Market Analysis Sma rt TV A Status Report by the German TV Platform Market Analysis Smart TV s t n e t
n Preface 2 o
1. Overview of Internet and TV 4 C 1.1 Web TV, IPTV and Hybrid Reception Devices (“Smart TV”) 4 1.2 Consumer Electronics and Connectivity 5
2. Types of Interactive Television 7 2.1 Overview of Various Hybrid-TV Packages 7 2.2 Display and Use of Web Services on Smart TVs 8 2.3 HbbTV as a Standard: Origin, Application and Outlook 11 2.4 The Smart TV Alliance and SDK Options 17 2.5 Business Models and Advertising Options with Smart TV 18 2.6 Over-the-Top (OTT) TV: Important Nationa l/ International Players 21
3. Results of the Smart TV Working Group 23 3.1 Commercial Requirements 23 3.2 Content Guidelines 27 3.3 Workshop “Smartphone to Smart TV: Apps Conquer TV” 28 3.4 Symposium on Second Screens: Perspectives on Smart TV and Social TV 29 3.5 Usability – Studies on Operation Concepts 31 3.6 “SearchFindNavigate” Joint Event 35 3.7 Consumer Protection with Smart TVs and HbbTV 36 3.8 New Focuses of Activity and Open Questions of the Smart TV WG 39
4. Market Situation, Viewer Acceptance, and Forecast 41 4.1 Appliance Sales and Usage Development 41 4.2 Smart TV and Audience Acceptance in Germany and Beyond 42 4.3 HbbTV and Market Development 47 4.4 Initiatives on Behalf of Smart TV and HbbTV 48 4.5 Trend Forecasts and Future Opportunities 49
5. Glossary: Key Terms and Abbreviations 51
6. Sources 55 Appendix 57 Publisher, Contacts, Authors, Disclaimer Jürgen Sewczyk, Head of the Smart TV Working Group and Board Member of the German TV Platform e
c An Important Stimulus a f
e for Interactive r
P Digital Television
Apart from various systems developed by appliance manufacturers and mostly Figures published by content providers also based on standardized programming languages, the international HbbTV (for “Hy - point towards a growing popularity of smart- brid broadcast broadband TeleVision”) standard has become an established format TV options. In June 2013 alone, ZDF regis - for merging broadcast and online services. HbbTV was first standardized in June tered 1.1 million video requests via smart TV 2010 by the European Telecommunications Standards Institute (ETSI) and has since for its media libraryan increase of 250 percent been developed continuously to the point where it is now being employed by more in just 12 months. With a coverage of 5.89 than 70 television content providers and all appliance manufacturers in Germany. million HbbTV-enabled smart TVs, ProSieben - Sat.1 counted 380,000 active users for Pro - At the same time, the number of devices in use by consumers has seen a very Sieben content alone in December 2013. dynamic development. According to GfK Retail & Technology, a total of 20.5 million Even video-on-demand (VoD) providers like Web-enabled consumer devices had been sold by the end of 2013 on the German Maxdome, service providers like Feratel („Al- market, including TVs, Blu-ray players, and set-top boxes. pen panorama”), and home-shopping net - works like QVC report enormous growth rates in usagemostly via smart TVs. Based on a TNS Fifty-nine percent of the TV sets sold in 2013 Infratest analysis, the latest progress report were capable of displaying Web-based con - on digitalization issued by the German state tent and were thus considered “smart TVs” media authorities estimates that approxi - (2012: 50%, or 4.8 million; 2011: 3.4 million). mately 1.2 million viewers make frequent or Moreover, a full 92 percent of the smart TVs occasional use of the TV broadcasters’ HbbTV sold in 2013 supported the HbbTV standard options. for interactive television via a special red but - ton on the remote control. Not all smart TVs Since May 2009, this dynamic development sold in Germany are actually hooked up to has been the focal issue for the German TV the Internet, but a survey conducted in Platform’s working group (WG) called “Hy - Apri l/ May 2013 on behalf of gfu (Gesellschaft brid Consumer Devices for the Integration für Unterhaltungs- und Kommunikationse - of Broadband and Broadcast,” later redubbed lektronik) showed the number of those that “Smart TV.” The purpose of this working are connected to the Web now to be close to group is to promote the development of the 60 percent. market for smart-TV consumer devices and pertinent services in Germany, taking into account the various business models along the entire supply chain. 2 In order to keep the public informed at all porting two initiatives: „Smarter Fernsehen” times, the WG has developed and continu - (by ZVEI and BVT) and „Auf ROT geht’s los: ously updated a variety of publications, in - Meine Taste für smartes Fernsehen” (by ARD, cluding consumer brochures and flyers pre - ZDF, Mediengruppe RTL Deutschland, senting and explaining appliances and serv - ProSiebenSat.1, and VPRT). ices. With professional publications on hybri d/ smart TVsuch as the “White Book,” In the future, the working group’s work areas published in several revised and updated edi - will increasingly follow aspects of content tions in both German and English –, this and intuitive handling. It will also cooperate working group has, on the other hand, also with the German TV Platform’s “User Guid - contributed to a better understanding within ance” project group, which, in its first the industry, as it did with several workshops brochure („TV in der Zukunft”“TV in the Fu - and other topical events. A special research ture”), has analyzed new trends in searching, project at the Ilmenau University of Tech - finding, and navigating through the broad nology on the usability of HbbTV content range of content. This realignment will result on smart TV devices has shown that there is in new priorities, including member, trade, still much room for improvement, as detailed and consumer information on all smart-TV in a style guide for professional users. A fol - concepts; applications for the second screen; low-up to this usability study has been pro - coverage data; privacy, consumer, and con - jected for 2014. tent protection; and payment methods.
