Connected TV
Markets
Insight n°1 Æ Key events : Qriocity, YouView, Amazon Instant Video and Google TV Æ Analysis : les app stores, killers apps of connected TV? Æ Case study : Samsung App
M11205 – April 2011
Contributors
Sophie GIRIEUD, Senior Consultant for "TV & Digital Content Services"
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Connected TV Markets: Insight n°1
Contents
1. Key events of the 1Q 2011...... 4 1.1. International deployments - Qriocity: Sony launches its proprietary VoD and online music services in Europe...... 4 1.2. Announcements & Releases - Postponed to 2012, the YouView Connected TV Platform Launches its API ...... 5 1.3. Offer Innovations - Amazon Offers a Video Streaming Service to its Prime Subscribers ...... 6 1.4. Partnerships & Strategies - Google TV: Two New Partner OEMs ...... 7
2. App Stores Connected TV’s Killer App? ...... 8 2.1. A model to follow: The Apple App Store...... 8 2.2. Selling Applications… In Order to Sell TVs ...... 9 2.3. Upcoming Challenges...... 9 2.4. The First Deployments… ...... 10 2.5. ... Waiting for Apple?...... 11
3. Case study Samsung Apps, Connected TV’s First App Store ...... 13
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Tables & Figures
Table 1: Rates of movies rented by the unit of the Qriocity VoD service in the study region...... 4 Table 2: Distribution of Amazon Instant / Prime Video, Netflix and Hulu Plus on key connected TV platforms in the US ...... 7 Table 3: Major applications available on Samsung Apps in the five European countries under study and in the US ...... 15
Figure 1: Smart Hub, Samsung Smart TV’s user interface ...... 13 Figure 2: The keyboard side of the new Samsung Smart TV remote control...... 14 Figure 3: Structure of the Samsung Apps offer in the United States by application category, March 2011...... 16 Figure 4: Structure of the free and fee-based Samsung Apps offer in the United States by application category, March 2011 ...... 16
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1. Key events of the 1Q 2011
1.1. International deployments - Qriocity: Sony launches its proprietary VoD and online music services in Europe
The Facts In late 2010, Sony launched its VoD platform on the five largest European markets (UK, Germany, France, Italy and Spain). Named "Video On Demand by Qriocity", it is available on the "Bravia Internet Video" connected TV platform and will be gradually enriched with new content (recently with music and forthcoming with games and e-books). Already available in the US since April 2010, the Qriocity video on demand service offers hundreds of titles – some of which in HD - from the catalogues of the American majors (20th Century Fox Home Entertainment, Lionsgate, Metro-Goldwyn-Mayer Studios, NBC Universal International Television Distribution, Paramount Pictures, Sony Pictures Home Entertainment, The Walt Disney Company and Warner Bros. Digital Distribution), as well as blockbusters from important local production companies. Movies can be rented by the unit for 48 hours from the HDTVs, Blu-ray players and home theatre systems equipped with the Bravia solution.
Table 1: Rates of movies rented by the unit of the Qriocity VoD service in the study region UK (GBP) Eurozone (EUR) HD new releases 4.49 4.99 SD new releases 3.49 3.99 HD library titles 3.49 3.99 SD library titles 2.49 2.99 Source: ScreenDigest
Launched in the UK and Ireland in December 2010, followed by France, Germany, Italy and Spain last January, "Music Unlimited" by Qriocity is a subscription music service based on cloud computing and accessible on various Sony connected terminals: Bravia TVs, Blu-ray players and home theatre systems, or PlayStation 3 games consoles or and VAIO computers. This service is based on a catalogue of six million titles from the majors (Universal Music Group, Sony Music Entertainment, Warner Music Group and EMI Music) and independent labels. Similar to a Web radio, the Basic plan (EUR 3.99 per month) provides access to dozens of thematic channels, without having to download or manage music files. The Premium plan (EUR 9.99 per month) lets users listen to any song in full on demand, create playlists and enjoy 100 premium radio stations. To access Qriocity’s music and online video offers, users must create an account on the service’s website unless they are already members of the PlayStation Network.
