Asustek Unveils E-TV

Companies have been trying, and failing, to get PCs into the living room for several years, so why should Asustek succeed with a cut down Linux-based solution, when the likes of Intel, AMD, Microsoft and Sony, among countless others, have all had their efforts rejected by consumers?

Despite the lack of success in the past, it could be that E-TV enters the market just at a time when several factors, including hardware, software and the changing opinions of both consumers and content providers, converge to create a unique set of conditions in which it, or a product like it, could become standard in houses around the world.

The first distinction the E-TV carries is its form factor. Traditional Home Theater PC (HTPC) designs have tried to squeeze a PC into an all-in one consumer electronics styled box which is attached to the TV. This creates a couple of problems in terms of market position. People looking to buy a DVD player, for example, may consider the added cost of the HTPC too expensive, whereas those looking for a new PC could see the limited hardware specifications and upgradeability a problem. The value proposition of a HTPC – that if you buy one, the initial expense is offset by the fact you do not need to buy a recorder, Hi-Fi or other device in the future – rarely appeals to the average price conscious consumer, or anyone who already has most of these devices.

The E-TV, on the other hand, has no such issues. It will be marketed to consumers looking to replace a TV. With an expected premium of just US$200 over the cost of a regular TV (although this could change), while not an outright slamdunk, it isn't a hard sell either.

More critical is the piece of the Internet TV puzzle that has always been missing, and which is only now beginning to fall into place – content. Although the PC desktop has found it hard to make its way onto the TV, thanks to the increasing bandwidth and the popularity of video sites such as YouTube, TV content has had no difficulties in finding its way onto the desktop. With its built-in web browser and the necessary software support (Flash), the E-TV will be able to put this content back where it should be, on the television set.

And it's not just user-generated sites, content providers are also beginning to recognize that online distribution will play a significant role in the future of the entertainment industry. (Anyone who doubts this should ask the Writers Guild of America what it has been doing for the past three months).

Services such as Netflix have already begun to offer full movie downloads, while major networks are also in the process of developing more online content: ad sponsored webisodes or even full program downloads accessed on a pay-per-view or subscription basis. Currently, only a few of these services, such as the one being developed by the BBC in the UK, have plans to support access from Linux-based systems, however, if a product such as the E-TV is able to gain enough penetration in the consumer market, content providers are unlikely to risk missing out on the potential ad/subscription revenues it will make available.

Although direct access to streamed online content through a TV would be the primary role of the E-TV, there are several more possibilities for the product. As part of a home network the E-TV could allow content saved on other PCs to be watched on the TV, replacing part of the role of set-top box (STB) type devices such as Media Center Extenders, Xbox 360 and Apple TV. Attached storage in the form of a PC network share, NAS box, or even portable USB hard disk drive, opens up the possibility of content being created by the E-TV also. Software such as Myth TV would give the E-TV EPG and PVR functions at little or no extra cost.

The main issues the E-TV would face if it went down this route are high-definition content and DRM. The Shelton'08 platform simply does not have the performance to play back content encoded in the latest HD formats. To overcome this Asustek would have to increase the specifications of the E-TV to include decode acceleration on the IGP. This would of course increase costs. However, looking at the BOM of similarly capable devices, in particular the Apple TV, this added cost is not as large as some might think. Without the restriction of the STB form factor, combined with Asustek's considerable purchasing power, it is possible that second or third generation E-TVs could support HD playback, while staying within the stated TV+US$200 price margin.

Although not simple, the E-TV's Linux platform does not outright preclude the device from ever supporting DRM protected content either. If Asustek, or another company, is willing to secure DRM licenses and also develop the playback software, this could be distributed under a closed source or GPL3 license that restricts it to the E-TV platform. Another alternative would be for Asustek to switch the E-TV to being Windows-based, in which case the costs of licensing and software development are already included in the price of the OS.

While most of the ideas above point to directions Asustek as a company is unlikely to follow, there are unmistakable signs that TVs in the future will require a route to the Internet, in some form. In the short-term this is most likely via devices such as the Xbox 360, Apple TV or operator specific STBs which only allow access to the walled garden service of a specific vendor.

However, the opening of services offering access to non-restricted files such as Amazonmp3 indicates that the music industry, at least, has begun to accept the possibility that restricting consumer choice to protect sales is not the only way to do business. In the long run it is likely the TV and movie industries will follow this lead and switch to subscription, premium, and/or ad sponsored online content distribution without DRM, or else risk losing greater potential revenues to the growing P2P file sharing networks.

At this time, a device such as the E-TV which is more elegant than a STB solution while also being more extensible, and low-cost, is likely to become highly popular.

Story source: digitimes.com.