The more than thirty representatives of hard - ware manufacturers, infrastructure operators, television broadcasters, universities, and other institutions in the “Smart TV” working group thus have their work cut out. After all, we are certain that the trend towards smart TV will generate important stimuli for market development, change the consumption of audiovisual services, and open up television to new content, new providers, and new busi - ness models. The publication at hand will be just one contribution. It summarizes the results of our working group from our first four years of work. This market analysis is intended to provide readers with a compre - hensive overview of the working group’s sub - Thanks to the commitment of the German jects and beyond, including trend forecasts & TV Platform and its members, smart TV is a and a glossary. I invite everybody who is in - rapidly developing mass-market phenome - terested to join our efforts.
I B non in Germany today. This is the appropri -
n ate time, the WG believes, to continue the r line of White Books with an updated t o overview as “Market Analysis Smart TV.” e
a Early on, all those involved recognized that r consumer education and information as well
d n as an increase in the number of smart TVs
c connected to the Internet had to take priority e as the development progressed. For this rea -
a t son, the “Smart TV” working group has been s focusing its efforts since IFA 2013 on sup - t 3 1. Overview of Internet and TV
1.1 Web TV, IPTV and Hybrid Reception Devices (“Smart TV”)
From Latin roots, the term hybrid gen- Smart TVs are television sets that can display er ally means, “blended, a cross between broadcast programs and services from tradi - different species”in other words: a com - tional broadcast channels as well as content bination of parts of various origins. Hybrid from the Internet, so that both sources can consumer electronics combine various, be used side-by-side as suppliers of informa - previously separated transmission meth - tion and/or entertainment. The technical fa - ods into one consumer device. In this way, cilities are supplied by an increasing number different media content from various of TV models with integrated digital receivers sources can be displayed on one TV screen. (iDTV), as well as digital receivers and Blu- d The basis of hybrid media services is the ray player s/ recorders. Smart TV as a linkage
i digitalization of content and transmission between Web and TV on one device is an -
g technologies that allows a combination of other level of convergence between television
r various broadcast and IT standards in ad -
i and Internet. In a first stage, moving images e t dition to new, convergent technologies. from the World Wide Web reached computer a
c monitors either as openly-accessible Web TV, as (paid) video-on-demand services, or as live l e streams. At the same time, IPTV services were i offered which were similar to traditional v broadcast services, but on the basis of the
e Internet protocol (IP), reaching the monitor via broadband networks (usually upgraded phone lines). 4 In the second stage of convergence, all device and encoded in Internet protocol (IP) on a manufacturers are developing systems to dedicated section of a broadband link (usu - make Internet services usable on TV screens, ally a telephone network) in a guaranteed thus providing users with both a wider di - quality to TV households. To display the versity and a certain degree of interactivity transmitted content on a TV screen, an IPTV on the TV set. In addition, more and more reception box from the provider is required, TV broadcasters are offering hybrid TV in the together with a service subscription. IPTV is form of teletext as well as video libraries about to establish a fourth transmission (catch-up video-on-demand services mainly method for linear TV, in addition to cable, offered by public broadcasters)mostly in the satellite, and terrestrial broadcast. HbbTV (Hybrid broadcast broadband TV) standard (cf. 2.3). In addition, various online The term Web TV describes audiovisual media companies and other organizations offer on - content that is distributed over the World line content for smart-TV devices. In Europe Wide Web, but without quality assurance and and around the world, the German market is generally only for display on PC monitors, regarded as a trailblazer in the field of smart laptop and tablet computers or smartphones, TV. In addition to high-definition (HD) and i.e. not on large TV screens. ultra-high-definition (UHD) television, inter - active TV has become one of the dominating Originating from the consumers’ desire to trends in consumer electronics. view moving picture content from the Web and other popular online media also on TV The imprecise use or even confusion of the screens whenever they like, the CE industry terms IPTV, Web TV and hybrid or smart TV developed smart-TV devices. These are hybrid in the media often puzzles consumers. These TV devices (digital flat-panel TVs [iDTV], dig - various services and types of audiovisual- ital receivers, and Blu-ray player s/ recorders) media delivery and use are frequently mixed that can receive and display broadcast signals and intermingled as “Internet-enabled.” All via cable, satellite, or terrestrial antennas, as three do indeed feature a combination of well as content and services from the Internet Internet and TV, yet their approaches are en - (incl. Web TV). The integrated browser uses tirely different. a broadband network via Local Area Network (LAN) or Wireless LAN (WLAN or WiFi), in IPTV denotes the transmission of (mainly lin - order to display the content supplied via the ear) broadcasting services via a broadband return channel in exactly the same way as network. This means transmitting a signal TV programming on the TV screen. carrying broadcast content (TV and radio)
1.2 Consumer Electronics and Connectivity
Since early 2009, hybrid TVs have been avail - almost any flat-panel TV with an HDMI con - able on the German market, allowing both nection can be upgraded to a hybrid device. broadcast reception and Internet connection as well as an optimized display of Internet These smart TVs also often provide the op - services on the TV screen. Initially, this was tion to connect with other consumer elec - almost exclusive to digital flat-panel TVs tronics or the home network. Thus, digital (iDTV/smart TV). By now. an increasing num - cameras, MP3 players, DVD and Blu-ray de - ber of manufacturers of digital receivers or vices, and game consoles as well as modern Blu-ray devices are relying on the hybrid ap - cell phones can be used with the TV screen. proach. The benefit: with a “smart” receiver, Some TV manufacturers also offer solutions 5 that permit control of the flat screen via Some CE manufacturers even envision their smartphones or tablet computers, generally hybrid devices as the control hub of a com - by using specific apps. This allows the various prehensive home network that can monitor devices to be connected. The content ex - and control building and household technol - change between these consumer devices and ogy. The possibilities for connections within those of the communications and IT world and between sectors that were previously is facilitated by dedicated software. separate seem technically unlimited. Various developers are at least working on the adap - A new form of T V/ Web communication is tation of various technologies. The key factor the integration of TV and the increasingly in the development of the entire market seg - popular social networkssuch as Facebook, ment, however, will be whatever finds ac - Twitter, and so on –, termed “Social TV” ceptance with users and thus establishes itself within the industry. The linkage of TV and on the market. social networks may be achieved via apps in the manufacturers’ portals or even alongside TV programs running on the main display panel (cf. also 3.3 and 3.4).
