Giles Cottle - Informa - Content Convergence and Connected Devicess d1

transcript

11/09/2009

Click to edit Master title

Click to edit Master subtitle style

28/09/2011

“Content, convergence

and connected devices:

the broadband home in

2016”

Giles Cottle, Informa Telecoms & Media

Broadband World Forum, Paris

September 27th 2011

The changing face of in-home devices

• In 2010 very few in-home devices that users own to view video on, apart from

computers, will be able to connected to the internet.

• But by 2016 just over one third of these devices will be able to connect to the

internet.

• Despite, this relatively low number it should be noted that these connected

devices will have pride of place within the home as they will be the newest

devices. As a result, how much time a user spends with them will be

disproportionately higher than with unconnected devices.

Global, in-home connected-device installed base, 2011-2016

28/09/2011www.informatm.com

©Confidential

The changing face of in-home devices

©Confidential 4

Convergence or divergence?

Average connected TV devices per household, 2011-2016

1.2 0.9 0.73.5 3.4 3.3 1.0 3.8•In developing

markets, the average

house will have 3-4

connected TV

devices by 2016

•These numbers

exclude smartphones

and tablets, and

“traditional” TV

devices

•There will be a

multitude of devices

fighting for superiority

in the home

www.informatm.com

©Confidential

Biggest future winners in video: connected TV manufacturers

Biggest losers: operators

The triumphant march of the CE industry?

Not necessarily. There’s a big difference between

“Connected TVs” and “Smart TVs”

Dumb Screen

OTT video aggregator

Virtual STB

Smart TV

©Confidential

Dumb Screen

• Users are either uninterested in connectivity or unwilling to connect TV

• The TV remains a slave device to the: STB, Blu-ray player, and games console or potentially the tablet.

• Tablets and smartphones which offer better interactive options perform „smart‟ functions

• Social TV features migrate to the tablet

©Confidential

• Users use connected TVs to access OTT content. Treating more as an adjunct to traditional TV viewing than a direct replacement.

• A mixture of catch-up, VOD, and „Netflix-like‟ services. Although so far the latter has proved more popular

• Although connectivity is used the TV offers little that cannot be found on other devices (Blu-ray players and media streamers).

©Confidential

Virtual STB

• Users use the connected TV as a virtual STB, by either streaming video from the internet or from an operator‟s advanced home gateway.

• Virtual STB is an app launched from TV „front screen‟. Offers an identical experience as the STB

• Users‟ TV behaviour remains largely unchanged, as connected TV acts as a direct substitute for STB.

©Confidential

Smart TV

• Connected TV acts as the aggregator for

all video content within the home.

• Easily switches between a Pay-TV

virtual STB, OTT video apps, terrestrial

television and playing locally stored

media.

• Provides content recommendation and

content search across all available

content sources.

Dumb Screen

Virtual STB

Smart TV

©Confidential

www.informatm.com

©Confidential

Navigating/ controlling TV UI

Personalising the big screen

Complementary interactions

Content search

Second screen viewing

Direct interaction with user program

Social features

Primary viewing

M6 Replay, Lovefilm etc

“Big screen” apps

The rise of the second screen

©Confidential

•Tablets

•Late adopters

•PC viewing acceptance

•Communal viewing

Prolonging long-form TV viewing

©Confidential

Reduces costs, no need to subsidise a

Builds excitement around Pay-TV

Removes a barrier to new users, who will not have to wait for STB to be delivered

Operator services are more trusted than OTT and have pre-existing

billing relationship.

Cross marketing of service and device

Connected devices replace the STB

Pay-TV provider

Manufacturer

So what should operators do?

Partner with CE firms..

©Confidential

..while continuing to exploit their existing content

assets

DirecTV – NFL Sunday Ticket via PS3; Multiroom with

Samsung (powered by RVU)

Embrace the second screen

©Confidential

•The second screen is a no

brainer for operators to

improve their services

•It can also help to cement

their competitive presence

•Arguably, the “dumb

screen” scenario is much

more damaging to CE

players than operators

Don’t just focus on video

©Confidential

Don’t assume that connecting the home is your

prerogative

• Despite no network assets

whatsoever Apple has

become one of the most

successful players within

the connected home.

• All its devices

communicate with one

another.

• Networking products

enhance service the

service, something users

can appreciate.

• It has two weakness it has

yet to address. One, weak

TV presence. Two, tablets

require video to be

sideloaded not streamed.

28/09/2011

Thank you.

Questions?

Giles Cottle

Senior Analyst| Informa Telecoms & Media

Email: giles.cottle@informa.com

www.informatm.com

http://www.linkedin.com/in/gilescottle

http://twitter.com/gilescottle

Giles Cottle - Informa - Content Convergence and Connected Devicess d1

Entertainment & Humor