Holland’s connected TV uptake on the rise

Latest research from the Dutch Bureau for Statistics (CBS) shows that 20% of Dutch homeowners now own a connected TV set, indicating that other European nations are starting to catch on to the growing trend that’s taking hold in Britain. According to a recent YouGov study, 55% of British homeowners have now connected their devices to the internet, demonstrating that UK consumers are embracing the smart TV market.

We reported last year that connected TVs were confusing consumers, with only one third of people actually connecting their devices to the internet. But as these latest figures show, the TV industry has done a great job over the past 12 months to educate consumers on the full potential of a connected TV. So much so, it would seem, that today, viewers are getting excited about how a connected device can enhance their overall TV experience. And as the research from CBS shows, it’s not just the UK that is getting better connected, with Holland’s population getting in on the action.

These figures are very promising for smart TV manufacturers and broadcasters alike, who would be wise to capitalise on this changing consumer behaviour. For smart TV manufacturers, this means bringing affordable OTT services to market. With such a competitive market, innovation is at an all-time high, so it’ll be those offering good quality and cost effective products that enjoy the greatest sales boost. For broadcasters, there is a huge opportunity to develop more content that encourages viewers to engage regularly with their TV sets.

85% of flat-panel TVs getting smart

A recent report by Gartner indicates that the production of smart TVs is growing rapidly, with smart TVs predicted to make up nearly 85% of the flatscreen TVs produced in 2016.  On the face of it, this isn’t a big surprise – smart TVs have been dominant in the high-end TV market for the last couple of years and, as always, what starts off as a high-end feature gradually makes its way into all models in the range.  There is also the need to keep the user experience fresh for consumers over the lifetime of the product, and the economics of retail TV sales makes it difficult to justify over-the-air upgrades for TVs.  A one-off payment for a TV doesn’t cover the cost of upgrading that TV to add new features, and so making these new features available via a portal or other online service is attractive to the manufacturers.

Simply selling more smart TVs doesn’t mean that people will connect them, however: as we’ve discussed before on this blog, recent figures have shown the number of smart TVs rising, but the number of TVs being connected remains pretty flat and sales figures may not tell the whole story.  There are two main reasons for this.  The first is that it’s not always easy to get a network connection to the same place as your TV, although this could be solved through the use of Wi-Fi or powerline networking.  The second reason, and the one that is more difficult to solve, is that many people simply don’t see enough value in the services offered by a smart TV to want to use them.

This is often due to a combination of portals that are difficult to use, and apps that customers don’t see value in. It’s not simply about having the most services available on your TV: it’s about having the services that consumers care about, can find easily, and easily use to get what they want.  If manufacturers don’t improve the ease of use of these services, it’s likely that more smart TVs will remain unconnected.

Real time second screen viewing analysis arrives

We’ve been saying it for some time now but it seems that the popularity of second screen viewing is now so popular that media companies and brands now want to measure its relationship with other services. This week Twitter and ratings company Nielson announced a partnership which will monitor the amount of social media activity directly related to content being broadcast on the main screen.

It’s hoped the new tool will allow networks and advertisers to access real-time metrics for understanding TV audiences and social activity. With tablets set to be the number one present this Christmas, the entire tablet market is expected to shoot up 112% compared to last year. It means more people will have a screen sitting on their lap whilst settling down to watch their favourite shows, leading to more interaction with the content they will be watching.

With this trend now clearly established, the digital TV market must adapt to changing viewing behaviour to ensure it meets consumers’ needs. The link between social media and TV viewing highlights the benefits of linking tablets and smartphones directly to TV devices to provide relevant information based on what the consumer is watching.  

Twitter spikes demonstrate links between TV and social media

After a year of sport which saw the Olympics come to the UK, a Brit win a tennis major,  Chelsea win the European Champions League and a Briton claim cycling’s Yellow Jersey Twitter has revealed that seven of the top ten trending stories in 2012 were related to sport.

As the nation was glued to their screens by a compelling year of sport, 2012 also became the year when viewers truly interacted with the content they were witnessing. At one point, fans were tweeting so much while watching a sports event it even impacted the coverage carried by the BBC.

