One for all...

December 2001 With the standardisation of set-top box software, based on the MHP (multimedia home platform) standard, Europe's fledgling interactive TV (iTV) market may be about to get a much needed shot in the arm

While there have undoubtedly been a number of isolated iTV success stories across Europe, by no means could even the most upbeat appraisal conclude that the technology has really 'taken-off'. Even in the UK, which has an established base of approximately nine million iTV-enabled set-top boxes, deployments of interactive applications are at most patchy.

And, as Europe's broadcasting sector attempts to navigate its way through one of the worst advertising downturns in recent years, the cost of writing in interactivity looks high - especially when the creative cost has to cater for three distinct middleware systems for total coverage. Despite this gloom, however, a beacon of hope has emerged in the form of the MHP standard, which has the potential to meld the many fractious parts of the industry into an entity that can work together for its common good.

Consensus?

The MHP standard has been primarily sponsored by the worldwide industry DVB (Digital Video Broadcasting) project and was ratified by ETSI (European Telecommunications Standards Institute) in 2000. This quickly led to the roll out of an open standard API (application programme interface), which allows the seamless transmission of digital signals across broadcast, telecomms and computer platforms. Importantly, however, it also defines a generic interface between interactive digital applications and the terminals on which they run.

"I am not sure whether the UK consumer is going to see a noticeable difference in Sky Active, ntl games or the programme guide," says Liberate Technologies' executive vice president and chief strategy officer, Dave Limp; "the user interface won't look different, but the developers will have a much easier play in creating multiple stories and offering a wider and richer experience for the consumer."

John Holland, as director of Interactive TV at developer AMX, is keen to see the roll out of MHP to give the industry a boost. "At a time when CEOs are so focussed on the bottom line, anything that helps bring down the cost of entry is to be welcomed," he says.

top

One of the problems of working across different iTV platforms for developers of applications, says Holland, is the fact that there needs to be a compromise on design and the use of colour. With MHP, he anticipates that this problem will disappear. "The lack of standards has been a part of the maturing of the industry. Now we need standardisation for the monetisation of the industry."

But Holland's confidence is not wholly shared by Dr Beth Erez, vice president of marketing for NDS. "I want to express a personal view that although we talk about open standards - even within Unix, the most open standard in computing - there are different flavours. Maybe I am being too cautious, but I have a strong suspicion there will be different flavours of MHP."

However, while the emergence of MHP as a putative global iTV standard is a welcome sign of the sectors' progress, it will not be an overnight panacea. "You are looking at a two year planning horizon, but you will also see the effect of Moore's Law, which will help reduce the prices of set-top boxes," says Dave Limp.

MHP could do more than just help lower the costs of STBs, it could also help redefine the economics of digital broadcasting. "By standardising on MHP, the consumer can choose which programme supplier they want to receive from," says Allan Arthur, general manager of DataCast Europe.

top

"In the UK you currently have a vertical supply chain where users are locked into one service provider with their own platform with little interoperability. Programmers are forced to write for one standard or another - be it Liberate or MediaHighway or whatever. With MHP, consumers can choose their service provider without the need to change boxes," says Arthur.

Nokia, Panasonic, Philips and Sony have also all been pushing the concept of open standards to regain control of their brand, rather than be dictated to by the platform operators. The problem has been that, in the past, these companies have been manufacturing STBs to a fixed specification and price set by the operator.

Moreover, Sony has been demonstrating an integrated MHP television in Finland, and the first production models are to go on sale in Germany before Christmas and in Finland in the spring. The roll out of MHP STBs and IDTVs will also affect the economics of the platform operator, in that they may no longer have to subsidise their customers' STBs when, potentially, the consumer electronics market will supply them.

Change

The transition to MHP has already begun in earnest, particularly in Germany. In September 2001 in Mainz, Germany's major broadcasters - including ARD, ZDF and RTL - all agreed to begin MHP transmissions by July 2002.

Supporting the Mainz Declaration, KirchGruppe, acknowledges the benefits of adopting MHP: "PREMIERE WORLD will no longer be captive by proprietary technology. This will provide PREMIERE WORLD with added flexibility to realise innovative programmes and services for its customers". In essence, what the media group is saying is that its PREMIERE WORLD program portfolio will be available via other, competing platforms, and vice versa.

Yet, Martin Gilbert CEO of Amino Communications sounds a note of caution. He argues - certainly as far as the UK is concerned - that the numbers taking subscription digital television are not likely to rise. "Of course, MHP has a role where people want more complex services, but the bulk of the population are still watching free-to-air services paid for by the licence fee and the advertisers," says Gilbert.

top