Chris Lanier's Blog

News, Analysis, and Opinion on Microsoft Digital Media Technologies (and TGB News!)

DIRECTV and Microsoft: What Went Wrong

Now that DIRECTV has suspended development on their HDPC-20 Tuner where does that leave us?  There are a lot of differing opinions going around about why DIRECTV canned the tuner, whose fault it is, and where do we go from here.  Most people are pointing the finger at Microsoft, and with their history of releases how could you not?  This doesn’t mean however that Microsoft is totally at fault, but let’s look at the whole situation to see how we got here. 

Timeline

January 2006 – Microsoft and DIRECTV announce partnership to “develop new ways to expand the reach of digital music, television and movies throughout the home and to portable devices.”  Nothing is said specifically by either party about a Media Center tuner.

January 2006 – Microsoft employee Sean Alexander says “In the future (timing wasn't discussed), you'll be able to have an installer come out and install a DirecTV tuner into your Media Center PC and get your local channels complete with DVR.”  This however, was not an official Microsoft statement.

January 2007 – We really start asking for information about the assumed DIRECTV Tuner.  DBSTalk.com does Q&A with DIRECTV at CES, DIRECTV says “Still in progress, internal beta testing” when asked about HTPC Tuner cards.  Confirmation that a tuner card is in the works.

December 2007 – Microsoft states in an online job posting that they are “working with newly developed dual satellite tuners” for the next Media Center release.

January 2008 – CES comes around again and DBSTalk.com gets a flyer from the CES floor for the HDPC-20.  This is the first official confirmation that the tuner exists.  CES attendees hear information about the public unveiling of the tuner to be scheduled later at CES.  This didn’t happen however, leaving several people confused.  No one from Microsoft or DIRECTV is talking now.  DIRECTV had the flyers to give out at the show, so something happened that caused either Microsoft or DIRECTV to back out of the public announcement.

February 2008 – Top Media Center OEM Niveus Media now lists “HD Satellite” tuner option on their website with “TBD  (To be determined)” availability.

March 2008 – Microsoft started sending out e-mails for the Fiji (codename for TV Pack) beta program.  Several leaks happened around this time including an e-mail asking select beta participates for information about their DIRECTV account.

July 2008 – Fiji beta testers leak more information including DIRECTV and H.264 support being pulled from the release.  It is suggested by some in the beta that they never received tuners from DIRECTV.

July 2008 – It is reported that Microsoft will be releasing a second Media Center update in 2008 with nothing to backup the statement.  The proposed purpose of the second update was to add H.264 and DIERCTV support.  This didn’t happen.

September 2008 – Subscription news service Consumer Electronics Daily (CED) reports that Microsoft "continues to look at ways" to make the tuner happen and that news will be announced at "the appropriate time.”  DIRECTV made no comment in the article.

November 2008 – Ed Bott finds a driver for the HDPC-20 in the PDC build of Windows 7.

November 2008 – Microsoft invites several bloggers and journalists to tour the eHome Labs (no, I wasn’t invited).  Ben Drawbaugh scores pictures of the DIRECTV HDPC-20 working in Microsoft’s Labs.

December 2008 – DIRECTV e-mails several in the community to tell us that DIRECTV has “suspended the development of the HDPC-20 tuner…after assessing the impact of missing the August 2008 release of Windows Media Center update [Fiji, TV Pack] and considering timing of the next release.”

Talking a Step Back

The big question now is what does all of this mean and who is at fault.  Let’s explore a few things here.

Microsoft is a software company; they don’t make hardware (generally speaking).  Microsoft’s main goal is to produce various software frameworks so that other companies can come in and produce hardware to work with their platform.  I’d actually say that this is the reason Microsoft has been successful as a company, but it is also their largest fault.

Anyway, Microsoft makes software and third parties make hardware (and most of the time drivers to go with this hardware).  Seeing as Microsoft is going to produce the software aspect of this DIRECTV Tuner, it means they want to produce a common framework to allow third parties to integrate a number of different things into their Media Center platform.  I’ve gone over this time and time again, but to refresh I’m talking about things like H.264, Pay-per-view order, content protection, etc.  DIRECTV on the hand has to make the hardware (or contract it out) to pair with Microsoft’s software framework.

DIRECTV has suggested that they are suspending develop of their hardware because of the impact of H.264/DIRECTV support not shipping in the TV Pack and the wait until the next release. (Windows 7, highly publicized to have a 2009 ship date)

DIRECTV-less TV Pack, whose fault?

This is a bit hard to answer because outside of DIRECTV and Microsoft no one really knows.  What we do know (or rather, think we know) is that Microsoft had plans of shipping DIRECTV support in the TV Pack as evidenced by the beta e-mails.  We also know (or think we know), that neither Microsoft nor DIRECTV shipped tuner to beta testers.  Microsoft then cut H.264 and “subscription-based satellite TV support” before the TV Pack ship date.  Notice they never said they cut DIRECTV support.

