Blockbuster is apparently looking to develop a set-top box to deliver streaming video rentals. While it would seem that such a device would have an advantage in the size of it’s content library, especially after purchasing Movielink, what really differentiates this (assumed proprietary) box from a “cable channel” that you need an additional piece of hardware for? My guess is that this fails.
The Killer App set-top is going to come from the following field: Apple, Tivo, PS3, XBox. Each has liabilities and competitive advanges:
AppleTV: Tied to iTunes (good and bad); Closed, (bad, but hackable); Content library (good); Interface+ease of use (good); Weak Hardware (bad).
XBox: Solid hardware (good); Microsoft (bad); Content Library (bad, but moving in the right direction-see the deal for exclusive GTA4 content); Closed (bad, but seems “hackable”).
PS3: Excellent Hardware (good); Limited content library (bad); Sony’s conflict of interest as CE manufacturer and content owner (bad); Continual software updates which add functionality (good); Closed (bad); Broadest range of functionality (good).
Tivo: Ease of use (good); Willingness to experiment and partner (Unbox, podcasting) (good); Closed (bad) Unbox-no HD (bad); Content Library (bad).
Dark Horse: Adobe Media Player and Adobe TV. Can Flash and Air be the OS for a set-top box? Why Adobe Media Player Could Matter.
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