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IDATE Point of View In Europe, Sony has taken up the challenge of deploying its own branded VoD service on its connected TV solution rather than forging partnerships with third-party VoD services (with the exception of the UK, where Lovefilm is also distributed on Bravia Internet Video). Sony already has some experience with the acquisition and management of VoD rights, as it has been distributing a range of films and series on the PlayStation 3 since Fall 2008. In the five major European countries, the Bravia connected TV platform offers three complementary video services: • a fee-based VoD service of in-house produced content (Qriocity); • a free catch-up TV service provided by partner local TV channels (M6 Replay in France, Antena 3 and TV3 in Spain, BBC iPlayer in the UK and ProSieben, Sat.1 and Kabeleins in Germany); • free content from the catalogues of the leading players of the online video community (YouTube and Dailymotion). This go-it-alone strategy in the field of VoD contrasts with the approaches adopted by its competitors – based on partnerships – but also with the one pursued by Sony itself in the US: there, Bravia Internet Video includes indeed several other VoD services in parallel to Qriocity, including Amazon Instant Video, Netflix and Hulu Plus.
1.2. Announcements & Releases - Postponed to 2012, the YouView Connected TV Platform Launches its API
The Facts In late February, YouView officially postponed its commercial launch – originally planned for this summer – to early 2012. Built on a hybrid broadcast-broadband architecture, the British connected TV platform is experiencing some technical difficulties which forced it to reconsider its deployment schedule. A pre-test phase should be launched at the end of this year. Through the voice of its CEO Richard Halton, YouView has also announced the release of its API (Application Programming Interface) allowing all OEMs to build products incorporating this technology. This announcement will take place after the publication, on April 14, of the solution’s key technical features.
IDATE Point of View By opening its API to third-party developers, YouView confirms its status as an open technical platform and comprehensive solution composed of a connected device, content and a programming interface. The consortium behind the project hence agrees to have its technology used under other brand names, particularly outside of the United Kingdom.
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1.3. Offer Innovations - Amazon Offers a Video Streaming Service to its Prime Subscribers
The Facts Since February 2011, the subscribers of Amazon’s Prime service in the United States can now enjoy unlimited access at no extra cost to Prime Instant Videos, an online streaming video offer without advertising with more than 5,000 movies and TV shows extracted from Amazon’s Instant Video catalogue. Offered at a subscription rate of USD 79 per year (about EUR 60), Amazon Prime is, initially, the premium delivery service of the e-commerce giant. The video offer thus presents itself as a free bonus to existing logistics services (free delivery within 48 hours, at will without minimum order amount, and fast delivery in 24 hours at the preferential rate of USD 3.99 (EUR 3) per article). Prime Instant Videos can be accessed on PC and on some 200 connected device models (TVs, Blu-ray players and set-top boxes) compatible with Amazon Instant Video. Formerly called Amazon Video On Demand, Amazon Instant Video is Amazon’s VoD subscription-free service in the US. With a catalogue of more than 90,000 movies and TV programmes – Including several thousand in HD – both for rent and for sale, it is distributed on PCs and on many connected TV platforms, including Sony Bravia Internet Samsung Apps, Roku, TiVo, Google TV, Panasonic Viera Cast and Vizio Internet Apps.
IDATE Point of View After Hulu and Netflix, it's time for Amazon to launch an unlimited video streaming offer in the United States. Offered both at USD 7.99 per month (about EU 6), Hulu Plus and Netflix’s S-VoD offers are more expensive than Amazon Prime (USD 6.58 per month (about EUR 5) based on the annual fee), which in addition includes several delivery services. Nevertheless, the price attractiveness of Amazon’s subscription offer is due to the limited size of the Prime Instant Videos catalogue: this offer, which represents just over 5% of the overall volume of content distributed by Amazon Instant Video, essentially features catalogue movies (Mafia Blues, Jerry Maguire, The Mask, The March of the Penguins, etc.) and past seasons of second rate series (MI-5, Skins, Torchwood, etc.). Although smaller, the Hulu Plus catalogue consists largely of premium content (recently aired primetime series); and although Netflix’s streaming content is generally less ‘fresh’ than its DVD content, the appeal of its online service is partly based on its breadth of scope. The moderate added value of Amazon’s unlimited streaming content offer probably does not justify the price increase of the Prime subscription, which seems to be primarily a loss leader meant to increase the attractiveness of the delivery service. In addition, Prime Instant Videos is unlikely to cannibalise Amazon’s transactional VoD service, far superior in terms of catalogue breadth and content freshness: Amazon Instant Video offers indeed a limited choice of new movies simultaneously with their DVD release and numerous series episodes the day after their first TV broadcast.