Examples for flat-screen remote control via smartphones or tablet computers and state-of-the-art TV remotes O
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T V 1. 6 2. Types of Interactive Television
2.1 Overview of Various Hybrid-TV Packages
Initially, it was several manufacturers of flat- Since 2009, a European consortium has been panel TVs that drove the development of taking care of the harmonization and devel - hybrid TV, starting in 2009. This resulted in opment of interactive television on smart TVs flat-panel TVs with various hybrid options under the designation HbbTV (Hybrid broad - for the display of Web content on the TV cast broadband Television). Several members screen being marketed in Germany. Some of the German TV Platform, such as the device manufacturers and content providers Institute for Broadcast Technology (IRT), relied on variations of the Internet’s HTML Philips, and Astra have actively participated (HyperText Markup Language) language for as founding members. And since June 2010, consumer electronics, known as CE-HTML. the HbbTV specification has been recognized Others used IT solutions such as JavaScript as a standard by the European Telecommu - for their smart-TV portals. Thus the manu - nications Standards Institute (ETSI). More and facturers offered their services to the viewers more companies, including all the members on their TVs in proprietary formatsmostly as of the German TV Platform, now support an application (app). For providers of services HbbTV technology (cf. 2.3). and content, this meant adapting their pack - ages and coming to an agreement with the respective device manufacturer to access to their particular portal. 7 Despite several variations between HbbTV via the TV remote control. While the new broadcaster packages and manufacturer por - hybrid devices in consumer electronics are tals, there are important similarities. Apart certainly not intended to replace the com - from television reception via the traditional puter, they do provide additional benefits broadcast infrastructures of satellite, cable and add a new diversity to television sets. and terrestrial broadcast, all smart-TV con - Ever more smart-TV devices even combine sumer devices support the use of services and both: HbbTV functions with manufacturer- content from the Internet and can use a re - specific portals and multi-media networking. turn channel to provide genuine interactivity
2.2 Display and Use of Web Services on Smart TVs
By now, there is a wide variety of appliances on the market: Next to flat-panel TVs, there are digital receivers, set-top boxes (STBs) with - out built-in receivers, and Blu-ray players that can receive and display Internet content and services (including Web-TV) in addition to broadcast signals via cable, satellite, or terres - trial transmission. Nearly all of these devices implement the HbbTV standard. In most cases, manufacturers of “smart” devices not only provide hardware but also offer their own portal for accessing the diverse world of Web- TV and other, non-television-based services.
The manufacturers’ smart-TV portals vary in design and in user interfaces on the one hand Originating from the consumers’ desire to and content on the other. Generally, the var - concurrently use moving picture content ious manufacturers’ portals offer services such from the Web and other popular online me - as news, weather, games, and social networks dia on TV screens, the CE industry developed as well as video-on-demand and video-library hybrid devices that allow both Internet con - services. The majority of the services available I
T tent and apps to be used on the TV set. On n the other hand, TV program providers, to - y
t gether with technology companies and other p e institutions, developed the HbbTV standard, which allows linear TV programming to be r e linked with select Web content. Initially, it a s was primarily hybrid flat-panel TVs (iDTV) c that were equipped with the hybrid function. o t i f v i t y 2. 8 can be found on the various portals of dif - fer ent device manufacturers, for example YouTube, Bild.de (popular German electronic newspaper), or the video libraries run by the TV networks. From the manufacturer portals, on which the services are often displayed as tiles in a gallery, similar to the well-known apps on a smartphone display, users can access the desired service by means of the remote control. It is possible thatdepending upon the servicethere are access conditions, such as registration or payment. Other serv - ices are free of charge and instantly available. Some of the portals described above are as - sembled by the device manufacturers them - selves and, in some cases, operated by third- On smart TVs, HbbTV services party service providers. What is new are the The services that can be accessed via the por - offered by broadcasters as well as app portals can ways in which users can navigate through tal may include the following types: be selected simply by the push of a button. this diversity of content: from touchpads in - tegrated into TV remotes via pointers all the • Services with direct reference to broadcast way to gesture and voice control. content, for example the networks’ video libraries, where viewers can re-watch or Portals are offered both by TV manufacturers catch up with recent programs or watch and the manufacturers of digital receivers certain programs in a livestream (such as and Blu-ray players, but also by infrastructure newscasts); operators such as Astra (HD+), Eutelsat (Ka - belkiosk Choice), andsince March 2013Media • Services with an indirect connection to Broadcast, operator of a terrestrial broadcast broadcast content, like e.g. the Web portals network (Multithek). The Astra and Eutelsat of TV broadcaster groups or their commer - portals can be used by device manufacturers cial video-on-demand portal, from where as white-label products and rebranded. Media TV programs can be downloaded exclu - Broadcast has expanded the limited capacity sively ahead of broadcast; of DVB-T with a hybrid approach. The scope of services offered by the portals varies from • Services that have no connection to broad - one manufacturer to another, but in general, cast content but contain moving images, those who started developing hybrid devices such as user-generated content like You - early on are now providing a wider choice of Tube; content. Usually, por - tals offer users an op - • Services that neither have a connection to portunity to configure broadcast content nor contain moving im - and personalize services ages, such as e.g. electronic newspapers, according to individual social networks, online photo galleries, preferences, to group game portals, auction platforms, or tele - “favorites” together, communications services; and to personalize the screen by selecting ad - • Shopping offers of all major home-shop - ditional tiles from a ping networks, partially with options to sort of “app gallery” order via TV. and adding them to the pre-installed selection. 