Sony may spark movie download war with Telstra Bigpond

Adam Turner
Tuesday, 24 April 2007 20:23

Opinion and Analysis

Along with the Sony announcement, ReelTime also revealed details its own Home Entertainment Centre which is set to bring movie downloads into the living room direct to the TV.

ReelTime's Home Entertainment Centre is a one stop entertainment shop, and it's features include a Personal Video Recorder for recording digital television to a hard drive. The ReelTime HEC is also compatible with the IceTV seven day electronic program guide and IceTV's PIMP remote scheduling features.

IT Wire recently broke the news that IceTV is planning to offer a video on demand service in the next few months. ReelTime and IceTV are an obvious match - both are battling industry giants - although IceTV managing director Matt Kossatz today refused to confirm or deny whether IceTV and ReelTime were in discussions. I'd be shocked if they weren't.

Of course IceTV is currently in a legal battle with the Nine Network, which claims IceTV's service breaches Nine's copyright over its TV guide. What's it's really about is that Nine hates PVRs, time-shifting and ad skipping - none of which IceTV is directly responsible for but an EPG does encourage PVR use.

Just to make things interesting, Nine is affiliated with Microsoft though the NineMSN online portal. Nine also has close ties with Telstra, with Nine owner Jamie Packer lobbying the government to accept Telstra's Fibre to the Node plans rather than Labor's alternative. Packer's PBL and Telstra also joint own the Foxtel pay TV service (along with Murdoch's New Ltd). Foxtel is obviously threatened both by video downloads and consumers time-shifting free-to-air television rather than watching pay TV.

As you can see, the industry is an intricate web of deals but a few key alliances have emerged. Small players like IceTV and ReelTime have little chance on their own pitted against the corporate might of Telstra, Microsoft and Packer. They need a white knight. Someone with deep pockets. Someone who isn't part of Australia's old boys club. Someone who isn't afraid of a fight. Someone like Sony.

Sony's no saint, but there comes a time when you have to take sides with one of the big kids in the playground or get pushed aside.