• LG – We’re thrilled to welcome global consumer electronics leader LG to the Google TV family. LG will showcase a new line of TVs powered by Google TV running on their own L9 chipset at CES.
• Marvell – Also new to the Google TV family this year is Marvell, an innovative worldwide leader in chipsets. Marvell will be showcasing a new generation of Google TV solutions which will help bring more products across more price points to consumers.
• MediaTek – We’re also excited to partner with MediaTek, the leading Taiwanese chipset designer. MediaTek chipsets will power yet another wave of Google TV devices.
• Samsung – We’re excited to work closely with Samsung to bring Google-TV powered Samsung devices to market in 2012.
• Sony – We’re happy to build on our partnership with Sony. At CES, Sony will unveil new devices for the US and plans to offer Google TV powered products in several countries around the world in 2012.
• Vizio – Last year we announced our partnership with Vizio at CES. This year we’re excited to join Vizio as they hold private demos at CES showcasing their new line of Google TV-powered products.

The shift to ARM based processors has been widely anticipated, though the specific partnerships with Marvell and MediaTek is new info. It is a little surprising as you might expect well known chip vendors from the mobile industry, such as NVIDIA, Texas Instruments, and Samsung, to be involved but perhaps Google feels the requirements for Google TV are different enough from mobile Android systems that alternate chip designs are better.

Sony is the only vendor who brought first generation products to market to return to this list. Samsung and Vizio both talked about Google TV at the last CES, but held off on shipping products. Which was probably for the best, given the multitude of issues with Google TV 1.0. Now that Google TV 2.0 is out, and is vastly improved over its predecessor, it is much more viable as a connected TV platform. With the addition of LG, if all four vendors really execute on Google TV in their new models, we may well see Google make good on their bold claims of Google TV being in the majority of new TVs this year.

Via the Google TV Blog.

Edit: I see in my YouTube feeds that they’ve also posted a video preview of what’s to come:

AT&T has settled with TiVo, offering payments that will total at least $215 million, and potentially much more, in exchange for a mutual patent licensing deal. TiVo will receive $51 million up front, followed by recurring quarterly payments guaranteed through June 2018, for a total minimum payment of $215 million. In addition to these minimum payments, AT&T will pay recurring per-subscriber monthly license fees should the level of U-Verse subscribers exceed“certain levels”. Just what those levels are wasn’t revealed in the press release, but TiVo apparently expects the total payments to“significantly exceed” the minimums. In this case what’s good for AT&T is good for TiVo – the more subscribers they get, the more TiVo makes.

The Form 8-K TiVo filed with the SEC regarding this settlement reveals more of the details about the payments as well as the patents involved:

Under the Agreement, AT&T has agreed to pay TiVo a minimum amount of $215,000,000 (the “Payment to TiVo”) plus incremental monthly fees per DVR subscriber if the growth of AT&T’s subscriber base exceeds certain pre-determined levels. Based on currently available industry forecasts, TiVo expects that the total fees payable to it by AT&T under the Agreement will significantly exceed the guaranteed minimum Payment to TiVo. The first $51,000,000 of the Payment to TiVo is due on January 3, 2012 and the remaining amount is due to TiVo in equal installments 30 days after the end of each calendar quarter in the amount of $5 million for the first four calendar quarters and approximately $6.5 million in subsequent calendar quarters through the calendar quarter ending June 30, 2018. Any incremental additional per subscriber fees are due to TiVo on the same schedule.

Pursuant to the Agreement, TiVo granted AT&T a limited license under its advanced television patents, including the patents that TiVo had asserted against AT&T (U.S. Patent Nos. 6,233,389, 7,493,015 and 7,529,465), to make, have made, use, sell, offer to sell and import advanced television technology in connection with AT&T multichannel video programming services, including AT&T U-verse, subject to certain limitations and exclusions. AT&T granted TiVo a limited license under its advanced television patents, including the patents that AT&T had asserted against TiVo (U.S. Patent Nos. 5,809,492, 5,922,045, 6,118,976 and 6,983,478), to make, have made, use, sell, offer to sell and import advanced television technology in connection with TiVo products and services, including products and services provided to other multichannel video programming service providers, subject to certain limitations and exclusions.

We may learn more about the terms when TiVo files their Form 10-K after their fiscal year ends on January 31, 2012.

In addition to the settlement payments there is also the indirect benefit to TiVo in reducing their legal costs by no longer needing to pursue the suit. It also eliminates the distraction and allows their legal team to focus their efforts on Verizon. Speaking of Verizon, that’s where all eyes are now as they’re currently the sole remaining target for TiVo’s patent suits. With victories against EchoStar/DISH and now AT&T, it doesn’t seem unreasonable to expect Verizon to taking a serious look at their chances of victory and weighing it against the cost of a settlement. I fully expect TiVo to also be making a reinvigorated push to establish deals with the remaining US cable providers, such as Time Warner Cable, Cablevision, and Bright House Networks.

