Dear William,

We have some good news and some bad news. The bad news is that, as of 3/31/12, the Blockbuster app will no longer be available on your TiVo DVR. We are updating our technology platform and will not be able to continue supporting your device.

You won’t be able to watch movies from Blockbuster On Demand on your device, but you can still watch on any of our other devices or stream via PC or Mac. See a list of supported devices.

Your friends at Blockbuster

I spoke to TiVo on Friday, and they basically found out about this along with the rest of the world – the day before. Neither Blockbuster, nor parent Dish Network, had notified TiVo that this was coming. TiVo had just started discussions with Blockbuster after hearing the news, and those are still ongoing. TiVo says they’ll make a statement on this once they have something concrete to say.

The reason for this really has nothing to do with TiVo, or any of the other similarly impacted platforms that are losing Blockbuster. This all started back in 2007 when Blockbuster attempted to enter the digital movie market by acquiring Movielink. This attempt failed, so in 2009 they decided to try again by partnering with CinemaNow, which had just been acquired by Sonic. Ever since then Blockbuster’s download service has been powered by Sonic, which has since been acquired by Rovi.

Blockbuster’s deal with Sonic expires on 3/31/12, and they aren’t extending it. Since all of the current platforms that support Blockbuster’s download service use the Sonic implementation, they’re all going to stop working – and that includes TiVo.

While most Blockbuster On Demand products have been using the download service, for a while now Blockbuster has also had a streaming service. It is used primarily to support mobile devices and computers, although Samsung has been supporting it on some of their recent home entertainment products as well. It looks like Blockbuster is phasing out the download service completely, in favor of going streaming only.

This streaming service also provides hope for Blockbuster On Demand’s return to TiVo and other platforms. Samsung has already shown that home entertainment devices can support the service, and I suspect there is no technical barrier to bringing it to devices such as TiVo. However, presuming the business side of things is addressed, it will still require all new development to implement the streaming client for each platform. Given the time needed for development, and then testing, I wouldn’t expect to see anything in the near future.

Also, the streaming service isn’t going to support older hardware that can’t handle new codecs. That means, just like Netflix, Hulu Plus, YouTube, etc., it will never hit the older TiVo Series2 platforms. And while technical reasons will keep it off of the Series2, I expect business reasons will keep it off of the Series3 as well. Any new client development will almost certainly be done in Adobe Air in the new SDK, just as with Hulu Plus. This will only run on the new Series 4/Premiere hardware. Since the Series3 line is no longer produced and sold, there is really no justification for investing resources in developing an HME-based client just for that platform.

So Blockbuster On Demand is going away, but it may be back at some point – as a streaming app on the Premiere.

One of my pet peeves is their handling of Over-The-Top (OTT) content aka streaming and downloadable video from the likes of Netflix, Amazon, Hulu, etc.

Let’s start with TiVo’s Netflix support. When it launched, back in December 2008, TiVo’s Netflix implementation was basically as functional as its contemporaries. There were some serious limitations – not being able to add titles to your queue, limited searching, etc. But those were limitations shared by all Netflix streaming implementations. Fast-forward two and a half years and TiVo’s implementation – is still pretty much the same as it was at launch. Meanwhile other implementations – on Blu-ray players, gaming consoles, streaming boxes, etc., have made great leaps forward. Roku’s new player on the Roku 2 line supports 1080p video, 5.1 surround sound, and subtitles – none of which TiVo supports. Not to mention features that have been in there previously such as searching the available titles and adding titles to your queue.

When the TiVo Premiere launched over a year ago, in March 2010, it was called “the One Box to Rule Them All”. Even then I felt that was undeserved hyperbole, and I feel that even moreso today. It was touted as being your one-stop-shop for content:

It’s the One Box: TiVo Premiere is your new cable box, movie box, web box, and music box; it’s the one box that gives you access to everything you want to get on your television and all with one remote. It’s a true one stop shop for entertainment.

Yes, the selection of content is respectable enough – Netflix (despite the horrendously out-dated player), Amazon Instant Video (despite still lacking streaming support), Blockbuster, Hulu (on the Premiere only, natch), YouTube, Music Choice, and web videos. But it is far from market leading. Most decent Blu-ray players and game consoles include a similar lineup these days, and often more. But this is hardly a market leading lineup. Let’s even include TiVo’s list of web videos. It still doesn’t measure up to, say, Roku’s content options. TiVo, while you’re updating the geriatric Netflix client, and implementing streaming for Amazon Instant Video so TiVo users can join every other platform with free videos for Prime members, how about MLB.com? Crunchyroll? Flixster? Movie Vault? NASA TV? You get the point. Oh, and fix the damn YouTube client too, some of the functions in there have been broken for what seems like forever.

