coverstory_cover story 12/07/2013 17:23 Page 7
gateways are NOT fashionable or desirable consumer items). The only rationale for operators to move to a retail model would be to lower their subscriber acquisition costs. However, they would see an increase in customer care costs, interoperability testing costs, issues over security (Internet), overall a likely reduction in the service quality and increased customer churn. Roku: It’s costly for an operator to role out a truck to a consumer’s house to set-up a box compared to having a consumer go to a retail store to buy a Roku player and easily set it up themselves. Through Roku players, consumers can access hundreds of channels including authenticated options such as HBO
"STBs converge network access and video playout in a single managed service; Smart TVs need to connect to the Internet gateway of the home before TV can be delivered." Pace
GO, FOX Now, Now TV and TWC TV. We expect to see more authenticated channels on Roku in the coming year. Rovi: We expect limited retail prospects as the value of a gateway seems to tilt in favour of the operator, per the contemporary definition of what a gateway is. S3 Group: Retail will become an increasingly important part of the strategy for operators to get consumption devices into the hands of their customers. STBs remain one of the biggest pieces of capital investment