giles cottle - informa - content convergence and connected devicess d1
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Broadband World Forum 2011 - Giles Cottle - Informa - Content Convergence and Connected DevicesTRANSCRIPT
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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
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The changing face of in-home devices
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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
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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
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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
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OTT video aggregator
• 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).
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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.
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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
OTT video aggregator
Virtual STB
Smart TV
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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
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•Tablets
•Late adopters
•PC viewing acceptance
•Communal viewing
Prolonging long-form TV viewing
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Reduces costs, no need to subsidise a
STB
Builds excitement around Pay-TV
brand
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..
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..while continuing to exploit their existing content
assets
DirecTV – NFL Sunday Ticket via PS3; Multiroom with
Samsung (powered by RVU)
Embrace the second screen
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•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
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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: [email protected]
www.informatm.com
http://www.linkedin.com/in/gilescottle
http://twitter.com/gilescottle