Is Your iPad a TV?
October 4, 2011, TVNext, San Jose, CA–A panel considered the issues of the multi-platform universe. Jeremy Toeman from Dijit Media moderated the panel. Panel members included John Clancy from Azuki Systems, Sherry Brennan from Fox Networks, Kurt Hoppe from LG Electronics, and Richard Bullwinkle from Rovi Corp.
Bullwinkle stated that perspective changes for the multi-screen experiences. One size does not fit all. The trends change with the age groups and experience with the alternatives. Hoppe added that the competition across the platforms is manufactured. The different platforms have different purposes, but TV remains a center for fun, social activities, and a lean-back experiences.
Brennan concurred that the screens are for different businesses. Some content, sports for example, are best on a big screen. The other platforms offer choices and alternatives. The challenges are to get time, rights, and business models in place as younger people look at the other platforms as competitive alternatives to the TV set.
Clancy agreed that the changing demands for content consumption are enabled by the new modes of delivery. Linear programming is being displaced by time independent. This change started with the VCR, and continues to grow. Now, people also want their content wherever they happen to be when they decide to watch something. These behaviors are enabled by choice and changing definition of a good TV experience.
Smart TV
Hoppe opined that viewers want a consistent experience. By moving to open standards like DLNA and HTML5, the industry can support new and existing developers. Clancy observed that standards use is increasing in the end devices. The winner is the ability to integrate more functions into any platform. The challenge is to acknowledge the differences between promises and actual capabilities. This will be worked out between the consumers and the providers and their partners.
Brennan differed with the analyses. There is no easy to monetize the content and no Neilson ratings credits for content OTT. So far, all ad revenue is based on the ratings. The ratings methodologies are not keeping up with technology and media rights management. The rights for media do not exist for all content and all platforms. Users want the experience but also want a reasonable quality of service and the ability to discover new properties.
New services
Bullwinkle noted that operators are looking at next year, based on extending the existing infrastructure. They are making half-hearted moves to minimize risk. At the same time, the service providers are currently overbuilding and attempting to expand into other areas. Brennan disagreed, noting that the service provider in Bend, OR is highly experimental. The challenge is the license issues. Clancy offered that the industry drivers for change are demand from users at acceptable business models. The user demand is more important than the business model. The industry needs to develop the technologies to meet the demands of the newer users.
Business models
Bullwinkle considered that IPTV is looking for quality content. Brennan observed that tablets are projected to out sell PCs in the next year or two. Adding in game consoles makes the market much larger than the members of Hulu.
Consoles as gateways
Clancy observed that Netflix has more subscribers than Comcast. The industry is getting more competitive and changing the dollars per content. HBO Go is a new distribution model, but authorization is a big issue. Brennan commented that the margins are too low.
IP STB?
Clancy offered that they are mostly reliable and predictable, but expensive. The technology marriage of OTT and STB will win. Brennan was agnostic on platform, but it is hard to be in an independent STB business because the scales are too small. Bullwinkle agreed that the scale is an issue.