Taking a look at the top 10 US MVPDs (as of June 2011):

1. Comcast Corporation 22,525,000 – business relationship to allow VOD access to retail TiVo units, now in trials
2. DirecTV 19,433,000 – business relationship with licensing and new THR-22 DirecTiVo just released
3. Dish Network Corporation 14,056,000 – $500 million legal settlement and licensing
4. Time Warner Cable, Inc. 12,235,000 – no known agreement or licensing
5. Cox Communications, Inc. 4,838,000 – business relationship to allow VOD access to retail TiVo units, in development
6. Charter Communications, Inc. 4,413,000 – distributes TiVo directly to customers
7. Verizon Communications, Inc. 3,848,000 – ongoing patent lawsuit
8. AT&T, Inc. 3,407,000 – $215 million legal settlement and licensing
9. Cablevision Systems Corporation 3,284,000 – no known agreement or licensing
10. Bright House Networks LLC 2,139,000 – no known agreement or licensing

In addition, of course, TiVo is being distributed to customers of smaller cable MSOs Suddenlink (#11), RCN (#16), and Grande Communications (not in the top 25). Each victory, licensing deal, or business arrangement strengthens TiVo’s hand at the negotiating table. TWC, like Comcast, is large enough that they develop a lot of their technology and software in house. As such I don’t really expect them to adopt TiVo as their new platform, as Charter has. However, I would not be surprised to see them make a deal with TiVo to support VOD on retail TiVo units, just as Comcast and Cox have, in exchange for staying out of the legal crosshairs.

Verizon is more of a wildcard. They have a rocky track record when it comes to developing and releasing software updates for their FiOS STBs. And they have a small enough user base that outsourcing their software development to TiVo and benefiting from their economies of scale might benefit them. Their architecture is not all that different from Virgin Media in the UK and ONO in Spain. TiVo has already shown they can handle a hybrid cable/IPTV system with those networks, which is what FiOS is. To me that would be the ideal solution, as FiOS joining Team TiVo would increase development funding. And it is likely that they’d push the addition of features to match what they’ve implemented in house, which would benefit everyone. But they may also simply negotiate a licensing settlement like AT&T’s.

AT&T is pure IPTV and they’re using Microsoft software end-to-end. It was pretty much an impossibility that they’d adopt TiVo’s software for their STBs given the infrastructure they’re using. The licensing settlement is really the best result we could hope for in this case. Cablevision and Bright House could easily adopt TiVo as their next-generation STB platform. They’re smaller than Charter, who already has, and Suddenlink, also a TiVo user, is more than half as large as Bright House.

Oh, there is another reason I think TiVo will move more aggressively to establish deals with more MSOs on the back of this settlement: Google. More specifically Google’s pending acquisition of Motorola, the largest STB vendor for cable systems in the US, and Google TV. Back in August when I looked at the announcement, and specifically at the implications for TiVo, and then more recently in November, I stated that I full expect Google to bring the Google TV platform to Motorola STBs as a standard option.

More and more MSOs are looking at OTT (over-the-top) content to increase their competitiveness, which is a prime reason MSOs have turned to TiVo, and Google TV’s Android platform and apps would be a huge boon. Google has Sage TV to provide DVR technology and placeshifting, which also allows them to compete with EchoStar’s SlingLoaded offerings. They could build the streaming client into every Android phone and tablet sold, as well as Google+, that’s a very big stick – or carrot, depending on how you look at it. If Google’s acquisition of Motorola goes through, they will do this. I’m certain of it; it just makes too much sense.

But it will all take time, most likely a few years. The acquisition itself will take time. And then the work to port Google TV to Motorola HW and/or developing new HW to better support Google TV/Android needs to be done. Then they need to land MSO clients for the new HW/SW bundle, and get it deployed. It all takes time. And that time gives TiVo a window to expand their beachhead in the industry. Once an MSO has a significant deployment of TiVo HW and/or SW in the field they’re much less likely to walk away from that investment and adopt another platform.

I expect TiVo to redouble their efforts on the back of this victory. They may even have some deals in their back pocket to announce at CES this month. But for now they can celebrate one victory in an ongoing war.

With the release of SlingPlayer for Logitech Revue it can act as a SlingCatcher – only better than the SlingCatcher ever was, and a lot less expensive. Logitech is getting out of the Google TV game, and when the existing stocks of the Revue are gone, that’s it. So if you think you might be interested, now is a good time to grab one cheap.

Right now Amazon is selling a refurbished Logitech Revue for $79.99. So for $80 you can have a roll-your-own SlingCatcher with all of the features of Google TV. That’s a pretty solid deal.

