Smart TV and Digital TV: a quick SWOT analysis
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Smart TV and Digital TV: a quick SWOT analysis

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An attempt to define basics concepts of Digital and Smart tv. ...

An attempt to define basics concepts of Digital and Smart tv.
A summary of potential of disruption of the "TV from the future" - which is already here...
This document is mainly based on European market characteristics which may differ significantly from others markets like US or Asia.

Content:
-Concept Definition (Smart TV, Connected TV, Apple TV, Google TV etc)
- Evolution of business models
- SWOT analysis
- short conclusion

This document is part of a larger study devoted to media convergence in Television. You will find more presentation or content (mainly in french) on the blog (www.synaptic.be/blog or on our ScoppIt dashboard http://www.scoop.it/u/synaptic)

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Smart TV and Digital TV: a quick SWOT analysis Smart TV and Digital TV: a quick SWOT analysis Presentation Transcript

  • Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TV.A quick SWOT AnalysisDefinitions, strengths, Weaknesses, opportunities, threads ...
  • A short word about the author:Connected TV and Digital TVA quick SWOT analysisGeoffrey Lalouxe-Business consultant (Strategy & Marketing).Founder of Agence Synaptic andLead business consultant @ Kcompany (Cronos Group)Agence SynapticA network of seasoned consultants in Digital Marketing.We transform Digital strategy into concrete benefitswww.synaptic.bebe.linkedin.com/in/geoffreylaloux@Synaptic_beGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.be
  • Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beTable of Content2. A disruptive model• Evolution• From one business modelto a new one3. SWOT analysis• Strengths• Weaknesses• Opportunities• Threats4. Conclusions1. Concepts Definition• Connected TV (Smart TV)• Digital TV• Apple TV, Google TV etc.• Content Providers
  • Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConcepts Definitions
  • Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV (Smart TV)
  • Connected TV (Smart TV)• A device (TV screen) connected by wire or WiFi to internet• Also know as “Smart TV”• Access to the internet content is done via widget and integrated softwareBenefits:• Browsing the Web (with the remote control)• TV Widget to access to video channels likeYoutube or else• Specific Digital TV channel and VoD likeQriocity, HBO, HuLu or Netflix (whereavailable)• Specific content provided by local TVBroadcaster.Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Connected TV (Smart TV)Embedded software(Samsung, Sony) no need ofthird party software orhardwareCase where the TV device is fitted with RJ45 connection andembedded software (high end devices from Sony, Samsung, LG,Panasonic, Toshiba and Philips)SMART TVInternet RouterInternet access provided bylocal ISP. Not necessarilylinked with Digital TV serviceofferVOD providersTVbroadcastersFree WebcontentNichecontentGames, appsand SocialContentOwnerPay TVoperatorsGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Connected TV (Smart TV)• Smart TV can access to dedicated Appstore to improve the service offer.• Services offered by App Stores are different in each country and are highlydependent of the local regulatory framework and market potential.• From technical point of view Smart TV may offer almost same services asDigital TV but without the need to use Set Top box or additional paidsubscriptionExamples of most common service offer of Smart Tv platform:• Skype, Facebook, Twitter (with no direct and automaticrelationship with the TV content watched)• BBC iPayer, Digital Theatre (live recordings of stageplays), Eurosport, ESPN etc. In most cases we talk aboutlimited samples of content more than real TV channel.Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Connected TV (Smart TV)No more compulsory syndication, content can be accessed directly from contentproducers and rights owners without passing through a third party platformGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beDigital TV
  • Digital TVFrom technical point of view,the name “Digital TV” referto the transmission of audioand video by digitallyprocessed and multiplexedsignal, in contrast to thetotally analog and channelseparated signals usedby analog TV.Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Digital TV (Interactive Digital TV)• Digital TV is often (mainly in French) used to design the Interactive Digital TV(IDTV or ITV) experience provided by “Box” like FreeBox, Belgacom Box etc.• Interactive TV is a form of media convergence, adding data services totraditional television mostly thanks to a digital tuner (Set Top Box).Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Digital TV (Interactive Digital TV)Most common features of Interactive TV:• More TV channels• Some with paid content• Electronic Program Guide (EPG)• Smart recording (automatic start of recording based on watermarking embedded in contentsignal)• Online VOD catalog (provided by the paid tv operator)• Content Preview• Catch Up (replay) TV provided by TV broadcaster: review a content already broadcasted.• Widget like weather, Stock Exchange information etc.• Additional content related to currently broadcasted program (bonus, making off etc.)• Possibility to broadcast content on second screens like PC, Smartphone, tablet etc.Linear content broadcastingTV ChannelScheduledbroadcastPreview(Pay per view)Replay(usually free)Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • InternetRouterDigital TV (Interactive Digital TV)Set Top BoxDigital Personal Recorder(optional)Internet router. Generallyintegrated in the Set Top boxVOD providersTVbroadcastersFree WebcontentNichecontentGames, appsand SocialContentOwnerPay TVoperatorsIP ManagedNetworkContentSyndicationHDMI compatible TV set,Not necessailya connected or connectable TVGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beApple TV, Google TV etc.