9 Regarding the variety of content and services These may be thematically linked to the cur - that are available via a portal, the develop - rently watched TV program, or link to a high- ment is still in its infancy. Some portals also definition teletext in a modern design and a offer free Internet access via an open browser. comprehensive EPG. Links to the navigation With these devices, users may input any URL portals of the TV networks or their corporate and access any Website via their TV. An ad - Website are also feasible. With HbbTV, inter - vantage of curated services is to have the active involvement of the viewer is possible, assurance of the best possible display and for example online voting in live programs functionality on screen, as well as the legal or home shopping without switching media. security of excluding illegal content, protect - With the video libraries, programs can also ing copyright, and locking inappropriate con - be watched via Internetdepending upon the tent. business model, registration or payment may be required to do so. Another way to access more content and serv - ice than the TV program via a hybrid device It goes without saying that the link from the is to access the packages of the TV broadcast - current program can only be provided by the ers themselves. In this area, it is more or less TV broadcasters that are actually received in
exclusively the HbbTV standard that is im - a particular household by the broadcast trans - plemented. It links the TV signal of a broad - mission method available. Technically, the caster with relevant content from the Inter - link is transported via the EIT information net. This way, HbbTV allows a new inter- in the broadcast signal. Infrastructure opera - I
T active TV experience. On HbbTV-enabled tors of broadcast services such as cable net - n devices, HTML pages are generally opened work operators, satellite operators, and y
t and closed by the red button, one of the four providers of terrestrial broadcast networks of - p e colored keys on a standard TV remote. Any fer access to Web services usually in the form Web content defined by the broadcaster as of portals that are similar in principle to those r e relevant to the current program,can thus be of the CE industry. Here, too, graphics, range, a s accessed. Under the HbbTV standard, the TV and diversity of the services vary. c broadcaster is in full control of this process o
t and can guide viewers from the current pro - i f gram to various Websites. v i t y 2. 10 2.3 HbbTV as a Standard: Origin, Application and Outlook
Why HbbTV? The resolution of modern HD displays would Hybrid devices do not represent an entirely permit any content from the Internet to be novel concept. For years, there have been displayed and to be made navigable. Never - attempts by device manufacturers to also theless, approaches to display content on a display Internet content on TV screens via TV in the same way as on a PC seem ques - an integrated browser. But it is only now tionable for several reasons. Viewing distance that affordable, high-bandwidth Internet relative to screen size is generally greater with access has become so widespread and so a television than with a PC, which most In - much attractive media content is available ternet content is displayed too small and on the Internet that critical mass for a poorly legible on regular TVs. Moreover, In - wider market penetration has been ternet content is optimized for navigation reached. with a mouse cursor and keyboard, and both input features seem to be incompatible with common TV usage, where standard remote controls with arrow, number, and color keys are still dominant. However, since IFA 2013, keyboards on TV remotes, pointers, gesture and voice controls have become prevalent. For faster navigation, newer remote controls have even integrated small touchpads, which are familiar to users from laptop computers.
In addition, there are also commercial argu - Almost all device manufacturers have intro - ments against the integration of hardware duced smart-TV devices onto the market. For into TVs or set top boxes that would allow manufacturers, there is a need to set them - the full scope of Internet services to be dis - selves apart in the increasingly competitive palyed in the same way as on a present-day market for flat-panel TVs, and the feature of multimedia PC. For these reasons, Internet “Internet access” is used as a selling point. services are only available in a limited form On these devices, a “portal” can generally be on current hybrid TVs, or they have to be launched, from which a variety of Internet specially processed for display on the TV content can be accessed. Of particular interest screen. This means that two problems arise is moving picture content, e.g. YouTube or from the service providers’ point of view: the video libraries of the German public net - works, ARD and ZDF. The concepts pursued 1. Each manufacturer of hybrid devices uses by the industry, however, have raised a cou - a different browser and supports a variety of ple of issues. streaming formats and protocols. This leads to the problem of having to adapt content individually for various manufacturers, and this heterogeneity represents an immense ob - stacle for a dynamic market.
2. Inside hybrid devices, the areas of Internet and television are, in fact, separated, even though they share the same screen. 11 For this reason, various market partners (ANT, This meant that, in the future, accompanying APS, IRT, Open TV, Philips, and the French HTML pages could be launched directly out HD Forum, as well as Samsung und Sony of a TV program. It also meant visibly better more recently) joined to develop a uniform display options for teletext in the age of HD. technological platform that would allow the Additional information, such as news crawls, “smart” linkage of universal functions and could be superimposed transparently across content from the Internet with that of the the TV image, and information relevant to TV, using HTML as the basic technology. The the TV program could be displayed simul- objectives for the hybrid system to be devel - taneously, for example during game shows. oped were: But the HTML environment will also be en - hanced: • It had to be open and standardized, in or - der to permit efficient development of con - • A smaller TV picture can be integrated into tent independent of individual manufac - HTML pages, allowing seamless access from turers or platform operators. the Web page.
• It had to be based upon open-source stan - • A key reason for employing the HTML is dard technologies as far as possible. also the simple carry-over of services al - ready developed for the Internet. This way, • It should only specify the minimal required attractive services can be launched quickly, components and features, so that the spec - and not just by broadcasters, as demon - ification could be supported by as many strated by the host of Internet services on market players as possible. hybrid TVs already available.
