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?

Smart TVs Help TV Overtake PC For Online Video Viewing

A recent study from the NPD group in the US has revealed that the television has now overtaken the PC as the preferred device for viewing over-the-top (OTT) media. The rapid adoption of smart TVs obviously has a large part to play in this, but we’ve also seen that many smart TVs have ease-of-use problems and so the growth in smart TVs alone may not be enough to account for this trend.

Smart TVs have some obvious benefits over the PC for viewing media content – the large screen and the “lean back” user experience are pretty much essential for watching content that’s longer than a few minutes.  As a regular user of iPlayer, I much prefer to use it on the Wii (for those times when the entire family wants to watch something) or on my iPad (for when I’m the only one who wants to watch something) because they’re more convenient and comfortable to use.  While I could connect my laptop to the TV and use that, the difference in resolutions and the hassle of getting audio set up properly means I simply don’t bother.  I’d rather watch a standard-definition version of the programme easily than deal with the messing around required to watch the HD version on the big screen.

As online media services become more widely deployed through smart TVs and set-top boxes (with both YouView and Freesat doing this in the UK, and various HbbTV-based catch-up TV services available in Germany), viewing OTT content is eventually going to become just another part of the TV experience, in the same way that PVR functionality already is today.

At the same time, there’s still a long way to go – recent figures have revealed that three quarters of YouView boxes sold so far have been used to view on-demand content for more than three minutes per session.  Given that the current purchasers are by definition the early adopters, who are more likely to be familiar with catch-up TV services, this is not a very impressive set of numbers.  Seeing how these numbers grow as YouView and Freesat’s Freetime service become more widely deployed will give a good indication of how this trend will develop in the UK.

ANT Galio Move shortlisted for Connected World awards

Good news! As well as being shortlisted for the CSI awards last month, ANT Galio Move has now also been shortlisted for the Connected World TV awards! We’re in the running for the ‘Best native app for a portable device’ category.  The judging will take place by a panel of experts over the next month and the winners will be announced during this year’s IBC event which runs from the 7th – 11th September.

Launched at last year’s IBC show, ANT Galio Move is an application that allows consumers to stream live and recorded TV direct to tablets and smartphones anywhere in the home. Using ANT Galio Move, viewers can watch the same programme as the main TV, stream a different channel or watch a programme previously recorded on the STB (Set-Top Box). The app connects directly to the STB meaning it can manage recordings, access additional programme information and quickly navigate through the EPG (Electronic Programme Guide), extending the capabilities of today’s STB beyond the living room. All of which can be done without disrupting the main TV experience.

It’s been really well received by the critics and we’ve spent the last 12 months in development, preparing to launch a whole range of new exciting features at IBC 2012. If you’re attending the show this year, please feel free to visit our stand to see ANT Galio Move in action.

We’re delighted with the results of ANT Galio Move’s latest features and testament to its success in the market is the fact that we’ve been shortlisted for two highly prestigious industry awards in as many months. We’ll be keeping our fingers crossed for the Connected World awards ceremony, but please do wish us luck!

For more information on ANT Galio Move please visit the ANT website.

A big “phew” from the people behind YouView

YouView is finally set to launch. Chairman Alan Sugar and Managing Director Richard Halton showcased the new television service backed by territorial broadcasters (BBC, Channel 4, Channel 5 and ITV) and three communications companies (Arqiva, BT and TalkTalk) to the press for the first time this morning. While trials continue, YouView has committed to the first STB’s being available to buy at the end of the month, around two years later than originally planned.

YouView is some four years in the making having been known initially as project canvas in 2008, with a view to launch in 2010. It will allow viewers to access 100 digital TV and radio channels as well as a selection of on-demand content from BBC iPlayer, ITV Player, 4oD and Demand 5. Today’s launch focussed on its EPG that enables users to scroll backwards in time as well as forwards, so they can catch up on shows they may have missed in the last seven days. You can see some glimpses of the EPG here.  Subscription packages are yet to be announced and may hold the key to whether the service is able to offer anything that isn’t already available in the market today. Subscription free STBs will cost £299, meaning it’s very much a premium product. 

After some technical delays, the product is now ready to go to market. Crucially, it will miss the anticipated pre-Olympics surge in TV device sales. But it’s thought the new TV service will also provide film studios and TV production companies with the ability to set up their own channels, an interesting development for the UK market.

Ceefax – time to switch-off the much loved yet underused service

Ceefax, after nearly 40 years, has finally been shut down. Many have lamented the fact the text service has had its plug pulled, and some even wrote a love letter to Ceefax to thank it for all the memories. But the fact is it had become little more than a piece of nostalgia from a by-gone time.

