…AT&T allows up to four programmes to be recorded. AT&T also claims to offer more high-definition (HD) programming — as many as 25 channels of HD in most markets. That said, AT&T's service is limited in the number of HD programmes that can be recorded by the DVR at once.
AT&T has also touted its quick channel-changing feature as a big differentiator. And it allows for remote programming of the DVR through its AT&T Yahoo portal, so a subscriber can use any internet-connected device, including a cell phone, to record or delete shows remotely.
Microsoft: Patience will be rewarded
Microsoft's director of marketing for Mediaroom, Ed Graczyk, said it's unfair to expect these services to leapfrog cable right out of the gate. He said the industry is evolving rapidly when compared with other developments in the TV world.
"Four years ago, the IPTV market barely existed," he said. "And we've already got nine operators that are deployed today and thousands of subscribers using the services. It took about 10 years for video-on-demand to be [available] in any meaningful way. And it's still not widely available in most of Europe."
Still, Microsoft and the operators using the software appear to be taking a measured approach to the features they add to the software and how they deploy it. The bulk of Microsoft's latest software upgrade will provide tools for operators to create more interactive programme guides, storefronts and gaming platforms.
Microsoft has created a kind of browser optimised for the TV environment that will allow programmers to develop web-enabled applications for the TV. And it's added a more advanced picture-in-picture functionality that can be used to allow subscribers to view clips of movies before ordering them from video-on-demand, for example.
While it's possible that carriers will be able to use this software to develop some cool and interesting applications, most of the functionality won't be seen by consumers for at least a couple of years.
The only major feature upgrade that consumers will see today with the new version of the software is the personal-media-sharing capability. IPTV subscribers will now be able to access all their non-DRM-protected digital music and personal digital photos from any PC in the home and listen to the music on their home-entertainment centres or view the photos on their big-screen TVs.
Verizon has been offering a similar capability on its Fios TV service for nearly a year. But Microsoft's Graczyk said that Microsoft's version is much easier to use. The new feature will automatically appear as a menu item on any updated set-top box. And it will be able to access content from any Windows XP or Vista computer.
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By contrast, Graczyk said, Verizon's solution requires subscribers to manually configure their PCs and download software to access the feature.
One feature that Microsoft's software still doesn't allow is multi-room or whole-home DVR. This capability allows people to use one DVR to record and watch shows through a regular set-top box in any room in the house. Again, Verizon has been offering this capability for almost a year. Satellite TV provider EchoStar Communications, through its Dish network, also offers the feature. (AT&T also resells the Dish service, which means AT&T Homezone customers can get multi-room DVR, but its U-verse customers can't.) And Time Warner Cable, the second-largest cable operator in the US, is offering it in certain markets.
Graczyk said features such as multi-room DVR are on Microsoft's IPTV road map and will soon make it into the software.
"It all boils down to prioritisation," he said. "We can only do so much in any given software release. More updates will be coming, but we don't want to overwhelm users."
So what will be coming in the next 12 to 18 months? In addition to multi-room DVR functionality, Graczyk said a lot of enhancements will be made to improve search and navigation of the programme guide. Microsoft is also planning to integrate IPTV with its Xbox game console to allow people to watch TV and chat using instant messaging over the Xbox Live system.
The new browser-like capabilities available in the latest software release will also allow Microsoft to build other features, such as personal video portals, that could allow people to customise their experience like they do on their PC or mobile phone. Subscribers could get personalised traffic information or be able to share recommendations over the network and integrate buddy lists from their PCs.
Mobility is also likely to be added to the mix. Right now, AT&T allows subscribers to programme their DVRs remotely using a web-enabled cell phone, but eventually people will also be able to watch live TV on their phones.
AT&T said it is still testing the waters on many of these new features and applications.
"I think Microsoft and AT&T feel like all this stuff will happen in due time," said Michelle Abraham, principal analyst with In-Stat. "Every provider that rolls out a TV service has to start with the basics. Over the next year, we'll see a lot more things get added as they get their feet wet."