  • Google TV• A Smart TV platform from Google co-developed by Intel, Sony and Logitech• The interface is (will be) embedded in Sony TV devices (Samsung and LG are expected toparticipate)• Google TV is more a feature integrated in some Smart TV than a device.Benefits:• Accessing to Google services (ie Gmail) directly on TVscreen.• Accessing directly to specific content provided by thirdparties like HBO or CNBC, Netflix etc.• Surfing the web on Tv screen.Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Apple TV• A wireless device to broadcast on screens (TV or else) content from specificcontent providers. (iTunes, Netflix, YouTube, NBA & NHL leagues etc.)• The Apple TV is a digital media receiver (and transmitter) IT’s NOT a contentprovider like classical TV channel or a TV Tuner or even a content recorder.Benefits:• Viewing YouTube video on TV screen or onany screen compatible with Apple standardslike AirPlay.• Accessing directly to specific content providedby third parties.• Allowing to access to internet via TV screeneven if the TV device is not fitted withInternet connection.Apple TV is like a Set To Box…Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Archos TV (Android TV)• Archos TV is a set top box, that can be compared with Apple TV… but forAndroid world.• It’s an external device to be connected between TV screen and internet router.• It’s different and not integrated with Google TV.Benefits:• Accessing the web even without native smart TV• Accessing the Google Play Store• Can be used also as media centerGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Game Console & Blu Ray players• Modern Blu Ray Players and Game Console like PS3 or XBOX propose also“Smart TV” alike functions.• Some Blu Ray allow access to specific online content like bonus, 2nd movie etc.Usual Benefits:• Accessing the web even without native smart TV• Accessing the Google Play Store• Can be used also as media center• Extra interactive content and/or second screenapplicationGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Web TV• Original content produced for broadcast via the Internet (UGC or professional content)• Not to be confused with Television content reformatted to be broadcasted alsoon internet.• Some successful web tv content may be "promoted" and then be broadcastedon classical Television channelExamples:• Youtbe, DailyMotion etc.• http://tv.dassault-aviation.com/web/• http://fr.int.renault.tv/• “Capsules” like Remy Gaillard, Bref etc.• Fan films made to give second life to famous TV shows,films, books etc. http://bit.ly/11o2kkOField of Shadows,a French Star Wars Fan FilmGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • ContentFeature / ApplicationServiceDeviceDigital TVSmart TVGoogle TVApple TVWebTVInteractive TVIDTVTV NumériqueIPTVArchos TV Android TVConnected TVVoDCatch UpOTT** Over The Top contentEtc.SynonymsFrench equivalentBravia Internet VideoSet Top Box (STB)BBC iPlayerMyTF1 M6 ReplayFOX NowHybrid TVGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • In short…There is 3 type of players who can give youaccess to Internet via your TV setTV manufacturer(Smart Tv)Via embedded connectivity,operating software and TV apps.The content is not proprietary andnot provided by the manufacturerManaged Network(Digital tv)Via set top box and paid subscription.Service is mostly provided by ISP, Telcooperators and Cable operatorsThe content may be partiallyproprietary and provided by thenetwork operatorThird Party Devices(Set Top Box)Via a set top box and eventuallyadditional subscription.Service is provided by operators notaffiliated with Managed Networkoperators or TV manufacturersThe content may be partially proprietaryand provided by the device operatorGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Content providersContent that can be accessed (in theory) bySmart TV owners or STB service subscribersVOD providersTVbroadcastersFree WebcontentNichecontentGames, appsand SocialContentOwnerPay TVoperatorsThey propose their own content and syndicated content which is alsoavailable on the air as well as Catch Up, Replay, PPV etc.They provide online content catalogs and paid download or streaming.They may be independent or related with Cable or Internet operators.Web content directly accessible via embedded Browser interface orTV widgetNiche content (extreme sport, anime, news) provided by localbroadcasters or banded content syndication channels.Examples: Gmail, Skype, Online games, Facebook, Twitter etc.Including content and apps provided by local / national players.Broadcast rights owners like sport league or international contest,but also like HBO, Movie studios etc.Local or international Cable and satellite operators. They proposesyndicated content and sometime their self-produced contentGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beA disruptive model
