Evolving Video Landscape

More indications of a changing video landscape...

Europe is seeing the rise of "Hybrid" TV - integrating traditional TV with online video. 
  In Sweden, telecom and IPTV operator Helm is planning to launch a multiscreen service using the TiVo interface. Com Hem says it wants to improve the TV experience for its viewers, by expanding viewer options and experiences via time-shifting and place-shifting, bringing TV and apps to multiple devices in the home as well as outside it. Tomas Franzen, CEO of Com Hem, plans to use the TiVo interface to bring "features like TV Everywhere, remote recording, universal search, smart recommendations and access to a wide range of third party interactive applications."
  In contrast, Panorama TV is a smart TV app that offers access to live HDTV streaming from 250 European travel destinations, along with weather reports and tourist information.  More than a million viewers have accessed the service via smart-TVs since October.  Germany's Feratel indicates that it plans to introduce a booking service to the app in the near future.

  In-room revenues from VOD and IPTV offerings increased around 150 percent since 2011, according to iBAHN, who provides content services to the hospitality industry.  iBahn's service provides smart-TV functionality, including letting guests access their individual streaming subscription content, without the need to update HDTVs to smart TVs.

Ooyala's 2012 Global Video Year in Review report is out, and shows that use of online and mobile videos continues to grow rapidly.  The share of streaming video viewing doubled in 2012, with a huge spike of tablet viewing on Christmas Day.  That's still only 8% of all video viewing, however.  The kind of online videos being watched varied by device.  Long-form quality IP videos (TV shows and movies) accounted for 63% of all video viewing on tablets, and about 80% of IP video viewing through connected devices and smart TVs.  In contrast, almost half of IP video viewing on smartphones were under 6 minutes in length.  Ooyala's metrics are based on the online habits of 200 million users in 130 countries.

A large-sample study from Hitwise Mobile shows that Google's various sites accounted for 5 of the 10 most used portals for mobile broadband (3G, 4G, WiFi) users, and almost a quarter of all visits.  Google's YouTube video portal was the second most visited site (4.55% of all hits), and sported the second highest usage in terms of time spent on the site.

A new report from Rovi is indicating that video streaming on mobile devices is on the rise.  The report indicates that in the U.S., as well as many countries in Western Europe, more than two-thirds of mobile device owners report watching streaming video on those devices at least 2-3 times a week.  Tablet owners reported the longest viewing sessions - about two-thirds of UK and US tablet owners average more than 30 minutes a session. About a third of tablet owners in the UK use their devices primarily to watch TV shows, while a third of tablet video streaming in Germany and the US were movies.  Roughly 80% of tablet viewing was in the home.  Video streaming sessions tend to be shorter with smartphones - with more viewing of user-generated content and live events, and are more likely to occur outside of the home..  But perhaps the most important result for the future of mobile video was that 93% of US tablet users rated their devices as a good way to view movies and TV shows.

A market report by IHS Screen Digest suggests that a quarter of TV sets shipped in 2012 included Internet capabilities, and by 2015, more than half of all TVs shipped will be smart-TVs

“Consumers are now increasingly buying big-screen TVs that include the Internet capabilities, even if they’re specifically looking for [those capabilities] or not,” Veronica Thayer, TV systems analyst at IHS.

The report also notes that partnerships between set manufacturers and IP video apps (see above) are on the rise in Europe and will make their way into US markets - as they offer a way for program producers and distributors to reduce costs while providing greater presence among viewers home entertainment options.

Sources -  'Hybrid TV' Taking off in Europe,  FierceIPTV
Global Video Index - 2012 Year in Review, research report from Ooyala
Google Dominates Mobile Sphere,  Online Media Daily
Video Streaming Growing in U.S., Europe,  MarketingDaily 
Smart TV Growth Is Set To Explode, Marketing Daily

Online Video: Going Long(er), Better

“Online video distribution continues to redefine television around the world,” said Bismarck Lepe, cofounder and president of products for Ooyala.

  Analytics firm Ooyala tracked the online video viewing habits of more than 200 million unique online users from over 120 countries around the world - and found that tablet owners watched 54% more videos in the third quarter than at the start of the year.  The great dichotomy in online video is between short-form videos (generally clips and UGC shorts, under 10 minutes in length) and long-form videos (10+ minutes, generally professionally produced - TV shows, movies, live event streams, etc.).  And with the emergence and widespread adoption of new viewing options, online video viewers are developing preferences among their viewing options.  For long-form video, screen size and viewing comfort seem to matter. 

