Six Questions: Netgear's Damir Skripic

1 Nov, 2010 By: Erik Gruenwedel

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When Netgear Oct. 26 bowed a branded media player manufactured by Roku Inc., it represented a win-win situation for two companies seeking a foothold in digital distribution of entertainment via the Internet (Netgear) and at the nationwide retail level (Roku). Already a familiar brand at more than 27,000 consumer electronics retailers, Netgear, which was founded in 1996, markets wireless routers, adapters, broadband storage devices, cables, modems, Internet connections and related home theater devices.

Instead of reinventing the media player, Netgear used Roku’s new OEM licensing software and hardware platform to manufacture and market the $89.99 high-definition player. Home Media Magazine asked Damir Skripic, product manager, connected entertainment, about the future for media players.

HM: With increasing numbers of TV manufacturers including Internet access, how can media players differentiate themselves as a more cost-effective alternative?

Skripic: The set-top box market continues to be sizable when you consider the millions of non-Internet-ready high-definition TVs that have been sold in the past five years, as well as models without Internet access sold today. As the popularity of Internet streaming content grows, set-top boxes like [our player] will continue to differentiate by providing greater entertainment choices [85 channels and 50 content partners].  Also when you consider the cost to upgrade to the latest Internet-ready HDTV can be well over $1,000, and a Netgear Roku player is available for under $100, the cost-effectiveness becomes even clearer.
                                                                                 
HM: Why was it important to partner with Roku instead of marketing your own media player? What does Netgear offer Roku?

Skripic: Our expertise in high-performance and reliable wireless connectivity paired with Roku’s platform and Internet video channels leverages both companies’ expertise and brand strength. While Roku players have been available online either direct from Roku or at Amazon.com, the partnership with Roku now allows consumers to buy a Netgear player for the first time at nationwide retail outlets. This includes major consumer electronics stores like Best Buy, Radio Shack, Fry’s and online at Amazon.com and Buy.com. It also fits in perfectly with the family of other Netgear NeoTV HD media players that focus on the playback of consumers’ own digital media collections, including music.

HM: How does the CE industry communicate Internet connectivity to the living room TV to the mainstream consumer?

Skripic: The mainstream consumer is not just interested in connecting their TV to the Internet, but more importantly, in watching the entertainment they enjoy from the Web. So we need to communicate what content consumers can access and also know and love. Our player offers over 85 entertainment options, including some of the most popular, like Netflix, Amazon VOD, Pandora and Facebook photos. 

In addition customers expect simplicity when it comes to their TV. To address the need for ease of making an Internet connection to the TV, Netgear has developed an AV Series of performance products. We communicate not just the how, but why, consumers may wish to use one connectivity solution over another, making it easier for customers to connect their Internet-ready TVs, media players, Blu-ray players, game consoles and IP set-top boxes to the Internet.

HM: Will consumers eventually disconnect from their cable/satellite providers for access to lower-cost repurposed entertainment? Is so-called “cord-cutting” a reality or misguided hype?

Skripic: It is becoming more evident that cost-sensitive consumers are choosing the Internet as a method to access and watch their favorite entertainment. For those consumers who find all the entertainment they enjoy is available to them via the Web and/or via broadcast TV, then the reality is some are already “cord-cutting.” Products like our media player and Netgear Push2TV certainly make it easier for consumers to enjoy their favorite web content on their HDTV. 

HM: Roku has more content channels than any other player. Would you ever solicit original programming for its player?

Skripic: We will continue to partner with Roku for their lineup of entertainment options as they build on their success in attracting popular Internet channels to the platform. We do not have plans to solicit original programming specifically for our player.

HM: Is the key to offer transactional video-on-demand (VOD) content or subscription based streaming such as Netflix? Would you ever consider cross-promoting content availability via packaged media, i.e. Blu-ray Disc, which continues to offer the highest resolution? In other words, can media players and packaged media co-exist?

Skripic: Our media player offers a combination of pay-per-view (Amazon VOD) and subscription-based streaming (Netflix), offering the consumer the flexibility to choose the way they want to pay for the content. Both models have been adopted by consumers as shown by the success of Amazon’s pay-per-view and Netflix’s subscription models.

While physical media will continue to be an option, increasingly more streaming media players, like the Netgear Roku player, will offer 1080p HD resolution and support for full surround sound audio matching the features of the Blu-ray Disc. Streaming video from the Internet and other means of direct digital delivery will continue to grow as Internet-to-TV becomes mainstream and better selection and improved quality of Internet content becomes available. In the meantime there is room for packaged and streaming media to co-exist so consumers can enjoy a variety of content from one player.

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