  • EvolutionAnalog TV Digital TV / Smart TV DisruptionLinear accessCollective usage of theTV setOn demand access, any time and“anywhere” (multiple interfaces)No more (?)Prime TimeConsumptionAccessmanagerManaged Network is theprovider, TV channel is thegatekeeperDigital Managed Network (Digital TV),TV manufacturer (Smart TV),TV channels (STB + Smart TV)Gatekeepers bypassedby Internet services anddevice managersServices Broadcast TVMultichannels, catchUp, Vod,Connected contents (Social TV)End of classicalTV ads ?BusinessModelPublic funding,Advertising,Paid channelsContent or channel subscriptions,pay per view, in program purchaseKind of“performance pay”PlayersTV channelsRights ownersUsersRights OwnersInternet services providersInternet Access providersManaged Network ownersDevice ManufacturersTV channelsSocial Networks and usersMore players, adifferent pyramidof influencersDecreasing order ofinfluenceGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Analog TV content distribution modelTV BroadcastersContent Owner & Pay TVOperatorsContentPremium Content(Pay content)Own productions &syndicated contentBroadcastcontentExtracontent CableConverterBoxOver the air transmissionNationalLocalManaged NetworkCABLESATELITEAnalogic SignalGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Content Owner & producersMoneyMonthly subscription +Extra fee to access tomore contentPublic funding(in Europe)BrandsTV BroadcastersNationalLocalSyndicationSyndication &Exclusive agreementsCommercialadsManaged NetworkCABLESATELITEAnalog TV business modelGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • And now the disruptive modelContent Owner & Pay TVOperatorsPremium Content(Pay content)Extracontent1Set Top BoxManaged NetworkCABLESATELITE3Owned TV widgetDigital SignalSmartTVIP Network& ISP2Third partySpecific Set Top Box4Game Station1. content owners may still sell their content viapay Tv operators2. But they may also sell directly to end users viathird party set top box like Apple TV or AmazonTV directly connected to Internet, withoutpassing by pay TV operator.3. They can even propose direct access to theircontent thank to TV widget embedded in smartTV set (in partnership with tv manufacturer)4. Content owner like SONY or Microsoft maypropose exclusive access to their own contentcatalog via their own game station like Xbox orPlayStation.Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beSWOT analysis
  • StrengthsOpportunitiesWeaknessesThreatsGood installed base in terms ofuse, device, infrastructures andhabits• Heterogeneous offer (i.e VoD)• Multiple payment systems and multipleauthentication required• Multiple different experiences• Disappointing service offer• Low image quality (replay in Mono and SD)• Overlap between Smart Tv and Digital TVservices• Locally produced (or adapted) contents are thebest defense• For consumers: more direct and fast access tolatest contents• New commercial formats.• New advertising formats (i.e ProductPlacement)• Opportunity to develop a new business modelfor public TV broadcasters• Supra National competitors• Channels vs. Devices vs. Rights Owners• Risk of disinterest and lack of investments ineconomically less attractive areas• Managed Network (Cable & ISP) as bottleneck• Increasing power of search engine (dominatedat 95% by Google)• Proprietary content linked to proprietarydevice and/or platforms© Synaptic 2013Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Connected TV, Smart TV, Second ScreenWhat are we talking about ?Strengths23%% of televisions sold that are connectable(source: CSA): worldwide: 90% (ScreenDigest)201280%201395%Penetration rate ofTelevision in Europe73%Penetration ofInternet in Europe75%Penetration ofDigital TV21/27Digital television(by cable, TNT,Satellite)will be the standard in21 EC countries(over 27) in 2015.Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.be
