So I want to talk a little about the history of television, the rise of
Networks have lost their centrality.
Shows how Google is radically changing the way the advertising world works.
Why is Google so competitive? It has some very strong strategic characteristics we should consider. One are the economies of scale, its massive investments in data farms,
The transformation of the television will be one of the next big cultural and economic transitions we will be going through
I don’t want to be an apologist for TV, obviously excess viewing has its downfalls. But TV viewing is on the rise in developing countries just as the Internet ison the rise here in the US and in Europe.
Digital television and the impact of global e commerceact
Digital Television and the Impact ofGlobal E-Commerce and Social Media:Strategies and Stakeholders in theTransition to Internet TV Anthony J. Pennings, PhD New York University Panel Presentation at the EWC/EWCA 50th Anniversary International Conference Honolulu, Hawaii July 2-5, 2010
Overview• The Post-Network Era• Rise of Internet TV• Many Stakeholders • e.g Broadband Providers, Advertisers• Strategic Advantages of Google• TV and the Digital Divide?
Eras in Television• Network Era • Big 3 (ABC, CBS, NBC), BBC• Multichannel Era • Remote Control, VCR, Cable, Satellite• Post-Network Era • 3 Screens, mobility, DVR, e-commerce, social media
Rise of Internet TV• Streaming or Downloading Video• Media Player Applications (BBC iPlayer, Adobe Flash, Media Player• SD or HD• Web-based, CDNs (Akamai) buffering for continuity• Archived, on-demand• Hulu, Netflix, Apple TV, YuMe, YouTube
Post Network Era• http://apennings.com• Video: What is Google TV?
Internet TV Stakeholders• Advertisers • Equipment• Advertising Agencies Manufacturers• Application Developers • Guilds and Unions and Designers • Measurement• Broadband Providers Companies• Broadcast Networks • Operating Systems• Content Owners • Regulatory Agencies • “View”sers
Advertising• Global advertising sales are expected to increase during 2010 by 4.2% to total of $377 billion according to MagnaGlobal• Television continues to lead with the highest sales around the world, with more than 40% of the advertising sales, a total of $151 billion,• TV is growing
Advertising• Online advertising expenditures will reach $61 billion in 2010, and paid search advertising will make up nearly half of that, according to MagnaGlobal• Google had US$20 billion revenues in 2009
Google TV• Google’s stated goal is to “organize the world’s information”• Video: What is Google TV Ads: Flexibility?
Google’s Competitive AdvantageEconomies of Scale Network Effects, Fixed CostsCustomer Captivity Habit, brand, switching costsProprietary Technologies Crawlers, indexers, query processors, advertising systems that bypass traditional advertising co.Government Protection Net neutrality
Digital Destruction?The transition to Internet TV will be one of the great cultural and economic transformations of our time. The integration of television into the World Wide Web will continue to add choice, control, customization, and convenience while exploring new realms of community and commerce. But will it also continue the trends of digital destruction and divide?
TV and the Digital Divide?• National identity• Language harmonization• Social mobility