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Table 2: Distribution of Amazon Instant / Prime Video, Netflix and Hulu Plus on key connected TV platforms in the US Amazon Instant / Name Netflix Hulu Plus Prime Video Apple TV z Boxee z Google TV z z LG NetCast z z3 Microsoft Xbox Live z z3 Nintendo Wii z Panasonic Viera Cast z z z3 Roku z z z Samsung Smart TV z z z Sharp Aquos Net z Sony Bravia z z z Sony PlayStation 3 z z TiVo z z z3 Toshiba Internet TV apps z Vizio Internet Apps z z z Western Digital TV Live Hub z z3 Caption Online service provider z Free Set-top box manufacturer z Paid TV manufacturer ! / ! New service Video game console manufacturer 3 / 3 Coming soon Source: IDATE
1.4. Partnerships & Strategies - Google TV: Two New Partner OEMs
The Facts After Sony and Logitech, it is now the turn of Vizio and Samsung to announce the imminent release of their connected devices equipped with the Google TV solution. The South Korean OEM should launch a Blu-ray player and a dedicated set-top box for accessing Google TV. Equipped with Android, these two terminals will be provided with a specific remote control featuring a QWERTY keyboard and a voice search function (via an integrated microphone). At Vizio, Google TV will be part of the advanced features of future TV sets and Blu-ray VIA Plus players (enhanced version of the current VIA - Vizio Internet Apps connected TV solution) to be released later this year. Also equipped with a Qwerty keyboard, the remote control will also be equipped with WiFi and a touchpad. IDATE Point of View As they have already done with Yahoo! TV Widgets, Samsung and Vizio will thus integrate Google TV as a complement to their existing connected TV solution, and not as a substitute. The major TV manufacturers having all developed proprietary platforms, the Internet players may downplay their strategic ambitions: failing to establish themselves as full-fledged providers of connected TV solutions with OEMs, and instead of renouncing on a presence on the connected terminals of the world leaders of consumer electronics, an alternative would be to simply be listed in their connected TV offerings.
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2. App Stores Connected TV’s Killer App?
Key component of the success of smartphones, the app stores may well be a major adoption and monetisation driver for Smart TV – at least this is what manufacturers of connected devices would like to see happen, some of which have already begun to deploy their own application stores. For the record, an app store is a platform for downloading free and fee-based applications on a connected device, open to all developers and technically managed by a single operator who controls the publication (through a validation process) and billing of content.
2.1. A model to follow: The Apple App Store Key factors for a successful application store can be largely drawn from those that made the success of the Apple App Store, an attractive solution model for both developers and consumers. • An exclusive distribution platform: the App Store is the only authorized point of entry for the publication of third-party applications. • An open distribution platform: the App Store is open to the entire community of developers and can hence offer a broad and rich catalogue of applications targeting the greatest number. This principle of openness also creates a virtuous circle since a large user base tends to attract more developers. • A distribution platform embedded with the device: the App Store comes preinstalled on Apple devices, and downloading third-party applications does not require any prior handling. • A managed platform: any application is subject to Apple’s approval for its release on the App Store, a control process that guarantees a certain level of quality and security to the user. • A simple and egalitarian revenue-sharing system: for every sale of a commercial application – regardless of its content and the size of its author - Apple keeps 30% of the proceeds (for the hosting and billing services provided), and pays 70% to the developer. Introduced by Apple, this compensation scheme has since become the standard business model for app stores. Centralising all roles (aggregation, distribution, and operation) has enabled Apple to offer developers a beneficial revenue-sharing system. • An end-to-end solution: Apple hosts the applications, and manages the billing as well as the installation, removal, updating and other procedures. • A single point of access to content: users in search of an application know that they only have to look for one place: the App Store. This unified access to content fosters the development of new uses. • A qualitative ecosystem favourable to buying: the App Store’s snazzy high-tech, secure and intuitive environment (and of Apple products altogether) results in an effective promotion of the applications that it hosts and thus facilitates their monetisation. The usability, simplicity and speed of access to content also stimulate the downloading of fee- based applications.
