Video services

Startup Pitches Android Set-Tops to MSOs

Dyyno Inc. is pitching cable providers on a pre-integrated TV Everywhere system that can stream on-demand content (think Netflix Inc. (Nasdaq: NFLX)) and live TV for which the service provider has rights.

As part of the strategy, Dyyno, a three-year-old company based in Palo Alto, Calif., is also looking to help MSOs fill TV Everywhere gaps not already occupied by CNN, ESPN, HBO and other national cable programmers that have built their own apps.

Dyyno claims its system already supports a bunch of platforms and operating systems: iOS, the Amazon Kindle Fire, Samsung Corp. 's Galaxy Tab and Smart TV platform, Roku Inc. boxes, BlackBerry, PCs and Macs.

But what's unique, at least for the U.S., is that Dyyno is also running on Android set-tops made by Geniatech Inc. of China. The hope is that MSOs can use the devices as integrated companion boxes to deliver local channels and broadband apps via the HDMI port. Those Android boxes can be had for $60 or less, CEO Raj Jaswa says.

A sizable piece of the underlying infrastructure puzzle involves partnerships, with Dyyno using Level 3 Communications Inc. (NYSE: LVLT) as its content distribution network (CDN) and Amazon.com Inc. (Nasdaq: AMZN)'s S3 (Simple Storage Service) for cloud storage, Jaswa says. Dyyno has its own software-based encoder but doesn't care if the customer uses gear from another vendor. It'll also integrate with the service provider's choice of digital rights management (DRM) and billing systems.

Dyyno got its start by helping programmers with niche and ethnic content (who knew USA Table Tennis, one of Dyyno's customers, has its own channel?) deliver video directly to consumers over broadband and by working with broadband-based virtual MSOs.

It's now turning its attention to more traditional pay-TV service providers. Jaswa says Dyyno is in discussions with about a dozen U.S. MSOs and will be pitching its wares at The Cable Show, set for May 21-23 in Boston.

Although major MSOs like Comcast Corp. (Nasdaq: CMCSA, CMCSK) are building TV Everywhere largely from the ground up, Tier 2/3 MSOs will likely be looking for technology and integration partners. Jaswa says Dyyno has presented its ideas to the National Cable Television Cooperative Inc. (NCTC) , a group that caters to independent cable operators and is working on multivendor TV Everywhere platform for its MSO members. (See Cable Co-Op Boots Up TV Everywhere Project.)

Dyyno's business model starts with a one-time development fee ranging from $1,995 to $25,000, depending on how many devices the MSO wants to support and how much branding is required on the interfaces and the Android boxes. Dyyno also takes a cut of the monthly revenues.

— Jeff Baumgartner, Site Editor, Light Reading Cable

AESerm 12/5/2012 | 5:35:31 PM
re: Startup Pitches Android Set-Tops to MSOs

As TV Everywhere type offerings rely on increasingly low-cost infrastructure, I wonder if that will pressure anyone (Hulu? Netflix?) or whether the programming rights are still the key.

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