 
For those users that have a TV set connected to the Net (via connected TV (CTV), game console (GC), or other OTT device), 94% of their online video viewing time was with long-form videos.  More than 40% of viewing time was for videos an hour or longer. Tablets are rapidly becoming the mobile device of choice for watching long-form videos, passing smartphones and desktops in the last few months in terms of the time spent watching online videos. More than 70% of tablet viewing was of long-form programming, up from 46% of viewing time in Q1 2012.  A full 30% of tablet viewing time was of videos at least an hour long.

  The study also found an increase in the time spent watching long-form videos through game consoles and connected TVs.  Those devices seemed to be the preferred venue for watching live streaming - the time spent watching live streaming on those devices doubled in the last six months.  The report also found that live streaming viewers were "more engaged" that those watching recorded content (i.e., VOD).

"Break engagement down by device and content length, and the same engagement patterns emerge. The most engaged viewers are watching on tablets and connected TVs and gaming consoles." 

   The results suggest a promising future for online delivery of "high-end" video content.  Diffusion of connected devices that can bring streamed high quality content to your TV (CTV/GC) or your lap (tablets), along with improved high-speed broadband connectivity, are providing audiences with increased options.  Studies like this are showing that use of those viewing options is growing, and becoming a viable alternative or substitute for traditional content delivery media.  There's also suggestions here that the connected/tablet options can be as engaging to the viewer - and valued enough that 1 in 4 tablet owners subscribe to a premium content service while online video advertising revenues are growing around 50% annually.  This suggests that there's money to be made in promoting connected devices and putting your content online.


Sources - Tablets Become Second TV, Viewers Watch Longer Videos More Frequently, VidBlog
Tablet TV Takes Off,  VideoMind
(Ooyala blog)
Ooyala Releases Global Video Index,  VideoMind (Ooyala blog)
Access the report at Ooyala Global Video Index site, and grab the infographic here

A Smart TV Viewers Bill of Rights?

Jim Monroe, in a post at TVBoard, looks at the rise of connected devices, Smart TVs, and tablets and wonders if things are getting too complex.  Sure, technology enhanced choices and DVRs allowed viewers to skip commercials, which could impact broadcasters' bottom line. Still, as he quips,

We never worried whether people knew how to work their TV sets.

Monroe identifies what he feels are the three key distinctions between old-style TV viewing and the world of connected TVs and devices like tablets - connected devices have more options for controlling the viewing experience (touchscreens, (virtual) keyboards and allow searching, and the hassle of scrolling through lists and sometimes logging in; tablets are hand-held, small, and "reading small text and trying to decipher tiny graphics... is annoying"; and mobile connected devices are mobile, not "bolted to the wall...  and perfectly suited for watching programs."  (I'm still trying to figure that one out myself).
  Connected devices, by definition, expand user options by providing access to a growing archive of programs and entertainment options, and in the case of mobile connected devices, options as two where and how one accesses and consumes media content.  And in one sense, increased options can be seen as a drawback - more choice can lead to more complexity in finding and watching specific content.  And is often the case in the early stages of innovation, there's some uncertainty as to what options and content people will want, and user interfaces can be a bit clunky.  So perhaps Monroe has a point when he argues that

Unfortunately, when you combine unnecessary features, complicated navigation and some ill-conceived attempts to charge subscription fees you leave viewers convinced that connected TV is at best difficult and at worst a new way to gouge them.

Monroe's concern for the future viability of (connected) television, and his nostalgia for old-fashioned lean-back TV viewing resulted in a proposal for a "SmartTV Viewer's Bill of Rights." 

1. The Right to Relax (keep controls simple)
2. The Right to Channel Surf  (see #1, and have channel up and down buttons)
3. The Right to Sip a Beer  (keep hands free)
4. The Right to Quality (not low-rez home videos)
5. The Right to Free-TV
6. The Right to Sanity  (keep commercial breaks short)
7. The Right to Simplicity (see #1, applied to installing sets and apps)
8. The Right to Familiarity (there's too many channels)
9. The Right to Serendipity (help in discovering new programs)

There's certainly a lot of nostalgia, and more than a little Luddism, in this list and in the arguments Monroe gives in support. For him, "Our parents watched three channels and paid nothing... There’s way too much stuff out there for me to sort through it myself..."