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• A simplified and secure billing: to buy applications on the App Store, users provide their credit card information once and for all on their iTunes account and can then download the purchased applications simply by entering their password. This billing scheme provides Apple a greater control over its customer base.
2.2. Selling Applications… In Order to Sell TVs The benefits of an app store on TV for a content provider are numerous and well identified: addressing a large audience via a mass media, immersing a broad range of audiences in its own "branded" universe, being referenced in a structured and rewarding distribution channel and enjoying a stable, transparent and favourable revenue-sharing model (provided the 70- 30 ratio is also adopted as the norm on connected TV). For manufacturers of connected devices, the interests of offering an app store are twofold: • develop a new revenue stream through the commissions charged on developer earnings; • grow product sales by using the app store as a selling point. The second objective actually prevails over the first, as is once again demonstrated by the Apple example: Steve Jobs' company considers that it won’t make any significant profits on the sale of applications because of their low unit price unit and because the bulk of revenues are destined to their developers. However, the App Store serves as a magnet for selling the company’s high-tech equipment (iPhone, iPad). Similarly, the application stores could enable manufacturers of TVs, Blu-ray players, home theatre systems, media centres and other connected devices to increase their sales (by promoting the replacement of existing equipments), justify higher prices and progressively reach out to a more upmarket customer base (also known as up-selling). The app stores could thus support the growth of OEM sales (via a dual volume and price effect).
2.3. Upcoming Challenges The development of app stores on connected TV raises several questions, among which: • platform user-friendliness: the adoption of app stores on TV by consumers will largely depend on the user-friendliness of these services, which should be both simple and comfortable to use, i.e., intuitive, fast, clear, fluid and feature effective search tools. From this point of view, the quality of the remote control will be crucial: it will have to feature, at a minimum, a mouse, a keyboard and/or a pointer facilitating text entry, menu selection and browsing. • The risk of technological fragmentation: since each OEM is developing its branded app store, the adoption of common technology standards is necessary to ensure the uniformity and hence the interoperability of platforms and enable developers to distribute their applications through a large number of stores without incurring excessive porting and adaptation costs. With this in mind, Philips has opted for the open CE-HTML TV standard for its Net platform. Based on existing standards of the open Internet, this language was specifically designed for creating user interfaces for consumer electronics such as TV sets. • The acquisition of aggregation and content distribution skills: for a TV manufacturer, opening an app store involves learning a new trade, i.e. that of content aggregator and distributor, as well as acquiring the associated know-how: management of the distribution platform (editorialisation, maintenance, updates, development, etc.), contractual relationships with content providers, billing, customer relationship management, etc. From this perspective, the actors already operating a mobile app store such as Google and Apple are at a serious advantage: in addition to their experience as managers of application platforms, they already have a large installed customer base. When it was launched, the Apple App Store had already benefited millions of customer accounts
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opened on the iTunes Music Store. For the new app stores, the adoption of this payment solution by end users will be a crucial issue for customer acquisition. • A distribution model not necessarily suitable for video uses: to search for video content across the OTT offer, run a keyword search on each VoD application can quickly prove tedious and discouraging. In order to avoid forcing users to browse through a video catalogue fragmented across different applications, a complementary unified search solution across the various VoD and catch-up TV applications will have to be developed.
2.4. The First Deployments… A pioneer in the field of app stores on connected TV (see case study in the next section), Samsung has launched Samsung Apps as soon as March 2010 in the US. Since then, others have followed suit, including Yahoo! and Google.
