Will consumers plug into connected TV?
The convergence of the internet and television looks set to gather pace this year, but households are likely to look to existing hardware rather than investing in new technology, writes Andrew Haughton (below), senior manager at Deloitte Consulting.
Efforts to converge two of the biggest media distribution platforms - the web and television - will intensify in 2010. Indeed, by year-end, more than 30% of broadband-enabled households are likely to interact occasionally or regularly with what they are watching on TV through some form of computing device.
However, the most popular approach to converged web and TV consumption probably won't be widgets. Instead, a more pragmatic approach is likely to dominate: the combination of existing television sets and standalone browser-enabled devices such as WiFi-enabled laptops and netbooks, smartphones, MP4 players and portable game consoles.
Attempts to move web-based content on to TVs have been underway for many years, but made little progress. Content optimised for PCs generally does not display well on TV. Plus, content created on the assumption that the user will be equipped with a keyboard and mouse has proved challenging to interact with via standard remote controls.
2010 is likely to see progress on several fronts. Websites are being built specifically for access and control via TVs. Web-based applications being adapted for access through a TV set are being marketed as 'TV widgets.'
Social networks, weather reports and content streaming services are some of the many applications that widgets will make accessible through the TV screen. A growing number of next-generation TVs are being launched, not only with integrated broadband connections but with pre-loaded TV widgets as well. Next-generation personal video recorders (PVRs) and set-top boxes will come with standard internet accessibility.
Despite this progress, the mismatch between the standard 10-year renewal cycle for TV and strong existing consumer desire for concurrent consumption of internet- and TV-based content has contributed to the triumph of the pragmatic approach to date. Most consumers are unlikely to justify a brand new TV just to have additional access to the web, but they want to combine the web and TV today.
In the longer term, internet-enabling TVs, either through the set itself or an adjunct device such as a PVR, are likely to create value and appear likely to be popular with consumers. As part of its research, Deloitte surveyed 9,000 consumers across the US, UK, Germany, Japan and Brazil. In the US and UK, almost two-thirds of respondents were strongly or somewhat interested in connecting their television to the internet in order to view videos or download content. In other countries, interest was slightly lower, but the ability to move content between TV, PC and other devices was popular across all regions.
While technical challenges can be met over time, there remains a question as to the desirability of converged TV and web - at least for those in commercial TV.
In the same survey, Deloitte found that in the UK, for example, 43% of consumers are surfing the web while watching TV; 29% are on instant messenger or texting friends; and 22% are using social networks. Among 14- to 26-year-olds these numbers rose to 52%, 48% and 38% respectively. Indeed, among that valuable younger audience only 22% said that, typically, they did not use other media while watching TV, just watched the box.
These figures emphasise the challenge for advertisers in achieving cut-through in such a cluttered media environment, and that will inevitably make it more difficult for those in commercial TV to continue to sell their wares at a good price.
