Where will the connected TV market be in 6-12 months? I expect all major broadcasters to launch VOD or related services and to have a stake in a connected TV platform. There is a need, though, for greater consumer awareness, so that consumers do, in fact, connect devices to the internet. This will happen with more
compelling second screen equity which will demand interaction. The smart experience inherent in TV devices will simply be a richer experience than that of a conven- tional TV experience. Viewers will begin to feel they are missing out unless they are connected.
How can CE vendors justify revenue share with content owners? It is in the interests of a TV manufacturer to ensure the business model is sustainable. Manufacturers make beautiful displays but we are also providing a platform that allows content providers to create incre- mental reach. There’s a win-win opportunity for device makers and content apps providers. The discussion should not be about how much of the pie is mine or yours, but about how can we make this pie as big as possible.
What do consumers value about smart TVs? One of the tools available for connected TV devices is DLNA. The ability to share user gener- ated media across different devices is very powerful. Just to be able to share photos from a smartphone on a large HDTV is a really compelling proposition.
Curated apps or open access?
The important thing is for consumers to understand which world they are in. I don’t want to create open access that has an unexpected impact on the quality or security of viewing in the home. AP
Rogers President and
CEO, TiVo Region: US and Europe
Giving
What is the biggest change you expect to see during the next 18 months? Broadcasters should embrace the connected TV or watch as Xbox, Samsung and Google steal your business. The reason that Xbox, Samsung and Google have emerged into this space is that broadband content has largely not been embraced by pay-TV operators. They must bring these services into the package they provide and offer them across other connected devices, or these platforms will develop as competitors packaging services within their own interfaces. The cable operator’s role in providing video will move into the integration of all forms of television through their set-top device. Today, most people have a box that delivers live TV, DVR recordings and VoD, and another device that delivers a broadband service like Netflix or Hulu. Over the next 18 months all of this will be integrated into a single box. For the operator it will be clear that they stand for the proposition of all television being available through their service, while the consumer’s experience will be simplified and convenient.
consumers control
The industry is going to have to find ad formats that don’t interrupt the middle of TV shows
What will the future business models look like for connected TV platforms? Just as today, you will have a mix of advertising, some fees paid by operators, and some subscription fees paid directly by consumers. The
nature of advertising support is likely to be subject to the greatest change. In the US and elsewhere, you have massive commercial avoidance and the industry is going to have to figure out ways to have consumers receive ads that don’t interrupt the middle of TV shows. User interfaces that provide different forms of ad inventory that are as useful, but less intrusive, will increasingly be the way adver- tising develops.
What is your vision of how the overall industry is evolving? We are unleashing TiVo from a set-top box hardware perspective to ensure a commonality of user experience across devices. We have just as strong a focus on B2B elements, particularly how advertisers, cable networks and agencies can get the degree of control over their adver- tising environment the way we are giving consumers control over their TV experience. We can do this by obtaining highly granular STB data combined with purchase data so that marketers can really get a sense of what people are watching and what they spend in a way that’s never been possible to do before. CG