Time-shifting technology has taken the TV world by storm and IPTV has taken TV networks by surprise. Now, by marrying those two technologies some entrepreneurs are introducing a third element into the already problematic TV broadcasting equation: Place-shifting, the next big thing to capture consumers’ interest. Though large conglomerates like Sony are entering this business, in the U.S., the one company leading the brigade is California-based Sling Media. Sling’s flagship product, the Slingbox, allows users full access to at-home TV programs anywhere in the world they happen to be (as long as there is a broadband connction), on an array of mobile devices. Two of the company’s founders, brothers Jason and Blake Krikorian, are San Francisco Giants fans, and in 2002 they found themselves frustrated with an inability to watch their favorite team’s games while away on business. They couldn’t comprehend why, with all the advancements in Internet technology, it was still impossible to access the programs they’d recorded on their home DVRs outside of the house. Flash forward three years, and a phenomenon was born. For a TV station or network, the implication of place-shifting is that viewers are no longer bound to “appointment television,” or even to a particular location. While this prospect could work well for some ethnic channels (by increasing audiences outside a given territory), for English and Spanish TV stations it could represent increased license fees, or even a change in the business model for international program distribution. Depending on the model, Slingbox devices can be hooked up to cable, satellite connections or even DVRs. The devices take in a signal and redirect it to the viewer wherever he/she happens to be — on PCs, Macs or mobile phones (computers with AV outputs can transfer signals to TV sets as well). Because more high-end versions of the Slingbox are compatible with DVRs, customers traveling outside their home countries can align their viewing with local time. All they need is a broadband Internet connection capable of 256 kbps or greater (though connections of 384 kbps or greater are recommended for better quality). Thanks to consistent monitoring between the Internet connection and the Slingbox device, it is impossible for more than one user to access a single device at any given time. “Otherwise it’s not fair to the content deliverers and it’s not legal,” said Rich Buchanan, Sling Media’s vp of Marketing. While there’s no way to control it, Buchanan said his company strongly discourages customers from sharing passwords because “anyone who logs on to your system has access to your entire living room entertainment system, and can buy pay-per-view movies,” he said. Buchanan added that digital monitoring also allows for an optimization of the video compression. SlingStream is the technology within a Slingbox that adjusts video quality. It takes into account various factors, including network bandwidth, SlingPlayer device characteristics, video content, and the type of video input. Using patent pending algorithms, SlingStream automatically adjusts compression level, video bit rate, frame rate and other settings to create a quality video experience. While this technology is attractive for business travelers and local news junkies, a wide range of companies across the U.S. have found new applications for it. In San Francisco, one local CBS affiliate plugs cameras into Slingbox devices all over town, eliminating the need for expensive satellite cameras and vans while doing traffic reports. Slingbox devices have also been hooked up to surveillance cameras in retail stores. U.S. cable provider Comcast has plugged thousands of Slingboxes into its headend to monitor channel transmission. HBO uses the device to monitor its Latin American feeds and check its signals. Sling Media’s newest technology, called Clip+Sling, became available to Slingbox users this fall. It allows them to isolate content from live or recorded TV shows and share it with others (even non-Slingbox owners). Clips can be sent via an email message or accessed from an interactive portal that’s available to anyone. The new application appeals specifically to sports fans who can send their favorite clips of goals and shots to their friends. The U.S.’s National Hockey League (NHL) has entered into a deal with Sling Media by which the long-suffering league hopes to put an end to its ratings slump. At the CES 2007 conference in Las Vegas, CBS president and CEO Leslie Moonves announced his company’s partnership with Sling Media, celebrating the fact that CBS content will be “slung” by users. “The symbiotic relationship [between old and new media] will only tighten,” Moonves acknowledged during a CES keynote address. “We’re doing just about everything we can to see what’s going to work now and in the future.” While some embrace the application, not everyone’s a fan. Major League Baseball (MLB) has voiced opposition to the fact that Clip+Sling would make clips that are available for a fee on its website free to users of Slingbox. But MLB has opted against taking legal action, for fear of making the same mistake the music industry did — trying to get in the way of advancing technologies. At the moment, the U.S. has the largest proliferation of Slingboxes. But they are also available outside the States. The devices are marketed and sold directly through Sling Media in the U.K. and Canada, and through partnerships in Asia. They come in both NTSC versions and PAL versions. There is a range of models out there, with different prices (though there’s never a recurrent monthly fee). The Slingbox TUNER sells for $129 and provides access to basic cable only. The mid-level unit, the Slingbox AV, is available for $179 and is additionally compatible with DVRs, digital cable and satellite receivers. The Slingbox PRO, which retails at $249, “is designed for the home theater enthusiast,” according to Buchanan, and is compatible with up to three standard definition devices and one high-def video device. When asked whether he expects other companies to create rivals, Buchanan was unabashed: “Absolutely. We have patent protection, but we welcome the competition,” he said. Sony, in particular, has its very own devices and propriety software, dubbed LocationFree. The products were available a year before Sling’s, but were hobbled by high prices, a need for proprietary hardware, wonky connections and difficult installations and setups. Back then (and until this year), LocationFree base devices were sold with LCD monitors. Like the Slingbox, they are compatible on desktop and notebook PCs, and Windows Mobile and Macs (in addition to PlayStation Portables). While Sling Media’s devices have caught on more in the U.S., in Japan the opposite is true. “As a start-up, Sling Media spent a lot of money on promotion in the U.S., so they’ve become more well-known,” explained Shigeo Saito, Sony’s director for LocationFree marketing. Sony used to promote LocationFree as a home entertainment device, but is now marketing it as a networking device (the way Sling Media does), under the VAIO brand. The software now comes preinstalled in any new Sony VAIO computer. “LocationFree software is not only compatible with VAIO, but we’re treating it almost as a VAIO accessory,” Saito said. Base stations can register up to eight clients; a feature he said “is appreciated by the broadcast industry. We had discussions with the studios, and they understood and appreciated our proprietary software,” he said. One major difference between the Slingbox and the LocationFree base station is the technology inside. “Base station technology is wireless, so you don’t need an Ethernet cable to connect between the box and a cable or DSL connection. Given the popularity of these technologies there’s no doubt other companies will follow in their footsteps. Soon enough the idea of missing your favorite TV shows while on vacation will seem incomprehensible. LCB V I D E O • A G E OC T O B E R 2 0 0 7 20 I P T V E v o l u t i o n Place-Shifting Adds To TV Networks’ Woes The Sling Media family of place-shifting devices
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