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

“Chatterboxing” set to be the norm

More and more people want to interact with the content they are watching and feel connected to their TV. If that was not already accepted, then the recent TeleScope report published by TV Licensing should help to convince the doubters. The report covered over 2,000 UK adults looking to take the pulse of the nation’s viewing habits. One of the headline findings is that over a quarter of those people (26 per cent) said they now use multiple devices whilst watching television.

The practice of using smartphones and tablet devices to comment on television in real time has been dubbed “chatterboxing” in the report, and if the growth of social networking sites and sales of such devices continues, then it is inevitable more people are going to want to interact with content in this way.

For instance, if a soap show or a football match is on the box, you can bet at least one aspect of the content will be trending on Twitter. People are watching their televisions and reacting to what they are seeing on social networking sites via their smartphones or tablets. TV shows are already creating their own hashtags to compliment what is being transmitted. Look at something like Question Time, interaction with the audience at home is now done via social networks. It’s almost completely replaced the concept of texting or calling into the show.

The key to this shift in consumer behaviour will be to rollout connected TVs with the ability to work in unison with other devices such as smartphones and tablets. At the moment these are treated as independent devices but the viewing experience of the future must enable these devices to 'talk' to TV’s, delivering a more personalised viewing experience for the consumer. This is something we looked at in our ‘Predictions for the year ahead’ blog.

Whilst for some this may be seen as a big investment for the TV industry to meet, the TV Licensing report shows it should be a financially rewarding project for them. Chatterboxing is actually encouraging people to watch scheduled TV. A quarter (24%) of social media savvy adults covered in the report, aged under 35, watch a programme live, rather than on catch up, because they enjoy being part of the related social media chatter. One in five (19%) are more likely to watch something as it is being shown on TV because they are worried ‘social media spoilers’ will ruin the ending.

If this heightened interaction and the risk of ‘spoilers’ encourages more people to tune in at the scheduled times, then it should help broadcasters to sell advertising space for higher rates. All of which will trickle through the industry helping everyone to benefit.

However, to ensure this opportunity is seized upon, content providers and device manufacturers need to work together to create further options and make sure interaction between the viewer and the broadcaster is taken as far as it can be. TV is such an important part of today’s social behaviour and the onus has now been placed on the TV industry to deliver a converged TV experience that embraces new viewing trends.

Insights into the market drivers for TV in 2012

Lipstick sales used to be the bellwether for the economy. Now it seems, its televisions, as an evening at home in front of the widescreen connected TV has become the new Friday or Saturday night out.

Consumers are reigning in spending as a result of the tough economic environment. But according to the analyst community they are increasingly willing to invest in both large- and smart-TVs (perhaps the result of the need to create an engaging environment as they cut down on nights out to save on spending).

A recent study by analyst Frank N. Magid Associates found that 40 per cent of consumers are looking to buy a new TV next year, with more than three-in-five seeking internet TV features. Meanwhile, Digital Entertainment Group reports that US sales of HDTV sets with a 60-inches or larger screen are expected to have grown by 50 per cent this year to 1.3 million units.

Innovation is opening doors to new services for consumers. In 2012 we’ll see the emergence of more unified services connecting TVs to mobile devices, such as iPads and iPhones. Meanwhile we’re also witnessing greater levels of integration of TV services with gaming devices, such as Kinect for Xbox with its hand gesture navigation system shows the potential for future TV navigation.

Driven by the economic climate and growing technology innovation, the evolving TV experience is undoubtedly becoming an increasingly important feature in connected homes across the UK. As the industry casts its attention towards 2012, we’re excited to see what’s in store as this year draws to a close and a new one begins.

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

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