Sunday, 9 January 2011

TV gets connected

As I mentioned at the beginning of the week, connected TV and 3D TV have been heavily featured at CES this year. Today I spent some time looking into the various connected TV’s on show. What’s immediately apparent is that there is a great deal of similarity between many of the devices. This raises an obvious question which relates back to one of the main reasons that TV manufactures added connectivity in the first place – differentiation. If they all feature the same content they’re back to square one.

There are some good examples of VoD services such as Netflix and LOVEFiLM, where the revenue stream is clear. However, it’s harder to see how Sudoku style games will excite the consumer and generate revenue for an app developer or device manufacturer. Yahoo was demonstrating perhaps the most complete solution, confirming that its business model will rely on ad funding, although this was the one area that was not demonstrated.

There is certainly widespread acceptance of connected TV from device manufacturers, which is good news for the consumer. It will be interesting to see which of the device manufacturers will publically disclose its sustainable business model first.

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