• It should allow the combination of all The objective of developing a standard within broadcasting systems (satellite, cable, ter - the parameters outlined above has been restrial) with all Internet access technolo - achieved. The specification was submitted to gies (DSL, cable, wireless). ETSI in late 2009 and published in June 2010 in its initial version as ETSI TS 102 796. • It should permit connection between linear television content and additional interac - tive services. The Technical Concept of HbbTV The HbbTV standard defines as few new tech - • It should also permit the use of the broad - nical elements as possible, but is rather based cast channels for the distribution of addi - on existing technical standards. In that tional services. respect, the specification is more a profile of what exists than a new technological ap - I
T • It should be suitable as a successor to the proach, thus speeding up the implementa - n present-day teletext system. tion on devices. Essentially, HbbTV is based y
t on the following three standards: p e • It should not affect the integrity of broad - cast programs, i.e. not combine services The CE-HTML standard, currently available r e from the Internet with the screen image in as a 2007 version, is based on W3C Internet a s an uncontrollable way. standards and specifies an HTML profile for c CE devices. This browser profile also forms o
t the technical foundation of HbbTV. It is based i f on XHTML 1.0, DOM 2, CSS TV profile 1.0 v and ECMAScript-262 (JavaScript) and is opti -
i mized for the display on HTM L/ JavaScript
t pages conforming, by and large, to the Web
y standards, on CE devicesgenerally TV screens. 2. 12 It should be mentioned that the XMLHttp - Request object in particular is supported, so One of the applications assigned to a program that application developers are able to de - can be designated in the AIT as a so-called velop HTML applications comparable to cur - “autostart application.” It will be launched rent so-called Web 2.0 applications. This com - automatically when the respective channel patibility makes it possible for existing know- is switched to and usually displays a red how, technology, and experience employed button symbol on the screen that disappears in contemporary Web applications to be after a brief period. This symbol indicates to seamlessly transferred to HbbTV set top boxes viewers that they may launch additional while focusing on aspects of broadcast inte - applications by pressing the red key on their gration. Furthermore, the key codes for the TV remote control. An additional signaling most popular TV remote controls, for exam - option in the AIT is designed for applications ple, are also included. that are intended to replace today’s teletext service. This signaling can be linked to the CE-HTML does not, however, contain any el - teletext key by the device manufacturer so ements that specify the connection to a DVB that a new teletext application can be (digital video broadcast) environment, as is launched directly. In addition to applications the case with digital television. This is, how - that are linked to a broadcast service via AIT ever, achieved by the browser specification signaling (broadcast-related applications), of the Open IPTV Forum, published in Janu - HbbTV also supports applications that are ary 2009. While this specification was written not necessarily linked to a broadcast service for application in IPTV networks, it contains (broadcast-independent applications). These APIs that can also be used for hybrid de - may, for example, be third-party program coders. These include, among others, specific guides, or applications such as Flickr, YouTube, features for integrating the TV image into etc. HbbTV permits the switch from broad - HTML applications, for switching radio or cast-related to broadcast-independent appli - TV channels, for pre-programming record - cations, but limits access by broadcast-inde - ings, and for accessing DVB data. With ele - pendent applications to broadcast content. ments of both these specifications selected for HbbTV, the key browser features have Furthermore, TS 102 809 specifies the trans - been defined. mission of applications via the DVB broadcast channel. This option is interesting in the case Three important additional features are pro - of devices that have a browser but are not vided by the “Signalling and carriage of in - hooked up to the Internet by the consumer. teractive applications and services in hybrid While the volume of data that can be trans - broadcas t/ broadband environments” DVB mitted via the broadcast channel is limited, standard, which was completed in March it is suitable for simple services such as en - 2009 and is available as ETSI standard TS 102 hanced teletext. 809. First of all, this DVB standard controls how applications that are launched out of a For the transmission of HTML applications, TV or radio program are signaled in the DVB- according to the Blue Book, the DSM-CC multiplexes. In line with the previous MHP standard is applied, which is already being standards, this is performed via the Applica - employed for MHP. tion Information Table (AIT) listed in the Pro - gram Map Table (PMT) of the respective pro - The “stream events” with which small data gram. The AIT of any program lists All appli - packets can be piggybacked to the broadcast cations permitted to run alongside a specific channel in sync with the TV program are also program are registered in its AIT. Other ap - part of the DSM-CC standard. With this, for plications may switch to this program but example, questions or answers may be trans - are stopped by the system. This ensures that mitted at exactly the right time during inter - the program is not “hijacked” by external ap - active quiz shows. Via Internet connection, plications and for example superimposed by this kind of synchronization of broadcast third-party advertising. content and interactive responses would be 13 quite difficult to achieve, and Web servers regulate further cooperation and open up would have to be designed to handle millions HbbTV to new members. In the meantime, of simultaneous requests. For these purposes, this consortium is a legal entity registered in using the broadcast channel is therefore con - Switzerland. Over 60 companies have joined siderably more efficient. as members so far. The further technical ac - tivities are being driven by a series of working In total, the HbbTV browser profile represents groups. These activities are primarily: a pragmatic compromise that offers a flexible and universally usable technical infrastruc - • a review of the first version of the HbbTV ture for various service options on the one standard to correct errors or ambiguities, hand, while on the other hand it can be im - as well as to integrate some new features, plemented in hardware (iDT V/ STB) that is such as the DASH standard for adaptive considerably less efficient than the computers streaming; this new version of the HbbTV commonly used to access the Internet today. standard, designated “HbbTV 1.5”, was A browser that complies with the HbbTV published by ETSI in November 2012 as specification can be integrated into any con - ETSI TS 102 796 v1.2.1; sumer device as an independent component. Providers of complete middleware solutions • the development of a test suite for testing can, however, also market this browser as an with HbbTV devices; this test suite is in - integral part of their product. Depending tended to ensure a uniform and consistent upon the requirements of individual markets, implementation of HbbTV in all devices this browser concept may also be combined and reduce expenses for testing devices; in the user devices with API systems that have this test suite has been available to all mar - already been introduced (such as MHP or ket partners since 2012; MHEG5). • the development of a 2.0 version of the standard, offering a number of new fea - The HbbTV Consortium Today tures, including HTML5 support and inter - As already mentioned, the HbbTV initiative activity options between devices; technical was initially an informal cooperation be - specifications for “HbbTV 2.0” are more or tween ANT, APS, France Télévisions, IRT, less complete; OpenTV, Philips, and TF1, joined by Sony and Samsung in August 2009. At this time, the HbbTV partners announced the new initiative in a press release and open up the possibility for additional companies to join them as supporters, which more tha 100 I
T companies and institutions have done in the n meantime. y t p e In April 2010, Philips, ANT, Sony, Samsung, OpenTV, SES Astra, IRT, TF1, EBU, and France r e Télévisions signed a consortium charter to a s c
o t i f v i t y 2. 14 • discussion forums and workshops, in the grated TV receivers (iDTV) that supported course of which implementation questions HbbTV. In the meantime, virtually all major and potential errors will be discussed on device manufacturers – currently more than the basis of past practical experience and 50 – have HbbTV-enabled devices on the know- how in all aspects of HbbTV will be market (for specific data, please refer to chap - assembled. ter 4).