The main thing we don’t know here is why beta testers reportedly didn’t get tuners.  Hundreds of options here, but here are three main ones.

  • Possibility that DIRECTV didn’t have stable hardware/drivers
  • Possibility that Microsoft had issues with H.264 support in the TV Pack
  • Possibility that Microsoft had issues with other software aspects in the TV Pack
  • Possibility that Microsoft and DIRECTV are fighting like kids about something

There are various possibilities about why beta testers might not have been shipped tuners and why support was cut from the release.  I don’t think you can make a clear judgment about who was at fault knowing what we do.

On the Road to Windows 7

Given on how Microsoft operates, we knew that the next chance for DIRECTV support was in Windows 7.  Microsoft doesn’t push out Media Center updates to add functionality months after a major release.  Things were now looking good for Windows 7 DIRECTV support, at least from the outside.  CED published reports saying DIRECTV and Microsoft are still working together, and Windows 7’s projected release date keep moving up.

Ed Bott finds the drivers in the Windows 7 build, and then Ben gets pictures of the tuners in the lab.  We are all thinking that Windows 7 with DIRECTV is a-go.  DIRECTV then says they are “suspended development” of the tuner and points to the conflicts with the TV Pack as a prime reason along with the “timing of the next [Media Center] release.”

What’s DIRECTV Hiding?

Lets say Microsoft and DIRECTV missed the TV Pack ship date, again we really don’t know why.  In the e-mail statement DIRECTV is basically implying that they are done with their part and just waiting on Microsoft.  Is this really the case?  I fully believe that Microsoft had 90% of the software framework in-place to ship with the TV Pack.  In fact, if you look in your RTM TV Pack registry you can find some DIRECTV bits hiding pretty well.

If DIRECTV was ready and willing to release their tuners, why cut the project after all your initial expensive and development?  The tuners seem to be real, and if it was Microsoft who screwed up the TV Pack you would think that DIRECTV is sitting on a near finished product waiting for Microsoft.  DIRECTVs enginners can jump back on a new project and leave their efforts intack for Microsoft to start Windows 7 beta testing (which is basically 6 months after the TV Pack release).

I’m thinking that DIRECTV might not be a clean in this whole ordeal as some might think.

DRM, Doubtful to Blame

Whenever there is a hold-up on a product like this the first thing in peoeple’s mind is that Microsoft is DRMing it up and thus causing massive delays.  Considering CableLabs approved Windows Vista with their very strict content protection guidelines I think it would be a huge stretch to think that Microsoft was holding up the project in this way.  Their system already works, and has been for two years (mostly, DRM might actually be too protective given the bugs).

It has been suggested to me that DRM might be to blame because DIRECTV offers service outside of the US.  I was personally expecting to see the DIRECTV Tuner be US-only, but if it was international this would be a contract issue between DIRECTV and their content providers.

Who needs who?

Media Center is hardly the platform it should be, and DIRECTV might have misevaluated the commercial need of such a tuner.  It is also possible that their DIRECT2PC, TiVo partnership, and their own Multi-room Viewing features could be playing into things (along with the economy).

Microsoft has no leverage here.  They have a platform that hasn’t lived up to expectations of any market and they have to be pleading with broadcaster providers to help them save their platform.

Maybe DIRECTV has come to the conclusion that there focus should be elsewhere.  Of course, if it turns out that DIRECTV was not prepared to ship with the TV Pack this is a godsend for us users.  I want a stable platform, and with DIRECTV in charge of hardware/drivers for this they need to have their heart in the game before I want to play.

Ben argues that DIRECTV only released a statement because they want to downplay expectations about the tuner.  I don’t follow the concept because DIRECTV has no visible reason to do any sort of damage control.  This is where Microsoft should have stepped in, but alas has failed to do.  When/if Microsoft makes a statement (which they need to), it will likely be very simple and there is a good chance it will not mention DIRECTV by name.

As far as I know, Microsoft’s framework is done for third parties to integrate DVB-S tuners into Media Center.  What third parties (eg. DIRECTV) do at that point is largely up to them.  The only thing I’ve been told by Microsoft is that when two companies are involved they can’t say anything.  NDAs are play there just as they would be in any business partnership.

Bottom Line

I firmly believe both companies at a fault, but Microsoft will always take the most abuse because they can’t seem to conjure up a good Media Center release.  This is not DIRECTVs platform falling apart before our eyes, it is Microsoft’s.

Given that I think the framework is there, we might see other providers step up to the plate and offer solutions.  I strongly suspect others have like projects in development, but then again so does did DIRECTV, so I guess we have to wait for an official word at this point.