  • StrengthsInfrastructures, usages and devicesare already widely widespreadGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • WeaknessesMore than half of Connected TV are…. disconnected from InternetGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Weaknesses• Heterogeneous offer (i.e VoD)• Multiple payment systems and multiple authenticationrequired• Multiple different experiences• Disappointing service offer• Low image quality (replay in Mono and SD)• Overlap between Smart Tv and Digital TV services• Etc.Weak usability of Smart TV interfaces…and of Remote controls.(Smartphones, Tablet, remote keyboards andmotion control are proposing betterperformances)Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Opportunities• Locally produced (or adapted) contents are the best defense• For consumers: more direct and fast access to latest contents• New commercial formats.• New advertising formats (i.e Product Placement)• Opportunity to develop a new business model for public TV broadcastersGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Threats• Supra National competitors• Channels vs. Devices vs. Rights Owners• Risk of disinterest and lack of investments in economically less attractive areas• Managed Network (Cable & ISP) as bottleneck• Resistance of TV Broadcasters• Increasing power of search engine (dominated at 95% by Google)• Proprietary content linked to proprietary device and/or platformsGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Threats Major players such as Google, Apple, Microsoft, etc. have now thedistribution channel and the financial ability to negotiate exclusivecontent distribution worldwide directly with producers.Local TV channel Local VoD operator(Paid TV operator)ViewerTV Broadcast VoD & CatchUpdistributionBefore And NowExclusive VoDdistributionViewerTV Broadcast** The local TV channel may eventually continue to distribute a translated contentGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • The end of the classical content lifecycle (Movie, then DVD, thenoriginal TV broadcast, then syndication etc.). What Europeanscall “the cultural exception” and “media chronology”.ThreatsGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beTime Line+ 4 monthsEnd availability inmovie theaterDVD, VoD, Blu Ray+ 8 monthsPaid TV channels(dedicated to Movies)+ 10 monthsTV channels(co-producers)TV broadcast minimum22 months after moviereleaseNowConnected TV and Digital TVA quick SWOT analysis
  • Time Line+ 4 monthsDVD, VoD, Blu Ray+ 8 monthsPaid TV channels(dedicated to Movies)+ 10 monthsTV channels(co-producers)And thenThreats The end of the classical content lifecycle (Movie, then DVD, thenoriginal TV broadcast, then syndication etc.). What Europeanscall “the cultural exception” and “media chronology”.Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Content OwnerMarket ALocal TVbroadcasterMarket BMarket CLocal TVbroadcasterLocal TVbroadcasterEnd userEnd userEnd userNew business modelIP Network& ISPNo more obligation for a content owner to manage specific syndication agreement foreach country. International events like World Football Cup, F1 championship or Olympicsgames could be sell directly to international end users.Threats (or opportunity)Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis« Old » business model
  • Threats for some, opportunity for othersContent ChannelMicrosoft want to produce newepisodes of « Heroes » to propose themexclusively on VoD via Xbox and MSNAmazon is now the producer ofZombieLand. An exclusive content to beproposed on next gen of Kindle andAmazon Set Top Box.Playstation store give access to thehuge music, game and movie catalog ofSony media mogul. Connected TV areexpected to propose the same.The Football – Soccer team ‘Barca’wants to broadcast its matches on hisown (paid) TV channel only.(from 2014 season).Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConclusion (kinda)
  • The full potential of Smart TV / Digital TV will be unleashed once highquality content will be widely availableHigh quality content will be produced / available once a new business modelwill be defined between public TV broadcasters and managed networkoperatorsPrivate TV broadcasters need to diversify incomes sources or at least to findnew advertising formatsConsumers must adopt new ways of consuming TV content (On demandaccess, Pay per view, non linear content, multi screen viewing)ConclusionsGeoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • RaiseCreateReduceEliminate• Easy of use / access• Usability• Easy to use remote control(motion control, keyboard etc)• Open standards (Hbbtv)• Service offering• Proprietary technologies• Bottlenecks (resistance to change)• Country-restricted content (internetis worldwide)• Unique identifier / Single sign on• Cross platforms analytics• Unique TV appstore (no morerestricted to some manufacturers)• Search engine able to browseProgram guide (omni channels)• Unified payment system• Devices with no upgrade options• Services / content with no or lowadded value© Synaptic 2013Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beConnected TV and Digital TVA quick SWOT analysis
  • Geoffrey Laloux – May 2013 – © Synaptic www.Synaptic.beContactglaloux@synaptic.beGeoffrey LalouxeBusiness Consultantwww.synaptic.be/blog« Crossmedias, Transmedia, Crosscanal etc. »A Scoopit (french & english) about Cross Channel,Transmedia etc.http://goo.gl/b0ttn