Could Comcast Build an App Store?

Written by Ryan Lawler

Tuesday, April 21. 2009 at 06:00 PM EDT 3 comments

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By embedding Adobe Systems Inc. (Nasdaq: ADBE)'s Flash on customer set-top boxes, Comcast Corp. (Nasdaq: CMCSA, CMCSK) could enable third-party developers to build applications for its set-top boxes -- which could even pave the way for an iPhone-like application store.

When Comcast announced that it would be demoing a tru2Way-based set-top box embedded with Flash technology at the National Association of Broadcasters (NAB) show in Las Vegas, many assumed that the company would be using the technology to deliver broadband video to its set-top boxes.

But Comcast has other ideas for the technology, according to Sree Kotay, senior vice president and chief software architect for the cable company. Included in those plans is a development platform that could enable widgets and other Flash-based applications.

"Flash establishes a software platform that we can add features to more quickly, which could turn our set-top boxes into more robust applications platforms," Kotay says. According to him, that could include not just applications built by Comcast and its content partners, but also independent third-party developers.

"We think it will enable us to deliver a whole set of applications," he says.

But while Comcast could enable third-party developers to build applications for its set-top boxes, the company (predictably) would want to maintain control over which apps would make it to the end user. In such a scenario, Flash developers could submit their applications, which Comcast would review -- much the same way that Apple reviews applications for its iPhone app store.

"We want to make it open, but we also want to make sure we have the right levers to control the user experience," Kotay says. "Apple set a good precedent for this with how they implemented their app store."

Not only could Comcast's adoption of Flash provide a platform for third parties to develop on its set-top boxes, it could also provide an easy way for developers to make money off of those apps. Because Comcast controls the billing systems for its set-tops, it could enable one-click purchasing of Flash apps in the same way users purchase pay-per-view videos.

Kotay wouldn't comment on whether or not Comcast would offer the monetization scheme for Flash developers, but he did say, "In broad terms, we think that one of the smart things Apple did was in providing a monetization platform for developers."

While Flash certainly could provide an enabling technology for set-top box app development, Kotay says there is still a long way to go before the platform and business model is mature.

"Getting the technology platforms in place is Step 1 and building the business models will come later." Besides, he says, "It's going to be a little while before we see Flash on a set-top box from Comcast."