Yahoo! Connected TV Store In November 2010, Yahoo! announced the launch of its app store for connected TV in March 2011: the Yahoo! Connected TV Store. Currently open to developers located in the United States, the United Kingdom, Germany, Spain, Sweden, France, Canada and Australia, it will gradually become accessible to developers from other countries. To attract potential partners, Yahoo! emphasizes the multi-device characteristic of its Connected TV platform, deployed over a vast range of several million devices from various brands (Samsung, Sony, LG, Vizio and Toshiba) in 135 countries. Specifically, developers – who were already able to provide free applications for Yahoo! Connected TV – can now offer fee-based widgets on the Yahoo! Connected TV Store, the latter being naturally subject to a validation process. Development of applications for the Yahoo! app store relies on the WDK (Widget Software Development Kit), which can be downloaded after registering with the Connected TV Widget Developer Program. Developers will be allowed to set the sale price of their widgets themselves, ranging from USD 0.99 (about EUR 0.75) to USD 99 (about EUR 75). All transactions made on the "Connected TV Store" will be processed by Yahoo!, which will apply a revenue-sharing scheme with its partners based on the Apple model: 70% of the sale price of each widget will be returned to its author (after tax and currency conversion1). A minimum of USD 100 (approximately EUR 75.5) of monthly turnover will however need to be achieved by the latter to trigger payment by Yahoo! It will be difficult for Yahoo! to impose its app store on TV: indeed, three of its major OEM partners (Samsung, Sony and Vizio) have already equipped some of their terminals with the Google TV solution (or are preparing to do so – see key events section) and will therefore distribute Android Market as soon as it is launched. However, the Google application store already relies on a large installed customer base, a strong reputation and a wealth of existing applications.
1 Users can pay in dollars, euros or pounds sterling, while developers are all paid in dollars.
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Google TV Android Market Highly anticipated, the launch of the Android Market on Google TV, Google’s connected TV platform released in the US in October 2010, should take place in 2011. Little information is currently available on this issue, but an SDK2 as well as an emulator will soon be provided to developers to help them create and test their applications for Google TV, as well as additional documentation and support and advice forums. Recommendations for optimising Android applications for the Google TV UI are already available. Existing Android applications may be distributed on Google TV, unless they require a software feature or piece of hardware incompatible with the platform. Google will presumably apply to the developers of its "Android Market TV" the trade rules now in force in its mobile app store, namely: a registration fee of USD 25 (about EUR 19) and a 70-30 revenue-sharing ratio on the fee-based applications, the advertising revenues earned with the free applications being fully retained by their developers. The deployment of Android Market on television is a major challenge for Google: if this application store experiences on connected TVs the same success as it does on smartphones, it will become a source of supplementary income for the online search leader, and above all it will consolidate its control over television, with a growing number of OEMs deciding to incorporate this attractive app store into their products.
Philips Net TV Without claiming app store status (Philips in fact prefers the notion of "service" to that of "application"), the "Net TV" connected TV platform is open to third-party developers and offers a partnership programme in seven stages: initial contact, demonstration, trade negotiations, signing of a confidentiality agreement, service development, validation of the latter and finally signing of and dissemination of the service on "Net TV". Although the revenue-sharing arrangements between Philips and developers are private, the company affirms that the business models of individual services may be based on advertising revenues or paying transactions and that the trade agreements are flexible and rely on a performance-based compensation scheme.
2.5. ... Waiting for Apple? If Apple decides to actually take possession of the home’s main entertainment screen, the company will not stop with the distribution of VoD via a set-top box. Deploying an app store on TV seems to be a necessary step in this player’s strategy of conquering television, as it has been in its success story with smartphones. During the release of the new version of Apple TV in September 2010, Steve Jobs in fact told Bloomberg Businessweek that, once the time would be ripe, Apple could launch an app store for television likely to be as disruptive as it has been for mobile phones. The question is whether or not this application store will sit on the TV set via the Apple TV set-top box. Indeed, although the new version of Apple’s connected device had sold a million copies just three months after its release – a relatively unimpressive achievement for a USD 99 terminal (sold EUR 119 in the Eurozone and GBP 101 in the UK) designed by one of the most innovative and flourishing EGP world leaders of this decade – the capacity of this box to fulfil Apple’s ambitions on the connected TV market remains questionable. However, launching an app store on Apple TV would probably boost the sales of this connected box.
2 Software Development Kit: a set of tools that allow developers to create applications based on proprietary programming languages.