Cross Posted from Chris Lanier's Blog at http://msmvps.com/blogs/chrisl/

Comments

 

eguess said:

This was probably the only product that could have gotten me to switch to DirecTV.
December 14, 2008 10:17 AM
 

Zarb said:

Chris, great summary of the events to date.  I have a xps420 cable card set up and I am mostly happy with it, so on the surface this does not directly affect me.  But...As a business model, DIRECTV has used exclusive deals to try and advance its market share.  A easy example of this is the Sunday Ticket but also (I believe) the old/original deal with TiVo has some exclusivity on both sides.  So, how far of a stretch would it be for DIRECTV to "Suspend" development of the VMC tuner, keeping the possibility of reviving it alive (so they could use it as leverage), while they tried to negotiate a deal to be the exclusive provider within the Apple ecosystem.  The, to date, limited penetration of the Microsoft OCUR systems has given DIRECTV the liberty to take this path, as in the short term they do not have much downside risk in not offering a VMC solution, but could have a lot to gain given Apple's success in a more CE type ecosystem.  While not as big a disappointment as that first motoROKR phone that was able to play iTunes songs, the AppleTV has not exactly been a big success to date.  So why not follow a similar path as the iPhone and partner with an industry leader who can help sell and install your hardware.
December 14, 2008 11:36 AM
 

flamingwoodchuck said:

Major bummer.  The wheels always seem to fall of the wagon when ANY media distributor is asked to provide new ways of accessing their media, and they perceive it as being a threat to future revenues (either by losing business, or by removing a way to expand their business).   Think MPAA, RIAA, and even cable television.   The later was forced to make their media available by the FCC.

The free market economy doesn't seem to be working for the consumer in these cases.
December 14, 2008 11:38 AM
 

ghostlobster said:

Chris,
Great summary.  You know my stance on this issue is that I lay it about 85% at MS' feet, but there is certainly something fishy happening in the DTV camp.  The fact that this announcement is so close to the one about DTV pretty much freezing everything and sending up other flairs associated with a financial disaster, this could certainly fall under the 'convenient excuse' catagory.
I would really like to find an excuse to move back to Windows Media Center, honestly, I would.  HD-PVR support might be enough, but without the h.264 groundwork in place, I don't see that happening, and of course, the pressure from the content providers would never allow for full blown MC support of such an open device anyway.  However, I was really hoping for integrated DTV support.  Oh well...I guess it'll just be SageTV running on Linux with Mac and Linux clients for me.
December 14, 2008 1:53 PM
 

DonTHB said:

I don't think you took a far enough step backward.

Looking at the industry as a whole (CE , cable, satellite, broadcast and even radio) the question should be: why haven't they come up with a tuning protocol that would allow many different devices to communicate with tuners of all kinds? Before any one starts talking of 20/20 hindsight I want mention that earlier something similar was fleshed out for Digital VHS many years ago.

In this scenario the digital VCR is connected to the Display device and also an STB  by daisy chaining 1394a. This protocol also had a form of DRM which provided for moving media among devices. What is interesting is that this protocol has been expanded to support USB and ethernet and is intended to support 1394 fiber. This was a fairly complete solution because the display's remote was used to program and interact with all devices through IR to the display and 1394a cables thereafter. Interactive services, however, may require a complete reworking of the protocol.

Now with digital displays becoming common place much of the video decoding can be done in the display or AV receiver resulting in very simple  STBs with just one cable in and one cable out.  And these STBes can be as proprietary as the service providers' wish behind a common tuning/control/interactivity protocol. With a standard mount (VESA has managed to standardize one for LCDs) this simple tuner can be mounted to hide behind a flat screen TV or AV Receiver.

With the consumer electronics industry moving to provide multi-brand component integration using HDMI, I think that fingers must be pointed at the satellite and cable industries.

This explains in part why AMD sold off their ATi media chipset group and why Microsoft is emphasizing the Internet delivery of content.
December 14, 2008 7:09 PM
 

KungFu_Toe said:

I personally believe that the content providers got wind of the tuner and threatened DIRECTV.  If they were forced to lock their tuner to Cable Labs approved OEM systems, like CableCard, DIRECTV may see the tuner as a unprofitable dead end.
December 15, 2008 6:03 PM
 

HT Slider said:

Great summary Chris.

I think the biggest problem is the fact that Media Center has not taken off in the consumer market.  DirecTV doesn't "need" Media Center and only if Media Center is pulling market share from DirecTV to Cable would they feel supporting it makes sense.

Why hasn't Media Center taken off though.  Here I place the blame squarely on Microsoft for failing to recognise what the market wants (HD, networking, & portable media players).  They should have aggressively pursued absolutely every HD source available.

At this point, if Microsoft doesn't immediately figure out how to bring additional HD sources into Media Center, the product as a whole is going to die a miserable death.

Has the momentum gone completely?  Are the 3rd party Media Center Extender manufacturers going to pull out of the market?  Is Media Center about to be pulled from Windows 7?
December 16, 2008 5:00 PM
 

alemis said:

Chris, have you heard any talk about a Media Center plug-in that will utilize the Direct2PC functionality?  If I could use that with my Xbox360s, that would lessen the blow of this greatly.  
December 18, 2008 3:24 PM


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