We may already be past the Set top Box. Roku is getting closer to unleashing the next round of content on their $99 unit. This time they’re opening up their SDK and making it available for any content partner who develops an app with an initial list of ten new content channels.
Meanwhile VUDU announced integration with Wikipedia, which is a bigger deal than it might seem because it is done via a UI upgrade which includes a streaming interface. This means that they can update information sent to the device in real time so you can surf Wikipedia and eventually the entire web if they’ll let you, and that they can dynamically push updates to the device rather than requiring users to update the software via download.
Moreover, the software is being offered up for integration directly into IP equipped TVs offers a major benefit for device manufacturers. The ability to dynamically push updates eliminates the need for CE manufacturers to have dedicated engineers developing and improving the software from the API on a device by device basis. This puts VUDU ahead of the competition still going the STB manufacturing route, a big win considering their entry level box priced at $149 with only PPV / Pay-Per-Download options has a lot of ground to make up to compete with the current content partners of Roku at $99, Boxee which will be introducing a STB soon and and even AppleTV which at a higher price point of $229 connects to other Apple devices and the iTunes store.
When you look at the bigger picture future of these media extenders the ability to offer the product directly integrated into the TV is a big deal. We’re big fans of Roku, at $99 their content can’t be beat, but offer similar content for free and it probably can. Boxee has a great interface and we’re rooting for them, but it requires some level of ingenuity to connect your computer to the TV, and even if they offer a reasonably priced device they will need to firm up their content partner relationships. AppleTV has the power of their iTunes store behind them so content is one of their strong suits, but it’s unlikely for the device to get much traction because they’re so cautious about giving any control away. But right now these platforms are still middle of the road options. Eventually all TVs will be internet connected out of the box. If good software baked in to the TV at no cost makes it simpler and cheaper than these STBs do that will win, and with the latest news VUDU has taken a big step forward. Now to see if they can get real adoption by CE manufacturers and sign up more content partners.