TV is Just Another App
October 5, 2011, TVNext, San Jose, CA--Eric Bruno from Verizon Communications described the intersection of mobile devices and the cloud and how it is changing the network as a platform for media delivery.
Revolutionary changes are happening in the consumption space. Now there are many very intelligent connected devices and they are all connected through high quality networks. This combination enables delivery anywhere and at any time. TV without borders is the key.
In the next 5 years, over 184 million people will have 2 or more connected devices at home and at work. Of these, 154 M will be nomadic users through services like fixed broadband (WiFi or …) and about half of them will also be using mobile. These users will be looking for alternatives to broadcast for their video viewing. 69 percent of PC users and 33 percent of mobile handset users will watch video on their platforms. At the same time, 24 percent of TV viewers will access the Internet on their TVs.
IP will supplement linear TV. Viewers will increase their engagement through a combination of social media and TV and are expected to increase their viewing time to over 40 hours per week. By '15, the average person in the USA will have access to 7 connected devices. As a result, TV will become just another app.
The borderless TV will operate over or through the cloud and deliver content to many devices. TV will be liberated from the STB which will have an impact on pay TV services. The challenges will be on delivering adequate quality of services and consistency of experiences across the range of platforms. The opportunities will be in developing a range of experiences for all users and moving interactivity to higher levels.
Navigation and personalization will become standard and choices will range from more thoughtful experiences to just more content. The enablers for these services are a high quality network and a good range of experiences. These systems will need high levels of interconnectivity, accessibility, and adaptive stream technology.
The will integrate intelligence on who you are, where you are, and what you like to drive personalization. The adaptive streams will provide consistency for the same look and feel across all the screens. The network will find and quickly deliver content across the devices providing freedom of choice for customers. The interactivity creates an opportunity for making more money.
One example of the capabilities is the FIOS app. This is a full IP system with access to the Internet and cloud. The main page has a Facebook app for photos and other apps with other functions. This network provides the ability to up-sell content. They see a 3-4 percent success rate for click through and 99 percent of their contacts are through the interactive content and up-sell. Given this capability, the network enabled tablets and phones will be the vehicles for more personalization and privacy. They can also be used as RF remote controls. At the same time, the tablets and phones are not the same thing as TV.
Game consoles are good for linear TV. These devices are designed for a 10 foot experience that is immersive and entertaining. Consoles are in over half of the homes in the US, and are an important part of the whole content consumption spectrum. They are starting a partnership with Microsoft to put an Xbox app on the network.
Tom Gibbon from Microsoft said that they need to form partnerships to enable their vision for all entertainment to be shared and easy to access. The range and volume of content continues to grow. They want to make the technology invisible and intuitive, so they have made XBoxLive an app on the console. The results are that non-gaming time on their network is growing at a rate of 3X per year and now over 40 companies have apps on their network. The latest Kinect subsystem allows voice or gesture control of the interface to the network.
Bruno stated that the new partnership is the first of many more to come. They are applying technology to improve home entertainment through a familiar platform. The home system allows expansion to any room with no additional hardware or wires. The FIOS app has the same interface as theXBox with space for ads and other content. They can post live thumbnails of shows and a sliding programming guide. This app will be live on Xbox Gold by the end of the year.