By Kenneth Li
NEW YORK (Reuters) - Couch potatoes love television, but
some simply have no interest in watching sports or kids shows.
So why should they pay for it?
More U.S. TV watchers are asking the same question as cable
and satellite TV bills creep higher. The government wants to
know why consumers can't just pay for the channels they want
and many technology and media companies are dreaming up new
alternatives for delivering only the TV programs viewers want.
A fresh batch of options from Sony Corp <6758.T> and
Amazon.com Inc <AMZN.O>, Netflix Inc <NFLX.O> and Roku, as well
as Microsoft Corp's <MSFT.O> video game console Xbox 360
launched over the past few weeks promise to do away with cable
all together.
The latest push into the living room aims to solve what has
stymied earlier products, including the complexity of hooking
up these devices, lack of content and relatively high prices,
with some devices costing well past $500.
About 8 million Netflix customers, accustomed to renting
DVDs by mail, can now purchase a $99 set top box from Roku and
watch some 12,000 films and shows on television for no
additional fees.
Sony Bravia TV owners who buy a $300 device that connects
to the back of TVs and to the Internet can already watch
YouTube videos. Soon, Bravia customers will be able to order
from Amazon movies and shows streamed directly to TVs.
But even the experts don't think cable will be replaced
anytime soon and point to a string of high profile failures,
including Walt Disney Co-backed <DIS.N> MovieBeam and privately
held Akimbo.
"The content deals are starting to come together, but the
library is still pretty narrow," said Mark Kirstein of
Scottsdale, Arizona-based market research firm MultiMedia
Intelligence.
A general aversion to yet another gadget in the living room
and the high prices are other reasons why the idea has failed
to catch on. Premium channels such as Time Warner Inc's <TWX.N>
popular HBO are also unavailable on the Internet to
non-subscribers, except through iTunes, where some programs are
sold.
But that has not stopped the tech industry from buzzing
again after a number of new products that address some of these
issues were unveiled in quick succession.
UBIQUITY, SIMPLICITY
A new set-top box born out of a partnership between DVD
rental business Netflix Inc and device maker Roku, in which
Netflix owns a minority stake, is emerging as a leading
candidate for consumer appeal, Forrester Research analyst James
McQuivey said.
"Despite its relatively meager content, the Netflix Player
by Roku is a solid winner, overcoming the barriers that hamper
the rest," McQuivey said.
Unlike others that came before it, Roku is counting on
offering services beyond Netflix, said Tim Twerdahl, vice
president of consumer products at Roku.
"Our vision is to open up the box," he said.
Prepare to find free, advertising-supported video services,
pay-per-view services and YouTube-like user generated videos.
Netflix is also planning to let current subscribers find
its movies online in as many ways as possible. It struck a deal
with Microsoft to allow subscribers to the video game console
Xbox 360's online service to also watch streamed Netflix
movies.
Earlier, Netflix said it would offer its Internet service
on an LG Electronics Inc <066570.KS>-manufactured set-top box.
"It's too early to tell who is going to prevail," Netflix
spokesman Steve Swasey said.
Tech industry watchers say the current crop represent the
first wave of products that have shown any real promise.
Importantly, many are backed by financiers with deep pockets.
But will it matter? Apple Inc's <AAPL.O> AppleTV has yet to
light up the industry the way its iPod and iTunes service
transformed the music business, critics point out.
Then there's Hollywood, which has been reluctant to offer
more new releases on the Internet for fear of jeopardizing DVD
sales that account for more than half its profits.
"They're going to fight amongst each other for a teeny-tiny
part of the market," McQuivey said. "If you have cable service
and a DVD player, you already have a much better solution than
any of these boxes can provide you."
Sony is tackling the problem in yet another way by
appealing to its own movie studio to release its films ahead of
the DVD release. It plans to offer Sony Pictures's "Hancock"
later this year for Bravia TV owners.
For now, "this is a Sony initiative. It's something that
can be realized with other studios," said Sony Electronics's
senior manager of business development Robert Jacobs.
(Editing by Andre Grenon)