Why every Brand will need a TV Widget
 I want to talk about the enormous opportunity that will be TV Widgets. Something Yahoo! started in 2008. As we begin to shift from Internet-to-TV services, TV widgets will increasingly become the calling card for all businesses in an Internet-enabled television era.
In the US, Yahoo has launched a range of TV widgets in partnership with manufacturers including Samsung, Sony and LG. Facebook, eBay, Flicker and The New York Times are just some of the services on offer. Sony’s internet-enabled Bravia TV also comes with a menu of icons and widgets providing access to up to 20 different IPTV content providers.
Personalisation of video-on-demand content via Internet-enabled television sets is going to fundamentally change the way we are all doing business. Web-enabled TV: In Search of a Killer App – a report on widget TV and its impact on consumers, broadcasters, content providers, advertisers and government regulators – was recently released by Ernst & Young’s Global Media & Entertainment Center. Here is the summary:
Advertising issues are inevitable: As TV viewer attention migrates from programming to TV widgets, broadcast ratings and advertising rates may need to be protected against further erosion. Although, there is a potential that TV widgets could reduce channel surfing because they permit consumers to view multiple sources of content at one time, one challenge to manage is that conflicting advertising could appear simultaneously (i.e., a TV widget from auto manufacturer A on the screen during a commercial for auto manufacturer B). Another potential issue is that one widget could lure viewers to another competitor’s network program. These challenges need to be managed so the true marketing and viewer benefits of TV widgets are not eclipsed.
Channel conflicts need to be managed: TV affiliate agreements restrict the window and markets for first-run content. In addition, content available on premium services can only be accessed by service subscribers. Success is more likely if these contractual limitations are managed and cable operators ensure content is available to each household TV, regardless of the distribution channel. Until then, the content released on TV widgets will likely be restricted to marketing trailers for example, potentially preventing consumers from experiencing the wealth of content offered through TV Widgets.
Regulatory bodies should examine the impact: The ability of TV widgets to launch full-screen Internet broadcasts could permit content providers to launch programmed channels without regulatory licenses. As with the other new media offerings, regulation will likely follow offerings and the permitted uses of this technology will remain in flux as regulators grapple with their full potential.
New operational capabilities are needed: Programming, scheduling and reporting on the performance of TV widgets will present a variety of operational challenges that will need to be addressed to fully realize the potential of TV widgets and encourage their continued evolution.
Competition for compelling content will continue to increase: Web connectivity and TV widgets offer consumers content options far beyond broadcast, cable and satellite alternatives. Traditional broadcast content is already competing for viewership with Web content. A consumer’s preferred channels will become increasingly apparent. In this respect, TV widgets will facilitate content searches, potentially generating more competition across TV channels.
The report further explains what likely will or will not work if an interactive TV application, such as TV widgets, is to be successful. Ease-of-use and free, advertising-based services are the top two factors for success, followed by an offering of non advertiser-subsidized premium content. What will not work, based on Ernst & Young’s analysis is asking consumers to use the TV as a computer, limiting content choices and requiring an additional fee on top of what the consumer is already paying for Pay-TV programming and Internet connectivity.
The report concludes that in the short-term, TV widgets will likely allow content companies to reinforce their brands and promote their programming. Long-term, consumer adoption will ramp-up and advertising and pay-for-play will prove significant. When this occurs, content companies and advertisers will finally be able to strengthen their relationships with viewers/consumers through Web-enabled television.
James Grant Hay is a digital entertainment consultant and founder and CEO of InShot. The Connected TV World Summit takes place at RIBA in London on 18 May 2010.
Leave a Reply
|
Maybe you’re right but to watch Live Internet TV you better give a try to this awesome. They also broadcast Live Radio from all over the world. It’s 100% without charge even when you register so you can organise your most beloved stations. Way better then all those satellite tv pages!