Walt Disney Co. has cast its eyes on WiMax, an emerging wireless broadband technology, as a way to deliver movies, interactive gaming and other services to homes.
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The Magic Kingdom's interest in WiMax comes on the heels of Disney (NYSE
IS - News) pulling the plug on another wireless project, called MovieBeam. That project would have beamed movies on demand to homes via unused TV broadcast spectrum, but consumers would've had to buy an extra set-top box.
Disney needs to find a way to reach more consumers directly to compete against rivals in the fast-evolving media world, and WiMax could be its opening.
WiMax is a long-range version of Wi-Fi, a wireless technology that lets laptop computer users connect to the Internet. Wi-Fi's available at some public locations, including many airports and Starbucks stores.
WiMax, meanwhile, is being tested inside and outside the U.S., though there have been no commercial rollouts.
With WiMax systems, service providers expect to provide coverage that spans miles. With Wi-Fi, users must be located within 300 feet of Wi-Fi network-connection gear.
Disney has been testing a WiMax network near its Burbank, Calif., headquarters. Disney has also been active in setting WiMax standards. Those standards are needed so different equipment makers can build WiMax gear that works together.
It's also possible that Disney will try a MovieBeam-like trial involving WiMax technology.
"That's to be determined. We're clearly interested in what WiMax can and can't do," said a Disney technology executive who spoke on condition of anonymity.
Unlike media rivals, Disney lacks a direct link to homes via cable, phone or satellite networks. Time Warner (NYSE:TWX - News) owns a cable company. News Corp. (NYSE:NWS - News) owns DirecTV.
Disney has a keen interest in wireless technology. This year, it revealed long-expected plans to offer wireless phone services. It will use Sprint Nextel's (NYSE:S - News)network.
If Disney gets serious about WiMax, some observers speculate that it wouldn't build a WiMax network of its own, but instead would rent Sprint's WiMax network.
"It's far too early to be contemplating those kinds of partnerships," said Barry West, Sprint Nextel's chief technology officer.
Sprint Not Talking
Sprint Nextel doesn't plan to build a nationwide WiMax network until late 2007, he says. And, he says, the carrier hasn't decided whether to rent out its WiMax network the same way it leases capacity on its wireless voice network.
Disney executives couldn't be reached for comment.
Disney has resisted making a major acquisition that would give it direct links to homes. In recent years, analysts have said Disney should buy satellite firm EchoStar (NasdaqNMISH - News) or a cable TV operator such as Charter Communications (NasdaqNM:CHTR - News).
Some analysts believe the planned split up of media firm Viacom (NYSE:VIA - News) into two companies could spur another round of mergers. If Viacom, a Disney rival, merges with a cable TV firm such as Comcast (NasdaqNM:CMCSA - News), that could pressure Disney into making a similar move, observers say.
What's clear is that Disney is exploring many technologies, aside from mergers, that could give it access to homes.
In August, Disney took part in a meeting in Vancouver, British Columbia, where gear makers showed how video could be streamed over WiMax networks. Some studies claim that WiMax systems lack the bandwidth to provide video. Disney, though, believes WiMax is video capable.
WiMax was developed as a faster data technology than its smaller brother, Wi-Fi. Firms have been working on standards that would let WiMax networks also carry phone calls via voice over Internet protocol, or VoIP.
Not Another MovieBeam
Besides movies, Disney's interest in WiMax includes using it to deliver to consumers multiplayer gaming, Web browsing and downloads of other content.
Disney could repeat its mistake with MovieBeam if it plows ahead with WiMax trials, says Josh Bernoff, an analyst at Forrester Research. In April, Disney closed its MovieBeam trial in three cities.
Bernoff says MovieBeam's main flaw was it required consumers to install a second set-top box in homes. Cable TV or satellite broadcasters normally provide one set-top box.
"It doesn't matter if it's WiMax or digital TV spectrum," said Bernoff. "One of the big problems with MovieBeam was the idea that people would get a second set-top box."
He says Disney might be better off providing movies on demand through cable TV or satellite partners. Disney, though, might not want to share revenue with such distribution partners. The company seems bent on developing its own delivery system.
Other media firms might have the edge on Disney in this regard.
News Corp. bought satellite firm DirecTV in 2003. News Corp. chief Rupert Murdoch has said home-based digital recording devices could bring new releases straight to homes as well as theaters.
Disney rival Sony (NYSE:SNE - News) has its popular PlayStation game console entrenched in many homes already. Sony could add more capabilities to PlayStation.
Disney is still searching to come up with a similar hit device with consumers, even as it seeks direct links to homes, Bernoff says.
"Disney may be sitting there feeling vulnerable," Bernoff said, "They'd rather not be stuck riding on somebody else's platform."
Video on demand seems Disney's main focus. In late August, Disney's international arm announced a deal with Switzerland's Kudelski Group. The two companies plan to build and market set-top TV boxes with built-in DVRs. Kudelski's expertise is anti-piracy technology.
Disney will target Europe and, at least now, won't market the boxes in the U.S. and Japan. The devices will deliver content via the Internet and cable and satellite networks.
http://news.yahoo.com/s/ibd/20050920/bs_ibd_ibd/2005920tech;_ylt=Akh5qS5zib7G2HdNWsSK7h4jtBAF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
ADVERTISEMENT
The Magic Kingdom's interest in WiMax comes on the heels of Disney (NYSE
IS - News) pulling the plug on another wireless project, called MovieBeam. That project would have beamed movies on demand to homes via unused TV broadcast spectrum, but consumers would've had to buy an extra set-top box.Disney needs to find a way to reach more consumers directly to compete against rivals in the fast-evolving media world, and WiMax could be its opening.
WiMax is a long-range version of Wi-Fi, a wireless technology that lets laptop computer users connect to the Internet. Wi-Fi's available at some public locations, including many airports and Starbucks stores.
WiMax, meanwhile, is being tested inside and outside the U.S., though there have been no commercial rollouts.
With WiMax systems, service providers expect to provide coverage that spans miles. With Wi-Fi, users must be located within 300 feet of Wi-Fi network-connection gear.
Disney has been testing a WiMax network near its Burbank, Calif., headquarters. Disney has also been active in setting WiMax standards. Those standards are needed so different equipment makers can build WiMax gear that works together.
It's also possible that Disney will try a MovieBeam-like trial involving WiMax technology.
"That's to be determined. We're clearly interested in what WiMax can and can't do," said a Disney technology executive who spoke on condition of anonymity.
Unlike media rivals, Disney lacks a direct link to homes via cable, phone or satellite networks. Time Warner (NYSE:TWX - News) owns a cable company. News Corp. (NYSE:NWS - News) owns DirecTV.
Disney has a keen interest in wireless technology. This year, it revealed long-expected plans to offer wireless phone services. It will use Sprint Nextel's (NYSE:S - News)network.
If Disney gets serious about WiMax, some observers speculate that it wouldn't build a WiMax network of its own, but instead would rent Sprint's WiMax network.
"It's far too early to be contemplating those kinds of partnerships," said Barry West, Sprint Nextel's chief technology officer.
Sprint Not Talking
Sprint Nextel doesn't plan to build a nationwide WiMax network until late 2007, he says. And, he says, the carrier hasn't decided whether to rent out its WiMax network the same way it leases capacity on its wireless voice network.
Disney executives couldn't be reached for comment.
Disney has resisted making a major acquisition that would give it direct links to homes. In recent years, analysts have said Disney should buy satellite firm EchoStar (NasdaqNM
ISH - News) or a cable TV operator such as Charter Communications (NasdaqNM:CHTR - News).Some analysts believe the planned split up of media firm Viacom (NYSE:VIA - News) into two companies could spur another round of mergers. If Viacom, a Disney rival, merges with a cable TV firm such as Comcast (NasdaqNM:CMCSA - News), that could pressure Disney into making a similar move, observers say.
What's clear is that Disney is exploring many technologies, aside from mergers, that could give it access to homes.
In August, Disney took part in a meeting in Vancouver, British Columbia, where gear makers showed how video could be streamed over WiMax networks. Some studies claim that WiMax systems lack the bandwidth to provide video. Disney, though, believes WiMax is video capable.
WiMax was developed as a faster data technology than its smaller brother, Wi-Fi. Firms have been working on standards that would let WiMax networks also carry phone calls via voice over Internet protocol, or VoIP.
Not Another MovieBeam
Besides movies, Disney's interest in WiMax includes using it to deliver to consumers multiplayer gaming, Web browsing and downloads of other content.
Disney could repeat its mistake with MovieBeam if it plows ahead with WiMax trials, says Josh Bernoff, an analyst at Forrester Research. In April, Disney closed its MovieBeam trial in three cities.
Bernoff says MovieBeam's main flaw was it required consumers to install a second set-top box in homes. Cable TV or satellite broadcasters normally provide one set-top box.
"It doesn't matter if it's WiMax or digital TV spectrum," said Bernoff. "One of the big problems with MovieBeam was the idea that people would get a second set-top box."
He says Disney might be better off providing movies on demand through cable TV or satellite partners. Disney, though, might not want to share revenue with such distribution partners. The company seems bent on developing its own delivery system.
Other media firms might have the edge on Disney in this regard.
News Corp. bought satellite firm DirecTV in 2003. News Corp. chief Rupert Murdoch has said home-based digital recording devices could bring new releases straight to homes as well as theaters.
Disney rival Sony (NYSE:SNE - News) has its popular PlayStation game console entrenched in many homes already. Sony could add more capabilities to PlayStation.
Disney is still searching to come up with a similar hit device with consumers, even as it seeks direct links to homes, Bernoff says.
"Disney may be sitting there feeling vulnerable," Bernoff said, "They'd rather not be stuck riding on somebody else's platform."
Video on demand seems Disney's main focus. In late August, Disney's international arm announced a deal with Switzerland's Kudelski Group. The two companies plan to build and market set-top TV boxes with built-in DVRs. Kudelski's expertise is anti-piracy technology.
Disney will target Europe and, at least now, won't market the boxes in the U.S. and Japan. The devices will deliver content via the Internet and cable and satellite networks.
http://news.yahoo.com/s/ibd/20050920/bs_ibd_ibd/2005920tech;_ylt=Akh5qS5zib7G2HdNWsSK7h4jtBAF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
