It's Time for the Anti-Set-top Box Version 3.0

2. Web browser. It needs to be able to browse the Web. Yeah, I’ve heard (and seen) all of the bad “Web TV” comments, move on. In an environment that will soon have ubiquitous broadband, ubiquitous home networking, and ubiquitous high resolution big screens, the Web can finally be done right on the TV. If you’re not convinced, try the Web browsers on the latest gaming consoles – they’re really quite good.
3. Keyboard accessory. It’s going to need (at least part of the time) a keyboard interface. Heck, set-top boxes need that now (try doing a search on your cable set-top by typing in a title with the directional keys on your remote control – it’s not scalable. I thought this was solved when Logitech launched their diNovo Mini keyboard product – until I used it (unfortunately). But I think Logitech could easily improve this product, and while they’re at it, build in the same motion control from Hillcrest Labs that’s in their PC mice and really break some new ground. The Mini needs Hillcrest’s tremor control as it does not handle discrete cursor movement well.
4. Open. It needs to be open. Open to other providers (Roku’s box leads the way here, it’s not exclusively tied to just Netflix), and open to other applications. Need convincing? Two words: App Store. Apple’s iPhone brought the killer interface to the market, but when they opened the platform that’s when sales really blew through the roof. A well-designed platform, with a great user interface that could bring applications like shopping, messaging and social networking to the big screen is a no brainer! This will pressure the Microsoft platform-based services in ways you could not imagine (Microsoft can’t approach the flexibility of a truly open platform). The anti-settop box players will win this hands down.

Now 3.0 is still not fully baked. Two areas that are and will continue to be head scratchers are storage and Digital Rights Management. On the storage front, well there are multiple trends in play. On the one hand, people like to physically “own” their media, even if it’s just bits. There’s a reason why the iTunes downloads dwarf music subscription sales, and it’s not just the iPod. But bits don’t have to be stored inside the box – the home media server concept is becoming more mainstream every day. And eventually, people are going to be comfortable with storing their “stuff” in the cloud – and when they do, storage won’t matter any more.

DRM, however, is always the tricky bit. What everybody wants is a service that doesn’t tie them to devices using DRM . Fully DRM-free content is still somewhat elusive. Instead, users need a box that can handle the DRM no matter whose it is. That’s certainly a more likely outcome, and one that we can only hope for at this point. In the short term, these boxes will still be tied to “providers” – but if they’re open, they can be tied more than one provider at a time. Or, someone gets creative and builds Tunebite into their device.