To put it simply, if someone is looking for a DVR which also provides some OTT content, I’d recommend TiVo. But for anyone who is mainly interested in OTT content, I would never recommend TiVo. I’d probably recommend a Roku as their best option. TiVo isn’t even in the top five. I’d put connected TVs, gaming consoles, Blu-ray players, and other STBs like Boxee before I’d recommend TiVo to someone seriously interested in OTT content. Again, if they really want a DVR and would like the ability to access some OTT content, sure, TiVo is my first recommendation. But I could not in good conscience recommend TiVo to someone who had a serious interest in OTT.

I gave my now fiancee a Roku HD-XR, the high-end box from their second generation (the Roku 2 is actually the fourth generation), for Xmas 2009, shortly after we started dating. She watched Netflix streaming a lot at the time, but was doing it all on her 15″ laptop while she had an HDTV across the room. So I gave her the Roku to use instead. Since she moved in with me last fall I’ve set up the Roku in the bedroom, but it doesn’t get much use. We use the TiVo for most OTT content, with the PS3 as secondary, as they’re both on the main TV in the living room.

But I have played with the Roku just to experience it, and I think their ’tile’ interface is far superior to TiVo’s. And their content selection simply puts TiVo to shame. If TiVo is serious about playing in the OTT market, they really need to get more content, especially real-time content, on board. I’m increasingly tempted to move the Roku, or get a second one, to be able to access content like NASA TV, Crunchyroll, and other content on our main set – instead of using the TiVo. Or Amazon Instant Video’s free streaming for Amazon Prime users, which TiVo has promised but not yet delivered.

Any content TiVo offers I believe is also on Roku – and often in a superior format. TiVo’s list of officially sanctioned web videos is littered with cruft – stale podcasts that are long since defunct. Some of the podcasts they list are SD versions when there are HD versions available. They’re simply lacking real-time streaming content outside of the ‘big boys’ Netflix, Hulu Plus, and YouTube. NASA TV would be a great addition. You can download the SpaceVidCast podcasts on TiVo – but on Roku you can watch the streaming live shows and access their premium content.

TiVo’s interface to select web video content has not aged well. The content is grouped in ways that often don’t make sense to me. I’ve grown increasingly frustrated with it over the years, as things that used to be ‘quirks’ have aged into ‘major annoyances’. For example, if you browse by ‘all’ why are some shows grouped – like NY Times content – but also listed individually? And why aren’t other logical groups also there? Why isn’t there a group for all CNET shows? (I don’t mean the one item where you can subscribe to them all, I mean a folder like the NY Times has.) Or Revision3 shows? It would be better for users and the content providers if it were easier to find all of their shows in one folder.

Why are there so many defunct podcasts still listed, cluttering the list. especially in the bunch at the end that require TiVo desktop to transcode? Some of them have been dead for a year or two now. Why are some podcasts listed only in HD versions, some in both HD & SD, and others only in SD? And I don’t mean those that are only available in one or the other, but those that have HD & SD options. Even among the HD podcasts from the same provider it seems sometimes different HD variants may be used.

It is a frustrating mess. Worse, it is a buggy, frustrating mess. If I scroll up and down too much, especially in long lists of podcasts, it will inevitably crash and kick me out to TiVo Central. Sometimes I’ve discovered ‘poison listings’ where if my cursor so much as highlights that title it will crash out to TiVo Central. And I can reproduce it every time I highlight that title. These issues come and go, it is a little bit of random fun – will it crash on me this time? Let’s find out!

And how about the pitiful RSS support? You can enter an RSS feed for a podcast that isn’t listed – but all that does is store the feed for you and you have to remember to manually check it to see if there is a new episode up. How is that at all TiVo-like? It is pretty much anti-TiVo. Why can’t it work like the ‘blessed’ podcasts and periodically check for new episodes and download them? That’s kind of what RSS is for. So you don’t have to manually check for new content on each site.

If TiVo is serious about being ‘the one box’ and remaining competitive with the explosion of connected TVs, Blu-ray players, gaming consoles, and cheap media boxes like Roku, they need to seriously re-evaluate their approach to OTT content, IMHO. Personally I’d love to see them license Roku’s platform. The UI would need some massaging to blend in better with TiVo’s HDUI, but it’d be a vast improvement – as would the explosion in content offerings. And TiVo would be in a unique position to integrate all of that content into their search platform. That would be truly powerful. (Or maybe TiVo can use some of their new windfall cash reserves to acquire Roku outright.) Beefing up their OTT offerings should make them an even more attractive partner for MVPDs who are facing cord cutters and those simply cutting back on their package levels, using OTT to fill in the gaps.

Offer content creators an API to publish their content on TiVo, without jumping through too many hoops or getting blessed. Create a system to sell premium content, subscriptions, etc, to the user – and TiVo can take a cut. Like Amazon and the Kindle – anyone can self-publish their book, blog, or the like to the Kindle. Amazon collects the fees and takes their cut, passing the rest on the the creator. TiVo should be able to do the same, with or without Roku. TiVo seems to be more and more Apple-like, acting like a walled garden and not the platform to end all platforms they claim to be.

