A periodic roundup of relevant news…

• Logitech Wireless DJ Music System reviewed: PC Magazine
• HBO pondering online strategy: Ars Technica
• PlayStation 3 menu & interface video walkthrough: Engadget
• AT&T spells out future Homezone direction: USA Today
• INHD2 to be euthanized, INHD renamed Mojo: Multichannel News

Snooze you lose! I see an Xbox 360 in my future… as soon as new hardware (larger drives?) and/or lower prices are revealed in the next two weeks. All year I’ve been saying VOD is coming to the 360:

Ultimately, Microsoft will want to simplify the process by taking a home computer out of the equation. Right now customers have the ability to directly download a variety of movie trailers and game demos which has served as a proof-of-concept, both as a technical demonstration and a demonstration of consumer acceptance: 70 million pieces of content downloaded.The next obvious step is to monetize by renting movie downloads directly to the 360.

And here we are:

On Nov. 22, Microsoft will begin offering movies and television on demand through its Xbox Live service. The four million Xbox Live subscribers, including those who use a free barebones service, will have access to movies from the Paramount and Warner Bros.studios, including Mission: Impossible 3 and Superman Returns. They’ll also be able to download TV shows from CBS and MTV such as various flavors of the CSI franchise and South Park. What’s more, since the Xbox 360 can handle high-definition content, many of the available programs will be in high-def as well.

Obviously the Playstation3 (Sony is a movie studio) and Apple iTV are on the way and will feature similar TV-based VOD functionality at some point, but Microsoft gets here first and therefore gets my cash. Anyone interested in a lightly used Moviebeam?

A periodic roundup of relevant news…

• Cingular to provide phone-based XM radio for $8.99/mo: Orbitcast
• MySpace moves to protect copyright holders: TechCrunch
• Xbox 360 upgrade enables 1080p: Microsoft
• Wireless HD video streaming consortium formed: eHomeUpgrade
• NHL interactive web-based TV app launched: ITVT

I’ve been theorizing for awhile that Microsoft’s Xbox 360 (and the forthcoming Sony Playstation 3) isn’t really about teens and video games. Obviously gaming is a core feature and responsible for getting these systems into many homes, despite the steep $400 price of admission. But that’s just a trojan horse — the real money and future of the Xbox 360 is as a digital media hub for the living room.

Over the last year, owners of both Microsoft Windows Media Center Edition (MCE) and the 360 have been able to stream a variety of content such as music, photos, and even pay movie downloads from their computer to the TV via the 360. Yesterday Microsoft pushed out an Xbox software update that now allows media transfers directly from a typical XP computer, without the need of the specialized MCE OS.

But this is just the tip of the iceberg… Ultimately, Microsoft will want to simplify the process by taking a home computer out of the equation. Right now customers have the ability to directly download a variety of movie trailers and game demos which has served as a proof-of-concept, both as a technical demonstration and a demonstration of consumer acceptance: 70 million pieces of content downloaded.

The next obvious step is to monetize by renting movie downloads directly to the 360. In order to provide such a service, Microsoft needs both content deals and more Xbox storage. They already have a start on the content side in dealings with online video distributors Movielink and Akimbo. Additionally, they recently tested long-form content download of a Battlestar Galactica recap. On the hardware front, Microsoft plans to release an 100GB hard drive accessory for the Xbox 360 in Q1 ‘07.

Which brings us to when will this play out… 2007 will be the year of Internet-based video-on-demand services. There are quite a few ongoing experiments in place, such as television network broadcasts and Apple’s iTunes dipping their toes into Disney movie downloads. I expect we’ll see more content owners in this playground as the new industry coalesces into something mainstream consumers, rather than the bleeding edge geek set, can utilize and appreciate. Microsoft’s Xbox 360, along with Apple’s forthcoming iTV media extender, will lead the charge.

There was some question upon the launch of Amazon’s Unbox movie download service if it would be possible to stream flicks to a TV via the Xbox 360. The answer is yes, and Amazon has provided these simple steps to automagically stream purchased content to a 360 from a Windows Media Center PC:

1. Download an Unbox video to your Media Center PC.
2. From the Xbox 360 Dashboard, go to the Media blade and select Media Center. Your Xbox will connect to your Media Center PC.
3. Select “My Videos” and then “Amazon” to see all of your Unbox videos.
4. Choose your Unbox video and enjoy!

So the next question is: Can we stream video from any version of XP using Media Connect or Windows Media Player 11?

Recently, I was looking at some of the online data that is available on GameFly and I remarked to Motley Fool contributor Daniel Rubin, that I was surprised to see that internet video game rentals hasn’t turned out to be more popular option for consumers. Online video games have been something investors and customers have been very vocal about wanting, yet Netflix CEO, Reed Hastings has stood steadfast in his commitment to stick with just DVD rentals. Rubin’s response to my comment was a true testament to how much Reed Hastings has shown an uncanny ability to understand the DVD market better then anyone in the industry.

Isn’t this yet another spectacular display of strategic leadership by Reed Hastings? The guy’s like a Starship captain flying this sucker through an asteroid storm and outmaneuvering every one and every thing.The man has thrashed Blockbuster (one of the biggest brands in busines history), beat off Wal-Mart, scared off Amazon, and now may have dodged a huge bullet by having NOT wasted time on a failed venture at this critical juncture when time is of the essence. I’ll take Red Envelope Entertainment and the value that will come from proprietary content over video games any day.

(more…)

Never enough time…

• TiVo S3 hacked to 1TB of RAID5 storage. (TiVo Community)
• Local CBS News video added to Yahoo. (Press Release)
• TiVo viewing incorporated into Nielsens. (USA Today)
• Preview of PS3 online network. (Engadget)