There is one potential hitch. In a recent email newsletter Sling stated:“During this introductory period SlingPlayer for Logitech Revue is free! So, give it a try — you’re going to love it.” and“SlingPlayer for connected devices is free of charge in North America during this introductory period.” This seems to imply that after the introductory period is over, SlingPlayer for Logitech Revue will no longer be free. That’s not too surprising, they charge for all of their mobile clients too. Though it is getting a little ridiculous for us Android users as they now have three different versions, one for phones, one for tablets, and now one for Google TV, and they cost $30 each. It is perfectly feasible under the Android APIs to develop one client that works well on all three platforms. It is starting to feel like they’re milking the Android users for extra revenue.

Dave Zatz over on Zatz Not Funny noticed this as well. Dave thinks they may introduce monthly, or annual, subscription fees for these clients. I’m more inclined to think they’ll be priced as one-time purchases, just like the mobile clients. One-time purchases are more in-tune with the market on these devices and they’re easier for customers to swallow. Ongoing costs add up, and they’re harder to justify. I’d probably pay $30 for SlingPlayer on my Revue; even if I would resent it a bit since I’ve already purchased it for my phone, and will likely be purchasing it for my Transformer Prime when it arrives as well. But I’m not going to subscribe to it as a service. I just wouldn’t use it enough to justify that cost.

Things really seemed to slow down with Sling a couple of years ago. There hasn’t been a new Slingbox since the PRO-HD launched in late 2008. There was a flurry of mobile client development in 2008 and early 2009, but after the iPhone & iPad SlingPlayer released in May 2009 things really slowed down. All of the service provider products introduced at CES 2012 seem to have fallen flat. SlingPlayer Mobile for Android finally launched in June 2010 and versions for Windows Phone and an iPad optimized version shipped in November of that year. The Windows Phone version snuck out pretty much unnoticed, though that probably has something to do with the market share of Windows Phone being negligible, to put it kindly. There’s been some activity with Sling in India, and EchoStar launched a SlingLoaded Freesat DVR in the UK, but neither seems to have attracted much attention.

But now we have a flurry of new activity, and I hope it is a sign of what’s to come and not just another blip on the radar. The latest is SlingPlayer for Connected Devices, which is something of a redemption for the disastrous SlingCatcher. It can turn your Slingbox PRO-HD or SOLO (sorry, other models need not apply) into a ‘whole home’ solution by allowing you to access content from the living room on a TV in the bedroom. Or maybe the kids away at school can access the family DVR at home. It is what the SlingCatcher was supposed to provide, and much more since it is now part of a STB which offers other services.

Right now ‘Connected Devices’ means the D-Link Boxee Box and… that’s it. However, as Sling says:“More connected devices will be added soon. Watch this space for updates in the upcoming weeks.” We already know that Google TV is a planned platform for SlingPlayer, hopefully soon. Coming on top of the Google TV 2.0 update (still pending for the Revue, admittedly), it might be another reason to pick up a Logitech Revue Google TV box or bundle. The Boxee Box is $174.95 at Amazon while the Revue is only $99.99. Right now those are the only two ‘Connected Devices’ Sling has discussed for SlingPlayer.

Of course, the question a lot of people are asking is – Will this come to Roku? Roku is the 800 pound gorilla in the streaming STB market, and the new Roku 2 units are certainly more capable app platforms. They also clearly have the highest market penetration, and some of the lowest prices. I really have to think Sling would want to get SlingPlayer for Connected Devices on Roku, but we haven’t heard anything about it to date so don’t get your hopes up.

I wouldn’t bet on seeing it on AppleTV either, not unless/until Apple opens it up for 3rd party apps. Everyone expected them to do that after updating it to be based on iOS, but it still hasn’t happened. Maybe Sling can work with Apple to get the client on the box, like Netflix, but I’m not holding my breath. As for other streaming boxes – Popbox, Western Digital, etc. – no idea. None of the other devices really have much of a user base so it may not be worth the effort.

Sling’s released a video showing off SlingPlayer for Connected Devices on the Boxee Box:

I have to say I’m gratified to see this, and maybe even a bit vindicated. Back in 2008 when I worked at Sling Media the SlingCatcher was two years late and still unreleased. I argued that we should kill it and just not release it. While the design was leading edge when it was announced, the market had changed a great deal in the interim. The SlingCatcher’s inability to handle HD H.264 and limited WMV/VC-1 support, and general reliance on MPEG-2 for HD, was a major issue. Also, the PC software’s requirement that content be playing on the desktop to stream, while innovative when announced, had been surpassed by software like PlayOn and the ability to stream content directly from disk. I just felt that it was basically a two year old product at launch, and two year old consumer electronics products are no longer market leaders.

Instead I argued that Sling should take a different route. Roku was already hot and I suggested making deals with Roku and other companies to embed SlingPlayer in existing products. Put it on Roku, Media Center Extenders (which were more popular at the time), etc. Write a version in Blu-ray Java and distribute it on disc. That would turn any BD-Live Blu-ray deck into a SlingCatcher (I still think that’s a viable idea), and get it embedded into players when the vendor is willing. Netflix later used the exact same approach – using disc-based player software for platforms like the PS3 until they could get an official client embedded in the firmware. Speaking of the PS3, game consoles were another platform I argued Sling should pursue – and I still believe they should.

