The iTV Doctor Is In!: Orb CEO, Joe Costello, on Orb TV

Dear iTV Doctor:

I'm reading about Comcast, Verizon, AT&T and DirecTV bringing Internet-enabled set-top boxes to the market. And while that's great for new subscribers, or for those who are upgrading their services, that still leaves millions of subscribers with old unconnected equipment. If we believe that a combination of broadband content and MPEG video is one of the ways to accelerate deployment of interactive television, there must be a way to retrofit all those existing homes. Does anybody have the answer?
 
Impatient in Illinois


Dear Impatient:

Well, you've hit the nail on the head. In spite of the fact that the hybrid (broadband/video) boxes are getting into the market at a rapid pace, it will still be years before the hybrids comprise a significant base that appeals to both programmers and advertisers. Until that time, the hybrid box becomes part of a complex iTV deployment strategy that includes cable EBIF, satellite native, three-flavor hybrid (cable/telco/satellite) and a vast array of connected companion devices (smart phones, tablets, etc). But I spoke to the folks at Orb TV recently, and they have a consumer product that just might make it all work--now. Here's part of my conversation with Orb TV founder and CEO, Joe Costello:

iTV Doctor: Joe, thanks for taking the time to talk to us. It looks like you've been working on related concepts and products for quite a while now, including Orb Networks. How did Orb Networks turn into Orb TV?

Costello: Orb Networks spun out of an incubator that I ran about a decade ago, focused on technologies that could transform education. We spun off four companies--three were education-oriented, plus Orb. We had been trying to figure out how to use interactive television for education. The problem, of course, was that the infrastructure for iTV was terrible in 2001. And even our techs said it was impossible through that existing environment. But we knew we could develop a great interactive television experience, using a personal network operating system that was separate from the cable set-top box environment.

For a few years, we tried to engage with distributors and content providers, and we even looked at creating a consumer-facing company to go it alone. Everybody was talking about the connected home, but the numbers weren't there. That was the digital home problem: Convergence in 2006 was "right around the corner," and every year since, it's been just around the corner. At the end of 2009, 98% of people's TV's and stereos did not have a digital connection and you can't have a digital home if the vast majority of consumer devices aren't connected! And for 2010, even though 35% of new consumer devices are CAPABLE of being digitally connected, only 5% will actually do it.

95% of the NEW devices aren't connected, not to mention all the old devices. So we're still not solving the problem.

We decided whatever we did needed to be packaged in a way consumers could understand and get their arms around. I tried the initial version out on my teenage kids, and even they couldn't figure it out! The problem was we needed systems integration in the home to get it going. We decided to do what Apple does--to build a great, complete solution (hardware and software) that is easy to use and easy to understand. In 2009 we picked a target spot--the consumer's digital home--and built a hardware/software solution that would connect everything in a really novel way that is digestible for the average consumer. We figured the skill level should be "iPod"--if you can use an iPod, you can use Orb. (iTV Doctor's note: Connecting this stuff is a BIG deal: I just spent a couple hours at the local Best Buy, and discovered even a Geek Squad member couldn't figure out how to make Google TV deliver all the advertised functions when connected to a cable set-top box...)

We need to find a way to simply and easily allow people to connect all this--the existing infrastructure of TV's and stereos--and then control it all. And look at the devices current in the market, including the Blu-ray player: their IR remotes aren't up to the task--we just don't know how to control this incredible selection of content and media. You must have a smarter, richer device to solve the problem. The Orb Music Player solves the problem for the audio side, and the Orb TV device can solve the problem and retrofit any television easily and inexpensively and turn it into a true, full member of your digital home without buying a new expensive TV (that won't get connected right anyway!). A small 3+ inch device that's very elegant--women look at it and say, "Wow, this is cute!"

You control it with any smart device: iPad, iPhone, Android--any smart device will get the job done today; also PC's and Macs. You use your companion device, and instead of seeing just the content stored on that device, you see the consolidated image of all your content and all your services: Netflix, Pandora, Hulu--it doesn't make any difference on the content side. You pick your content, pick your screen, and zoom! you're ready to go. The number-one request from consumers is to deliver premium Internet content where THEY want to see it. So you go into search, type in your favorite show, and there's the show--pick the season, pick the show, hit play and you're off and rolling. That's what we are all about: Simple, affordable digital home solutions to the consumer so they can unlock all of that stuff with the full promise of digital media that it can be played on any device.

iTV Doctor: OK, that's wonderful. Here's a question: In terms of the actual functionality, what do you call the hockey puck?

Costello: That's Orb TV.

iTVDoctor: What's the service called? Or is it a service?

Costello: It's not really a service--we have an app that downloads to your smart phone (from the Android Market, or the iPhone App Store), a free Orb controller application. On your PC or Mac you download "Orb Caster" which does all the control functions on your home network.
 
iTV Doctor: In simple terms, I am in my house, receiving this content first through my PC, and then using that as a media server to get it over to Orb TV so it plays on my television set, right?

Costello: That is the simplest way to say it, and the underpinnings are a bit more elegant. In the personal network operating system, the software that runs on the PC or Mac is actually a bunch of programs put together into what we call "Orb Caster." The primary function is a traffic controller as opposed to a classic media server. It's keeping track of all the things in your personal network and makes sure they are all working together. And everything doesn't have to go through the PC--it can be a peer-to-peer network connection. You have the Orb Caster traffic cop, making sure there are no collisions. But it can go directly through to the viewing screen.

iTV Doctor: Everything you've talked about is pre-recorded. How can I watch live content tonight? Can I watch what's on CBS tonight at 9:00PM?

Costello: The focus of Orb TV was freeing up what's online. What you describe is Orb Live, which enables you to consume all your digital content remotely. The number-one use case for that is watching live TV remotely, but that requires that people have a PC turner card at home as the source of the content. That would also work in your local area network. We don't push on that, but you can certainly do that.

iTV Doctor: But Joe, the number of people using TV turner cards is infinitesimally low (in spite of the work by Ed Graczyk and the folks at Ceton).

Costello: That's why our main thrust is the online TV content--"the DVR in the sky"--with Orb TV.

iTV Doctor: Let's talk about going to market. I don't see you striking a deal with Best Buy. That doesn't seem to be a path to rapid deployment. But I could see you striking a deal with MTV and painting a picture of Snooki on your device and selling it to "Jersey Shore" fans.

Costello: The Best Buy guys love our products, but it's incredibly capital intensive to go down that consumer electronics path.

iTV Doctor: Let me ask this question: With your Orb device, I'm now watching a broadcast show through Comcast or Verizon (or whomever). Is there something that you see coming from Orb that would allow me to complete the path between some cloud-based interactivity and connect that with the experience on TV? Today while I'm watching "Fringe," I can pick up my device, go to Fox.com, and search around for
related content. 15 clicks and I'm there, but the show is probably over. What I want to do is watch "Fringe" on my local cable channel, and while I'm watching, some device pings my smart phone and tells me to
"click here for some very cool stuff about the show I'm watching night now." Do you have something like that in the works?

Costello: The underlying technology from Orb--the personal operating system--is designed to do just that. And we're working with our partners to build it out.

iTV Doctor: I understand why you don't want to name those partners, but when you're ready to go public, let's make sure the iTV Doctor's readers hear about it first!

Costello: You can count on it!

===

The iTV Doctor is Rick Howe, who provides interactive television consulting services to programmers and advertisers. He is the recipient of a CTAM Tami Award for retention marketing and this year was nominated to Cable Pioneers. He is also the co-author of a patent for the use of multiscreen mosaics in EPG's. Endorsed by top cable and satellite distributors, "Dr" Howe still makes house calls, and the first visit is always free. His services include product development, distribution strategy and the development of low-cost interactive applications for rapid deployment across all platforms. Have a question for the iTV Doctor? Email him at itvdoctor@itvt.com