Tuesday, July 24, 2012

YouView Arrives - But Will It Survive?

Tuesday July 24, 2012 – Greg Scoblete

Better late than never, as they say. Two years past the promised delivery date and just weeks before the London Olympics, YouView, a UK web video service, was rolled out earlier this month with great fanfare.

YouView is the product of Britain's public broadcasters and two internet service providers - BBC, ITV, Channel 4, British Telecom (BT) and TalkTalk. It's designed to offer a combination of the country's free-to-air Freeview channels plus interactive services and video-on-demand. It won't deliver Freeview stations over the Internet - customers will still need an antenna - but it will offer subscription-free catch-up TV as well as the option to tap premium video-on-demand libraries from the founding companies. The YouView platform will also host TV apps.

Initially YouView will be available via a single set-top/PVR box from Humax, which will be sold through UK retailers with the hefty price tag of 299 pounds. A subsidized box will also be packaged in broadband subscriptions offered by TalkTalk and BT. YouView may also receive a selection of programming and sports from BSkyB (on a pay basis), giving YouView owners a large selection of free and paid content to choose from.

While critics hammered YouView for its delayed launch, the deeper question lies with the standards employed. Outside of the UK, European consumer electronics firms and pay TV providers have been coalescing around HbbTV as the "hybrid" broadcast standard (mixing over-the-air and internet content in a unified interface). While YouView incorporates elements of HbbTV in its specifications they're not, as yet, fully interoperable. It's not clear whether hardware and software vendors will swing their full support behind YouView or focus on the wider opportunity afforded with HbbTV-enabled devices.

Given the delayed launch and large price tag of the initial PVR, YouView will have to quickly diversify its hardware portfolio if it hopes to gain traction.