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special report the connected world supplement


industries be branded as going through a transformation. Mobile devices 2012 are totally different from what they were in 2002. At the same time, the TV screen


market has gone through a similar revolution over the past 10 years. In 2002, the market was still dominated by CRT TVs and a 32’’ flat screen TV was easily a consumer investment of up to 2000 Euros. 10 years later, a much better and 50% larger screen, with advanced Smart TV features can be found for a third of the price. If this trend were to continue unabated, we would be able to buy an 80’’ TV for 250 Euros in 10 years from now. This speed of technical innovation is unparalleled by any other consumer technology over the last 50 years.


Let every device do what it does best


It is clear that the rapid innovation we have seen in the mobile and TV industries has led to the emergence of new consumer opportunities. Broadcasters, operators and content providers have been flocking to the new platforms offering applications and content, fuelling innovation and the change of the consumer experience over the past couple of years. Stand-alone applications on the


tablet or phone offer an attractive user experience, with an intuitive touch screen user experience and personalisation features which are integrated into the platform. However, video playback via a handheld device is fine for personal use on the move, but is less than optimal in the living room. Over the past year we have seen


the introduction of TV applications on a number of TV devices. These applications display video in amazing quality on the modern TV screens of today. However, discoverability and searchability in the user experience with a remote control is sub-optimal. Fundamentally, the interaction paradigm of the TV is the same as it was 10-15 years ago, while the TVs themselves have been revolutionised.


True companion applications


The real opportunity in this market is to offer a consumer experience, where consumers can use the tablet for an attractive interaction experience and the TV for community


watching on a truly compelling video experience. The technology for this device pairing is available from Accedo and other vendors, and over the coming 2-3 years, we believe that this will be rapidly rolled out in the market. Accedo sees two types of true


companion applications. Firstly, and the first one to hit the market, is the service companion application. This is an application which is supplied by a pay-TV operator or a VOD service provider. The application connects the TV device to the mobile device and allows for full control over the TV experience via the second screen application. The consumer can, in addition to standard remote control functionalities, also browse programme guides and content categories, view trailers, plan recordings, and engage with other consumers via social media. Secondly, we have the content companion application. This application, which is normally offered by a TV channel or a content provider, will offer an enhanced experience to consumers watching the broadcast channel. It will provide contextual added value to loyal consumers instead of directing them from the first screen experience. With clever consumer engagement strategies, it is possible to build programme and channel loyalty, while giving consumers additional value in exchange.


Industry rationale


The TV channels and the TV operators control the TV industry. Both of them face significant challenges and want to use second screen applications to be able to overcome these challenges. Pay TV operators will always need to justify the consumer subscription


The real opportunity in this market is to offer a consumer experience, where consumers can use the tablet for an attractive interaction experience and the TV for community watching on a truly compelling video experience. The technology for this device pairing is available from Accedo and other vendors, and over the coming 2-3 years, we believe that this will be rapidly rolled out in the market.


fees. Historically, they have always used superior content for this, but with the increased competition from OTT services and other operators, there is a constant downward pressure on the margins. By providing the best second screen experience, innovative pay TV operators will be able to better compete in the marketplace. TV channels worry about dilution of


their brand, with consumers increasingly searching for the best content instead of engaging with the TV channel brand. To counter this, TV channels are trying to get consumers to engage with them directly via catch-up services and branded applications. Of course, by providing possibilities for consumers to control and interact with the main TV experience from a second screen, it is possible for TV channels to keep consumers loyal. Every minute of additional consumer interaction with the TV will lead to more revenues for them.


Endless innovation possibilities


The TV and mobile experiences have changed over the last five years. For us at Accedo, it is apparent that we will see continued innovation in this area. An integrated first and second screen experience is possible today and operators and broadcasters will roll out the first truly converged applications. We expect other types of companies going down the route of providing a converged experience. Many mobile apps contain online videos, which would make sense to play on the big TV screen instead of on the small mobile screen. The opportunities for providing new TV experiences have never been better.


www.ibeweb.com l the connected world supplement september/october 2012 l ibe l S25


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