Agora Media Group Innovation Blog

by Gianluigi  Cuccureddu and Richard Kastelein

The following quotes are taken from ConnectedTVSummit and they do point out to a major shift in hardware which is followed by software/applications that will transform the industry and experience:

Global revenues for connected TVs will reach $29 billion in 2011, accounting for 58% of global revenues for Internet TV equipment that year. 12.5% of 2010 global TVs shipped will have connectivity, rising to 30% in 2011.
IMS Research, January 2010

Our research shows that within five years nearly all broadband households will own at least one web-enabled CE media device.The implications of this across the digital entertainment industry will be huge.”
Norm Bogen, In-Stat analyst, January 2010

Game consoles already have the lead in this segment, which can mostly be attributed to gamer demographics . I think that even gamers will switch to accessing Internet video mostly on the TV in order to have a one-stop access point to the different content libraries. Having one programme guide is much easier to navigate then searching independently on different devices.”
Rebecca Kurlak, IMS Research consumer electronics analyst, January 2010

Worldwide shipments of web-enabled stationary CE devices will grow more than seven-fold from their 2009 levels to over 230 million by 2013.  There will be over one-half billion web-enabled CE devices in operation worldwide by 2013.
In-Stat, January 2010

CE device manufacturers will be able to enjoy revenue shares on content, which could be as high as 50%.
Rebecca Kurlak, IMS Research consumer electronics analyst, January 2010

When having a look at the timing of the quotes with regard to the evolution, the future of all this is closely. Also other institutions/articles point out to a first real shift in 2010 and 2011 where adoption and diffusion will reach a substantial figure.

Other interesting and positive quotes can be found in this recent analysis and article by Bloomberg:

It’s no longer a bridge too far for the average user,” said Michael Powell, a former chairman of the Federal Communications Commission who now runs a media consulting firm. Using TVs to connect to the Internet “is a very natural extension of what they’ve already embraced in their technological life.

The difference now is new Internet televisions won’t require separate boxes, software and setup, says Steve Perlman, the founder of WebTV. The TV will already be connected to the Web, and consumers will get everything they need through that.

It is going to happen — it’s inevitable,” Perlman said. “We’re going to see a general movement toward having all of your content that is available through the Internet.

The fact is, it appears that the next generation of Internet-connected TV’s are going to come out faster than most anticipated, and this means  that the need for  Set Top Boxes (STB’s)  will eventually reduce and even possibly phase out in the future.  This is certainly a real game changer and lowers the perceive risks and complexity of the end consumers.

Perlman’s quote that we’ll see a general movement towards having all the content available through the Web is a positive outlook and simultaneously a challenge in not simply transferring media from device to device and not having a thorough look at the device, usage/purpose of device in relation to the needs and consumption of consumers.

This challenge was also pointed out in the Android TV article.

The industry is ready for it, most definately, what about the end-consumers?

Do you think there will be a fast adoption and usage? How will the collective experience of watching passive TV be impacted by elements of individual social interaction such as Twitter and Facebook via tv widgets and apps? Or will it?

Forty years ago, the brilliant Canadian media theorist Marshall Mcluhan, the  “patron saint” of Wired magazine,  (who brought us Electronic Interdependence, The Global Village and The Medium is the Massage) metaphorically considered the TV to be an ‘electronic’ hearth – a collective centralized event for the family on the cusp of it’s appearance in the home 50 years ago. By the end of the millenium, TV’s peppered houses and became a more individual experience. In the USA,  the average house now has 2.24 TV’s and 66 per cent of households have three or more TV’s.

Will the TV continue to evolve as an individual device in a new ‘TV Everywhere’ world? And just become part of a matrix of interactive devices available to each individual?

And how will Google fit into the picture? The world’s largest brand is certainly heading for the space. They are not issuing any formal statements on their future in this landscape, but look at what they want in their new hires – http://bit.ly/gootv.

We think that Google TV and Sony along with their other partners at Intel and Logitech could also play a large part in this new landscape.