For a long time, Cisco was only focused on high-end corporate sales. This started to change with its acquisition spree. Back In June 2003 it acquired Linksysin order to attack the home and small business markets.
Under the Cisco banner, Linksys have madefurther acquisitions, including Kiss Technologies whoproduce DVD and media streaming solutions (at the higher end of the consumermarket).
Now Cisco have acquired Scientific Atlanta (SA), a massive company, who make set-top-boxes (STBs)mainly for cable companies, but more recently in the IPTV space (i.e.they have an Ethernet connection and video out/SCART socket or equivalent).
IPTV the future of TV
It’s now widely agreed that the future of broadband is what’s known as triple-play (the combinationof Internet, voice and video). In the past, cable companies have held avirtual monopoly on this market as CATV (cable TV) was the only technology thatcould deliver the bandwidths needed. However with the advent of new DSL (DigitalSubscriber Lines) technologies such as ADSL2+, they too can be usedto deliver triple-plays.
DSL is much cheaper to install as it uses existing phone cabling, ratherthan CATV which requires digging up the road, installing fibre tothe street and co-axial cable to the home (this may not be true forgreenfield sites, but in countries with existing infrastructure likethe UK it is).
In Europe, IPTV is starting to take off in a big way, broadband pricesare plummeting as operators offer the basic services for very low cost,hoping customers will take premium services.
In the UK, Sky acquired Easynet (a local loop unbundler) and they aregoing to launch an IPTV service next year (possibly more).
Cisco has a lot of clever people working there and as has seen the market grow. Now they want theirpiece of the pie. Hence the SA purchase.
Core networks
It’s not like IPTV is new to Cisco. They’ve have had an IPTV solution for several years, but theirs was aimed atthe enterprise customer (i.e. big businesses).
Cisco’s core business is, and will continue to be, selling high-endnetwork equipment to the telecoms and cable companies, ISPs, etc. All of this high-end network equipment can be IPTV-enabled.
Though Cisco have bought Scientific Atlanta, who manufacture the consumerpiece of the puzzle, by expanding the consumer take-up of IPTV they arealso expanding the core network business. Don’t forget, running IPTV servicesrequires a lot of investment in network infrastructure i.e. moreCisco kit.
Cisco are coming close to becoming a fully horizontally integrated company. After the SA purchase, there’s only a few bits missing. The actual content creation, which we think it is highly unlikely to get into – it’s far too messy, involves troublesome humans and is an unknown to them.
The other is the content encoding/delivery part. Who knows, that maybe another acquisition on Cisco’s horizon?
TiVo have announced the release of new software, slated for the first quarter of 2006 that will let owners watch recorded television shows on their Sony PSPs and video iPods.
This development is a further blow to TV network schedulers and their much-relied on conventional prime time programmes. This theory is torn apart when mobile viewers are able to watch programmes recorded the previous night, on the go.
Using search engines has become the second most popular activity for Web users, according to new research from the Pew Internet & American Life Project.
‘Gen X’ surfers (29-40 year olds, not the Billy Idol-fronted band) were online the most (51 per cent), followed by ‘Gen Y’ users (18-28 year olds), ‘Older Baby Boomers’ (51-59 yrs old), ‘Younger Baby Boomers’ (41-50), ‘Matures’ (60-69) and, finally ‘After work’ (70+). We wonder who makes up these daft categories?
The Internet was supposed to herald in an age of paperless offices, online browsing and tree-untroubling electronic mail, but it seems that when it comes to flogging goods, the trusty old print catalogue still rules the roost.
The survey found that old fashioned catalogues remain one of the most effective promotional channels for generating online orders, with 60% of survey respondents currently licking stamps on catalogues and brochures to be sent to customers in an attempt to increase online sales.
Additionally, the survey revealed that 55% of retailers planned to follow the annoying trend set by High Street stores and “extend” the Christmas buying period by encouraging consumers to buy earlier (If only we could “extend” the Christmas holiday period too).
Around 80% of consumers are expected to buy at least a quarter of their Christmas purchases online this year – up a mighty 15% over last year.
Nielsen, the top American agency that measures TV viewing audiences, is going to provide ratings that take account of time-shifted viewing through digital recording devices like TiVos even though viewers are able to, and in my experience, generally do, fast-forward through the paid for messages.
The US networks say that time-shifted ratings should be taken into account, and point out that PVR users watch more TV – which we don’t dispute. They watch around 5.7 hours and that’s more than 10% extra when compared with the technologically-disadvantaged standard household. Their logic follows that this extra 10% of viewing, gives them more opportunity to see commercials. With PVR penetration in the USA already around 8% of the TV universe and expected to rise steadily over the coming years, this adds up to a is significant amount for media buyers.
Because Criminals Make the Best Police Officers
The other law other are saying have been broken by SonyBMG, and this is one that could land them in BIG legal difficulties, is
Hauppauge Digital have whipped out a new add-on card to convert a boring old PC into a multimedia-tastic satellite TV receiver.
Freesat will be the satellite equivalent of Freeview,” said Yehia Oweiss, Managing Director of Hauppauge Digital. “Already broadcasting BBC, the service will be available to all UK households and bring free digital TV to the 25 per cent who are outside Freeview’s area. Consumers can buy our Freesat tuner now and enjoy many digital channels now, with more being added all the time.”
Of interest to the media and communications industries will be the final report of the Martin Cave led
The
Mesh Networks are going to grow enormously by the end of the decade, according to ABI research. This ‘revalation’ is following years technical-types raving on about them.