Connected TV Research Deck   October 28th, 2011
what it really means • Connected TV refers to television sets that are connected to the Internet and offer directly on the...
what it changes    The advent of Internet TV introduces two fundamental changes:    • The connected TV offers the viewer t...
value chain   Content/service                              Hardware                      Distribution    Revenue      prov...
no common standards to date   In absence of a common technical standard, app publishers must adapt their   service to each...
a massive, global phenomenon                 500 million                  Television sets connected to the internet in the...
explosive growth                                   Global sales of connected TV sets© Purescreens SAS - Confidential      ...
strong growth in Europe      Connected TV penetration (million sets)© Purescreens SAS - Confidential       Source: ScreenD...
connected TV poised to become the norm         90% of TV-sets sold in Europe by 2014 will be connectable to the Internet© ...
business potential in the US      • Shipments of connected TVs with integrated TV applications will grow by      an averag...
new sources of revenues  • Analysts predict that app stores on TV    sets will meet a similar success as app    stores on ...
market dynamics favorable to new players     • Connected TV is still a market in its infancy            o  There are still...
new players are investing the TV space                   Company type        Examples             Objective               ...
example: Dailymotion app© Purescreens SAS - Confidential                              14
example: AccuWeather app© Purescreens SAS - Confidential                              15
business models                                                                   Revenue sharing           Distribution m...
Contactinfo@purescreens.com
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Connected tv research deck oct 11

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Connected tv research deck oct 11

  1. 1. Connected TV Research Deck October 28th, 2011
  2. 2. what it really means • Connected TV refers to television sets that are connected to the Internet and offer directly on the TV screen a variety of content and services provided through a broadband connection • This term encompasses not only the Hard Gaming direct connection of the TV set to a Box TV DVD Blu-ray Drives consoles modem (via WiFi or ethernet cord), but also the use of connected devices hooked up to a TV set, as gaming consoles, Blu-ray players, and set-top boxes© Purescreens SAS - Confidential 2
  3. 3. what it changes The advent of Internet TV introduces two fundamental changes: • The connected TV offers the viewer the ability to interact with TV content. It breaks with the passivity of the broadcast stream to allow an interactive consumption. • Access to the TV screen is no longer limited to TV channels but potentially to providers of contents (text, photography, maps, graphs, games, etc.) or services (interactive weather forecast, diet monitor, work-out coach, skype, betting, card games, etc.) that make sense on a TV screen.© Purescreens SAS - Confidential 3
  4. 4. value chain Content/service Hardware Distribution Revenue providers Platforms manufacturers model generation Free apps Ad sales App download Pay apps Transaction In-app payments© Purescreens SAS - Confidential 4
  5. 5. no common standards to date In absence of a common technical standard, app publishers must adapt their service to each platform App Publisher© Purescreens SAS - Confidential 5
  6. 6. a massive, global phenomenon 500 million Television sets connected to the internet in the world by 2015*© Purescreens SAS - Confidential * Source: DisplaySearch 6
  7. 7. explosive growth Global sales of connected TV sets© Purescreens SAS - Confidential Source: ScreenDigest 7
  8. 8. strong growth in Europe Connected TV penetration (million sets)© Purescreens SAS - Confidential Source: ScreenDigest 8
  9. 9. connected TV poised to become the norm 90% of TV-sets sold in Europe by 2014 will be connectable to the Internet© Purescreens SAS - Confidential Source: ScreenDigest 9
  10. 10. business potential in the US • Shipments of connected TVs with integrated TV applications will grow by an average 36% per year over the next five years. • 22% of US broadband households already own an HDTV with integrated TV apps. • 60% of these connected households will use a TV app at least once per week.  In the world’s most advanced television market, TV apps are becoming part of the mainstream TV experience.© Purescreens SAS - Confidential Source: Broadband TV news (sept 2011) 10
  11. 11. new sources of revenues • Analysts predict that app stores on TV sets will meet a similar success as app stores on mobile phones. Few projected revenues figures are available though (they focus often on VoD services or advertising only). • Over-The-Top video services could generate around €4 billion by 2015 in Europe and in the US • More than 1 million downloads already on Samsung’s Smart TV© Purescreens SAS - Confidential Source: iDate (may 2011) 11
  12. 12. market dynamics favorable to new players • Connected TV is still a market in its infancy o There are still few TV apps out there, compared to mobile apps o CE manufacturers are currently on the look-out for “killer applications”, such as Shazam in the mobile field, to convert customers to connected TV usage  There is a window of opportunity to gain a leading position in all popular connected TV genres: VoD, weather, ambient, gaming, news, etc. • Access to the end-user is (almost) disintermediated, creating room for new household TV brands o Connected TV app stores are walled gardens, but the launch of a new service is still a lot easier than the launch of a new TV channel via a cable/sat operators, because:  CE manufacturers don’t pay flat fees to app publishers (there are rare exceptions)  App publishers host their apps, and pay for their bandwidth o Established web or TV brands have a great advantage, to stand out from the clutter of new apps coming out every week© Purescreens SAS - Confidential 12
  13. 13. new players are investing the TV space Company type Examples Objective Video sharing Increase ad sales potential Social media Increase ad sales potential Replicate success in mobile Games field (micro-payment) Enable transactions on E-commerce another screen in the home Increase ad sales potential or Web services transactions Brick-and-mortar brands Branding, promotion Information / services Increase ad sales potential© Purescreens SAS - Confidential 13
  14. 14. example: Dailymotion app© Purescreens SAS - Confidential 14
  15. 15. example: AccuWeather app© Purescreens SAS - Confidential 15
  16. 16. business models Revenue sharing Distribution mode Revenue model Example scheme Advertising Free app In-app purchases App publisher: 70% Platform: 30% Download-to-own model Pay-app Subscription model© Purescreens SAS - Confidential 16
  17. 17. Contactinfo@purescreens.com
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