Status of Market Development: HbbTV on Various Transmission Channels HbbTV Services in Germany HbbTV is a standard that can be generically Since IFA 2010, all four free-to-air television applied to all combinations of broadcast net - broadcast groups in GermanyARD, ZDF, RTL, works and Internet access, i.e. also via DVB-T and ProSiebenSat.1have been offering HbbTV and mobile Internet. Here is a brief overview services. While public broadcasters have fo - of the status of HbbTV in the various German cused mainly on media libraries, teletext, and DVB distribution channels: EPG, the commercial broadcasters have em - phasized colorfully upgraded variations of DVB-S is, as for many other new develop - their teletext pages with photos, video clips, ments in digital television, the earliest market and interactive advertising, and Pro7 and segment. Many of the HbbTV services men - Sat.1 also offer games and voting. An out - tioned above are available free of charge via standing example for the potential of HbbTV satellite, and quite a few of the HbbTV de - was demonstrated during the 2012 Olympic vices available support satellite reception. Summer Games and the 2014 Olympic Win - Paid services are offered mostly via the HD+ ter Games with the integration of six and portal with a service called “replay.” four livestreams, respectively, into the HbbTV A regional portal operated by the state media Olympics apps of ARD and ZDF. authorities combines various regional services on one satellite transponder. But smaller broadcasters also regard HbbTV as a valuable extension feature to their pro - DVB-T: At the „Medientage München” con - gram activities: By now, Sport1, HSE24, QVC, gress in Munich in October 2010, ARD, ZDF, Sonnenklar TV, and Astro TV have launched and ProSiebenSat.1 switched HbbTV signal - their own HbbTV options. Interestingly, a ing onto their terrestrial multiplexes and growing number of local TV broadcasters is demonstrated their HbbTV packages on also providing HbbTV contentbringing the HbbTV prototype devices or with a DVB-T total to 70 program providers offering HbbTV frontend. Virtually all of the HbbTV iDTVs services (as of September 2013). They already from major manufacturers marketed in 2011 include applications that allow bookings or also support DVB-T reception. In the mean - purchases. There is no doubt that such ap - time, broadcast network operator Media plications will also be offered by many more Broadcast has added Multithek. providers in future. DVB-C: In cable, HbbTV signaling for all channels is already available across all net - Status of Market Development: works. As with terrestrial broadcast, HbbTV HbbTV Devices iDTVs from major manufacturers are gener - By the end of 2009, the Humax iCord HD+ ally also equipped with DVB-C tuners. was introduced as the first HbbTV set top Thanks to the CI Plus interface, they can be box for satellite reception. In the course of used in all major cable networks. A special 2010, further manufacturers of DVB-S STBs service by Eutelsat with a white-label HbbTV followed with VideoWeb, Smart, and Inverto. portal called “Choice” is directed explicitly At IFA 2010, more major manufacturers, in - at cable network operators. cluding Philips, LG, Toshiba, Loewe, and Technisat, followed, particularly with inte - 15 HbbTV can even be an issue for IPTV net - on the secondary device. Since it is entirely works: The hybrid standard can be employed browser-based, implementation is platform- here in the same way as in conventional DVB independent. Due to its HbbTV-compatibility, networks, and in this segment, too, some services directly related to TV program con - IPTV providers have already started working tent can be implemented. This system has on their HbbTV decoders. There are thus no been operational since IFA 2012 with ARD’s more obstacles in the way for HbbTV to be - HbbTV EPG and has been marketed by T-Sys - come a universal standard for hybrid tele- tems since March 2014 under the brand vision across Germany. name, “First Connect.”
HbbTV and Second Screen The Status Quo of HbbTV in Europe Usage of a “second screen” while watching and around the World television has become increasingly popular, Germany was a pioneer in the launch of as the vivid interest for a conference on this HbbTV on an international scale. The French subject, hosted by the German TV Platform, market had already played a key role in the development of the HbbTV standard, and by now, TF1, France Télévisions, and Canal+ are using HbbTV. Internationally, HbbTV has since made great strides: In Europe, nine countries have regular HbbTV operations (Austria, Belgium, the Czech Republic, Den - mark, Finland, the Netherlands, Poland, Spain, and Switzerland). A number of other European countries are planning the launch of HbbTV or have commenced test runs (Hungary, Norway, Portugal, Sweden, and the United Kingdom). Even beyond Europe, HbbTV has been reviewed, and in some cases, introduction has already been greenlighted. Russia and China have conducted field tests, and Turkey included HbbTV in their DVB-T2 specifications. This combination of DVB-T2 and HbbTV will most likely be used in Malaysia, Vietnam, and other Asian countries as well. In Australia, HbbTV services will be rolled out in May 2014. In South America, a I
T demonstrated. Since the current version of combination of HbbTV and ISBD-T is being n the HbbTV standard does not permit direct tested, and in the United States, HbbTV is y
t communication with a second screen, IRT being discussed as a technology component p e has developed a system that allows the inte - of the new 3.0 version of the ATSC standard. gration of a mobile device into HbbTV serv - r e ices even today. This way, HbbTV applica - a s tions can, for example, be controlled re - c motely from the second screen, or certain o
t information may be pushed from the TV to i f the second screen. To establish a connection v between the devices, the user simply has to
i scan a QR code on the TV screen with a suit -
t able application on his secondary device. Fol -
y lowing a successful handshake, the second- 2. 16 screen application is launched automatically According to a gfu study, the penetration of German households with smart TVs is above the European aver - age, but they lag behind in actually connecting these devices to the Internet.