For the connected TV market, 2012 has shown the potential for companion device applications. It’s something we’ve believed in for a long time, and that we’ve continued to develop in our own product range by adding new features such as Twitter integration to ANT Galio Move. New viewing behaviour is driving the development of new TV applications that will enhance the overall experience, which can only be good news for consumers.

Smartphone growth provides Connected TV and second screen opportunities

Nearly half of the UK now owns a smartphone. What’s interesting about the smartphone adoption rate is the pace at which it has accelerated (31 per cent in 2012). An increasing number of us are using these devices to access online content and we’re using them more often. This increase also represents an opportunity for the Connected TV market.

One of the longstanding criticisms of the Connected TV market is that these devices are often purchased and then not used to their fullest extent. Connection rates of TVs are slowly increasing although this remains an industry challenge, better consumer awareness, improved OTT content and better user interfaces are all needed. The growth of the smartphone market also presents opportunities for the Connected TV market; second screen applications can significantly enhance the Connected TV experience.

Touchscreen Smartphones are ideal for searching TV listings, scheduling recordings and managing the main TV without disrupting what’s being viewed. Live and recorded content can also be streamed to these devices as we’ve shown with our own ANT Galio Move.  

At this year’s IBC we demonstrated a range of new ANT Galio Move features that enable consumers to interact with social media and access additional associated online content such as iTunes, YouTube and Wikipedia based on what the consumer is watching. As smartphone and tablet adoption rates continue to grow so does the second screen opportunity for the connected TV Market.

Smart TV Growth but North America Still Slow to Adopt

A recent study from NPD DisplaySearch points towards an encouraging increase in sales of connected TVs, with growth of over 15% predicted for Europe and Asia in 2012.   The picture in North America is slightly less rosy, however, with sales remaining flat at around 20% penetration. These forecasts for Europe and Asia seem reasonable, given that most large-screen TVs sold today are connected TVs.  But what’s happening  in North America?  I suspect that there are several different drivers behind the trend we’re seeing.

One opinion is that content remains king: the issue is one of how that content gets delivered to the end user.  The growth of free catch-up services in Europe helps drive the growth in smart TVs, because these services can easily be built into the TV.  Even support for paid content via the TV is growing: in the UK we’ve seen deployments from LoveFilm and Netflix, and Sky’s strategy of moving its content to other devices via Sky Go will undoubtedly pay off in time. Asia is seeing similar trends, but here, free content from the web is the main driver.  In both cases, though it’s access to free content that’s getting people hooked.

It’s a different story in the US, where you have on-demand services provided by cable operators through their set-top-boxes or through a separate device such as an Apple TV.  This means that these services are less of a differentiator for TV manufacturers, and so people are less likely to upgrade their TVs specifically for the connected TV experience.

Ease of use also plays a part, in a way that’s often overlooked: the need to switch devices.  If I have some services built in to my TV and others in a set-top-box, switching between them is more effort and inserts a mental barrier (albeit a small one) into the process of finding something to watch.  In my case, this reduces my use of iPlayer on a games console – I’m more likely to turn off my Sky box and pick up a book or use iPlayer on an iPad instead. If these services are built in to the set-top-box in American households, why will people spend the mental effort required to use them on the TV instead?

One other factor that may or may not be important is the adoption of HD TV.  Historically, North America has been at the forefront of HD adoption, with sales in Europe lagging behind.  This could mean that more European consumers are in the process of replacing their TV sets as analogue switch-off approaches, while the reasonably long replacement cycles for televisions (and the current economic climate) mean that many US consumers aren’t replacing their existing HD TV yet.  If this is correct, we may see an increase in the sales of connected TVs in North America over the next couple of years.

Spotify moves into connected TV world with Samsung deal

Samsung announced recently that the Spotify music streaming service is now available on their smart TVs.  While Spotify already has a strong presence in the PC, tablet and smartphone markets, this is its first foray into the TV world.  So what does this mean for Spotify and for Samsung?

