Cable Operators Finally Take Action on TV Platform Innovation -
Comcast's "Next Generation" Xfinity TV Launch is a Poster Child for the Change
Bill Niemeyer, Senior Analyst
June 17, 2011
I've just returned from The Cable Show in Chicago, the cable industry's annual conference. My big takeaway: after years of near-glacial pace of change with respect to innovation in TV services, the cable industry has finally (really) begun to move. The two biggest technology themes were cloud computing and multiscreen delivery.
Comcast CEO/Chairman Brian Roberts illustrated the accelerated pace of change and the power of new cloud technologies via an impressive live demo of the "next generation" of Xfinity TV (you can see a video of his presentation here). Based on Comcast's Xcalibur hybrid IP/cable platform, the new service is currently available to Comcast subscribers in Augusta, GA. So this "next generation" Xfinity TV is already in market, a break from cable's past behavior of "much talk, little action" with respect to TV innovation.
This just scratches the surface of Comcast’s new efforts.
The conventional cable plant is still used to deliver TV and video, but a modern user interface and features surrounding it are IP delivered via cloud computing techniques from Comcast servers. This new user interface appears well crafted, graphical, and modern, a far cry from the inadequate antique program guides currently on digital cable. It offers a much more capable program guide, search/discovery, and personalized recommendations. It also includes apps for weather, traffic, Pandora, and Facebook. The Facebook app includes TV/social media integration via a "Friends Trends" feature listing programs most liked by one’s friends.
While this new service is already in market, it does require subscribers to get a new HD DVR set-top box (STB), so at least initially it will be used by a small subset of customers in Augusta. Roberts did not provide information on expanding the footprint of the launch or making it available on a wider range of STBs.
A Comcast press release noted the technology partners for this next generation Xfinity TV. Pace is supplying the hybrid HD DVR STB that uses an Intel System on a Chip (SOC) processor. That's an important win for Intel as it represents their first entry into the top-tier U.S. cable operator market. Comcast's thePlatform is providing the video publishing and content management infrastructure.
Roberts noted that Comcast is moving to this hybrid/cloud computing approach as it frees Comcast from the restrictions of developing software on the STBs, allowing rapid development and launch of new UI capabilities via the cloud. Hybrid TV platforms are a good tactic for cable because it allows them to continue use of their existing cable plant for linear TV and VOD delivery, while avoiding the massive costs and long timeframes for a complete swap to IP-based TV.
A number of solutions for cloud computing were seen at The Cable Show. Rovi is offering a different approach, using cloud techniques to offer the TotalGuide for STBs, providing a much-needed updated for in-market legacy cable boxes. And as further indication that the cable industry is really beginning to move, Rovi announced three operators who will be launching the new guide—Suddenlink, BendBroadband, and Armstrong.
My conversations with technology vendors at the show further reinforced that the cable industry is actually moving with respect to innovation. I spoke to a number of vendors that are energized and busy, working with operators on in-market deployments and field trials. More than one noted significant, positive change in their activity over the past 12 months—an encouraging sign for the entire cable industry.
What's driving this change in the operator's agenda? It seems clear much of it is OTT in general and Netflix specifically. Netflix's remarkable success with streaming and its superior PC-based search, discovery, recommendation, and personalization are proving to be a wake-up call for cable executives. Hybrid cloud-based techniques are a good response, but it remains to be seen how quickly operators will actually roll them out to a significant share of the cable subscriber base.
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