The cycle that surrounds announcements of big news in any industry is pretty fascinating, but the one that surrounds the OTT segment is more unique than many. It generally works something like this:

Someone who knows someone who's close to someone in a company (or even a supplier) hears a rumor about a new product/service/device that's in the works. That rumor begins to spread (somewhat like the Breck shampoo commercial: And they tell two people, and they tell two people, and so on...) until it gains enough critical mass to reach blogable status, then it's in several more blogs and then, viola, it's news.

What's interesting is that, more often than not, the rumor turns out to be true, at which point it's examined from every side, judgments are made about its value in the ecosystem, and then the truly critical (and I do mean critical) analysis really begins. That's the point where anyone who can say, "Nah, it's not going to work," does so. And the cycle goes on.

Apple TV, Google TV, and Amazon's latest foray into over-the-top delivery of video content are prime examples of the cycle. Right now, they're in the "Nah, it can't work phase" for all three.

Apple's rental-only mode for content from Fox and Disney turns off users who want to actually have a few TBs of content stored at home that they own. Conversely, Amazon's play, which allows users to purchase content, is being criticized for its lack of recent content. And, poor Google TV can't get any content to play with at all.

But, as Teddy Roosevelt once said, "it's not the critics who count... not the ones who point out where the doer of deeds could have done better," it's all about, in this case, the consumer.

Analyst Paul Erickson, of IMS Research, says Apple's facing a heck of a battle, and he predicts woe for Apple TV, saying the price reduction for the device (to $99 from $200) and new content options may not be enough to get it to the same level as Blu-ray players, game consoles and the new generation of connected TVs that are on their way to market, adding that the Apple device may be too simple and not versatile enough.

"Apple TV faces the strongest competitive environment for over-the-top video to date," he said. "It does not seem to address a sufficient enough value gap in the market to entice consumers, due to the similar functionality that is already integrated into the Blu-ray Disc players, game consoles, and connected TVs they've already bought or are buying today."

So, will any of the services find traction at home, in the living room?

Netflix certainly has; its 15 million subscribers, the majority of whom stream content, have made it pretty plain that they like to have unlimited access to all the content they can get their hands on. To a lesser, but still impressive extent, so has Hulu, which has been water cooler conversation among younger users since it launched.

The New York Times this weekend wrote about some of the obstacles facing Apple TV, rivals primarily, and the lack of consumer education about Internet TV. It also made an off-hand comment about how the iPod, introduced in 2001, initially didn't do well because it was too Applecentric. Today, it's changed the entire music industry.

Google TV, Apple TV, Netflix, Amazon TV and Hulu (and yes, Boxee and Roku, too) all will have a hand in changing the pay-TV industry. How are you going to make that work for you? -Jim

Russian pay-TV provider CityHomeNet has selected Irdeto's Conditional Access System to help it transition from analog to DTV services.

CityHomeNet says the CAS will protect its Direct to Home (DTH) Satellite Digital Video Broadcast services as the operator works to attract a growing number of subscribers to its digital TV services with added high-definition and premium channels.

The solution has been implemented within NMSK, a service subsidiary of CityHomeNet, which provides Internet, digital and cable TV in Novosibirsk.  

Russia's pay-TV market is growing rapidly. Discovery Research estimates there were 18.5 million pay-TV subscribers in mid-2009, while the market grew by 15 percent last year and was worth just over $1 billion.

Co-headquartered in Amsterdam and Beijing, Irdeto employs more than 800 people in 25 locations around the world. It is a subsidiary of multinational media group Naspers.

For more:
- see this release

German telco Deutsche Telekom is adding another dimension to its IPTV platform, offering subscribers of its Entertain TV service the opportunity to rent 3D movies from its Videoload store and watch one soccer game each Sunday from Germany's top professional league, the Federal League, in 3D as well. All they need is a Telekom VDSL line and, obviously, a 3D television.

Viewers can scan the Videoload listings for 3D movie highlights from Warner Bros. and Sony Pictures, or download a 3D movie with a 24-hour window in which to watch it.

Telekom said its Entertain media receiver already is capable of processing 3D signals and won't require any upgrades.

"With this step, we highlight Deutsche Telekom's innovative strength and once again impressively demonstrate the future-proof nature of Entertain," said Christian P. Illek, MD of Marketing for DT.

DT has been dabbling in 3D transmission since November 2009, when it successfully transmitted a 3D signal successfully via the existing DSL network. In April 2010, 3D content was presented for the first time via Entertain at the University of Bonn. One month later, a major sporting event was broadcast in 3D for the first time: the opening game of the 2010 IIHF World Championship in Germany was shown on Entertain.

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Video-on-demand technology specialist SeaChange International's second quarter results missed analysts' projections, and the company's forecast for upcoming quarters did little to ease the disappointment on Wall Street, which reacted by pushing SeaChange shares down 16 percent in extended trading.

The company showed improvement with $3.5 million in revenue in Q2, up from a loss of $376,000 in the like quarter a year ago. The 11-cent EPS missed analyst expectations of 13-cents per share for the quarter. Revenue was up, largely as the result of recent acquisitions, to $51.6 million for the quarter. The company revised its revenue forecast for the year downward to $215 million to $220 million from $225 million to $235 million. Third quarter earnings had been expected to reach $59 million, or 17 cents per share, but the company forecasts revenues in the range of $50 million to $53 million, or 7 to 10 cents per share.

SeaChange said its revenue from its server and storage division was down about 13 percent to $10.3 million from a year ago, and forecast saw continued weakness through the end of the year. On a brighter note, the company said software sales for VOD services were doing well, with its media services earning revenue of $7.1 million.

In March, COO and president Ed Dundar left the company after the company posted a 99 percent drop in profit for the quarter compared to a year earlier. Chief strategy officer Yvette Kanouff moved into the president's seat.

For more:
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Asian pay-TV operators says IPTV and 3D television offer the best untapped opportunities for growth as high-definition television's share of the market continues to grow, telling Global Intelligence Alliance that the newer technologies will give operators a chance to differentiate offerings in the region.

GIA polled 35 pay-TV operators in 14 countries in the Asia-Pacific region and found that many are looking towards new technologies including video-on-demand, 3D TV, direct-to-home IPTV and new platforms for future subscriber growth and greater revenues--more than 50 percent already offer HDTV.

Over-the-top content delivery is seen as a threat, the survey found, as piracy is a major concern in the region.

Surprisingly, the group was less than overwhelmed by mobile TV as well.

Much of the concern, said survey partner, ContentAsia, was with the available revenue models.

"Many say they don't expect digital revenues to come anywhere near their traditional revenue in the next three to five years. That doesn't mean they aren't moving in that direction though. The digital question of the moment, then, is about balance--or, specifically, how far and fast to move into the future without jeopardizing today's business," said Janine Stein, of ContentAsia.

For more:
- see this release