Plus7, ABC as well as other internet video content. PS3 and PSP provide movies on-demand through Quickflix.

No charge for television content (advertising supported), movies and Quickflix content is PPV / subscription.

Hardware costs plus data traffic charges and PPV movies.

Partner with Google TV to launch their Australian product by including it in sales of two television models. A deal with Quickflix provides Bravia and PS3 users easy access to Quickflix content.

Panasonic

Panasonic Viera television

Viera Connect includes music, sport, games, news, lifestyle, health and fitness, movies and television programs. Customers can watch ABC iView content, Yahoo7, USTREAM, WOW TV, YouTube/social networking sites.

Applications are free to download, most television content is free of charge. On-demand BigPond content is PPV.

Hardware costs plus data traffic charges and PPV movies.

Panasonic and Telstra have partnered to provide Viera users access to BigPond Movies.

Samsung

Samsung SmartTV

Access to FTA channels, catch-up television from SBS, Plus7, ABC iView and Quickflix content, via Smart Hub.

Apps free to download. On-demand PPV.

Hardware costs plus data traffic charges and PPV movies.

Partnership with FOXTEL provides access to SmartTV users at a price lower than standard subscription. Users can access BigPond Movies.

Western Digital

WDTV Media player - WDTV Live

Provides access to FTA channels, in addition to catch-up TV.

PPV

STB from $88 plus data streaming charges.

ABC iView accessible via STB.




Source: Company websites at 25 September 2012.

Games consoles


Sony and Microsoft are the two primary manufacturers of games consoles that can also be used to access OVC. Through a series of content and service partnerships, Microsoft’s Xbox LIVE offers access to a range of video content, including FTA catch-up, FOXTEL, Crackle (on-demand movies and television series) and YouTube.
Sony’s PlayStation3 games console provides users access to a range of IPTV services, including FTA catch-up television, Quickflix, and a number of other online on demand movie rental services, such as MUBI.46

IPTV set-top boxes


While a number of internet-enabled set-top boxes are available through ISPs in Australia, Hybrid TV’s TiVo STB is one of the few available for purchase without a subscription to an IPTV service. Hybrid TV delivers a broad range of on-demand entertainment and digital television access, in addition to FTA channels. TiVo users can access a range of media content through its service platform CASPA via a broadband connection.
A recent announcement by Hybrid TV indicates that in the near future, CASPA will be readily available across a range of IETV's, Blu-ray players, home theatre systems, DVRs and other internet-enabled devices.47

Streaming media devices


A number of devices are available to Australian consumers that include pre-loaded software, enabling the user to easily access OVC when connected to the internet. Two popular media devices include the Boxee and the Western Digital TV Media Player, which are promoted as allowing the consumer to stream media content and internet entertainment directly from the internet to the television. Both devices have been promoted for their capacity to work across platforms including computers, tablets and smartphones.
Both media devices are purchased for an upfront fee with no ongoing charges except for accessing premium content. However, while both systems claim to offer TV program streaming and hundreds of movies, current licensing restrictions prevent much of this content from reaching Australian audiences.48




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