AnySource Media bypasses the STB for online TV

Rather than ask a licensing fee of its CE partners or charge consumers extra for the capability, AnySource plans to make its money from its own ads in the menu and affiliate fees from any transactions made, including movie rentals or subscriptions. AnySource’s goal is to make the service so simple and cheap to integrate, it becomes a no-brainer for manufacturers to embed, Harris said.

“We’re very familiar with the traditional software-licensing, royalty model where you try to get a buck from every device sold, and that really puts you at odds with the CE vendor, because they want to lower costs,” he added. “At the same time, as the software licenser, you want to raise the price and continue that feature for higher revenue. Because we have a connected platform, there’s two-way communication. With a CE device for the first time, we have the ability to drive a new revenue model into those devices.”

Internet-connected TVs are beginning to make it to market from big names including Panasonic, LG, Samsung and Sony, all of which embed the tru2way standard for interactivity. In terms of the pay TV providers, Harris said the service is clearly complementary. As most, if not all, are already considering ways to get it into the Internet video space, CE device integration provides a much quicker fix than service provider’s typical innovation and sales cycle.

Harris said there are no competitors doing exactly what AnySource is, given its HDTV integration, but several companies do focus on the device space. Clearleap recently launched its content management and advertising platforms for Internet video through software that integrates into the STB, similar to fellow interactive TV provider ActiveVideo Network, which targets connected devices. Another company, Personalized Web Systems, comes the closest in that its technology also integrates into the TV set, according to Kurt Scherf, vice president and principal analyst at Parks & Associates. The integration that all these companies are promising is key for the connected-CE space, he said.

“You either have a device that performs the primary function exceedingly well, like the XBox 360, and augments that functionality with the ability to grab high-value content and download it – and the same will hold true with connected CE – build the functionality into the device or make the product so inexpensive so it’s worth it for the customer to go out and buy it,” Scherf said.