Both brands are very strong in their respective areas, but it’s unlikely that Spotify on its own will help Samsung to sell more TVs.  As part of an overall “connected entertainment” offering, though, Spotify is potentially a strong addition.  Exactly how strong may well depend on Spotify’s business model.

Streaming audio services on TVs are nothing new – US customers have been able to enjoy the Pandora streaming service on their TVs and set-top boxes for a couple of years already.  Given this, how will Spotify help Samsung? The most obvious answer is that Pandora is only available in the USA, so customers in Europe and elsewhere can’t use it.  Another reason is that Spotify lets you build your own playlists and select exactly which tracks to play. It seems like Spotify should have a major advantage.

As with other services that move to the TV, though, Spotify will face a challenge in building a user interface that works well on a TV screen with a TV remote.  They seem to have been successful with this on Samsung devices, but if Spotify is to become available on other TVs and set-top boxes then a lot of care needs to be taken to minimise the amount of effort needed to support a consistent user interface on many different platforms.  As services like iPlayer have found, this can be a huge challenge given the current level of market fragmentation.

The second challenge will be the business model for Spotify on connected TVs.  While the (ad-supported) PC version is free, the TV version costs £10 per month - the same price as the mobile version.  The question is therefore; how many people will be willing to pay the extra £10 a month to access this service on their TV, when other entertainment services are available for free?

UK digital TV switchover signals the end for Ceefax

The final analogue transmission in the UK took place last month. A decade into the new century, Britain’s airwaves are finally a digital domain. Ceefax was switched off as the final analogue signal was turned off in Northern Ireland.

This UK TV landmark highlights how much has changed in the 38 years since Ceefax launched. At its peak Ceefax had 20 million viewers a week and its switch-off will be greeted with some sentimental sadness. Many will fondly remember anxiously waiting for a Ceefax page to change to get the latest football scores for example.

Today’s TV user experience is very different, football updates are available instantly across multiple devices and goals are streamed straight to mobiles and tablets as soon as the football hits the back of the net. Rather than waiting for a match report after 90 minutes, sports fans have access to social media providing minute by minute updates live from grounds around the country. Consumers have the ability to tailor their service to meet their personal needs.

Connected TVs along with tablets and smartphones are undoubtedly improving the way consumers watch and interact with live sports although we’ll miss Ceefax a little bit too!

What impact will the iPad Mini have on the multi-screen TV viewing experience?

Apple’s much anticipated gadget, the iPad Mini was unveiled last night, but what impact will it have on the multi-screen TV viewing experience when it becomes available to the public on the 2nd November?

The launch of the iPad Mini could send Apple’s dominance in the tablet market into overdrive. The smaller, cheaper tablet isn’t just a device for holidays; it has the potential to extend TV services every day. Multi-screen TV is becoming increasingly popular with services including search and recommendations being combined with the ability to watch shows away from the TV set. Compact and portable, the quality of the screen hasn’t been compromised, meaning users will be able to enjoy TV content on the go at ease.

Whilst it’s launching with a slightly higher-than-expected price tag of £269, it’s still cheaper than Apple’s £300+ flagship 10-inch iPad. This means consumers will be able to take advantage of an enhanced connected TV experience at a lower price.  Both the TV industry and consumers are becoming increasingly savvy in using tablets and smartphones to enhance the viewing experience. It’ll be interesting to see what new services will be tailored to the new enhanced range of iPads to extend TV experience even further, and whether these new devices change the way people multi-task while watching TV.

BBC scales back Red Button video ahead of connected TV service

The BBC has recently announced that they’re scaling back their use of “red button” video ahead of a wider deployment of their connected TV service.  Given the success of iPlayer, this isn’t entirely surprising.  The use of broadcast services for delivering alternative video streams is both expensive, because you have to pay for the spectrum to broadcast it, and inherently limited because there are only so many alternative streams that you can carry at any time.

The BBC’s excellent coverage of the Olympics showed the value of alternative streams, by allowing everyone to choose which Olympic events they wanted to watch.  While this is feasible as a one-off for high-profile events such as the Olympics (if you’ve got a satellite or cable subscription that can handle all of the extra channels that are needed), it doesn’t work so well in day-to-day situations because of the limited number of streams that you can carry.  Broadcasters end up having to make a choice of what alternative streams to provide - not only to fit them into the available channels, but also to maximise the use of those channels.