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The Apple TV could also be just a decoy, as some believe, intended to temporarily meet market demand and pending the development of a product as disruptive for the world of TV as the iPhone was for the mobile phone industry. It could for example be an ultra high-end TV set, with Apple’s legendary style and ease of use, fully equipped with the App Store, the Safari browser and highly sophisticated media centre functionality enabling the synchronisation of the user’s different Apple devices and the smooth management and movement of content across the digital home. Such a scenario seems however rather unlikely since Apple would initially lag far behind its competitors. A third way for allow Apple to embrace television services would be to develop partnerships with TV manufacturers for the distribution of its App Store (and iTunes) on their connected devices. But such an initiative would require a major strategy change for Apple, which until now has exclusively relied on branded devices. It would also mean a complete overhaul of its business model, relying on application and content platforms instead of terminal sales as a main source of income. In a radically different scenario, Apple could finally consider that its lag in the field of television is now too large to compensate and decide to bet on the iPad as a personal television device.
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3. Case study Samsung Apps, Connected TV’s First App Store
Unveiled at the Consumer Electronics Show in Las Vegas in January 2010, Samsung Apps is an application shop available on some Samsung HDTVs, Blu-ray players, and home theatre systems equipped with the Smart TV/Internet@TV connected TV solution. Partially open to third-party developers (see box at the end of this section), this platform is compatible with common Web technologies and protocols (JavaScript, XML, etc.) and uses a single SDK (Software Developers Kit) for all applications available on the various connected devices of the South Korean OEM. To access the store, users must activate their Samsung Apps account via the connected TV’s interface. After this, they can download and use as many applications as they choose while watching television. Fee-based applications can be purchased by credit card or via the App Cash payment solution (account refundable online by credit card). Once downloaded, the applications are available on Smart Hub, a custom user interface that includes all the Smart TV features ²
Figure 1: Smart Hub, Samsung Smart TV’s user interface
Source: Samsung.com
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Offer Description Samsung Apps Creator/operator Samsung Release date March 2010 (USA) Deployment 120 countries, including the US, UK, France, Spain, Germany and Italy. countries Recent partners • Adobe, January 2011 (see "Recent announcements" section) • Comcast, January 2011 (see "Recent announcements" section) • Time Warner Cable, January 2011 (see "Recent announcements" section) Offer Approximately 380 applications worldwide, including 259 for free (January 2011). Based on a common basis of international Internet applications (Facebook, Picasa, Skype, etc.), the offer varies by country and the agreements made with content providers (local TV channels, VoD services, online newspaper editors, etc.). Terminals and Samsung App is available on: remote control • Samsung’s Smart TV sets • Certain Samsung Blu-ray players • Certain Samsung home-theatre systems The new Smart TV models are shipped with a double-sided remote control featuring a keyboard: one side features the standard remote control functions, while the other has a QWERTY keyboard facilitating the use of Smart TV’s advanced services. The keyboard side of the remote control includes a screen allowing users to check the text input without having to look at the TV. Recent • Integration of Adobe’s "Air for TV" platform that makes it easier for developers to design, announcements distribute and monetise their applications on Samsung Apps. • Integration of Flash Player 10.1 from Adobe to Smart TV’s dedicated browser, allowing users to surf the Internet for multimedia content (video, games, etc.). • Xfinity TV, the VoD platform of US cable operator Comcast, will be deployed on Smart TV sets during 2011. • During 2011, subscribers to Time Warner Cable will have access to their cable subscription directly on their TV Smart TV via an application that will allow them to watch their channel bundle and recorded content from any DVR. Source: IDATE
Figure 2: The keyboard side of the new Samsung Smart TV remote control
Source: Samsung.com
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Table 3: Major applications available on Samsung Apps in the five European countries under study and in the US France Germany Italy Spain UK USA Broadcasters’services Boomerang AccuWeather AccuWeather BBC iPlayer AccuWeather & content TF1 Rovi TV Listing Antena 3 ESPN Tagesschau ScoreCenter Hulu Plus MLB. TV Rovi TV Listing SBS Drama Online video content Dailymotion Acetrax Acetrax Acetrax Blockbuster on competing with Ina Dailymotion Cubovision Dailymotion Demand TV programmes TF1 Vision YouTube YouTube LoveFilm. com CinemaNow (bientôt) YouTube Dailymotion YouTube Netflix Vudu YouTube Web services Facebook Bilde. de Facebook El Mundo. es Facebook Facebook adapted L'Equipe. fr Facebook La Gazzetta Facebook Google Maps Google Maps for TV Les Echos Google Maps dello Sport Marca. com Picasa Google Talk Twitter Picasa La Repubblica Picasa Skype Napster Skype Skype Terra Twitter Pandora Twitter Twitter Picasa Skype Twitter USA Today Yahoo! TV Widgets Source: IDATE based on Samsung.com
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The Samsung Apps offer in the United States
In the United States, the Samsung app store features just over 200 applications (the number of applications varies depending on the connected terminal model), of which more than half (58%) are games and youth content (games, edutainment programmes, etc.). 10% of applications are dedicated to video content. The catalogue is regularly updated with new applications.
