We’ve posted a number of items on the emerging Internet-enabled TV (IETV) business1, and last week commented on Cisco’s acquisition of ExtendMedia. In researching the ExtendMedia deal, we came across the company blog and an April 2010 post titled “The Television Industry Re-Made; The Rise of ‘Virtual MSO‘”. Their article, by CEO Tom MacIsaac, is one of the best pieces we’ve seen on how the business of video content delivery over the Internet will unfold.
Tom MacIsaac writes about his vision for a new service called “Virtual MSO” (VMSO):
“What if someone offered you a service for, say $69.99? per month that integrated Web video and pay TV – allowed you to get any Web video (like free broadcast network TV from Hulu), along with a handful of linear channels you select (we really only need linear for sports and breaking news) plus a rich VOD library of premium TV content and movies? And you could access it from anywhere at any time from any device – TV, PC, netbook, smart phone. Streaming or download. No special set top box (Web-connected TVs and open set top devices will leapfrog service-specific boxes), no truck roll, not restricted by geographic footprint or multi-billion dollar infrastructure build outs – because it’s an IP-based, broadband distributed, managed service”
He then goes on to handicap the leaders capable of delivering such services (Apple, Cisco, Microsoft and Amazon) and discusses winners and losers. He also notes that any of these players will need to build or buy a software platform that manages all the things an MSO does, but for an Internet environment. This is exactly what ExtendMedia does, but this modest bit of promotion takes nothing away from his well-informed perspective.
Note: Our recent posts about IETV include:
1) Getting Broadband Content on Your TV
2) Sonic Solutions Goes Mass Market
3) The Proliferation of IP Video
4) Google Joins Stampede to the Living Room