  The problem, for me, is that Monroe is focused on what he sees as the negative consequences or an expanded television marketplace.  And while explicitly focused on viewers, there's an underlying concern that as options increase and the market becomes more competitive, there's less money available to produce "quality programs" that will reach "enthusiastic audiences."  What Monroe doesn't address is the obverse - the value in increased options.  He might not see the value of a portable TV (tablet), or the ability to access music, movies, and TV programs on demand, or the ability to watch sports from home when you're traveling or working somewhere else.  But others do, or they wouldn't be cutting into traditional TV's audiences and market share.
  As for connected TVs and devices being too complex - usability will improve with time and testing.  And the younger audiences are already used to multitasking and dealing with current levels of complexity.  In the future, complexity will likely move from being a burden to being a value (as complexity give users greater ability to customize their TV viewing experience.

Still, it's an interesting and thought-provoking post.  Give it a read.

Source -  The Smart TV Viewer's Bill of Rights,  TV Board

SmartTV Adoption - The Future is Over There

Despite TV set makers pushing Smart (internet connectable) TVs for the last couple of years, a report from Magid found that only 21$ of U.S. consumers have actually connected their TVs to the Internet.  In contrast, a study by Rovi found that around two-thirds of smart TVs and gaming consoles are connected to the Internet in Germany and Western Europe, while only 25-30% of smart TVs and game consoles are actually connected to the Internet.  A third report, from online ad platform smartclip, suggests that 60% of smart TV owners in the U.K. and Germany have connected their sets to the Web.

  One possible source of the difference is that new technologies and services are often tested in smaller European markets before being introduced in the U.S.  Another is that the smaller average dwelling sizes in Europe encourage consumers to look for integrated devices.  It's also been suggested that slower connection rates in the U.S. may be a result of the fact that connectivity is widely included as a basic feature of many new TVs, disc players, and game consoles, but is yet something that American consumers are looking for.  A study from GfK found that only 29% of U.S. consumers reported that Internet capabilities was something they looked for in new TV purchases.
  What's more interesting is that the emerging markets of India, Brazil, and China seem to be leading in the way in adopting and using Smart TVs.  GfK found that 61% of consumers in India, and 64% of those in China indicated that Internet capabilities was an important factor driving new TV purchases.  And once purchased and connected, they tend to be regular uses - three-quarters of Smart TV owners in China report having used connected features in the last month.

“We are seeing the developing countries such as India, Brazil and especially China viewing an increasing amount of content away from a television set, but also using TV in a more advanced way,” said Richard Preedy, research director at GfK, in a statement. “They combine viewing a programme with increased levels of online activity -- giving us a glimpse into how the West will start to move in the coming years. China, India and Brazil essentially are the early adopters at the moment. However, in the coming decade, critical mass will be reached in traditional TV markets such as the UK, U.S. and Germany and the way we all watch programming will be changed forever -- finally burying analogue for good.”

  While initial adoption may be faster, it's less clear that connected TV users in developing countries are using their connections in the same way as American consumers.  Outside the U.S., consumers are less likely to be interested in social applications.  In a 13-country survey of consumers, only 28% thought that the ability to interact with programmes were likely to make them more interesting.  Only 25% thought that commenting on programmes through social media "enhances the viewing experience."  Consumers in developing countries were more interested in discovery than interaction; a third more viewers used connected TVs to search for information on programs than used social media to share the viewing experience with friends.  GfK also found strong consumer interest in expanding and facilitating user control of viewing - 43% were interested in using devices other than the remote to control the TV, and two-thirds were interested in touch and gesture control.  The study suggested that "western consumers are stuck in an ‘analogue’ mindset, whereas viewers in emerging markets are more likely to exploit the digital capabilities of Connected TV."
  The GfK research report concluded -

"While TV does not show any signs of losing its position as the top content-viewing device, other technologies are starting to catch it. The growth of online catch-up and streaming services makes devices such as laptops, tablets, smartphones and games consoles far more accessible in terms of content delivery and therefore more appealing to viewers looking for content rather than a mechanism for consuming it. ... (Viewers are looking  for) the most convenient and intuitive method of consuming this content across their device ecosystem.”

  As for connected TV devices, it seems that the future is now - it's just not here.

Sources -  U.S. Lags Europe, Emerging Markets In Smart TV Adoption,  Vidblog
Western analoque viewers fail to keep pace with digital connected TV revolution,  GfK press release

Nintendo joins screens wars

Nintendo will soon enter the video streaming marketplace, with the launch of their newest game platform - the Wii U gaming console.

