Interactive Local Media A TKG Continuous Advisory Service White Paper #05-03 November 1, 2005 From Reach to Targeting: The Transformation of TV in the Internet Age By Michael Boland Copyright © 2005 The Kelsey Group All Rights Reserved. This published material may not be duplicated or copied in any form without the express prior written consent of The Kelsey Group. Misuse of these materials may expose the infringer to civil or criminal liabilities under Federal Law. The Kelsey Group disclaims any warranty with respect to these materials and, in addition, The Kelsey Group disclaims any liability for direct, indirect or consequential damages that may result from the use of the information and data contained in these materials. 600 Executive Drive • Princeton • NJ • 08540 • (609) 921-7200 • Fax (609) 921-2112 Advisory Services • Research • Consulting •
[email protected] Executive Summary The Internet Protocol Television (IPTV) revolution is upon us. The transformation of television that began with the VCR and gained significant momentum with TiVo is now accelerating dramatically with “on-demand” cable, video search and IPTV. Billions of dollars are at stake, and a complex and competitive landscape is also starting to emerge. It includes traditional media companies (News Corp., Viacom), Internet search engines and portals (America Online, Google, Yahoo!), telcos (BellSouth, SBC, Verizon) and the cable companies themselves (Comcast, Cox Communications). Why is all this happening now? While there was a great deal of hype in the 1990s about TV-Internet convergence, or “interactive TV,” previous attempts failed in part because of low broadband penetration, costly storage and inferior video-streaming technologies.