The Future of Television


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This GlobalWebIndex Presentation is designed to cut through the hype and build understanding on how consumers will interact with their TV sets in the future.

The Future of Television

  1. 1. Google TV: The next step in the evolution of the television market?<br />Presented by Brett Petersen<br />December 2010<br />
  2. 2. INTRODUCTION<br />Overview of the OTT TV market<br />An introduction to Google TV<br />Key Features<br />Problems<br />Recent news<br />Google TV’s main competitors<br />Apple TV<br />Yahoo! Connected TV<br />Roku<br />Multi-tasking and interactive TV<br />Conclusion<br />
  3. 3. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />Brett Petersen<br />Overview of the Over-the-top TV market<br />
  4. 4. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />Definitions<br />Over-the-Top TV (OTT TV): delivery of web video content directly to TV sets.<br />IPTV (Internet Protocol TV): consists of packaged Pay-TV offers similar to those on satellite and cable but offered over an Internet connection.<br />Catch-up TV: online services from TV broadcasters or TV operators that allow users to “catch- up” on TV series on demand.<br />Transaction Video-on-Demand (T-VoD): a service that allows users to rent films and/or TV show on demand, charging a fee for each rental. <br />Subscription Video-on-Demand (S-VoD): VoD service that charges a flat monthly subscription fee for viewing of films and TV shows. <br />
  5. 5. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />Three main factors that are key to OTT TV diffusion:<br />Increased penetration of broadband connections<br />High-quality online video content (i.e. catch-up TV, VoD)<br />Replacement of old devices with those that are Internet-connected (i.e. Smart TV sets such as Google TV)<br />
  6. 6. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />BROADBAND PENETRATION IN THE UK, GERMANY, SPAIN, FRANCE AND ITALY (EU-5) - 2004 TO 2009 (broadband access lines per 100 inhabitants)<br />Source: Eurostat<br />
  7. 7. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />SPREAD OF ONLINE VIDEO CONTENT<br />Catch-up TV<br />User-Generated Content<br />T-VoD<br />S-VoD<br />
  8. 8. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />Have you accessed the Internet via your TV set?<br />(% of respondents answering yes in each country)<br />Source: GWI Wave 3 data<br />
  9. 9. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />FORECAST DIFFUSION OF OTT TV<br />Broadband-enabled TV households worldwide (million)<br />Number of active OTT TV households worldwide (million)<br />+177%<br />+325%<br />Note: Broadband-enabled TV households refers to those with the basic infrastructure to enjoy OTT TV services<br />Source: The Diffusion Group<br />
  10. 10. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />What types of people are accessing the Internet through their TV sets?<br />(% of global sample)<br />Age Breakdown<br />Gender<br />Breakdown<br />Educational Achievement<br />Source: GWI Wave 3 data<br />
  11. 11. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />Social media usage: comparing Internet TV users to the overall market<br />(% of global sample)<br />Source: GWI Wave 3 data<br />
  12. 12. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />Interest in future technology products regardless of cost<br />(% of global sample that is interested in each product)<br />Source: GWI Wave 3 data<br />
  13. 13. OVERVIEW OF THE OVER-THE-TOP TV MARKET<br />Summary of consumers using the Internet through their TV set<br />The are generally young adult males that have achieved higher education.<br />They are more likely to use social media to communicate with the world around them than the average global consumer.<br />They are generally more interested in new consumer technologies than the average global consumer.<br />Internet TV users are also nearly four times more likely to be early adopters of new technologies than the average consumer, and they almost always have a more positive outlook on the effect the Internet has on society.<br />Source: GWI Wave 3 data<br />
  14. 14. GOOGLE TV<br />What is it and is it important?<br />
  15. 15. GOOGLE TV<br />SEARCH THE TV SET<br /><ul><li>Allows users to search the Web, EPG, DVR for any given TV show, actor, genre, etc.;
  16. 16. Problem: DVR search is completely integrated only with Dish Network in the United States;
  17. 17. Problem: reports of inaccurate and unexpected search results;
  18. 18. Still, the concept of being able to search the entirety of the Web for any given programme or film using keywords is a powerful tool.</li></ul>Images from Logitech<br />