The success of catch-up services on smart TVs has shown that customers will accept streamed video, and services such as the “Tagesschau” service in Germany (which provides news on demand) show the advantages of a connected approach, especially as the adoption of connected TVs grows.  The flexibility of connected TV services offer a big advantage over broadcast-based alternative video streams, and over time users will see real benefits from this through the increased availability of alternative content.

DTG releases connected TV spec version two

The UK Digital TV Group (DTG) recently released a new version of its connected TV specification – D-Book 7 part B.  ANT has been heavily involved with this version of the specification (I’ve been chairing the HTML work in this activity) and so it’s good to see it finally released.  This is an important step in the evolution of the D-Book, for two reasons.

First, this version of the D-Book is much more closely harmonised with the HbbTV specification, meaning that three of the main HTML-based specifications for connected TV (from the Open IPTV Forum, HbbTV and the DTG) are now closely aligned.  This makes it much easier for all of the digital TV specialists to get economies of scale from the development and deployment of HTML-based products and services.

Second, D-Book 7 part B is publicly available.  Until now, the D-Book has only been available to DTG members. While this may not seem very important, D-Book 7 part B adds some advanced web technologies over and above those currently adopted by OIPF or HbbTV.  While there are still questions about how widespread the deployment of these technologies is in smart TVs at present (and how usable they are on the current generation of receivers), that may not be the most important aspect of this.  Having this specification publicly available makes it much easier for HbbTV and OIPF to make sure that future versions of their specifications are aligned with the DTG.

Increasing harmonisation is not only good for the industry, it’s good for consumers all over the world, so the closer alignment of all three specifications – and the ability to easily align even further in the future - is a big step in the right direction.

Will iPhone 5 increase multiscreen viewing in the home?

So the dust has settled on the launch of the new iPhone model. There was no great new feature that stole the headlines. It was simply more of the same that has made the iPhone so popular. With improved maps, a panoramic camera, 4G, and a new digital dock, the latest iPhone is set to be a worthy replacement for the iPhone 4 and iPhone 4s. But what stood out for us was the introduction of a larger screen.
The new model is getting a display larger than the traditional 3.5-inches. The screen measures 4-inches diagonally and will maximise the Retina display technology that was introduced on the iPhone 4. The new iPhone is just a little bigger than earlier models but with a width the same as the 4S.
Why has Apple done this? Well the success of the Samsung Galaxy and its bigger screen might be one reason. But perhaps Apple has picked up on the growing trend of consumers using their smart device to watch TV on.

This habit is something we’ve observed in the past, and it’s more than encouraging to see giants such as Apple developing products recognising this trend. The tablet is still maturing, but smartphones are already in most homes. As tablets become more popular, it seems larger smartphone devices are where we are headed.
This will be music to the ears of the connected TV manufacturers to see better companion devices to interact with, to highlight the functionality of their products. It’s now up to digital TV software specialists such as us to provide products, like ANT Galio Move, that will maximise this development.

ANT wins at ConnectedWorld.TV Awards

Last night at the ConnectedWorld.TV Awards we collected the prize for the best native app for a portable device for ANT Galio Move. The awards ceremony took place at IBC 2012 and was hosted by Spencer Kelly (middle), presenter of BBC Click. It was great to see the product recognised by the industry as one of the leading applications on the market.

ANT Galio Move was launched at IBC 2011 and allows consumers to stream live and recorded TV to tablets and smartphones anywhere in the home. You can view the device in action on ANT’s YouTube Channel.

The award has come as we have been demonstrating the latest social media functionality of ANT Galio Move at this year’s IBC. We’ve had excellent feedback from visitors who have had a hands-on demonstration of the new features. 

ANT Galio Move now enables viewers to update Facebook or Twitter while they watch TV content on the companion device, or access additional related associated content on Wikipedia, YouTube or iTunes. It’s this interaction with the content, and being able to engage with what you are watching, that has hit the right note at IBC this year.

