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The Future of Tv 2014

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The Future of Tv 2014 THE FUTURE OF TV 2014 SPONSORED BY Innovation, inspiration, and monetisation Every year the TV industry presents technological advances that have the potential to change the industry. 2014 is no exception. Moreover, this year represents a landmark for the TV industry. Not only are there advanced products and services that offer a step change in features, there is a commiserate revolution in connectivity with not only high speed fixed broadband networks becoming ubiquitous in all of the major markets but also the availability of high bandwidth mobile networks capable of supporting TV and video in acceptable quality. Such matters were manifestly demonstrated at the International CES 2014 which was described by its organisers as a forum for never-before seen tech breakthroughs and thousands of new products, where innovation took centre stage. “Technology of the future was widespread at the 2014 CES, where executives from every major industry came to see, touch, interact and do business at the world's intersection for innovation,” said Karen Chupka, senior vice president of International CES and corporate business strategy. “Amazing new products emerged in the areas of wireless, apps, automotive, digital health and fitness, 3D printing, start-up tech and so much more. It was an incredible event that brought the global tech community together and successfully celebrated and showcased the amazing innovation that is a hallmark of our industry.” For TV, innovation included LG's 77EC9800 UHD OLED TV and webOS Smart TV; the Panasonic 4K Ultra HDTV Life+Screen AX800 series; the much-lauded Samsung 105” curved UHD TV and 78” U9000 curved UHD set; the Sharp Aquos HD TV line-up including the new Aquos Quattron+; and the Sony 4K Ultra Short Throw Projector. Just looking at the aforementioned brand names gives as clue as to one of the star items for 2014: UltraHD. 2014 is set to be the year when UltraHD starts making serious commercial traction. It should be noted that UltraHD is not quite synonymous with 4KTV. This issue, and others, will be investigated in this issue. Drawing on CES 2014, we'll look at what's likely to inspire the TV and broadcast industry in 2014. We hope we can provide a good roadmap for the year ahead. Making the second screen the first choice for TV 4 UltraHD: more than 4K 6 New Year, new video monetisation strategy? 8 Making the second screen the rst choice for TV For the last three or four years, tablets have cemented themselves into the TV landscape. Driven by increasing innovation by the tablet vendors — in particular Apple with the iPad and the Samsung Galaxy — not only have device sales rocketed, whole strategies for TV viewing by pay-TV providers have been transformed. It's fair to say that up until now, pay-TV providers' understanding of the dynamics of what the second-screen market has been offering has been based mostly on insight and prediction. Now the first reliable data not only of second- screen usage, but also how this is being monetised, is coming to prominence. Interestingly, CES 2014, unlike its previous two or three shows, wasn't dominated by tablets. Data released by leading market research firm IDC at the end of January 2014 perhaps gives a hint as to why. The analyst calculated that worldwide tablet shipments grew to 76.9 million units in the fourth calendar quarter of 2013. This represents 62.4% growth over the previous quarter and 28.2% growth over the same period a year ago. For the full calendar year 2013, worldwide tablet shipments totalled 217.1 million units, which is up from 144.2 million units for the full year 2012 and represents a year-over-year growth rate of 50.6%. As to who will lead the second-screen market, IDC found that Apple's worldwide tablet market share for the quarter grew to 33.8%, up from 29.7% in the third quarter but down from its 38.2% share in the fourth quarter of 2012. The iPad maker was being challenged by Samsung who claimed the second-place spot thanks to its portfolio of products and increased carrier support in markets like the US, grabbing an 18.8% share worldwide, up measurably from 13% in 2013. Rounding out the top five were Amazon (7.6%), ASUS (5.1%) and Lenovo (4.4%). Yet while such growth rates are, IDC stressed, impressive, the company said that they are down “dramatically” compared with the year-over-year rates of the same quarter one year ago (87.1%) and indicate a significant slowing of the overall market. "It's becoming increasingly clear that markets such as the US are reaching high levels of consumer saturation and while emerging markets continue to show strong growth this has not been enough to sustain the dramatic worldwide growth rates of years past," explained Tom Mainelli, research director, tablets, at IDC. "We expect commercial purchases of tablets to continue to accelerate in mature markets, but softness in the consumer segment — brought about by high penetration rates and increased competition for the