Figure 3: Structure of the Samsung Apps offer in the United States by application category, March 2011
Video 10% Kids 26%
Games 33% Information 7%
Lifesty le 16% Sports 8%
Source: IDATE based on Samsung.com
The offer is divided fairly evenly between free and fee-based applications (47% and 53%, respectively). Fee-based applications are here understood as those whose download is charged to the user. An application can indeed be freely downloadable but offer access to pay content. This is in fact the case of all VoD and subscription-based video service applications (Blockbuster, More Hulu, Netflix, etc.), classified here in the "free" category. The price of fee-based applications ranges from USD 0.99 (about EUR 0.75) to USD 5.99 (about EUR 4.50) but most are sold between USD 0.99 and USD 2.99 (about EUR 2.25). Three-quarters of the fee-based applications are games and youth content.
Figure 4: Structure of the free and fee-based Samsung Apps offer in the United States by application category, March 2011
100% 7% 14% 42% 75% 17% 1% 9% 50% 16% 8% 32% 25% 33% 21% 0% 1% Paid apps Free apps
Video Games Sports Lifestyle Information Kids
Source: IDATE based on Samsung.com
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IDATE Point of View on Samsung Apps
Having been the first to launch its app store, Samsung has a clear competitive advantage. In addition, through its mobile app store, the company already has a strong experience and know-how in application aggregation, distribution and billing. Samsung Apps seems to meet a real success: By mid-January 2011, less than a year after its release, Samsung announced it had reached 2 million downloads of applications worldwide, doubling the volume of downloads in just two months (against 1 million downloads reached in November 2010). Since late 2010, 100.000 applications are downloaded every five days on Samsung Apps. Moreover, since August 2010, Samsung Apps was accessible on more than half of Samsung’s connected TVs and Blu-ray players. This successful takeoff is based primarily on the broad geographic deployment of the app store and on its already structured and rich variety of applications – both free and fee-based – which reflects a genuine content localisation effort (partnerships with broadcasters, VoD services and local online newspaper publishers). However, Samsung Apps still needs to become accessible to the wider developer community in order to achieve the status of a full-fledged app store and avoid losing its lead over the competition. The platform is nowadays indeed limited to premium content providers and only occasionally opened to other developers through events such as the "Free the TV Challenge". Samsung has however announced that its future development programme would be open to all developers, from the leaders of the entertainment industry to individuals. Another challenge for Samsung will be to merge its two app stores (mobile and TV) – or at least to create bridges between them – in order to allow users to access both platforms from the same account, synchronise purchases indiscriminately on either shop and transfer applications and content between connected TVs and Samsung smartphones.