With these new features added, we’re already looking forward to innovating further as the fast moving second screen market continues to gain momentum.

Second screening becomes big business

24% of people are using second screens whilst watching TV, and almost half of all 16-24 years olds use social networks such as Facebook and Twitter to discuss what they’re watching, according to new stats in Deloitte’s new report.

Viewers are interacting directly with the programmes they’re watching, but they’re also increasingly talking about the content within the programme with their friends on social media networks. There is a real opportunity here from those broadcasters and advertisers that react quickly to this growing trend. Advertising specialist YuMe, has stated there is a window of opportunity for them to pitch their wares to a growing connected TV audience, as for now they will interact with the ads out of a simple curiosity.

To make of the most of this, advertisers should therefore be leading the way for consumers, providing interesting and personalised content so that when they do go online using their connected TV, they have something compelling to interact with.

There’s also a huge opportunity for manufacturers to get involved here, and we are seeing a growing number of companion apps becoming available that consumers can use to interact with their favourite TV shows. Integrating social media networks into the viewing experience for example, means viewers can be more engaged with their favourite TV shows, following the relevant hashtags on Twitter and discussing with friends online. 

These latest stats show viewers are becoming more accustomed to using second screens and interacting directly with the programmes that they’re watching. So faced with a more switched-on connected TV audience, the onus is firmly on the TV industry to create a converged first and second screen experience so compelling that it could potentially have more impact than a single screen experience.

It’s good to share as the connected device market prepares for growth spurt

A report by the analyst group IDATE reveals connected TVs will account for 63% of the new over-the-top services market by 2020. In addition to that, the global TV services market will amount to €355 billion by 2020, up from €233 billion in 2011. On average, over the next eight years, it means the market is set to grow by 4.7% annually. When you consider the wider economic climate, that’s an ambitious target to reach.

The driving force behind this however will be what the report calls the 'rest of the world' countries, including China, India, Russia and Brazil. These countries will increase their share of the global TV services market from 20% in 2011, to 42% in 2020.

One of the reasons for this growth is the development of on-demand-video services. IDATE’s deputy chief executive, Gilles Fontaine, believes "new on-demand services will increase their share of the global video market from 3% in 2011 to 12% in 2020.”

China and the Asian markets will be of particular interest as they continue to develop. Burgeoning middle classes in China and the modernisation of other economies in the region means there is, in every sense, a whole new market to explore.

We’ve said in the past that we expect to see a sharp curve on the adoption cycle of connected TVs. Consumer take-up stagnated in the early years, partly because the consumer education piece didn’t run parallel to the technology innovation. This is now being addressed and the benefits of connected TVs are already starting to light up living rooms. It’s now up to the industry to continue to develop additional, relevant, TV services to meet the forecasted demand.

Will Google TV learn the lessons from 2010 launch?

Sony and Google have got together to launch Google TV beyond North America for the first time. It’s an interesting development and another reason why 2012 has become the year of connected TV devices. Whilst it’s an exciting development for consumers, people may still be a little wary about investing in the product given the reputation Google TV garnered when it first launched in the US.

When it launched in the US in 2010, Google TV had its share of critics. The initial release was derided for being too expensive, and perhaps more importantly several TV networks blocked the service from access to its content. Google’s launch partner, Logitech, pulled out after an unsuccessful launch, CEO Guerrino De Luca later told investors that launching on "beta" software was "a mistake of implementation of a gigantic nature" the software simply wasn’t ready for commercial deployment.

The UK launch, which will also be rolled out in Canada, Australia, France, Germany, the Netherlands, Brazil and Mexico in the coming months sees Sony provide the hardware. We saw some early implementations at CES in January. Consumers will be able to browse the internet, play games and access other applications as well as watching TV. There appears to be a limited amount of European TV content available at launch, which, as we saw in the US may prove to be a barrier.

It remains to be seen how the device, called the NSZ-GS7, will fair. However, with plans to launch a Blu-ray version at £300 later this year, it suggests Google and Sony are going to be throwing their considerable marketing weight behind it. The encouraging thing for all of us in the industry is that the connected TV market continues to grow.

