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15 May 07
Country: USA
Topics: Broadband content
Source:
Online Services/Intelligence/Broadband/Updates
Following Akimbo's launch of the beta version of its online video service to Windows XP and Vista PC users in April 2007, the company is withdrawing the delivery of video on August 1 2007 to its RCA-manufactured broadband-connected set-top boxes (STB). The company will offer its STB subscribers the remaining three months free of charge before switching off, and will issue refunds on some of the recent box purchases. Akimbo users will also receive $25 credit towards the PC-based Akimbo service. The STB is no longer on sale.
Akimbo will re-focus on becoming a content aggregator and provider for third party PC-based and TV- based video services. In January 2007, Akimbo's content became available for subscribers to AT&T's Homezone broadband-connected STB. Users of Windows Media Center PCs also have access to Akimbo's library through the online spotlight feature.
As opposed to the TV-based service where consumers paid a monthly subscription fee, with additional fees for select titles, consumers using the new PC-based service either pay to rent per title or pay a monthly subscription for on-demand access to a particular channel.
Akimbo has raised over $27m in funding over a three year period.
Our take...
Akimbo's standalone box has struggled to compete with more fully featured and popular brands of TV-connected devices. Aside from cable and IPTV operators, Microsoft, Sony and Apple, not to mention TiVo, are all vying for the TV-connected device market. The increasing competition has forced Akimbo to opt for the business-to-business content aggregation model.
Reportedly, however, Akimbo's strategy had always included the possibility of ceasing STB delivery, and the company had always viewed its TV-wired device as a way of gaining the attention of content owners and encourage negotiation of content deals.
Moreover, with thousands for movies, videos, and TV programs now licensed from over 50 categories of video in more than 100 channels, Akimbo can leverage its device-neutral position to target exactly these IPTV and cable providers, broadband-connected PVR and games consoles manufacturers, streaming media STB manufacturers and PC-based online video services with its more specialist content. Screen Digest believes there is potential for success for aggregators that can license a wide range of more 'long-tail' local and niche content. This sort of content can be packaged for resale to the leading video services that are increasingly looking to widen the libraries of their PC-based or TV-based catalogues to set them apart from the competition.
Further, the Akimbo decision to avoid head-on competition with more trusted hardware manufacturers and brands in the STB space could potentially act as a warning or deter smaller start-up aggregators with similar STB plans.
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