Source: gfu – Gesellschaft für Unterhaltungs- und Kom - munikationselektronik. Representative study by gfu in 2013: 8,000 households surveyed in Germany, seven other European countries, and Turkey
2.4 The Smart TV Alliance and SDK Options
The requirement for a speedy development of hybrid television has compelled major CE manufacturers to cooperate. In early July 2012, they founded the Smart TV Alliance in Los Angeles, initiated by LG Electronics, TP Vision (a Philips subsidiary), and Toshiba, all The Smart TV Alliance is open to other hard - of which are also members of the German ware manufacturers, broadcasters, and con - TV Platform and active collaborators in the tent providers, as well as infrastructure oper - Smart TV working group. In the meantime, ators. At the same time, the Alliance’s Technisat, Panasonic, Vestel, and 14 other founders support the Hybrid broadcast broad - companies have joined the Alliance. band TV (HbbTV) standard, which has its own organization (cf. chapter 2.3) and is ap - Together, these companies intend to support plied by TV broadcasters in Germany and an improved infrastructure for TV applica - other countries. tions and platforms, allowing Web services, on-demand services, games, and music to be Manufacturers that are not members of the used or played on all flat-panel displays and Smart TV Alliancesuch as Samsungalso offer other TV devices under uniform specifica - software development kits and regularly host tions. As a first step, a version of their soft - developer meetings. This makes it easier for ware development kit (SDK) is available for companies that do not manufacture hard - download by app developers. It is based on ware to develop services for the various open-source Internet technologies (such as smart-TV portals. Even for Google’s new HTML5) and allows applications to run on Chromecast dongle, there is an SDK called all smart TVs produced by the participating Google Cat that allows third parties to de - manufacturers, independent of their plat - velop apps and services for this digital media form. player. 17 2.5 Business Models and Advertising Options with Smart TV
The number of hybrid consumers devices in The percentage attributed to hybrid TV is still Germany is growing rapidly. All relevant relatively small, but according to the mov - device manufacturers have offered HbbTV ing-image marketer, smartclip, providers of support in their hybrid devices off the shelf high-coverage TV apps will be able to gener - since fall 2011. The major TV broadcast ate annual advertising revenues in the low- groups and also a growing number of smaller to mid-six-figure range with an upward trend, broadcasters have developed and launched since the number and reach of apps increases, HbbTV applications. At the same time, the as does their quality. number of information and entertainment options that TV viewers can access in the portals of their TV device manufacturers (so- TV Commerce
The more than 70 broadcasters who offer HbbTV called “TV apps”) is growing. Most market In contrast, the segment of paid content al - services in Germany also include numerous local TV players assume that the combination of linear ready plays quite an important role by now. stations, whose videos can be accessed via a portal, as well as home-shopping networks such as QVC. broadcasting reception and the Internet- In fact, Maxdome announced in early 2013 based transmission of content will have a that half of their one million registered users major impact on the TV market in the years stream movies via smart TV. And non-com - to come. After PCs, smartphones, and tablet mercial providers, such as public broadcaster computers, television will become another ZDF, also report a sharp increase: In April highly attractive sales channel for new types 2013, 1.6 million of their video items were of advertising and e-commerce, or rather “TV- viewed via HbbTV. commerce.” According to a 2012 study by the Munich consultancy firm, Mücke, Sturm & Company, Video Advertising a wider use of these packages in Germany as While the HbbTV packages from the public well as further transaction-based business broadcast groups do not pursue any commer - models for smart TVs (home shopping, di - cial interests but are rather intended to be a rect-response TV, contests, games, call-to-ac - method of combining enhanced teletext, tion campaigns, etc.) can only be realized af - EPGs (Electronic Program Guide), and free ter processes for customer-friendly and secure access toin some cases very expansivevideo purchase and payment methods have been libraries, the marketers of commercial broad - established on the market. It is only then cast networks regard HbbTV more and more that a part of the purchases made today via as a venue for new advertising formats. Apart traditional television will migrate to smart from the display ad formats familiar from the TV. Apart from that, new players will come I
T online sector, video ads are increasingly being from the Internet realm that will use tele- n used in the shape of pre-rolls. For the vision as an additional sales channel, such y
t providers of commercial TV apps in the man - as e.g. operators of e-commerce sites or shop - p e ufacturers’ portals, revenues from video ad - ping portals. According to this study, mer - vertising in particular are the substantial chandise worth over €1.8 billion will be sold r e source of funding their efforts today. this way in five years’ time. a s c According to projections made by Goldmedia It should, however, be noted that the user o
t in 2011, the net advertising turnover for on - scenario is different for television, compared i f line video advertising will increase from €80 with PC and smartphone. The viewer uses v million then to approximately €350 million TV offers in a relaxed situation and is not us -
i in 2015. ing a keyboard but rather a remote control
t with a limited number of keys. It remains to
y be seen how RC-integrated keyboards or voice 2. 18 control will change viewer habits. But in or - der to successfully establish the previously displayed uniformly and independently of mentioned business models, an unambiguous device manufacturer and type. One example identification of the television viewer is nec - of this is the TV-ID service offered by teveo essary. On the Internet, this is generally per - interactive. Similar to Facebook Connect on formed by authentication of the user with the Internet, it offers customers on interactive the combination of user name and password. television the option to register with all con - nected services, irrespective of which device One of the solutions lies certainly with “sec - the customer is using the service on. In addi - ond screens” or “companion devices,” i.e. ad - tion, the customer can also use paid content ditional devices, such as smartphones or that is then billed via the TV-ID on behalf of tablet computers, that allow more complex the provider. For service providers, this means inputs. Here, too, user-friendliness is the key that they can use the same system on all to success in consumer acceptance. devices with the same procedures, without having to adapt their services to each device. With an increasing number of content or Another example is offered by Ping 24/7, service packages that require registration which presented its solution for TV com - an d/ or payment, both on