New services needed to capitalise on connected TV sales boom

More than every third flat-screen TV set sold this year in Europe (37%) will be Internet-compatible, according to recent figures compiled by the European Information Technology Observatory. But with connected TVs now set to boom across Europe, manufacturers and retailers are constantly having to up their game. One way to do this is to offer the consumer market more innovative features so that they remain ahead of their competition.

These latest figures show that connected TVs are becoming increasingly popular, and as a result, everyone wants a piece of the pie. This year, we’ve already seen the entry of Netflix into the UK market, the launch of Google TV 2.0, and an Apple TV is rumoured to be hot on its heels. So in an increasingly crowded marketplace, manufacturers are having to become more savvy by harnessing developments in new technologies and offering consumers a greater range of digital TV services. For a glimpse of future connected TV services it’s worth tracking the connected set-top box market: with a shorter development cycle it’s often where TV innovation can be seen first.

Multiscreen TV is set to shape the viewing experience of the future, with connected devices talking to each other to deliver truly personalised TV. By embracing new services such as tablet and smartphone viewing, connected TV sales will continue to thrive.

By Simon Woodward, CEO of digital TV specialist ANT Software

Tablet video views continue to grow

The latest report by online video company Ooyala is out and once again provides an excellent insight into how people are consuming video content on PCs, smartphones, tablets and connected TV’s.

The report includes some great statistics around the increase in long-form content viewing (videos longer than ten minutes) on tablet devices. This accounted for over half of the video content consumed. The iPad remains the dominant tablet device, accounting for 95% of tablet viewing.

We’ve seen strong industry interest in this area seen since the launch of ANT Galio Move, an application that allows consumers to stream live and recorded TV direct to tablets and smartphones anywhere in the home from connected TV’s and STBs. Tablet sales continue to go from strength to strength and new product releases have enhanced video content usage, Ooyala’s report states that following Apple’s March release of the iPad 3, the amount of video watched on tablets jumped 26%. 

Broadcast content is still king

Digital Spy carried out a survey of 3000 UK consumers this week highlighting that 75 per cent still prefer to watch broadcast content live. With broadcast content still king, what does the future hold for more interactive TV services, such as on-demand content?

Whilst on-demand content is increasing in popularity as it offers viewers the chance to watch what they want when they want, broadcast programmes will always have a place in our living rooms. Viewers will always want to experience and share important events in real time but increasingly, viewers are multitasking whilst watching the TV.

Now, advances in TV technology are giving viewers the opportunity to interact directly with this content using phones, tablets and the TV itself. Social media is already being used by viewers to enhance their viewing experience, and broadcasters are responding to this, with Twitter hashtags becoming more prominent during programmes. There is a real opportunity for the TV industry here. But you can’t just transfer the PC browsing experience to the TV, it’s essential that both broadcast and broadband content are developed together to provide a seamless viewing experience.

By Simon Woodward, CEO of digital TV specialist ANT Software

Interactive TV to boost retailers’ sales

eBay released a report earlier this week highlighting that Interactive TV services will have an increasingly positive influence on retailers’ sales. eBay predicts that by 2014, new technologies will boost revenues by a huge £235m.  Interactive TV will have the most influence with a quarter of people set to use it regularly to shop by the end of 2014.

But the impact of interactive TV on online shopping sales isn’t a given. Instead, it will be dependent on whether consumers become more comfortable with the concept of connected TVs in their living rooms.  On the one hand, there is the potential to open up new revenue opportunities, whereas on the other hand, consumers need their eyes opening to the new role that television can play in the home.

For retailers to cash in on the £750m worth of potential direct sales, they need to avoid getting caught-up in the chicken and egg situation. Consumers won’t rush to shop through their television; they need to be shown how it works and the benefit of shopping via that medium.

We’ve seen slow adoption of the new functionality available in connected TVs, largely due to the poor education around how plugging the internet into the back of your television can enhance the viewing experience.  New technology adoption doesn’t just happen, technology is embraced when people are educated and excited by it.

By Simon Woodward, CEO of digital TV specialist ANT Software