Of course, in the end I lost the argument, the SlingCatcher shipped and bombed, and I got fired for something else. It is three years later, but it is still good to see SlingPlayer finally hitting other platforms. I think place shifting companies like Sling Media and Monsoon Multimedia need to take a different approach. Stop charging, or at least charging so much, for client software, and get the clients on as many platforms as possible. Ideally, publish the APIs so 3rd parties can build in client support to their platforms, developers can create unique clients for niche platforms, etc. My idea is to get the clients out there, as much as possible.

You want ubiquity. Because once the clients are everywhere, people have a reason to buy your hardware to feed those clients. And that’s where you make your money. If the consumer already has devices with SlingPlayer functionality, it gives them more reason to buy a Slingbox. Create a demand – the player – that only you can supply – with the box – and then sell the supply side.

Maybe this is the start.

Back on October 28th, Google officially announced the update to Google TV. Good news for those who snapped up the Logitech Revue when the price was slashed to $99.99. Or maybe this is what you were waiting for to grab one yourself – or bundled with the web cam for $199.98. It is a very capable streaming STB and Google seems committed to it, even if it wasn’t a smashing success out of the gate. They did just add Google Music support to it as well.

The Google TV update bumps the platform to a base of Android 3.1 Honeycomb and brings a whole new UI which adopts a lot of the conventions from Honeycomb. It is much cleaner and simpler, and I think it is a needed improvement. There is a new TV & Movies app which helps users find content across all sources – TV or OTT. There is also a new YouTube application which greatly improves the experience. But, of course, the biggest, and most anticipated addition, is 3rd party app support via the Android Market. There are already a number of apps optimized for Google TV, with more to come. And general Android applications can run on Google TV as long as they don’t have HW needs it doesn’t support – such as a touchscreen, GPS, or telephony.

They released a short video highlighting the changes for those who already had Google TV:

They’ve also released several videos promoting the new Google TV in general, or highlighting specific features, such as Search or Photos:

They also did a Google+ Hangout Q&A with Google TV Product Manager Jurek Foryciarz and the video is available on YouTube, though embedding is disabled so you’ll have to watch it there. There is some interesting info in there, such as that they’re working on NDK support so more Android apps, especially games, will be able to run on Google TV. He also states that Google TV will be moving to Android 4.0 Ice Cream Sandwich, which is something I’ve seen a lot of questions about around the net. If you’re interested in the future of Google TV it is really worth watching – or at least listening too since the video is just him talking.

Of course, first we need the update. And while it was promised for ‘summer’, that came and went with nothing more than a rough leak. Now there are indications that the upgrade will finally land in November, and Zatz Not Funny got their hands on a number of screenshots from the new software. Personally I think it looks pretty good and I’m looking forward to it.

The TV Cam allows you to make high-definition video calls via your HDTV and Revue. You can connect with people on other Google TV units, on on a PC. All they need is a Logitech Vid account and you can easily connect with them.

And while you’re at it, check out Logitech’s “scratch and dent” sale – cosmetically marred or refurbished items at a discount.

This acquisition has spurred talk in some circles about TiVo’s fate. Why? Well, a number of people think TiVo is a candidate for a buyout. TiVo still has a poison pill to prevent a hostile takeover, but that is expiring in November. And even with the pill in place the BoD can accept a buyout offer at any time without triggering the pill. The pill just helps prevent hostile bids.

There has been speculation that Google could be a suitor. TiVo has a history with hardware, a successful DVR platform, and deals with MSOs. All things Google could use to beef up Google TV – but now all things they have in Motorola, only moreso.

On the other hand, TiVo is involved with patent lawsuits with Verizon (who uses Motorola HW) and AT&T (who also uses Motorola HW), having recently finally settled with Dish Network for $500 million. If Google feels that they may have a liability in these suits, it is possible that they would seek to have them settled as part of the acquisition. Possibly even buying TiVo in order to do so, along with acquiring their patents which could be useful for Google TV and Motorola’s own DVRs. Though I think that’d be a drastic step to take, they could likely settle with TiVo for less than the cost of a buyout. They’d really have to see value in owning the whole package to go that far.

Personally, while my dream marriage would be Google buying TiVo and integrating it into Google TV, I think that is much less likely to happen now that Google has MMI – on top of their recent SageTV acquisition. They’ll have everything they need to roll their own super STB in house once the Motorola deal closes.

On the other hand, if I’m Cisco, Motorola’s largest competitor in the STB market, I might be looking to beef up my product offering. Cisco and TiVo already work together – Cisco is providing the hardware for Virgin Media in the UK and ONO in Spain. So they have a solid track record. Cisco’s STB software has perhaps a worse reputation than Motorola’s, and offering a TiVo-based solution could be a real shot in the arm for them. Especially if Google does push Google TV onto Motorola DVRs.