You may have read about the Virgin Media TiVo in the UK and the way it integrates OTT content like BBC iPlayer and ‘catch up’ features into search and the guide. TiVo in the US could do much the same using OTT content – missed a show? Scroll back in the guide and it links to Netflix, Hulu, the network site, wherever that episode is available. Watching game you recorded? TiVo could pop up links to related content on MLB.com. Watching anime you recorded off Adult Swim? Maybe it suggests a related show from Crunchyroll.com.

Now that would be one box to rule them all – and not a pretender making unsupportable claims on the throne.

But that’s just my two cents. You may not agree.

After the trial Blockbuster will offer the one-disc plan for $9.99/month and the two-disc plan for $14.99/month. While Netflix’s one-disc plan is $7.99/month, Blockbuster claims some advantages. Their deals with the studios gives them new release titles up to 28-days before Netflix and other services. And, for those who still have a Blockbuster brick-and-mortar store nearby, they offer in-store exchanges of their by-mail DVDs. So you can return your rent-by-mail DVD and walk out with a new movie, for no additional charge.

If you want to take advantage of these offers you can do so online or bring the tear-off from a Netflix mailer to a participating Blockbuster store.

Via TWICE.

Blockbuster is partnering with Sonic to bring Blockbuster branded video services to consumers, including the existing CinemaNow content service. It sounds like win-win for Blockbuster and Sonic. Blockbuster gets a successful service which already has a number of deals with consumer electronics vendors, which Sonic gets the Blockbuster brand, which is still a fairly strong brand in the video rental market. It is also a pretty good deal for the CE vendors who have already made deals to bring CinemaNow content to their devices, as they get the strong Blockbuster brand.

I wonder if we’ll be seeing the Blockbuster brand on TiVo, since they currently use CinemaNow for Disney content, and more content is expected.

Jan 14, 2009 00:00 ET

Blockbuster and Sonic Solutions Team for Internet Movie Delivery

Alliance to give consumers instant access to Blockbuster digital movie service across extensive range of home and portable devices

MARIN COUNTY, Calif. and DALLAS, Jan. 14 /PRNewswire-FirstCall/ — Blockbuster Inc. (NYSE:BBI) (NYSE:BBI.B) , a global leader in entertainment, and Sonic Solutions (NASDAQ:SNIC) , the leading technology and service provider for premium movie content, today announced an alliance to give consumers access to a vast library of premium digital entertainment across a wide assortment of home and mobile electronic devices. Under the multi-year, preferred-provider agreement, Blockbuster will supply the branded consumer interfaces and Sonic will power content delivery across PC and consumer electronic devices.

The two companies are collaborating with a host of consumer electronic (CE) manufacturers, including Sonic’s existing CinemaNow providers, to expand the ecosystem of interoperable devices offering the Blockbuster service. These devices include PCs, portable media players, Blu-ray Disc players, personal video recorders (PVRs), set-top boxes, mobile phones and Web-connected television sets. Additionally, the two companies will make their digital libraries of mainstream content available under the Blockbuster brand resulting in one of the most expansive VOD (video on demand) and EST (electronic sell-through) offerings in the marketplace.

“We are excited to be partnering with Sonic, the industry’s leading entertainment delivery and technology provider, to make Blockbuster’s digital entertainment service easily and instantly available to consumers through the widest range of devices available in the marketplace,” said Jim Keyes, Blockbuster Chairman and CEO. “Blockbuster is a ubiquitous entertainment presence in the physical world. Through this alliance with Sonic, we plan to become a ubiquitous presence in the digital world as well. Our goal is to offer consumers the most digital content, the most accessibility, via the most devices, both in- and out of home.”

Sonic’s device ecosystem, powered by its new CinemaNow™ SDK (software development kit), will help streamline the introduction of Blockbuster’s digital entertainment service into a wide variety of consumer electronic devices, both Mac- and Windows-enabled, via adaptive streaming and progressive download. The devices will be sold through Blockbuster retail stores, blockbuster.com and other leading retailers.

“With more and more broadband-enabled consumer electronics hitting the market, there is a growing need for a service that gives consumers access to premium entertainment on any device, anytime and anywhere,” said Dave Habiger, president and CEO, Sonic Solutions. “By pairing Sonic’s digital delivery technology with Blockbuster’s trusted brand and library of content, we enable any CE manufacturer to add an impressive digital movie service to its product offerings and in doing so, create the most flexible digital entertainment service for consumers.”

About Blockbuster

Blockbuster Inc. (NYSE:BBI) (NYSE:BBI.B) is a leading global provider of in-home and portable movie and game entertainment, with more than 7,500 stores throughout the Americas, Europe, Asia and Australia. The Company may be accessed worldwide at www.blockbuster.com.

