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.

What we watch shapes how we watch

Data released by Twitter recently has shown how the type of content we are watching can impact our second screen social media activity. For example, if people are watching a gripping drama like Homeland, they are far less likely to tweet at the same time. On the flip side, if it’s a light entertainment show like X Factor, people will consistently tweet throughout the show with peaks in Twitter activity directly linked to specific contestant performances. Meanwhile investigative shows like Panorama stimulate prolonged Twitter activity with viewers discussing it during the show but also after it has finished.

The report is targeted at advertisers however it also contains valuable information for the wider TV industry; consumers no longer just passively watch TV, Twitter adds a new dimension to the viewing experience. We are likely to see more TV shows actively encouraging viewers to go online whilst the show is on.

Broadcasters already trail hashtags before shows, but this is just the start. They are now using Twitter to evaluate the performance of shows, and it will be fascinating to see how this data is used and impacts programming and additional, associated content in the future.

What impact will Amazon’s monthly option on Prime have on the movie rental market?

Amazon is testing a new monthly option for its video-streaming service, Prime.  Prime already offers free two-day shipping, free video streaming and access to Amazon's Kindle e-book lending library. The company is now offering a monthly option for the service on its website, which is more comparable to Netflix's streaming video subscription.

Whilst the move signals Amazon is stepping up the competition against main rival Netflix, it’s also a sure sign that much like the music market, streaming and digital downloads are coming to dominate the movie market. Given Amazon’s strong position in the online media market, it’s not surprising it’s added another string to its bow with its monthly Prime service. It’s thrown down the gauntlet to the likes of Netflix and Hulu and we’re likely to see an influx of similar services as the acceptability of digital rights management to both content owners and consumers grows.

But it’s not just about quantity. Broadcasters looking to capitalise on this digital trend would be wise to take a leaf out of Sky’s book. Content has always been king with Sky, and broadcasters need to do in the movie space what Sky’s done with sports. High quality content that consumers actually want to watch will persuade more viewers to subscribe to these online services. Not only this but it’s important to make them device independent so viewers can enjoy the movie experience on the go, wherever they might be.

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.

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.

UK leads Europe in TV innovation

A study released by Ofcom this week has shown that the UK is Europe's most screen addicted nation.

The UK leads the way in Europe when it comes to digital innovation, particularly in the TV space, you only have to look at the success of the BBC iPlayer to see why the rest of Europe keeps a close eye on the latest UK developments. So it’s no surprise that Brits are the most screen addicted nation. However, this is just the tip of the iceberg. In 2012 the entertainment experience is set to radically change as the explosion of online content hits our screens at home and TV addicts will benefit from a media revolution that has been brewing for some time. There are thousands of connected TVs sat in UK living rooms that need to be connected to the internet to benefit from the innovative new TV services in the pipeline.

2012 will see broadcasters and TV device manufacturers launch a wealth of new TV services. But it will be a balancing act between delivering more sophisticated online interaction and the traditional TV experience for broadcasters and manufacturers alike. As the TV is increasingly positioned as the hub of the connected home, broadcasters and manufacturers need to ensure they are providing the viewing experience consumers want.

Increase in demand for personalised TV services

A recent report, has found that over 70 per cent of UK consumers want to be able to watch what they want, when they want. 39 per cent wish catch-up content was available for longer and 45 per cent would like to be able to watch all the episodes of their favourite shows back to back.

It seems that on demand is in demand, as 74 per cent of viewers claim that they can’t find anything to watch on live TV. Many are feeling overwhelmed by content. The fusion of broadcast and broadband has provided a wealth of new TV services but the result is a content maze that viewers are finding increasingly difficult to navigate.

The survey goes on to say that 39 per cent of those surveyed felt that there were technology and film brands that could do a better job than the existing TV channels. This means that the pressure is on for broadcasters in the coming months, as companies such as Netflix launch in the UK.

As increased connectivity transforms the way we consume and interact with TV, operators and broadcasters need to deliver more choice and a variety of services that enable the viewers to shape how they consume content.

Viewers are ready for the next generation of TV. As we move into 2012 there is a real opportunity here for operators and broadcasters to look ahead and develop personalised services for their viewers so they can get the most out of their TV viewing experience.

Changing times for TV – Europe leads the way

New research has found that broadcasters are increasingly taking the reins when it comes to developing over-the-top (OTT) video services in Europe. The study by SNL Kagen shows that the popularity of catch up services, like BBC iPlayer, is at the heart of how content is being distributed and viewed online.

It’s further evidence that the way we absorb TV content has made a fundamental shift. The ability to tune in anytime to our favourite programmes shapes our TV behaviour today. Open standards, like HbbTV, are creating a competitive landscape for broadcasters – and by default, an increasingly rich content library for TV viewers, as technology opens the doors to brand new features and personalised functions.

Broadcasters in the UK, France and Germany have established standards that open new doors for consumers. Spain is also beginning to address this demand with Mediaset España and Telefonica recently announcing a strategic agreement to launch a pilot for HbbTV services in Spain.

So, it seems that open standards are proving their metal in Europe. And, ‘TV Everywhere’ is becoming the name of the game. But as this adoption grows, the content bank for consumers gets richer, and instant access to content becomes the status quo, the pressing question now is how users will access all of this content? A multiscreen TV experience, it seems, is just around the corner.

Video streaming drives data growth – but who pays for it?

Once again, we’re hearing reports that multimedia traffic and video in particular, will drive a massive growth in Internet traffic. ABI Research has calculated that Video and TV streaming could surpass web and internet traffic by 2015, driven by the increasing use of laptops, tablets and other connected devices.

