Motorola (News - Alert) is in the process of designing a new product that will enable consumers to stream video directly to handheld mobile devices while in their home, Daniel Moloney, president of Motorola Mobility, told reporters on Wednesday.
The yet-to-be-named product will be rolled out at the Consumer Electronics show in January, soon after Motorola's set-top box and cell phone division officially splits off from the rest of the company, according to Reuters.
In the beginning, the product will only be able to be used in the home because the company has yet to clear the legal hurdles involved in streaming content from place to place. Eventually, Motorola will have to come to agreements with service and content providers to enable consumers to use the product outside of the home.
"It's one consumer proposition that will come sooner rather than later," Moloney told the Reuters (News - Alert) Global Media Summit on Wednesday.
He added that the newly-created Motorola Mobility division should generate operating profits of up to 12 percent in the next three to five years, depending upon the success of the soon-to-be-launched device.
While streaming video to mobile devices is not a new phenomenon, Motorola's upcoming offering should change the market slightly. As of now, the only way that consumers can stream video is by signing up for a service such as Netflix. In January, Motorola will allow customers to buy its product from a service provider and not have to worry about monthly subscriptions.
In related news, Motorola Mobility has agreed to purchase 4Home (News - Alert), a small, privately-held technology provider that enables consumers to control home security and energy management gadgets using just their cell phone, according to Reuters. Moloney expects the deal to be finalized before Motorola Mobility splits off from the rest of the company in early 2011.
Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.
Edited by Tammy Wolf