About Sonic Solutions

Sonic Solutions® (NASDAQ: SNIC; http://www.sonic.com/) enables the creation, management, and enjoyment of premium and personal digital media content through its Hollywood to Home™ products, services, and technologies. Sonic’s products range from the advanced authoring systems used to produce Hollywood DVD and Blu-ray Disc titles to the award-winning Roxio®-branded photo, video, music, and digital-media management applications, field-proven SDKs and services. Sonic’s Premium Content Group, which includes CinemaNow, is helping provide consumers convenient access to Hollywood entertainment for download and enjoyment on a broad range of digital devices. Sonic Solutions is headquartered in Marin County, California.

Forward-Looking Statements

This release may contain forward looking statements that are based upon current expectations, including the market acceptance and success of the alliance between Blockbuster and Sonic Solutions. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties. This press release should be read in conjunction with Blockbuster’s and Sonic Solutions’ most recent annual reports on Form 10-K, quarterly Forms 10-Q and other reports on file with the Securities and Exchange Commission, which contain a more detailed discussion of each company’s business including risks and uncertainties that may affect future results. Neither Blockbuster nor Sonic Solutions undertakes to update any forward looking statements.

Sonic, the Sonic logo, Sonic Solutions, Roxio, the Roxio logo, CinemaNow, and Hollywood to Home are trademarks or registered trademarks owned by Sonic Solutions in the United States and/or other countries. Blockbuster, the Blockbuster logo, blockbuster.com and Blockbuster Online are trademarks or registered trademarks owned by Blockbuster Inc. in the United States and/or other countries.

All other company or product names are trademarks of their respective owners and, in some cases, are used under license. Specifications, pricing and delivery schedules are subject to change without notice.

Source: Blockbuster Inc.; Sonic Solutions

CONTACT: Karen Raskopf, karen.raskopf@blockbuster.com, or Randy
Hargrove, randy.hargrove@blockbuster.com, both of Blockbuster Inc.,
+1-214-854-3190; or Chris Taylor of Sonic Solutions, +1-408-367-5231,
chris_taylor@sonic.com

Web Site: http://www.blockbuster.com/
http://www.sonic.com/

The first four SoCs to be Flash-enabled are the BCM3549, BCM3556, BCM7400 and BCM7405. I find this intriguing as the BCM7405 looks like a newer generation of the BCM7401 which is the main chip in the TiVo HD. It has basically the same features – plus more: Flash support, DivX support, faster CPU core (400Mhz vs. 300MHz), etc. Makes me wonder if maybe this could be used in TiVo’s rumored ‘Series4′ model. But that’s just idle speculation.

With the announcements from LG, Samsung, Roku, and now this, I think one of the major trends this year is getting Internet/broadband content onto the TV screen.

The press releases:

Jan 6, 2009 08:00 ET

Adobe and Broadcom Bring the Adobe Flash Platform to TVs

Collaboration Extends Flash Platform Ecosystem to Digital TVs and Set-Top Boxes

LAS VEGAS, Jan. 6 /PRNewswire-FirstCall/ — 2009 International CES — Broadcom Corporation (NASDAQ:BRCM) and Adobe Systems Incorporated (NASDAQ: ADBE) today announced the integration of the Adobe® Flash® Platform into Broadcom’s latest digital television (DTV) and set-top box (STB) system-on-a-chip (SoC) platforms. The collaboration paves the way for rich Flash based entertainment experiences on televisions that offer viewers new options for accessing web content on their TVs.

With Adobe Flash Lite™ 3 software supported in the Broadcom® BCM3549, BCM3556, BCM7400 and BCM7405 SoC solutions, TV viewers will be able to view Flash based content and applications from popular online providers and entertainment sites. Broadcom DTV and STB platforms with integrated Adobe Flash support are expected to be available to manufacturers in the first half of 2009. Broadcom will demonstrate Adobe Flash support on its BCM7405 and BCM3549 solutions at this week’s 2009 International Consumer Electronics Show.

The technology collaboration between Broadcom and Adobe will further accelerate the transition to high definition (HD) web-based video on televisions, fortifying the TV as the main entertainment hub within the home. With Adobe Flash as the number one video format on the web, coupled with Broadcom’s leadership position in digital television and set-top box platforms, the collaboration will enable a consistent viewing experience across TV screens, addressing format fragmentation and authoring challenges that exist today. As online video viewing shifts from the PC to the TV, the number of worldwide viewers will reach nearly one billion by 2013, according to a study by ABI Research. The dramatic increase of free and premium online video content, and the emerging trend of watching web-based video on televisions, will help drive its overall adoption according to ABI.

“Consumers with broadband Internet access increasingly enjoy viewing the wide array of video content available to them and it is clear that they want to watch their favorite online video content on their televisions for the best viewing experience,” said Dan Marotta, Senior Vice President & General Manager of Broadcom’s Broadband Communications Group. “By integrating Adobe Flash support in our latest portfolio of digital television and set-top box solutions, Broadcom will pave the way for an exciting new entertainment experience in the home.”