We should all remember Ceefax for what it was – a forerunner to modern day interactive services. It was the basis for the innovation we’re seeing in the market at the moment. Services such as BBC sport’s internet connected TV app can trace its origins directly back to what Ceefax had to offer. 

Most adults grew up checking Ceefax for the latest news, sports and cheap travel deals before the internet took its place. Now we’re seeing the next step in that development with internet connected TVs.

Such is the nature of technology, something new and better eventually comes along to replace it. As connected TVs and set-top boxes become more commonplace, it will be interesting to see what people think of Ceefax in five or ten years’ time. Our hope is that it will be held in high regard for paving the path for more interactive services and functions to be made available whilst pushing the boundaries for what the analogue platform was able to deliver.

By Simon Woodward, CEO of digital TV specialist ANT Software.

Streaming kills the video star

It looks as though the tide is turning for connected TV services. This month for the first time ever, LOVEFiLM announced its members streamed more films and TV series over the internet than it rented DVDs. The number of films and TV episodes streamed online increased by 20 per cent over the previous month and increased by 400 per cent compared with the same month last year.

These services are currently offered over internet-connected devices such as games console, laptops and connected TVs. But we should start to see connected TVs and STB’s take the lion’s share as consumers become more aware of the benefits of plugging an Ethernet cable into the back of their TV’s and set-top boxes.

Amazon’s LOVEFiLM was the pioneer in online film delivery services in the UK and with over two million members it’s still the largest in Europe. But the marketplace is hotting up with competing offerings from the likes of Netflix, Dixon’s KnowHow service and Sky’s NowTV to be launched in the summer.

We hope to see these companies take movie streaming services to the next level, by not only offering great content but interactive features as well. Service providers need to consider what value added content they can deliver on top of programmes, such as social media interaction and recommendations.

Predictions for the year ahead…

From ANT CEO, Simon Woodward

With CES over for another year it’s clear that 2012 is shaping up to be another exciting year for the TV industry. Connected TV was very much a key theme at the show alongside some 3DTV advances and some pretty stunning new TV’s including the 55 Inch Samsung Super OLED.

TV technology has undergone a huge amount of transformation in recent years, with the evolution of screen form factors, display and image definition; and it’s not going to slow down in 2012. We’re seeing growing demand for connected TV services and consumers are turning their attention to the features of their set-top box (STB) and the services it provides to them.

2012 will be a tipping point for the connected TV market. Multiscreen TV services are the next step towards the ‘TV everywhere’ vision that the industry aspires to, where consumers will be able to access content whenever and wherever they want. Multiscreen services undoubtedly offer new opportunities when it comes to features and content – for consumers, device manufacturers, broadcasters and brands.

With some of the world’s biggest technology players looking to stake a claim in digital TV services during 2012, new doors are opening for brands when it comes to engaging with consumers. Up until now, we’ve been stuck in a chicken and egg situation when it comes to the development of interactive TV advertising. Marketers have been slower than expected when it comes to exploiting the direct-to-consumer presence that connected devices offer, with many waiting for consumers to show an interest. But without engaging content, the fact of the matter is that consumers have nothing to interact with.

The next generation of STBs is set to deliver a wealth of new services that will enable brands to interact in innovative new ways with consumers while they watch their TV. This means bringing to the table a greater variety of services that will enable viewers to shape their own viewing experience. For advertisers it’s important to remember that there’s a fine line between personalisation and ad-overload, so they must work with broadcasters to take advantage of these new technologies and deliver intelligent connected TV strategies.

It’s important that the experience we value most about TV watching – that opportunity to sit back, relax and escape – remains at the heart of these new services.

Connected TV: early insight from Virgin Media in changing consumer habits

Connected televisions are changing not only viewing habits but how we interact with televisions.

A report issued last week by Virgin Media gives insight into how consumer viewing habits are changing to embrace connected television.

Consumers are exploring new ways of finding the programme that they want to watch and are using apps to engage with television content according to Virgin Media.

Users are discovering programme content via search rather than from the Electronic Programme Guide (EPG) and almost 80 per cent of all TiVo set-top boxes were used to access an app and, on average, each box launched apps 4.5 times a week.

Enabling viewers to access content via search that would otherwise be buried down the EPG increases the audience for content that is popular via word-of-mouth.

The Virgin Media Entertainment Index is based on the viewing habits its 50,000 TiVo customers.