Cisco also has a retail presence through Linksys, and increasingly under their own brand. They’re familiar with STB hardware, DVRs, retail, and TiVo’s software. They could conceivably add the TiVo Premiere, Premiere XL, Premiere Elite, and Preview to their STB lineup as is for both retail and MSOs. Motorola did something similar when they offered a couple of Moxi-based DVRs and the MoxiMate to MSOs. Those units were unlike any others in their lineup. That would be a rapid way for Cisco to offer a TiVo-based solution, and then they could incorporate the interface into their other STBs going forward.

Of course, that’s all pure speculation. Cisco seems to have little to lose in buying TiVo though. There’s nothing to upset the existing MSO deals in the US, or in most other countries. Most of the foreign TiVo deals are using TiVo developed or Cisco HW already. It could cause some friction with the DirecTV deal as that is using Technicolor HW, same for the Scandinavian deal with Canal Digital, but that could be addressed in contracts. And even if it killed the deals, I think Cisco could live with it. The DirecTV deal is approaching two years past due now and there’s reason to be skeptical about it ever coming to fruition at this point anyway.

I don’t think it would cause an issue for deals like the Best Buy Insignia TVs as there is no direct competition with any Cisco products. They’re complimentary, not competitive.

On the other hand it would give Cisco’s STB product line a boost when trying to land deals with MSOs against Motorola, especially if the latter gets Google TV.

In light of the Google-Motorola deal, as pure speculation, I think I’d consider Cisco the leading candidate to acquire TiVo at this point. I don’t necessarily think it will happen, just that if anyone did I’d put them in the lead.

As for other suitors that have been speculated on.

Apple – No way. They have a strong ‘Not Invented Here’ culture. TiVo is Linux based, Apple uses BSD, it’d be a major rewrite to bring TiVo over to iOS to merge it with Apple TV or the like. And Apple is all about providing content silos via iTunes, I’m not sure a DVR fits their plans.

Microsoft – Doubtful. MS is mildly allergic to Linux. They already have Media Center and successful IPTV STB software – AT&T runs on it. They also have the Xbox 360 for OTT content. Media center extenders are neglected, but still out there too. If MS wanted to get into the DVR business I think they’d roll their own based on their existing STB software before buying TiVo.

Rovi – Maybe. Rovi, formerly known as Macrovision Solutions Corporation, has several product lines, including software for set top boxes. If they had an inclination to get into DVRs and get onto more MSO boxes, they might do so via TiVo.

Dish Network or EchoStar – Doubtful. There was speculation that they may buy TiVo as a way to settle their long-running lawsuit. But now that they’ve settled the case I don’t see Dish or EchoStar having a good reason to buy TiVo. EchoStar already has one of the better DVR platforms out there, along with Slingbox, so they have little to gain in a buyout.

DirecTV – Doubtful. With the new DirecTiVo sliding further and further to the right, DirecTV hardly seems excited about TiVo. They already have a deal in place that covers TiVo’s patents, and they seem to be happy evolving their own DVRs. And they already acquired ReplayTV’s IP a few years back, so they have DVR patents of their own too.

I’ve seen other speculation – that NDS might buy them to kill the competition off or that Comcast (or another MSO) will buy them to monopolize the TiVo interface on their network, etc. But all of those seem even less likely to me.

Right now, I think Cisco would gain the most from acquiring TiVo.

Of course, then again, Cisco has been pulling back from consumer products, such as in shutting down Flip. So I might be completely off base.

But, like I said, this is all just speculation. It is fun to talk about, but I’m not going to put down money on any of these deals happening.

So, what do you think? What does the Google-Motorola deal mean for TiVo, if anything? Or who do you think might be a suitor for TiVo? Or do you think that’s backwards and TiVo is going to use part of their $500 million award from EchoStar/Dish to buy someone else? Or just grow organically?

Leave a comment with your thoughts!

Yes Android, smartphones, and patents are all key factors – but they’re not the only ones.

Google is acquiring all of Motorola Mobility, Inc. (MMI), pending regulatory approval of course. When most people think of Motorola they think of cell phones. And ‘Mobility’ certainly plays into that. But when Motorola split into Motorola Mobility and Motorola Solutions, mobile phones weren’t the only products Mobility got. The other major product line they have are cable products – set-top boxes, DVRs, CableCARDs, Tuning Adapters, and cable modems. Plus head-end systems for the MVPDs. Motorola Mobility is the top cable STB vendor in the US, and a leader in cable/IPTV hybrid systems as the sole hardware provider to both Verizon FiOS and AT&T U-Verse.

While Android is a focus for phones, remember that Google has a little Android-based product called Google TV. And just two months ago they acquired DVR software maker SageTV. SageTV’s products covered DVR and placeshifting, with cross-platform support and excellent UI design. While no plans have been announced, most speculation (my own included) has been that Google is looking to add recording and/or placeshifting to the Google TV platform. Google TV has failed to really catch on to date, with hardware partners Logitech and Sony slashing their prices on Google TV products.

Keep in mind that Android phones struggled for their first two years of life, until the Motorola Droid launched in late 2009 with Android 2.0 and really jump started growth. Later this year Google TV has it’s first big upgrade coming out, based on Android 3.1 Honeycomb, which will add apps, a new UI, and other features. Additional hardware partners are also expected to enter the market with the new version.

Now Google owns the largest set top box maker in the US. Motorola has hardware design and production expertise, not to mention all of their existing MVPD relationships. The one area they really get dinged on is their software. Rarely does anyone have anything good to say about cable STB software. But what if the Google TV OS is ported to Motorola STBs? MVPDs could offer their customers a glossy, polished UI with numerous over-the-top features. Roll in the SageTV capabilities and you have something that can power DVRs and placeshifting hardware.

Motorola doesn’t sell video STBs at retail, but they do sell cable modems. How about an STB which combines Google TV and a cable modem in one box? It might sound odd, but remember EchoStar/Sling Media was pitching a Slingbox/cable modem at MSOs a few years back. Since Google TV is all about OTT content, being the home gateway gives it the most direct access to the pipe, and therefore the best performance. It would also allow MSOs to offer a leased version with dedicated access to MSO-provided content that wouldn’t count against a data cap, etc. Just as Virgin Media does with their TiVo in the UK. Of course, there really isn’t much to stop Motorola from taking one of the cable boxes to retail as a CableCARD device if they wanted to, just as the TiVo Premiere Q/Elite is slated for both MSOs and retail.

With Motorola and SageTV Google has the ability to truly build a ‘God box’ which could serve as cable modem, DVR, placeshifter, and OTT STB. Again, very similar to VM’s TiVo play in the UK. All powered by Android in the guise of Google TV. If Google does go down this road, putting a Google TV-powered DVR on Motorola HW and marketing to MSOs, TiVo would face the biggest competition to date, IMHO.

Note that, aside from Android & smartphones, this is the one area Google CEO Larry Page explicitly called out in his announcement of the deal:

Motorola is also a market leader in the home devices and video solutions business. With the transition to Internet Protocol, we are excited to work together with Motorola and the industry to support our partners and cooperate with them to accelerate innovation in this space.

But that’s not all MMI makes – just look at their consumer products and commercial products. They not only make mobile phones, they also still make home phones. Google has been pushing the growth of Google Voice hard, adding calling features into Google Talk, Gmail, etc. What about a Google Voice phone for the home? They could compete with the likes of Vonage & Magic Jack, offering cheap – or, knowing Google, even free – VOIP phone service run through Google Voice. They could even make fancy units with touchscreens, powered by Android. And video calls through your Google TV, of course.

Let’s step away from hardware just for a moment, and look at software. In particular, remote control software. I don’t mean your TV remote, but software like LogMeIn or Citrix for remotely connecting to a PC or Mac. Or, to be more specific, I mean the Timbuktu Remote Control Software from Netopia. But who is Netopia owned by? Right, MMI – and now, therefore, Google.

Google recently added Citrix support to Chrome OS, but what if they could bake Timbuktu into Chrome OS and Android, and sell, or give away, the server piece that you install on your PC or Mac? Maybe give away single-user versions for end users, and sell multi-user corporate versions.

Suddenly all of those Chome OS netbooks and Android phones & tablets take on a new capability. Being able to connect to a PC, or central corporate server, to access software not (yet) available on Chrome OS or Android. Or simple to do heavy lifting tasks better suited to a beefier platform. Or just for remote control – operate the conference room PC from your tablet. It opens things up. Sure, you can do this today with third party apps, but if they bake the client in and make the server piece free, or cheap, it makes it ubiquitous and I’d bet usage would increase – along with sales of the client devices.

From software over to services, remember Google is starting their broadband experiment with a fiber network in Kansas City. And they’ve talked about, or tried to launch, WiFi and broadband services in other locations. Now they’ll own a top vendor of cable and DSL modems, as well as home networking gear. That certainly seems like a leg up for a company looking to get into broadband.

Getting back to hardware, Motorola also makes the Motonav line of GPS devices. There’s another opportunity for Android I suspect. And even without going that far, they can be closely integrated into Google Maps. Plot your map on Google Maps and send it to your device. Record your trip and upload it to Google Maps, etc. There seems to be a natural link there.

I’m not sure where Motorola might fit in with Google’s announced plans for Android@Home, but I have a feeling there is a connection there. MMI acquired home automation company 4Home last year. MMI makes various consumer devices as I listed above, and they have a retail presence and name recognition. I could see Google capitalizing on that to launch Motorola branded Android@Home devices and bring the 4Home features into an Android@Home suite.

Of course, there is also their accessory business to go with all of their other products. And a few product lines that might not be a direct fit for Google, like Bluetooth headsets, two-way radios, and even baby monitors. Still, they’re further evidence that this is about more than Android smartphones and patents.