“Consumers want to experience rich and consistent applications and web content across devices and screens,” said David Wadhwani, General Manager & Vice President, platform business unit at Adobe. “Broadcom’s leadership in designing highly integrated and advanced TV and STB platforms provides an ideal stage for the over one million Flash developers to showcase their content. We look forward to our continued efforts with Broadcom to broaden the availability of great multi-screen experiences.”

Broadcom is a recognized leader in the set-top box market with 161 million set-top box chipsets shipped to date. The company’s recent acquisition of the AMD digital TV business expands the number of TV brands utilizing its highly integrated silicon solutions. Broadcom’s ongoing commitment and significant contribution to connected home technologies, such as the Digital Living Network AllianceSM (DLNA®), furthers the quest for seamless content distribution and connectivity – changing the way that consumers interact and share content in the next generation digital home.

Adobe Flash is the most widely distributed technology on the web, enabling virtually anyone to view and interact with a vast selection of rich content. With Adobe Flash Player supporting all major operating systems and browsers, Flash technology has become the number one video format on the web. Ninety-nine percent of Internet-connected desktops have Adobe Flash Player installed and more than 800 million mobile devices have shipped to date with Flash Lite, Adobe’s Flash Player for mobile phones and devices. Adobe Flash Player is a key component of the Adobe Flash Platform, a complete system of integrated tools, frameworks, clients and servers to develop Web applications, content and videos. For more information about the Adobe Flash Platform, visit www.adobe.com/flashplatform.

About Adobe Systems Incorporated

Adobe revolutionizes how the world engages with ideas and information – anytime, anywhere and through any medium. For more information, visit www.adobe.com.

About Broadcom’s Broadband Communications Group

Broadcom offers manufacturers a range of broadband communications and consumer electronics system-on-a-chip solutions that enable voice, video, data and multimedia services over residential wired and wireless networks. These highly integrated silicon solutions continue to enable the most advanced system solutions on the market, which include digital cable, satellite and IP set-top boxes and media servers, broadband modems and residential gateways, high definition and digital televisions, Blu-ray Disc® players and recorders and personal video recorders.

About Broadcom

Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. It provides the industry’s broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support Broadcom’s core mission: Connecting everything®.

Broadcom is one of the world’s largest fabless semiconductor companies, with 2007 revenue of $3.78 billion, and holds over 3,000 U.S. and over 1,300 foreign patents, more than 7,500 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.

Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at www.broadcom.com.

Cautions regarding Forward Looking Statements:

All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our respective current expectations, estimates and projections about our industry and business, management’s beliefs, and certain assumptions made by Broadcom and Adobe Systems, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. Examples of such forward-looking statements include, but are not limited to, the ability of the collaboration between Adobe and Broadcom to further accelerate the transition to high definition (HD) web-based video on televisions and to enable a consistent viewing experience across TV screens, the availability of Broadcom DTV and STB platforms with integrated Adobe Flash support, the growth in the number of worldwide viewers of online video, and Broadcom’s ability to pave the way for an exciting new entertainment experience in the home . These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

The respective Annual Reports on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings of Adobe Systems and Broadcom discuss important risk factors that could contribute to such differences or otherwise affect their respective businesses, results of operations and financial conditions. The forward-looking statements in this release speak only as of this date. Neither Adobe Systems nor Broadcom undertakes any obligation to revise or update publicly any forward-looking statement, except as required by law.

Broadcom, the pulse logo, Connecting everything, and the Connecting everything logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Adobe, Adobe Flash and Adobe Flash Lite™ are trademarks of Adobe Systems Incorporated. Blu-ray Disc is a trademark of the Blu-ray Disc Association. DLNA and Digital Living Network AllianceSM are trademarks of the Digital Living Network Alliance. Any other trademarks or trade names mentioned are the property of their respective owners.

Broadcom Trade Press Contact
Dana Brzozkiewicz
Senior Communications Specialist
949-926-6367
danabrz@broadcom.com

Adobe Systems
Stefan Offermann
408-536-4023
sofferma@adobe.com

Broadcom Investor Relations Contact
T. Peter Andrew
Vice President, Corporate Communications
949-926-5663
andrewtp@broadcom.com

Photo: http://www.newscom.com/cgi-bin/prnh/20060609/BROADCOMLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

Source: Broadcom Corporation; BRCM Corporate

CONTACT: Broadcom Trade Press Contact, Dana Brzozkiewicz, Senior
Communications Specialist, +1-949-926-6367, danabrz@broadcom.com, or Broadcom
Investor Relations Contact, T. Peter Andrew, Vice President, Corporate
Communications, +1-949-926-5663, andrewtp@broadcom.com, both of Broadcom
Corporation; or Stefan Offermann of Adobe Systems, +1-408-536-4023,
sofferma@adobe.com

Web Site: http://www.adobe.com/

Jan 6, 2009 08:00 ET

2Wire® Selects Broadcom’s Chipset to Power Its MediaPoint™ Digital Media Player

Broadcom® BCM7405 Enables the Delivery of On-Demand Internet Content and Personal Media to the TV

LAS VEGAS, Jan. 6 /PRNewswire-FirstCall/ — 2009 International CES — Broadcom Corporation (NASDAQ:BRCM) , a global leader in semiconductors for wired and wireless communications, today announced that its BCM7405 digital set-top box (STB) system-on-a-chip (SoC) solution has been selected by 2Wire, a provider of integrated broadband solutions, to power its new MediaPoint™ digital media player. The MediaPoint player enables service providers to quickly provide their customers with entertainment offerings delivered directly to their TVs, including movies, video, music and other on-demand Web-based media content, as well as personal music and video content.

