Viaccess-Orca recently posted a thought piece on their company blog, about Apple and Microsoft shaking things up in the OTT video world. It ended with the question: “Who will dominate the living room?” Given the success of the Xbox and Xbox LIVE, versus Apple’s currently serviceable but functionally lackluster entry in the TV category, my immediate reaction was “Microsoft,” but on further reflection, I have to say “leaning toward Apple, but Android is a contender too.”

Now that Microsoft is leaving the TV infrastructure business (Mediaroom), they are on a more even footing with Apple. Both companies have content ecosystems that are tied with their devices and with the cloud. Both have vulnerabilities. While Apple has been absent in the game category, Microsoft has stumbled in two very strategic device categories (ceding the smartphone and tablet categories to others, not to mention its current challenges with Windows).

If revenue is your measure of success, Xbox has sold more units than Apple TV, but Apple has a clear advantage in content revenue. According to researcher NPD Group, Apple iTunes has 65% and 67% of online movie and TV content unit sales, respectively, compared with Microsoft Xbox Video at 10% and 14%.

Usability is a key to the living room and design will make all the difference. The old adage about Web design still counts: more than two clicks and you’ve failed. Usability has always been an Apple hallmark, but as Viaccess-Orca’s article pointed out, Microsoft offers speech and motion control (and what’s next for Siri?). Apple has Airplay but Microsoft has SmartGlass.

The dark horse in this race is Android because third party developers have more of a say on the user experience. Android offers more control over the conventions of interactivity, while Apple and Microsoft have hard-and-fast user interface rules. Whether device companies (Samsung comes to mind) can deliver on that premise remains an open question.

PS: I’m surprised that Viaccess-Orca resisted the temptation to offer their own opinions about winning the living room, being developers in that space themselves, with a five million user living laboratory through Orange (France Telecom).

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