  19. 19. GOOGLE TV<br />THE INTERNET ON THE TV SET<br /><ul><li>Google TV users now have the entirety of the Internet available on their TV set;
  20. 20. Using the Google Chrome Web browser users can access any website and even play flash video using Adobe Flash 10.1;</li></ul>Google Chrome Web Browser<br /><ul><li>Website owners have the option to build dedicated websites that are adapted for TV viewing;
  21. 21. Problem: browsing the Web is a personal activity as opposed to TV, which is often viewed in the company of others. A laptop or tablet PC is more conducive to TV viewer multitasking. </li></ul>Images from Google<br />
  22. 22. GOOGLE TV<br />APPS ON THE TV SET<br /><ul><li>Apps on the TV set offering everything from video content (S-VoD, T-VoD, Web video) to Web radio to social networking;
  23. 23. At first, apps for Google TV come preloaded, but beginning in early 2011, apps will be available from the android market;
  24. 24. Apps are a key to making Google TV work. If they run smoothly and don’t detract from the viewing experience, they will be an excellent addition.</li></ul>Images from Logitech<br />
  25. 25. GOOGLE TV<br />ADDITIONAL GOOGLE TV FEATURES<br />Dual View<br />Personalized Home Screen<br />Use a smartphone<br />as a remote<br />Images from Logitech<br />
  26. 26. GOOGLE TV<br />CURRENT GOOGLE TV HARDWARE AND USABILITY<br />Logitech Revue<br />Sony Internet TV<br />Images from Logitech and Sony<br />
  27. 27. GOOGLE TV<br />RECENT GOOGLE TV NEWS<br /><ul><li>American broadcasters block Google TV users from accessing their online web video services.
  28. 28. The catch-up TV and VoD service Hulu (joint venture between News Corp., Disney, and NBC Universal) has also blocked Google TV, and Hulu Plus is still not available.
  29. 29. More hardware partners have recently been announced.</li></li></ul><li>GOOGLE TV’S MAIN COMPETITORS<br />Google TV’s main competitors<br />
  30. 30. GOOGLE TV’S MAIN COMPETITORS<br />APPLE TV<br /><ul><li>Apple TV allows users to download content from the iTunes store (walled-garden business approach);
  31. 31. Apple TV comes with a selection of built-in apps:
  32. 32. Apple TV allows North American users to access Netflix;
  33. 33. The Apple TV can also be controlled with an iOS device and content viewing synced using AirPlay.</li></ul>Images from Apple<br />
  34. 34. GOOGLE TV’S MAIN COMPETITORS<br />YAHOO! CONNECTED TV<br /><ul><li>Yahoo! Connected TV runs most of the same devices as Google TV:
  35. 35. Yahoo! TV Widgets can run discreetly on the TV set.
  36. 36. The platform is centered around Yahoo!’s Konfabulator widget engine, which was originally developed for the PC. This means that widgets are easily written for the TV using existing code;
  37. 37. Yahoo! has recently announced that it is launching a Yahoo! Connected TV store and has already released the SDK;</li></ul>Images from Yahoo!<br />
  38. 38. GOOGLE TV’S MAIN COMPETITORS<br />ROKU <br /><ul><li>The Roku player is a set-top box that is simple and cheap compared to other devices with similar spec (starting at $59.99);
  39. 39. Roku has, arguably, the best line-up of online content available:
  40. 40. No social networking apps other than photo apps including Facebook photos and Flickr;
  41. 41. Likely the best value option for consumers looking just for OTT TV services.</li></ul>Images from Roku<br />
  42. 42. MULTI-TASKING A BETTER OPTION <br />Multi-tasking and interacting with the TV via other devices<br />Images from Roku<br />
  43. 43. MULTI-TASKING A BETTER OPTION <br />MULTI-TASKING A BETTER OPTION FOR CONSUMING WEB CONTENT WHILE WATCHING TV? <br />Survey found that social media actually encourages linear TV viewing so as to avoid spoilers from friends.<br />(% of survey respondents)<br />Source: Thinkbox and Decipher<br />Note: Survey conducted among 3,000 UK “digitally enabled” households<br />
  44. 44. MULTI-TASKING A BETTER OPTION <br />OTHER WAYS TO INTERACT WITH THE TV USING WEB BASED CONTENT<br />Interactive TV Gaming<br />Interactive applications providing additional info and extras<br />Images from Endemol and ABC<br />
  45. 45. CONCLUSION<br />So the future of television is...<br />
  46. 46. CONCLUSION<br />Not Google TV in its present form<br />A less intrusive model such as Yahoo! Connected TV is better for delivering non-video Web content to a screen being viewed by multiple people.<br />A walled-garden system such as Apple TV or Roku offers content providers security and a guaranteed revenue stream.<br />Multi-tasking will continue to grow, and using social networking services such as Facebook or Twitter while watching TV are more suited to individual use on a separate device (i.e. tablet PC or laptop).<br />