In November 2008, 2Wire and Blockbuster Inc. announced that the 2Wire® MediaPoint player would be utilized to provide movie fans with instant access to BLOCKBUSTER® ONDEMAND content, including thousands of titles from the latest movie releases to classic favorites.

“The MediaPoint digital player, featuring BLOCKBUSTER ONDEMAND, is entertainment made easy. We are bringing Blockbuster, and the thousands of movies in our digital library, straight to customers’ televisions,” said Jim Keyes, Blockbuster chairman and CEO. “The player is simple to use, delivers DVD quality video, and there’s no monthly subscription commitment. We are delighted to bring consumers this great entertainment product.”

2Wire is leveraging the capabilities of the BCM7405 STB SoC to further enhance the performance of the MediaPoint broadband entertainment solution to meet next generation service provider requirements and provide a cost effective means to deliver on-demand Internet content and personal media directly to the TV. At this week’s International Consumer Electronics Show, Broadcom is demonstrating the capabilities of its BCM7405 on the 2Wire MediaPoint digital media player, accelerating the delivery of entertainment services that bridge the television and Internet together.

“MediaPoint services, enabled by the Broadcom BCM7405, create a new way to access multimedia entertainment content on the television, using any broadband connection,” said Jonathan Symonds, Vice President of Product Marketing at 2Wire. “The MediaPoint player lets users seamlessly browse, download and view high quality video and movies, easily discover music stored anywhere on the network and listen to it through the home entertainment system, upload, view and share photos, and access personal networked media content on their TVs.”

“The 2Wire MediaPoint player underscores our commitment to enhancing the consumer entertainment experience in the home,” said Dan Marotta, Senior Vice President & General Manager of Broadcom’s Broadband Communications Group. “Powered by the BCM7405, the MediaPoint solution gives users the ability to watch movies, video and other on-demand Web-based media content directly on the TV, while allowing service providers to enable customized Web-based services, from online radio to legal music downloading and even photo sharing services.”

BCM7405 Product Information

The highly integrated, low power BCM7405 STB SoC 65 nanometer solution leverages Broadcom’s proven track record and market leadership in set-top box technologies to deliver unprecedented levels of processor performance, memory bandwidth, graphics speed, system security, peripheral integration and cost savings. It supports the latest in interactive features and a wide range of video compression standards (i.e. VC-1, WMV9, H.263-H.264, MPEG-4 and DivX®), and includes support for new video compression standards.

The BCM7405 STB SoC can decode and display simultaneous high definition (HD) and standard definition (SD) video with picture-in-picture and mosaic support. Multiple planes of HD graphics, powerful content security, and support for peripherals including USB 2.0, SATA II, Ethernet and HDMI 1.3 are provided. As a result, manufacturers can build next generation HD digital broadcast and IP set-top boxes supporting the latest interactive features and networked personal video recorder (PVR) functionality.

About Broadcom’s Broadband Communications Group

Broadcom offers manufacturers a range of broadband communications and consumer electronics system-on-a-chip solutions that enable voice, video, data and multimedia services over residential wired and wireless networks. These highly integrated silicon solutions continue to enable the most advanced system solutions on the market, which include digital cable, satellite and IP set-top boxes and media servers, broadband modems and residential gateways, high definition and digital televisions, Blu-ray Disc® players and recorders and personal video recorders.

About Broadcom

Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry’s broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything®.

Broadcom is one of the world’s largest fabless semiconductor companies, with 2007 revenue of $3.78 billion, and holds over 3,000 U.S. and over 1,300 foreign patents, more than 7,500 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.

Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at www.broadcom.com.

Cautions regarding Forward Looking Statements:

All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Important factors that may cause such a difference for Broadcom in connection with BCM7405 digital set-top box SoC solutions include, but are not limited to

— the rate at which our present and future customers and end-users adopt
Broadcom’s technologies and products in the markets for next
generation set-top box applications;
— delays in the adoption and acceptance of industry standards in those
markets;
— general economic and political conditions and specific conditions in
the markets we address, including the volatility in the technology
sector and semiconductor industry, trends in the broadband
communications markets in various geographic regions, including
seasonality in sales of consumer products into which our products are
incorporated, and possible disruption in commercial activities related
to terrorist activity or armed conflict in the United States and other
locations;
— the timing of customer-industry qualification and certification of our
products and the risks of non-qualification or non-certification; and
— the timing, rescheduling or cancellation of significant customer
orders and our ability, as well as the ability of our customers, to
manage inventory.