Of course, that’s not to downplay the smartphones and patents, I believe they were the largest single factor in this acquisition. But I think Google could’ve licensed, or purchased, the mobile patents for much less than $12.5B. Or they could’ve bid for just the smartphone group and not the whole company. Yes, it is possible that they’ll spin off other pieces once they close the deal, but I think they grabbed the whole enchilada because they can exploit a number of different groups.

If I had to single out just one key issue in this deal it would have to be patents. MMI holds approximately 17,000 patents in the mobile space alone, with another 7,500 pending. Remember last month when Apple, Microsoft, Research in Motion, Sony, Ericsson and EMC teamed up to buy 6,000 Nortel patents for $4.5B? Google just grabbed four times as many patents & patents pending for less than three times the price – and acquired a few thriving business lines in the process as a bonus. I don’t expect Google to go off suing other vendors as an offensive measure, but you can be damn sure they’ll be using their patents defensively if anyone comes after Android. And now they have a pretty big stick.

As far as Android smartphones go, it isn’t as clear cut as it may seem. Google cannot afford to show favoritism to Motorola and upset their other Android partners. As I covered last month, in the US HTC sells more Android phones than Motorola, with Samsung gaining from third place. And worldwide Samsung is the leader in Android phones. Asus has the top selling Android tablet with the Eee Pad Transformer, while Motorola’s Xoom has seen tepid sales at best, overshadowed by the likes of the Samsung Galaxy Tab 10.1.

The point is, Google can ill afford to upset their other partners and have them leave the Android fold. HTC & Samsung both produce Windows Phones as well, and Samsung has their own, in-house OS: Bada. Samsung has done a lot to bring custom apps to their Android devices to enhance them, but they could turn those resources toward Bada if they felt they weren’t getting a fair deal with Android. While Windows Phone is an option, it may not be more appealing than Android now that Microsoft has all but acquired Nokia and has already committed to giving them more freedom with Windows Phone than the vendors using it today. They’re already playing favorites, while Google is promising not to:

This acquisition will not change our commitment to run Android as an open platform. Motorola will remain a licensee of Android and Android will remain open. We will run Motorola as a separate business. Many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences.

But there are other options. HP has floated the idea of licensing WebOS to other vendors. Or someone could pick up an existing project like MeeGo and move it forward. So Google has to tread carefully. They can’t turn Motorola into their private skunk works, giving them access to insider knowledge not given to other partners. Nor could they prioritize changes to Android that benefit Motorola unfairly compared to changes requested by other vendors. And, worst of all, they don’t want to risk a massive schism with someone like Samsung taking Android and forking it completely away from the Google trunk.

Of all the divisions Google just acquired, I think they can least integrate smartphones. It is the one piece they really need to keep at arms length to avoid upsetting other partners. They may need to show some caution with Google TV, as they have partners for retail devices, but they could easily do that by keeping any Motorola Google TV products out of retail and marketing them solely to MVPDs. That would leave retail to their other partners.

Google’s position isn’t an easy one. Frankly, the historic record isn’t a good one. They’re facing many of the same issues as Palm did back in the day, or Nokia with Symbian. Trying to produce hardware using an operating system that you are also licensing to other vendors whom your hardware competes with. Palm had a period of success with licensees like Sony, Handspring, Handera, Symbol, Lenovo, Samsung, Qualcomm/Kyocera, Tapwave, etc. But over time, as Palm expanded their product lines, friction developed with their licensees.

Once Palm acquired Handspring, bringing the Treo line in house, that really drove away their remaining licensees. Many of whom turned to Windows Mobile as the only real alternative at the time. Palm tried the disastrous split into PalmOne and Palm Source, but that really didn’t do much to satisfy their partners.

Nokia had a similar history with Symbian, which was technically not entirely owned by them but de facto they really controlled it. Sony Ericsson and Motorola were the two big licensees, but they also had Samsung, Lenovo, Fujitsu, etc. Nokia finally acquired full ownership of Symbian so they could spin it out as its own open source group, in an attempt to make it more appealing to other partners. But it was too little, too late – and rather than attract more vendors, they lost those they already had. (Mainly to Android.) Nokia eventually gave up and pulled Symbian back in house – before finally giving it up entirely for Windows Phone.

Google needs to avoid a similar fate with their partners. Hopefully they can find the right balance to pull it off.

10% of HDTVs in the US are now Connected TVs, like the Insignia TiVo models launched last week. The FMA study also indicates 6% receive OTT content via TiVo or other DVRs (I’m guessing mostly TiVo, since few other DVRs offer OTT content). Apple TV and Google TV account for 4% each, Roku nabs 3% while Slingbox and Boxee each grab 1%. I’m not sure what Slingbox is going in there, since a Slingbox is a sending device, not a receiving device. And the SlingCatcher surely doesn’t register.

