SBC preannounced their big CES news: a set top box that combines satellite TV programming, digital video recording, video on demand, and Internet content. There have been everything-but-the-kitchen-sink set top boxes before (anybody remember last CES? the year before that?), but I believe that this is significant for one reason: distribution. Most of the converged set top box dreams of years past are all about consumer technology value propositions: distributing content around the house, moving photos and music off the PC, and providing Internet access from the TV. That's nice, but other than increased tech support calls, there's little incentive for content owners to sell it.
But this is different. From what I can tell, the consumer value proposition for the SBC/Yahoo!/Dish/(did I leave someone out?) gizmo is simply saving money and consolidating billing relationships; any technical goodies are gravy. The convergence factor is just a means to an end: this is all about services bundling, which should reduce churn and protect these customers from being snatched away piecemeal by cable or satellite or Verizon.
-avi
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