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Connected TV Watch Service Calendar – 2011 er r r ry a ry t mb er be be ua ru rch il y e y us te ob vem em Jan Feb Ma Apr Ma Jun Jul Aug Sep Oct No Dec Benchmark of innovative services, Database strategies deployed by key players, DB 1 DB2 DB3 DB4 DB5 updated yearly market data & forecasts Insights Bimonthly I-1 I-2 I-3 I-4 I-5 R-1 Connected TV Who will control the user interface? Reports Distribution and business models R-2
Complementa ry CR-1 Reports Digital home Devices Consulting Hours 5 hours - on demand Analyst Brief 30 min. conference call - on demand On-Site Presentation Optional report presentation
Methodology • Innovation benchmark for +40 players, • In-depth analysis of technological issues classified by country and by type of player and innovative video services • Market models & Forecasts – for television services: • Penetration and revenue data for 6 countries: Revenue generated by advertising, catch-up TV, pay-TV, France, Germany, Italy, Spain, United Kingdom, USA VoD and unit sales for connected TVs, home consoles and hybrid STBs – updated once yearly in July 2011 Connected TV Watch Service • Database + Insights + 2 Reports + Services: EUR 8,000, excl. VAT – (1 to 5-user license) • Database + Insights + 3 Reports + Services: EUR 10,000 excl. VAT – (1 to 5-user license) For multiple/group licensing options, please contact: Isabel Jimenez – [email protected] +33 467 144 404 (PDF, 15-20 pages) Five deliverables - published bimonthly ◊ Insights Short notes structured by: Spotlighted topics: Categories covered: • Outstanding issues of the moment • App Stores • Announcements & launches and the latest market trends • User Interfaces • Service Innovation • Analysis of the key issue and IDATE’s • Connected TV market data & forecasts • Interfaces & OS point of view • … • International deployment • A detailed case study illustrating the • Partnerships & strategies key issue’s analysis
(Excel file) Five deliverables - published bimonthly ◊ Database A unique database devoted to Connected TV, featuring yearly published national market data and forecasts for OTT & VoD, along with a breakdown by platforms and services – drawing on our continuous tracking of convergence between traditional market players, Internet Giants, service providers and equipment manufacturers. Benchmark of Connected TV services and featured solutions
Services: Solutions: Typology of players examined: - Broadcasters’ services & content - Devices - Broadcaster - Online video content competing - App store - Computer hardware manufacturer with TV programmes - Digital home features - Internet service provider - Web services adapted for TV - Advanced recommendation engine - Set-top box manufacturer - TV manufacturer - Video game console manufacturer
Players examined include: Countries covered
- Acetrax - ESPN - Maxdome - TF1 France, Germany, Italy, Spain, the UK, United States of America - Amazon - Facebook - Mediaset - TiVo - Antena 3 - Flickr - Microsoft - Toshiba Published yearly - Apple - HbbTV - Netflix - Twitter - ARD / ZDF - Hulu - Panasonic - Vizio Market data & Forecasts - Live TV Channels - Catch-Up TV - BBC - Humax - Roku - Yahoo! - 2010-2015 Markets segments covered - On-demand - Boxee - Google - Samsung - YouTube Unit sales by zone: - Canal+ - LG - Skype Audiovisual services and sub - scriptions revenues by country: - Connected TV - Dailymotion - M6 - Sony - Hybrid STB - Pay-TV - Home Consoles
Market Reports (pdf, 50-100 pages) Our clients include ◊ - BBC • Connected TV – Who will ted TVs and spotlights the evolution of the market - Bouygues and its key issues. It provides detailed analyses of control the users’ interface? - Canal+ the platforms’ business models and examines the This new IDATE market report takes a look at - Cisco different OTT content distribution and monetization connected TV services and the UI. It examines schemes through numerous case studies. The - Deutsche Telekom how over-the-top (OTT) services are positioned, study also provides data and forecasts for the TV - EADS-Astrium along with player strategies and the opportunities services market - including OTT services - up to - Ericsson and risks attached to having control of the 2016, for both EU-5 and the United States. - European Commission connected TV user interface. The report also pro - - EBU-UER vides forecasts for the TV services market up to • Digital Home Devices - Eutelsat 2015, including OTT services, in both Europe and The digital home, which is incorporating the - France Télévisions the United States. latest innovations in devices and networks at an - French Government • Connected TV – Distribution ever increasing pace, is now one of the main - IBM focal points for all industry players. This report - M6 and business models examines the changing shape of this sector and - Mediaset This report examines the latest trends for OTT the outlook for the connected devices market, - OFCOM UK content as well as services delivered on connec - which will represent 482 million units in 2015. - Orange - Philips Analyst Access - SES-Astra ◊ - SFR • Consulting Hours - Direct access to IDATE’s Connected TV experts: 5 hours a year - Swisscom • Analyst Brief - 30-minute conference call on a pre-selected Connected TV topic - TDF • On-Site Presentation* - Clients can choose a theme from among the 3 market - TF1 - Technicolor reports supplied. Presentation given by an IDATE Analyst. - … *optional - additional fees: preparation + presentation + travel costs ◊ ◊ f D R C F c • • c • t o D m E D i h I A A m v r o
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