  The new console will include an application, called TVii, that Nintendo says can be used to navigate live TV programming through the included touchscreen game controller.  The company indicated that it had reached deals with Tivo (allowing the device to access content on Tivo DVRs) and streaming services from Netflix and Amazon, among others.  Nintendo didn't indicate any specific deals for accessing live programming from cable and satellite providers. (Microsoft has deals with Comcast and Verizon FiOS allowing access to some live programing through apps on its Xbox 360 game console).
  Nintendo joins an already crowded program access marketplace, where game consoles, OTT boxes, BlueRay disc players and connected TVs competing to be the device used to access video programming.  As for programming services, a recent quote from Time-Warner Cable CEO Glenn Britt sums it up nicely -

"If somebody wants to use the interface that comes with one device or another, that's fine. We're going to continue to have ours. If there's a better one--as long as they buy video from us--I don't care."

Source - Nintendo challenges cable IPGs with TVii user interface - FierceCable

The Future of TV - 10 Things to Know

KIT Digital recently provided some thoughts on the future of TV, and some of the more immediate questions, from its Global Lead Analyst, Alan Wolk - in the form of a slideshow.  The slides are available here if you want a copy, and I'll see if I can get an embed to work.

10 Things You Need To Know About The Future of Television from Alan Wolk

Among some of the key points -

• Transition to TV Everywhere is being slowed by "Lawyers" (really about interpreting intellectual property rights in that new context)
• Bandwidth caps by broadband providers (setting a limit on data transfers) is slowing diffusion of TV Everywhere and "cord-cutting" (people leaving MVPD for access to TV content via the Internet)
• Rise of Smart TV currently slowed by lack of single standard, and difficulty in upgrading programming in TVs - suggests that small set-top boxes like AppleTV and Roku may be the future, as they are easily upgradable.
• Content producers (esp. movies) most worried about drop in DVD sales (why buy when you can get most through Netflix and its kin), and the shrinking window between primary theatrical release and availability through pay VOD.
• There's potentially big value in second screen apps - as a way to implement "click-to-buy" online purchases for goods shown in ads or within program content; and as a source of consumer data on viewing and impacts.
• Who has the best user interface (combining simplicity with value) goes a long way in determining winners and losers.

Source -  10 things you need to know about the future of TV,  LostRemote

Ad potential for connected TVs?

  A recent research white paper suggests that advertisers and broadcasters are finding that there is value in the ability of connected TVs to access Internet content and bring it to their primary viewing device - their big-screen TV. 
  Contributors to the paper all agreed that smart TVs and the ability to connect to the Internet will impact future advertising markets.  They also agreed that there are obstacles on the path - the slow adoption of connected TVs, the fragmentation of delivery platforms (manufacturers implement connectivity differently), the lack of commonly-accepted standards and measures of audience use, and the current lack of viable examples.  Still, the paper's authors conclude that "Smart TV and multi-screen advertising promises to deliver the ultimate 'pull' scenario that all markets seek to drive a more targeted and tailored form of advertising to consumers."

Sources -: White paper: Advertisers starting to notice potential of connected TVs, FierceOnlineVideo

Smart TV and Multi-screen Advertising: Prospects for 2012,  White paper prepared for Smart TV Insider by Lisa Roner & Tom Sapsted

Smart TV in Europe - Diffused but not Adopted

A report from McKinsey's Consumer and Shopper Insights suggest that the marketing of Internet-connected TVs (Smart TVs) hasn't been terribly effective.
  The study of consumers in France and the U.K. found that only 42% of French households even knew about the technology.  Awareness was higher in the U.K., with 62% having a clue.  In contrast, 80% of U.K. homes knew that game consoles could feed Internet content to TVs, and 81% of French households were aware of OTT boxes as an intermediary that could feed Internet content to TVs.  In the meantime, sales of Smart TV sets are increasing rapidly (around 70% gain per year), and are expected to have placed more than 500 million Smart TVs in homes by the end of 2015.
  If those numbers weren't bad enough, the same study reports that more than half of Smart TV owners have never even tried to connect their sets to the Internet, and only 3% of Smart TV owners have actually used their sets' "Internet functionality."  Add to that the fact that only a third of Smart TV set owners indicated that they were satisfied with their purchase, and you can see that consumers in these countries lave little demand for Smart TV products.
  One contributing factor may be that movie and TV program streaming services are fairly new to those markets, and those are (for now) the primary driver of internet video to the big screen.  So there is perhaps room to increase awareness and increase the perceived value of SmartTV, which, according to Roger's Diffusion of Innovation theory, should increase adoption and use of the technology.

Source - Internet TV Slow To Adapt (sic) in France, UK,  MediaDailyNews