Openivo: An idea for a commercial open source application

[openivo]

Openivo (patent pending) : a managed network of pcs running DVR software financed by directed advertising and e-commerce.

An open source Mythbuntu box for the total non-techie.

The user gets a free-after-rebate computer and free dvr service in return for allowing access to DVR control data (shows recorded, commercials skipped, etc.) and directed advertising (advertising downloaded from the internet based on DVR viewing data and preferences)

The user gets:
A free-after-rebate computer
maybe a free broadband internet connection
maybe $10 to $20 per month in a paypal account
TV commercials directed on the basis of needs and interests.

Openivo gets:
A large rich database of marketing data on shows and commercials watched and skipped.
Advertising revenue.
E-commerce revenue from Amazon items purchased through the system.

The advertisers get:
The ability to target ads according to geographic, demographic, and marketing data.
Commercials with a dramatically higher return on investment.

The open source community get
A new market with many new users.
Financial support from a friendly company.
New systems for remotely managing, patching and upgrading software.
An expanded platform and new market for plug-ins and apps.

What do you think?


Marc Allan Feldman
Director and Owner
Openivo, Inc.

[toupeiro]

Most people love DVR's because they get to bypass advertising, and you want to ingrain it right back in?

Lets put it this way, I wouldn't buy it. For one, I don't REQUIRE an internet connection for my DVR to work today, and if I really wanted something cheap, I'd invest in a legal FTA box and throw my own hard drive on it. I guess I don't see that much incentive, nor do I think you will be at all successful if you are using the words commercial, patent, and mythbuntu in the same context.

Here's what I WOULD consider paying for. a feature rich, heavily discounted FOSS DVR that hooked to the internet and sent advertisers information on what I recorded, skipped and bypassed, but to be advertised through traditional broadcast methods, and NOT back at me via directed broadcasting. I don't mind sharing my statistics, if I want to skip advertisements, I want them skipped!!!! ;) If you want to advertise to me beyond traditional ways, then you offer something a lot more non-traditional. The box becomes free, and you also provide the television programming over the internet.

[openivo]

Most people love DVR's because they get to bypass advertising, and you want to ingrain it right back in?

Lets put it this way, I wouldn't buy it. For one, I don't REQUIRE an internet connection for my DVR to work today, and if I really wanted something cheap, I'd invest in a legal FTA box and throw my own hard drive on it. I guess I don't see that much incentive, nor do I think you will be at all successful if you are using the words commercial, patent, and mythbuntu in the same context.

Here's what I WOULD consider paying for. a feature rich, heavily discounted FOSS DVR that hooked to the internet and sent advertisers information on what I recorded, skipped and bypassed, but to be advertised through traditional broadcast methods, and NOT back at me via directed broadcasting. I don't mind sharing my statistics, if I want to skip advertisements, I want them skipped!!!! ;) If you want to advertise to me beyond traditional ways, then you offer something a lot more non-traditional. The box becomes free, and you also provide the television programming over the internet.

I agree with you and I think the Openivo system will be just as you describe. Directed ads are not pop-ups or banners. They look just like regular commercials. You can Skip/FFW through them just like regular commercials. The difference is that they are tailored to be of interest to the viewer. So if you are enjoying an episode of Seinfeld, you might get a funny commercial about a new comedian (that Seinfeld fans usually like) that is doing a show in your area. Skip it if you want to, but you might really want to check it out.

By participating in this forum I hope:
1. To bounce my ideas off a bunch of smart people.

2. To find at least one skilled developer who shares the vision and is willing to devote time and energy to a cool project for some cash and possible equity in a new business venture, all consistent with the GPL.

The model of Openivo depends on directed advertising, not coerced advertising. There would be no advertising added to any user interface ever. No banners. No pop-ups.

When I think of commercials that you cannot skip/FFW through, I think of that scene from A Clockwork Orange.
http://www.edbott.com/weblog/images/clockwork_orange_small.jpg

The primary market is for people who do not have PC-DVR's or DVRs at all. Compared to watching regular TV, viewers would be seeing fewer commercials, not more.

I would not plan on sending out millions of dollars worth of free hardware. The model would probably be something like $299 with a $50 rebate via paypal at installation and $20 per month rebate with continued use in return for advertising and marketing access.

Marc

Marc Allan Feldman
Director and Owner
Openivo, Inc.

[toupeiro]

I see. Yes, your clarification does put the whole project into a very different perspective for me, but $299? I think you may want to consider a different price point there. Now, I am not saying you should make little to no money on hardware, but if you model this right, then your advertising revenues would more than cover your development costs on the hardware. You are collecting very valuable information for these advertisers, potentially even seconds of watchtime of a commercial which could create a whole new statistic of what grabs people in certain commercials..

Keep in mind a few things:

1) Your competition.

TiVO: Starts at $149, has options like netflix watch-instantly, and is probably still the most well known CableCARD DVR system available, with high-def dual tuner starting at 299 (very hard to build this at such a price)
Cable companies DVR: For a a relatively low price, a person could just add a DVR to their cable package for (in my area) usually an additional 4-6 dollars per month per box, with unlimited free hardware upgrades in between as new boxes come out.
Satellite provider DVR: Dish Network's ViP-722 Dual mode DVR was rated the best DVR of 2008 and for good reason. I have one of these puppies, and there really is no better quality DVR that I've ever seen. The box didn't really cost me anything, but of course, the satellite service is a contract.
FTA/OTA DVR/PVR: This is the equivalent of using your Satellite Dish as a free Over-the-air antenna and picking up any channels you can pick up that are unencrypted, which can literally be thousands. They have PVR/DVR's which record in a non-proprietary format that start around $140.


2) Being FOSS, a lot of the footwork has been done for you. You're not having to code a DVR framework from ground zero so other than the statistical component, which I am not underestimating by saying 1 full time exclusive programmer, or a handful of community programmers part time, you do not have a lot of R&D overhead starting out. DVR's are pretty basic and commonplace from a component standpoint. You should be able to afford to offer such a product cheaper than $299. Ultimately, your revenues will come more from advertising, and you won't encourage the sale of DVR's if your audience learns your basically using free Mythbuntu and your primary content delivery is directed advertising. Price point is your best bet for saturation.


just my .02 I wish you the best of luck!

-T.

[openivo]

Again, you are quite right.
The reason for the initial price is not to make money on hardware, but to prevent purchasers from buying the system then selling the computer or the hard drive for a profit.
Openivo does not want to make a proprietary device. It will be a standard PC with FOSS DVR. The value to the company will be from the use of the network.

Maybe if the system is well received, and demand is high, a $49 price point might work. I am reminded,though, of the MuVo2. At the time it was a $250 mp3 player that had a $400 microdrive in it. Many were purchased and gutted for the drives. I imagine that the Openivo system could not be sold much below cost, but there could be a significant instant paypal rebate at installation, and a monthly rebate with use.

The low price and DVR is just to get it in the door. With an open platform, one could imagine all sorts of add-ons.
Wireless camera on the doorbell shows who is there on the TV, recorded for later viewing if nobody home.
Link to web page for GPS cell phone, shows on a map where the kids are.
Personal pay-per-view, anyone subscriber can upload a video and charge people to see it. Etc., etc.

The biggest thing for me is that it keeps television programming under the control of the viewer. Watch what you want when you want. Commercials only when you want. With the digital conversion, there are many powers-that-be that would want to control everything and make everything pay-per-view. Let's keep the airwaves free.

Marc