consumer dollar — point to a more challenging environment for tablets in 2014 and beyond." And therein exists the key to 2014 for the TV industry. Strong mature markets such as the US and Western Europe being able to support second screen industries. But how will these markets be monetised? Research released at CES 2014 by the US Consumer Electronics Association (CEA) and National Association of Television Program Executives (NATPE) suggests that broadcasters have some way to go to fully realise the potential of second-screen services, in particular how to monetise the same content broadcast on all screens at the same time. Fundamentally, the research concluded that there was tremendous potential in content designed for synchronous second- screen viewing and the simultaneous usage of both a primary screen and second device. Indeed there is a general consensus that the second screen is as an inevitable part of the future. Most study participants said they are excited about the opportunities second-screen content will provide creators, from building and sustaining a brand to providing a more meaningful connection between viewers and content. They view the second screen largely as a tool to drive viewers back to first-screen content. 4 There was consensus among the producers and content creators surveyed that content not meant for live viewing presents an additional second-screen opportunity to maximise and extend their brand. While opinions about the second screen were mixed, nearly all agree that, if done properly, second screen offers a significant opportunity to grow and sustain audiences around appointment viewing television and to increase viewer loyalty. Additionally, the producers and creators surveyed found that the second screen enhances the viewing experience in a number of ways: building social currency among viewers; making viewers feel special; bringing about a deeper experience with the primary content; creating a shared viewing experience and sense of community among fans; and maintaining a show's relevance by offering viewers a platform to continue to interact and talk about the programme, even when it's not on air. Yet even though some believe there are strong opportunities for synchronous viewing going forward, producers were found to be still searching for the best solutions to optimise technology to create a seamless experience for the viewer. Indeed the survey found second-screen content designed for synchronous viewing does not currently have unanimous support among show runners beyond sports, reality shows and news. Moreover, at present synchronised content available for TV programmes does not generate strong positive perceptions, with only 13% indicating that it makes their viewing experience “much more enjoyable.” Only 42% have tried synchronising their content experience to live TV and almost four-fifths of second-screen users access their connected device while watching TV programming, with nearly all of such views accessing asynchronous content either right before watching a show, right after watching or between episodes/seasons. Very few found navigating synchronised second-screen content difficult, but those who did cited a number of technical barriers that keep the synchronised experience from being ideal. The most cited issues are related to connectivity, content that is not optimised for the particular screen size and difficulty in locating content online. More than half of those who access synchronous second-screen content were found to do so during commercials, which, said NAPTE and the CEA, provides an opportunity to deliver provide synchronised content that can be easily and quickly accessed during commercial air time. “This important research study underscores the exciting opportunities for consumer technology device manufacturers to market connected devices and potentially collaborate with content producers to enhance and improve the second-screen experience,” said CEA president and CEO Gary Shapiro. “Consumers accessing synchronised content generally find it fun to use and more connected to the shows they are watching. At the same time, the study indicates there is an opportunity to expand consumer engagement with the second screen across a broader variety of programming.” “The findings in this study present new information, challenges and significant opportunities for content producers and advertisers,” added NATPE president and CEO Rod Perth. “We know TV viewers are beginning to use the second screen because it has the potential to extend enjoyment of the viewing experience. We believe this research study will illuminate new entertainment possibilities for consumers as well as content creators." And these possibilities will only be realised by identifying and then addressing the key areas of consumer interest in engaging in the second-screen experience. In this way both device manufacturers and content producers will be able to create a winning, strategic approach to develop the second-screen market by providing tangible benefits to viewers.
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