Additional factors that may cause Broadcom’s actual results to differ materially from those expressed in forward-looking statements include, but are not limited to the list that can be found at http://www.broadcom.com/press/additional_risk_factors/Q42008.php.

Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement, except as required by law.

Broadcom, the pulse logo, Connecting everything, and the Connecting everything logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. 2Wire and MediaPoint™ are trademarks of 2Wire Inc. Blu-ray Disc is a trademark of Sony Corporation. DivX is a trademark of DivX, Inc Blockbuster® is a trademark of Blockbuster, Inc. Any other trademarks or trade names mentioned are the property of their respective owners.

Broadcom Trade Press Contact Broadcom Investor Relations Contact
Dana Brzozkiewicz T. Peter Andrew
Senior Communications Specialist Vice President,
Corporate Communications
949-926-6367 949-926-5663
danabrz@broadcom.com andrewtp@broadcom.com

Photo: http://www.newscom.com/cgi-bin/prnh/20060609/BROADCOMLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

Source: Broadcom Corporation; BRCM Broadband

CONTACT: Broadcom Trade Press Contact, Dana Brzozkiewicz, Senior
Communications Specialist, +1-949-926-6367, danabrz@broadcom.com, or Broadcom
Investor Relations Contact, T. Peter Andrew, Vice President, Corporate
Communications, +1-949-926-5663, andrewtp@broadcom.com, both of Broadcom

Web Site: http://www.broadcom.com/

“Eventually, we’ll give customers instant access to any movie on any device with an internet connection and a screen,” vowed Blockbuster Chief Information Officer Keith Morrow in an interview with the Dallas Morning News.

When I read“instant access to any movie on any device with an Internet connection and a screen” my first thought is instant streaming access, not download to watch. But that’s marketing spin for you.

Picked up from MarketingVOX.

I didn’t think the Netflix STB would be successful, and frankly I’m still a bit skeptical in the long run, I think the real strong part of their service is their partnerships with TiVo, Samsung, LG, Microsoft, etc. It is a lot easier to sell a service for boxes already in homes then to sell new boxes. Unlike Netflix’s subscription-based service, Blockbuster’s service doesn’t require any subscription, it is strictly pay-per-rental. Which may appeal to those who don’t rent movies often enough to warrant a subscription. Another difference is that the Blockbuster service is a download service, not streaming like Netflix. That means users get full quality, no matter their broadband connection speed. On slower connections the rentals will simply take longer to download. And they can be downloaded in advanced and watched later.

Of course, Netflix has already moved beyond the Roku box, streaming to Blu-ray players from LG Electronics and Samsung, TiVo, and soon Xbox 360. And, of course, PCs and now Macs.

Blockbuster just can’t seem to catch up, let alone get ahead.

Picked up via Format War Central.

They dropped a press release to tout the changes:

Apr 10, 2008 08:00 ET

Blockbuster® Rolls Out Blu-ray Format Across U.S. & Canada

Company Committed to Being Customers’ Blu-ray And Standard DVD Headquarters

Company Installing Blu-ray Kiosks In Almost 5,000 Stores

DALLAS, April 10 /PRNewswire-FirstCall/ — Beginning this week, in addition to the standard DVDs lining its shelves, Blockbuster Inc. will be offering customers something extra — Blu-ray movies, for rent and sale in all of its corporate stores in the U.S., as well as in Canada, and select domestic franchise locations. Blockbuster made news last July with its announcement that the company was making Blu-ray available in 1,700 of its stores. Now, less than a year later, the company is positioning itself to become the customer’s Blu-ray headquarters for rental and retail product with this national launch.

To highlight the availability of Blu-ray in its stores, Blockbuster is installing Blu-ray kiosks in the center of its stores. Featuring a 42-inch high-definition TV with movies playing via a PLAYSTATION®3 (PS3™) console, the Blu-ray kiosks will enable customers to experience the movie-viewing advantages of high-definition technology while also driving home the point that PS3 consoles double as Blu-ray players.

As for Blockbuster’s by-mail service, in addition to the wide selection of Blu-ray titles it carries online, this week Blockbuster began offering online subscribers a Blu-ray preference setting so they can automatically indicate that they want to receive all available movies in the high-definition format.

“Blockbuster was the first national retailer to accurately recognize and react to consumers’ preference for this format when we added Blu-ray discs to a large percentage of our stores last summer,” said David Podeschi, Blockbuster Senior Vice President, Merchandising, Distribution and Logistics. “Now, with this national rollout, we believe Blockbuster is perfectly positioned to drive consumer adoption of this next generation DVD format and to become the customer’s headquarters when it comes to renting or buying Blu-ray movies, whether in-store or online.”

Podeschi continued, “Our mission at Blockbuster is to provide consumers with convenient access to media entertainment — whether that’s with Blu-ray or standard DVDs, retail or rental, through our stores, by mail and through new technologies.”

