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the connected world supplement special report Supplement sponsored by

In Ericsson's vision of ‘The Networked Society’ it is predicted that by 2020 there will be 50 billion connected devices and of these more than 15 billion are expected to be video enabled. This connectivity will be matched by cloud services that bring ‘anything to everything’. It will transform the expectation by consumers that having ownership and storage of assets is critical. They will expect, and become reliant on, their devices being always connected to high-speed and universal broadband access to what interests them and they can now easily share. Simon Frost, head of TV marketing, Ericsson, reports.

TV Anywhere: the game starts now

spurred on by new cloud-based on- demand services and a raft of in-home and mobile devices that are making discovery and connection simpler. Consumers are now thinking in


terms of their overall TV experience and the way they can connect or share their viewing activity with one another. The proliferation of IP- connected devices on the market - especially smaller form factors like smartphones, tablets, and laptops - has bolstered the consumer desire for higher quality and personalised TV services that are specifically designed to work on individual devices to provide the right level of viewing experience, whether you are ‘snacking’ on sports updates on the move, watching the latest movie trailers on your smartphone or catching up with last night’s edition of your favourite soap on the train. As consumers look for new ways to

integrate TV and video into their social and personal lifestyles, the role of television is evolving and advancing beyond the confines of the living

e see this influence starting within the TV landscape. Consumers are controlling the way they access content,

Simon Frost, head of TV marketing, Ericsson.

room. The Internet is already considered to be an experience and not a network or a technology. And if TV is to continue to be a premium experience worth paying for, content owners and TV service providers need to find ways to innovate, deliver and unify the experience across multiple platforms and to multiple screens.

The evolution of TV consumption

Services like Spotify are transforming the need to buy or even download a CD. If the subscription fee is set correctly, consumers’ perception of being able to access any content outweighs the value of ownership. We shall see this trend shape TV, spelling a business model influenced by convenience. Consumers will increasingly understand the value of their time and relevance to their desires, and the services that address this best will secure greater revenues through subscriber migration and higher ARPU. Intertwined with a convenience-

centric future is one of experience, and perceived quality. TV has always been synonymous with a quality experience. This has been derived from the relevance of the content as

S20 l ibe l the connected world supplement september/october 2012 l

well as the quality of the presentation on ever better screens. Our research shows that consumers understand and are willing to pay for quality. However, the new benchmark for experience is this content quality intertwined with that of social recommendation, search, discovery, interaction and overall presentation. Consumer expectation is being raised in this area by so many influences. Many of these are outside the traditional TV space: companies like Apple, Google and Amazon. All of this spells a great deal of

change for content owners and TV service providers. The speed of innovation, willingness to try new service types and features will define their success in the future. The industry is calling this multi-screen TV, but there is considerable agility, insight and a pioneering spirit needed within this label to understand how to succeed. Unfortunately for most TV service

providers, many of the platforms, technologies and systems they have for a TV solution today will need considerable adaptation or even replacement in order to be built-ready for the explosion in complexity and scale for the future. Platform and service agility will be crucial.

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