Across its entire subscriber base Virgin media said that customers made 484 million on demand views in the first half of 2011 – an increase of 19 per cent on the same period last year.

About-turn for government plans to make TV local

Jeremy Hunt has announced a major policy shift in his plan for a new generation of local TV services, moving from the idea of a national network “spine” in favour of a series of individual stations. But what does this mean for the TV industry?

The biggest challenge faced as a result of these government plans is not how the service will be deployed, but what they will deploy. Times are changing for the TV industry, with consumers expecting far more from their viewing experience.

If approached in the right way, these local TV services will open new doors for content providers and advertisers alike. But whether it is delivered via a national network spine or individual stations, content providers must look beyond broadcast to deliver a truly localised service. Connected TV’s and set-top boxes, combining access to broadcast and broadband content in a single user experience are the future of TV, allowing viewers, to not only pick and choose what they want to watch, but when they want to watch it.

Bridging the app

The launch of the iPad 2 has created yet another wave of talk about apps for consumer devices. With its faster processor and dual cameras, the iPad has been hailed as the device that will change the face of applications. And the app store is clearly here to stay.

But what impact does the ‘app store’ have on TV? Currently, viewers can enjoy a range of new services on their TVs, through apps enabled by connected TV sets and Set-top boxes. As the TV app market develops, apps need to be designed with the TV viewer in mind. It’s not simply a case of reformatting existing PC and mobile applications for the TV. At the end of the day, the ‘killer app’ for TV, is TV; consumers want a passive viewing experience, where they can sit back and relax, while absorbing high quality personalised content.

We are likely to see an increase in social media applications for the TV as social networking becomes more prevalent and viewers want to interact instantly with their friends about what they’re watching. But other apps will need to deliver value added content for the viewer if they are to get a look in.

Humax Launches New TV Portal with ANT Galio Platform

Humax ran an over-the-air update to its HDR-FOX T2 Freeview+ HD set-top boxes in the UK over the weekend. The update included adding ANT Galio Platform to facilitate it’s new TV Portal, you can read the full announcement here.

The Portal includes a range of TV services including Flikr, BBC iPlayer, Wiki@TV and internet radio and will also be made available on Humax HD-FOX T2 set-top boxes soon. The team at Tech Radar got it’s hands on the new portal a few days early, you can read the review here.

Digital killed the video star

The Institute of Engineering and Technology announced the results of a new survey today, which indicates that vinyl, film and video tape are in decline, as British households become dedicated to digital.

We don’t think that the death of vinyl, film and video tape is something that should be wept. A new and exciting entertainment era is emerging, with television at the heart. The TV is no longer just a box in the living room that plays out programmes dictated by the broadcaster. Today’s TV experience is an opportunity to interact with an explosion of content created for the digital world. Viewers can shape their own viewing experience – whether through video-on-demand and catch up TV services, red-button features or unseen DVD style extras such as behind the scenes footage.

The traditional passive experience of TV viewing is evolving to an interactive experience, with an increasing number of online applications converging onto our TV sets and the inclusion of services such as the BBC iPlayer and Sky Player. The combination of traditional broadcast viewing mixed with new on-demand web based TV services means the possibilities for consumers are endless. What would you like to see on your TV Set-top box or iDTV?

Project Canvas announces ‘YouView’

This week Project Canvas marked the next phase in its development, announcing the brand name for its connected TV offering. ‘YouView’ will be a free-to-air service and will launch in H1 next year, delivering viewers digital TV, on-demand services and internet content.

YouView set-top boxes are set to include a variety of services including: a programme search function, a Personal Video Recorder (PVR) and an applications store.

The current Project Director Richard Halton has now been appointed as Chief Executive Officer and will be working with Chairman Kip Meek. Unsurprisingly, the news has drawn a fair bit of attention in the press, with Halton stating that the service will “change the way we watch TV for ever”. A slick video has been added to the homepage of the new YouView website, click here to watch it.

Don't Forget What People Want

Looking through the latest specifications from STB manufacturers, TV makers and middleware providers, the list of amazing new features that will be delivered to the home user in the next 12 months is breathtaking.

Catch-up TV, download and play Movies, widget solutions, Web applications, VoIP and video calling, full Internet browsing, 3D interfaces, full integration into the home network with iTunes, support and video streaming and the list goes on.

I’m all for adding new features to the STB but let us all not forget the fact that most people want to just sit down and have an uninterrupted viewing experience. Any technologies we add, must not detract from this. New technologies must complement the existing service by offering the user choice and not detracting from the core viewing experience.

Chris Foulds, Release Manager, ANT

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: