Jim Menning

425 QMCS
Presentation #2

 

Ultimate T.V.

 

            The world’s largest manufacture of software is now turning its attention to the small screen. Microsoft has come out with the latest product to enhance your TV. It’s call Ultimate T.V. and its release earlier this month Microsoft hopes to become a major player in the television market. I will explain what Ultimate T.V. is, the history of this up and coming industry, how it works, some strengths, weakness and the future for this product.

 

 

     

 

 

What is Ultimate T.V?

 

            Ultimate T.V. is a service from Microsoft that takes Direct T.V. and combines it with digital video recording, live TV controls, interactive TV and internet access in one complete package.

 

 

History of the Industry

 

            Four years ago in 1997 a company by the name of Replay TV was the first to come up with the idea of a “smart TV”. A that would able to watch what you want to watch when you want to watch it. It consisted of one small box that fit on top of your TV which was a digital recorder that gave you the ability to record your favorite shows, store them digitally on a hard drive and watch them when ever you wanted.

            Two years ago a company named TiVO, which is now backed by AOL, stepped into the market place. TiVO offered the same type of product but with TiVO you could tape up to 14 hours of shows or if you brought the more expensive product you could tape up to 30 hours. Both products let you pause, rewind, skip commercials and instant replay. This TiVO third year in operation is facing some hardships. It’s stock price has crashed down 94% from its high of $72 to what it is now $4.  Also TiVO expected to have more than 300,000 subscribers it now has just over 150,000. This year in early March Microsoft started selling Ultimate TV. The new kid on the block that hopes to learn from past experiences and become the number one selling “smart TV”.

 

 

How does Ultimate TV work?

 

            Microsoft’s service lets you utilize two DIRECTV satellites turners enabling you to watch and record two DIRECTV channels simultaneously. Using an internal hard disk you can record 35 hours of programming and can easily skip ahead 30 seconds through stuff you don’t want to watch. Once a TV show is recorded the universal remote lets you delete or transfer the show to your VCR for taping. Using Microsoft’s technology you can play along with game shows or check sports statistics. The built in 56 Kpbs modem provides fast access to the World Wide Web.

 

 

What Are Ultimate TV’s strength’s?

 

-         Compared to other products Ultimate TV can store up to 35 hours of programs

-         You can Pause live TV

-         Instant Replay

-         It offers the opportunity to surf the web on your TV

-         Something different that no other system can do is you can record two live shows at the same time or watch one show and tape another.

-         You can skip commercials

-         Send e-mails from your TV

-          You also receive a digitally enhance picture within you TV

-          You can store TV shows on the hard drive and transfer then to your VCR for taping.

-          Microsoft’s deep pockets

 

 

What are the weaknesses that face this product?

 

            The biggest weakness of this product is the cost. TiVO set price is $399 for the console and for a subscription is $10 every month. While the downfall of Ultimate TV is you need Direct TV first, a DIRETV subscription costs anywhere from $5.99 a month to $64.97. Ultimate TV’s receiver and subscription is the same as TiVO $399 for the receiver and an addition $10 per month for the subscription. Other problems that face this product are that it has already been tried and been unsuccessful in both tries. Ultimate does not offer anything else that the others haven’t tried.

 

 

What Does the Future look like?

 

            There are two possible scenarios that can come out of this product. The first scenario is that it can flop again and the industry, which once was promising, turns to be a complete was of time and energy. The second scenario is one in which would be completely different. Our society would be completely different than our normal way of life now. The way networks program and the way companies advertise their products would change. Would there be no more TV commercials? How about game shows? How would these companies make money to fit the bill for the programs? Will it be the end of the mass market, as we know it? Probably not but it will be interesting to see what happens. Also the companies that run the satellite systems will be able to do data mining and figure out what people are watching and possibly predict future behaviors within TV programs as well as purchasing habits.

 

Conclusion

               

                In conclusion Ultimate TV is an interesting idea bought to you by Microsoft. I have gone over what Ultimate TV is, the history of the industry, how it works, strengths, weakness and what the future might hold.  In the past Replay TV and TiVO have both tired the same idea without being successful will Microsoft and Ultimate TV be different?