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: Quote, Profile, Research) and Amazon.com Inc (AMZN.O: Quote, Profile, Research), Netflix Inc (NFLX.O: Quote, Profile, Research) and Roku, as well as Microsoft Corp's (MSFT.O: Quote, Profile, Research) 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: Quote, Profile, Research) 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: Quote, Profile, Research) 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.