While this isn’t anything new, the increase in the amount of services delivering over-the-top media (and more importantly, the upsurge in the number of devices that give consumers access to those services) indicates that this growth can’t be ignored.

Rising internet traffic will require increased investment from both data carriers and service providers. While the net neutrality debate isn’t yet over, it’s clear that consumers will end up paying for this investment in one way or another. However, who they pay will be an important factor and if service providers can’t monetise their content they will face an uphill struggle in the face of increasing costs for content delivery. We’re already seeing YouTube moving to provide pay content, and other service providers are likely to soon follow, but it’s unclear what will distinguish their services from the likes of Netflix and LoveFilm.

Services operated by broadcasters, such as Sky Player, often have an edge in the quality of content they can offer - not to mention revenue from broadcast programming that can help offset the cost of an online service. For this reason, pure online services will have to do more than simply provide video in order to convince end users to pay. Without offering something unique, these services will face stiff competition from traditional broadcasters and TV service providers offering online content.

Over-the-Top a hit for all ages

Over-the-top (OTT) delivery is becoming increasingly popular for watching video content across a broadening range of connected devices. A survey carried out by Accenture shows that a growing number of consumers are choosing to watch video content over-the-top, on their TVs, smart-phones as well as PCs.

And it seems that viewers of all ages are increasingly accessing on-demand OTT content. It isn’t just the younger viewers who are driving this trend. The survey showed that 82% of participants aged 35-44 and 64% of participants over the age of 65 are also accessing OTT content.

Broadcasters and operators need to look to find ways to deliver the next generation of TV content, that will enable the viewer to engage and interact with the programmes they watch, not just on the TV but across other devices as well. Consumers are looking for a unified viewing experience across their connected devices.

TV Web surfing

Another interesting statistic from the report was consumers’ desire for Web browsing on the TV, just 14% wish to use this feature – an opinion we’ve supported many times in the past. Web services must be tailored for the TV viewing experience.

How will product placement impact traditional TV advertising?

This Morning became the first UK TV show to feature product placement, when Nescafe’s Dolce Gusto coffee machine was featured in This Morning’s kitchen set this week.

This follows OFCOMS recent unveiling of its new warning symbol for programmes containing product placement Commercial broadcasters and the advertising industry will obviously welcome this move, given the challenges facing the more traditional forms of advertising in the UK. What may not be so clear is how this could affect the revenue flow between broadcasters, advertisers, and production companies. Where advertisers were traditionally working with broadcasters, will product placement lead to production companies such as Endemol getting a bigger share of the advertising pie?

The restrictions on where it can be used, and the logo for shows that feature it, seem to be a reasonable compromise between slowing the decline in advertising revenue and maintaining the public’s trust. Along with differences in TV culture between the two countries, it is unlikely that the UK will go as far down the product placement road as the USA.

While some people consider product placement to mean TV shows are “selling out” to advertisers, the reality is that less advertising revenue means fewer new TV shows getting produced. As PVRs have become popular, we’ve already seen the content of TV ads change so that they’re still effective when played at 8x or 16x normal speed. This is just the logical next step for the advertising industry in overcoming the challenges introduced by technology. The trick for advertisers will be to make sure it’s noticeable enough to have the desired effect, but not so noticeable that it makes people change the channel.

Getting personal

The Government is making plans to broadcast a daily “Community Minute” with the aim of encouraging people to get involved in local community projects. The 60-second segments will be shown on ITV, Channel 4 and Five, showcasing local projects that viewers can get involved in.

The announcement follows news earlier this year of plans to introduce a ‘yellow button’, to deliver more localised TV news services to towns and cities.

It’s clear that there is a growing level of awareness throughout the broadcast industry as a whole, for the demand for more personalised services. But it doesn’t need to stop at a local level. Recommendation engines can be utilised to suggest TV programmes and products to consumers, based on their viewing history, allowing them to cut through irrelevant content. As consumers we’re already used to this on the web when using websites like Amazon.

The convergence of broadcast and broadband content through connected TVs has opened the gates to a whole new world of media content for viewers. But both advertisers and broadcasters are at risk of overwhelming viewers with too much choice. It’s all about striking the right balance; enabling consumers to access a wealth of media content and enabling them to access it quickly, so they can get the most out of their TV viewing experience.

European initiative merges television with the power of the internet

Here at ANT we’re delighted to have been involved in the launch of “Hybrid Broadcast Broadband TV” or “HbbTV”, a major new pan-European initiative aimed at harmonising the broadcast and broadband delivery of news, information and entertainment to the end consumer through TVs and set-top boxes.

It’s an exciting time for the market and we’ll be making further announcements soon so watch this space!

You can find out more information on the HbbTV website and

I’ve also answered a few questions here:

Broadcasters fight back against internet upstarts

US broadcasters NBC and Fox have finally unveiled Hulu.com, their belated response to YouTube. The site will carry free ad-supported video clips from the two networks' shows as well as content from MGM and Sony.

Broadcasters have finally worked out that user experience and content are the two drivers of customer subscriptions and are fighting back against internet over the top TV entrepreneurs.

Saleha Williams Shakes-up TelecomTV's Broadcasting by Broadband Panel at IBC

The consumer should be at the heart of the debate taking place between broadcasters, network operators and IT providers, argued Saleha Williams at one of TelecomTV’s opening broadcasts at IBC. The “Broadcasting by Broadband” panel session looked at how broadcasters are having the carpet pulled from under their feet as their knowledge becomes redundant in the new IP world. It asks whether the communications industry can offer advice and knowledge in understanding the networks.

Saleha battled it out with Nortel and Microsoft, maintaining that technology for technology’s sake is not what the industry needs.

To view the full interview please visit TelecomTV’s web site or click on the link here. You may be required to register.