About Blockbuster

Blockbuster Inc. (NYSE:BBI) (NYSE:BBI.B) is a leading global provider of in-home movie and game entertainment, with more than 7,800 stores throughout the Americas, Europe, Asia and Australia. The company may be accessed worldwide at http://www.blockbuster.com/.

Source: Blockbuster Inc.

CONTACT: Press, Karen Raskopf, Senior Vice President, or Randy Hargrove,
Senior Director, both of Blockbuster Inc. Corporate Communications,
+1-214-854-3190, or Investor Relations, Angelika Torres, Director, Investor
Relations of Blockbuster Inc., +1-214-854-4279

Web site: http://www.blockbuster.com/

So, first up, Netflix announced via a press release that they’re going Blu-ray exclusive.

“The prolonged period of competition between two formats has prevented clear communication to the consumer regarding the richness of the high-def experience versus standard definition,” said Ted Sarandos, chief content officer for Netflix. “We’re now at the point where the industry can pursue the migration to a single format, bring clarity to the consumer and accelerate the adoption of high-def. Going forward, we expect that all of the studios will publish in the Blu-ray format and that the price points of high-def DVD players will come down significantly. These factors could well lead to another decade of disc-based movie watching as the consumer’s preferred means.”

They will stop adding new HD DVD titles to their catalog, and they will be phasing out existing HD DVD titles by the end of the year. In a comment at Zatz Not Funny user lorenzp posted a link to the email he received from Netflix:

We’re Going Blu-ray

Dear Phil,

You’re receiving this email because you have asked to receive high-definition movies in the HD DVD format. As you may have heard, most of the major movie studios have recently decided to release their high-definition movies exclusively in the Blu-ray format. In order to provide the best selection of high-definition titles for our members, we have decided to go exclusively with Blu-ray as well.

While we will continue to make our current selection of HD DVD titles available to you for the next several months, we will not be adding additional HD DVD titles or reordering replacements.

Toward the end of February, HD DVDs in your Saved Queue will automatically be changed to standard definition DVDs. Then toward the end of this year, all HD DVDs in your Queue will be changed to standard definition DVDs. Don’t worry, we will contact you before this happens.

You can click to change your format preferences.

We’re osrry for any inconvenience. If you have any questions of need further assistance, please call us at 1 (888) 638-3549.

-The Netflix Team

Ironically, this seems to leave Blockbuster Online as the best option for HD DVD renters. Ironic, since last June Blockbuster went Blu-ray exclusive in their physical stores and, at the time, a lot of HD DVD fans said things like “Who cares, we’ll use Netflix!” Apparently not for much longer. Oops.

While HD DVD was still reeling from the Netflix announcement, Best Buy kicked them while they were down. While Best Buy isn’t (yet) dropping HD DVD, they will “focus on Blu-ray products“. Best Buy’s press release offers some details:

Best Buy Co., Inc. (NYSE: BBY) is taking a step forward in addressing consumer confusion about high-definition formats. Beginning in early March, the leading consumer electronics retailer will prominently showcase Blu-ray hardware and software products in its Best Buy retail and online channels in the United States.

“Consumers have told us that they want us to help lead the way. We’ve listened to our customers, and we are responding. Best Buy will recommend Blu-ray as the preferred format,” said Brian Dunn, Best Buy’s president and chief operating officer. “Our decision to shine a spotlight on Blu-ray Disc players and other Blu-ray products is a strong signal to our customers that we believe Blu-ray is the right format choice for them.”

Dunn continued, “Best Buy has always believed that the customer will benefit from a widely-accepted single format that would offer advantages such as product compatibility and expanded content choices. Because we believe that Blu-ray is fast emerging as that single format, we have decided to focus on Blu-ray products.”

“With the explosion of HDTVs, customers are hungry for quality, high definition content. We believe our move to feature Blu-ray should help consumers feel confident in their hi-def content choices,” said Mike Vitelli, Best Buy’s senior vice president, Home Solutions. “Best Buy is excited by the next generation of digital products and we know our customers are too. We are excited about helping customers find the right mix of products and services to make the next generation of high definition entertainment technology come alive for them. We believe that Blu-ray is the right solution for consumers.”

Best Buy currently carries a wide array of Blu-ray hardware and software products. The company noted that it will continue to carry an assortment of HD-DVD products for customers who desire to purchase these products.

As I’ve said before, this is a feedback loop. As HD DVD players and media become harder to obtain, and Blu-ray players and media get more promotion, the market will continue to shift toward Blu-ray. And the shift in the market will lead more vendors to back Blu-ray as the favor format. And it starts all over again.

Over the next few months this shift is going to accelerate – Best Buy starts promoting Blu-ray in March and Warner stops selling HD DVD at the end of May. And HD DVD will be harder and harder to rent from Netflix as worn out discs are not replaced, and new titles are not added.

Netflix and Best Buy are clearly sending a message to the HD DVD camp to cut it out and end the war.