Conventional and unconventional wisdom

The OPENIVO concept may be difficult to understand as it goes against several established paradigms. This presents challenges, but also opportunities.

Conventional wisdom:
Ad-supported free television is dead.
Improve TV by making it more interactive.
DVRs are used mainly to avoid commercials
TV must be enhanced by adding web content.
Connecting a TV to a computer is complicated.
Having a TV connected to a computer makes it more difficult to use.

Unconventional wisdom:
You can connect a computer to the TV to organize, simplify, and improve the viewing experience. A computer can make the TV a better storyteller, without requiring interactivity.
Addressable advertising would not only be acceptable, but highly desirable to the viewer if:
1. All ads are skip-able. Watching the ad is under the control of the viewer.
2. Ads are well done and targeted to be of entertainment value and interest to the viewer.
3. The viewer knows that their private information is secure and will not be abused.
4. They are getting significant value for sharing their private data.

People will watch and enjoy commercials if they are good and relevant to the viewer. Targeted advertising will make the system free to the viewer.

Why your set-top box should be a PC

40 years ago, if I wanted to communicate with you in a professional way, I would type a letter on an electric typewriter, an analog device. 30 years ago I could use a document preparation system (aka word processing machine) like a Lexitron. It was an electric typewriter with a floppy disc memory. This was a great advance and very popular, since it allowed editing without correcting fluid or retyping a whole document. A bigger advance came a decade later with the introduction of the personal computer with word processing in software. New functionality like unlimited templates, spell and grammar checking became possible. No one would think of using a Lexitron today.
Todays cable boxes and DVRs are essentially TV Lexitrons, limited functionality TV processing machines. A big advance will come when this is all done in software on a personal computer. Improved intelligent automatic recording, Social TV, and unlimited accessory apps. (Switch to a webcam when someone rings the doorbell? Show a map where all the kids cellphone gps locate them?)

Many companies are coming out with limited functionality devices to interface TV with internet in some way. It is time to use a real PC and do it in software.There are many advantages to this business model. No need for research and development of proprietary hardware - the PC is industry-standard. No need to install or service hardware, outsource to the manufacturer. No need to carry boxes in inventory. There is a reason that Cable companies don't sell TV sets.

This also changes the work environment for developers. Programmers can concentrate on coming up with cool features and apps. No need to worry about convincing a retail hardware manufacturer that it is a good idea or that it will generate revenue. Dramatically decreases development time. The network is the thing, and it runs on software.

New Patent Claims Published

Patent claims published today.
Home computers subsidized with targeted television advertising.
COMPUTER-COST SUBSIDIZING METHOD United States Patent Application 20100058378
See it at: http://www.freepatentsonline.com/y2010/0058378.html

It's Software as a Service

The vision of Openivo is not to sell a hardware box, but rather to offer a managed network of dvr services. Let the subscribers purchase compatible hardware, and the Openivo service will automatically configure and maintain the software as a service system.

Characteristics of SaaS software include:
* network-based commercially available software
* managed from central locations rather than at each customer's site
* application delivery in a one-to-many model (including architecture, pricing, partnering, and management characteristics
* centralized feature updating
* frequent integration into a larger communicating network

The Openivo Project

Why is it that only 40% of Americans have broadband internet, but 98% have a television? Is it because internet gives you knowledge and power and television gets you to buy stuff you don't need?

I grew up on television. I always loved it. I have cable, and satellite, and for a birthday present, my wife let me put a directional antenna on the roof for OTA HD.

My first DVR was a DirecTivo. A DVR device takes the television signal and records it, so you can pause live TV, record shows, and fast forward through programming. Absolutely fantastic. Unfortunately, I have a personal problem with monthly fees. The other six TVs in the house only received analog cable. I figured it would be cheaper and better in the long run to buy some desktop PCs with output to the TV screen and run DVR software. I set up a Panasonic HD projector in my office upstairs. When Netflix started the "watch it now" feature, I found I could get near DVD quality on a 100-inch screen with no extra fees.

My parents still don't get cable TV. Many people do not want to pay for something that they have been getting free for years and years.

I heard the announcement of the end of over-the-air analog signals. Everyone with an older set would need to buy converter boxes or they would have no signal. So I thought, if you have to put a box on top of your set, why not get a DVR? The cost of computers has been coming down steadily. To process digital signals and output to SDTV does not take a lot of computing power.

If the DVRs were in a managed network, new directed advertising (like Google TV ads, or Navic system) could subsidize the cost, to make the PC-DVR cheap or virtually free.

I would like to post here my successes and failures as Openivo, Inc. attempts to set up a system to bring the controlled, interactive television experience to the public.