I think the most surprising number out of all of these is that Google TV is 4%. It is only in a handful of devices, I find it hard to believe it would have more penetration than Roku. It just seems strange. The price on the Logitech Revue was slashed just last week. (Mine arrived yesterday, BTW. I haven’t had time to set it up yet.)

Also somewhat surprising, the study says only 7% of US households have a connected Blu-ray player. With network connectivity seemingly standard in so many players today, I’d've thought that number would be higher. But I suppose it hasn’t been that long since the trend started.

The end result of all this? 10% of adults watch at least one video a week on their TV via one of these devices.

Via MediaPost.

Phandroid has all of the details:

• Copy the update.zip to a Fat32 formatted USB drive, place it in its root (ie /mnt/usb/update.zip or E:\update.zip)
• Plug USB drive into Revue. Fully unplug revue. Plug it back in, count to One (a long one, say one mississippi), then hold down the connect button (keep it held). The Revue logo will come up, and the box will reboot, your tv will lose signal, and come back to the Revue logo. At this point, let go of the button.
• The GTV logo will then show up, with an arrow and a horizontal “barbershop scroll”. At this point, on your Revue’s keyboard, press the FN key (in yellow) and the left arrow (to the left of the OK button). It will then come up to a recovery menu.
• Hit “Apply update from sdcard:/update.zip”
• The box will verify the update, and reboot. This is normal. It is installing an updated bootloader and recovery image (both, heavily encrypted).
• Then, the box will come back on, and flash the latest kernel and system files. Once this is done, the box will reboot again.
• This bootup may take a few minutes, at first you will see the Revue logo, then the Google TV logo, then the “new” logo (a grey tv over a ball glowing red). Just wait it out.
• You can then begin setup, as normal. You may notice some crashes – this software is still beta, you should be able to force close and continue.

If the above update.zip download link doesn’t work try this one.

So, if you want to live life on the wild side, go for it.

Via Akihabara News, from Phandroid, which got it from GTVHacker.

You can now buy the Logitech Revue for $99.99 at Amazon, Best Buy, or direct from Logitech. At the original $299.99 price I thought it was way too expensive to recommend, or bother getting one myself. But at the new $99.99 price I think it is a viable contender, and I just ordered one to play with.

Google TV is certainly rough around the edges today, but it has a lot of potential. It is based on the Android operating system, but the first version, what is available today, is pretty limited. You have some of the standards we’ve come to expect – like Netflix, Pandora, and Amazon – but compared to a unit like Roku it is a pretty limited selection. Fortunately, that’s expected to change in a big way later this summer. Google TV is getting an update to a new version based on Android 3.1 Honeycomb, the latest & greatest version of Android, as used on tablets. Along with this update the Android App Market will be hitting Google TV, and you’ll be able to download apps just as you can on your Android smartphone. And 3rd party developers will be able to develop apps to do anything, just like the phones. And all existing Google TV devices, including the newly affordable Revue, will get this update. So it isn’t just what it can do now, it is what it will do in a few months that makes it a decent value at the new price.

I’d love to see Google TV integrated tightly with TiVo, as it is with Dish Network DVRs today. The potential is certainly there, with TiVo’s network remote control functionality on the Series3 and later boxes. I’m not a developer, so I don’t know if this is something the Google TV API would allow 3rd party developers to do, but I suspect not since it is more a core feature of the platform.

I think Google really stumbled out of the gate with Google TV, but they’re not stupid and they learn from their mistakes. Everything
they’ve shown relating to Google TV 2.0 looks pretty impressive. They’ve learned several lessons from the tepid response and harsh reviews of the first version, unfortunately Logitech took a real financial hit to help drive those lessons home. I think Googleis learning that the physical world is a bit different than operating online, where you can launch an incomplete product and get away with it by calling it a ‘beta’ and making it free. People aren’t as happy with half-baked products when they have to pay real money for them, especially several times what competing products cost (such as Roku). You really need to get it right the first time, then continue to improve it. Not ship something functional but overly limited, then make it awesome in a later update. First impressions are important. Google is big enough to recover from a fumble, but it doesn’t serve them to get their partners, like Logitech, beat up in the market due to product shortcomings.

One odd quirk caused by the repricing, the optional Mini Controller for the Revue at $129.99 now costs more than the Revue with it’s included full size keyboard. But then, it is optional and the keyboard that comes with the Revue is all you really need. Not to mention the remote control apps available for Android or iOS devices.

It will also be interesting to see what happens with pricing on the Boxee Box by D-Link. The MSRP is currently $229.99, and with the reduction on the Revue and the existing low pricing on Roku boxes, the main competition, it stands out as a high priced box. The Popbox is $129.99, which is a bit high but still close. It really looks like $99.99 is the new price to match, or beat, in the media STB market, thanks mainly to Roku.

As a big fan of Android on my phone, and Google products in general, I’m looking forward to having my own Revue so I can play with Google TV. For $300 I was curious but reserved, for $100 I’ll bite.

Initial announcement spotted last week in Engadget.