manufacturers’ merce to the German TV Platform in April portals as well with broadcasters, the neces - 2011 on a smart TV (cf. chap. 3.3). Apart sity arises for a TV-compatible central authen - from the convenience of SSO, this system of - tication or single sign-on system (SSO) as a fers the option to choose between various payment system for vendors and customers. payment methods. Authentication is per - The example of iTunes shows how important formed conveniently through a PIN. this factor can be for the commercial success from the content provider’s point of view, PayPal also offers a payment solution for A new, independent payment option for smart-TV services in the HbbTV standard is offered by eBay’s and the study by Mücke, Sturm & Company HbbTV, which allows to access HbbTV paid well-known Internet money-transfer service, PayPal. also confirms: “Entering user data and pay - content and pay for the service via PayPal. ment information is by far the conversion Registration is easy: Once the user has de - killer par excellence for every sale via remote cided on a product or paid content, he or control.” In that respect, the announcements she only needs to hit the “Buyand pay by by several device manufacturers that they PayPal” button. The user then opens the pay - will be introducing their own authentication pal.de/hbbtv Website on a secondary device and payment systems are a basic step in the (e.g. a PC or smartphone) and enters the five- right direction, as they are designed to in - digit code displayed on the TV screen. He or crease user-friendliness for consumers, thus she is then automatically directed to PayPal’s reducing purchase inhibitions. Unlike in the log-in page, and logs in with his or her per - case of smartphones, no one manufacturer sonal PayPal access data. Back at the TV, the has a dominant market position so far, so customer only has to confirm his or her pur - that content and service providers are forced chase by entering a four-digit authorization to provide their offerings to as many manu - code. facturers as possible. Adaptation of the service to the respective manufacturer’s authentica - For future purchases, the user only needs the tion and payment system (if at all available) authorization code, regardless of channel, provides sellers with complex adaptation and merchant, product, or content. For users, Pay - administration processes that block rapid Pal’s new HbbTV payment solution offers an market penetration. easy and convenient way to conduct a trans - action. After his or her initial registration, One possibility is therefore to introduce spe - the user does not have to enter any text nor cial payment systems that are tailored to the does he or she have to use any device other HbbTV standard, since one of the key prop - than his or her TV. These kinds of solutions erties of the standard is that it combines the may encourage both content providers and most diverse CE devices (TVs, sat receivers, users to shed their reservations and carry out Blu-ray players, etc.), so that services can be transactions via TV. 19 Such options for conducting transactions di - transactions) and privacy laws being ob - rectly on TV open up exciting development served. As soon as these new advertising for - prospects. Moreover, the second screen will mats have established themselves on the mar - offer an increasing number of application ket, the TV advertising market will clearly scenarios for e-commerce, e.g. for ordering expand. products displayed in a broadcast program. Home-shopping networks are already finding To gain acceptance among advertisers and ways of offering users merchandise presented boost profits for HbbTV and app providers, in their programs for direct purchase via re - it is vital that advertising effects can be quan - mote control. Apart from traditional prod - tified and compared to other media. For this ucts, virtual products such as moving-picture purpose, various projects have been initiated content and games are the driving forces to - by established service providerssuch as ivw, wards profitability. But there is yet no clear AGF, Agof, and agmawhose main objective is road map for the dominant models in this to establish a uniform currency for using segment in sight, and this conclusion is moving images on the Internet and on smart shared by a study commissioned by the state TVs and to create a standard that allows com - media authorities, entitled „Wie smart ist die parisons with other advertising media. Some Konvergenz? Markt und Nutzung von Con - of these institutions have given lectures on nected TV” (“How Smart is Convergence? this topic at the German TV Platform. A sur - Connected TV Market and Usage”). vey on the current situation can be found in Guido Schneider’s chapter, „Das Ringen um die WährungsunionBewegtbildmessung im New Types of Advertising Fernsehen und Online” (“The Struggle for As soon as adequate penetration has been Monetary UnionMoving-Image Quantifica - achieved in the smart-CE-device market, new tion on Television and on Line”), in the state forms of advertising will develop from the media authorities’ 2013 digitalization report. possibilities of directly addressing the cus - tomer on television, where interactivity and close proximity to the purchasing decision are primary factors. One possibility would be to personalize traditional TV commercials. For this, TV broadcasters or advertisers would be provided with anonymous profile data of viewers in real time, putting them in a posi - tion to adding narrowly targeted content and linking their commercials to a dedicated Web - site, thus encouraging viewers to take action I
T or stimulating spontaneous purchases. n y
t This direct contact to customers via television p e is not limited to TV commercials, either. It is also conceivable that the broadcaster fades r e in a personalized display that is linked to the a s current program. Advertising will benefit c from the emotional framework provided by o
t the linear television program and in this way i f clearly increases the likelihood of customer v response. This option goes far beyond the
i potential of purchasing within TV apps on
t manufacturers’ portals but it is extremely de -
y manding with regard to the checkout process 2. 20 being simplified (e.g. a central PIN to all 2.6 Over-the-Top (OTT) TV: Important Nationa l/ International Players
The term Over the Top (OTT) refers to the Google TV on-line transmission of video and audio con - In May 2010, Google presented its Android- tent, even without an Internet service based TV platform. With its Google TV, provider (ISP) controlling the OTT offer. No Google is one of the largest representatives registration is usually needed to access the of OTT TV and typically intends to bring all content on the platform in question. The ISP services offered via Internet to the TV screen, is aware of the transferred IP packages but is alongside traditional broadcast programming. not responsible for copyright, use of the ma - The platform contains a search function sim - terial, and any further transfer of the content. ilar to that on mobile devices using Android The transfer is independent of Internet band - technology. In addition, Google offers fea - width, which means that technical quality tures similar to those of other smart-TV cannot be guaranteed. Users can receive OTT providers. Google TV is based on the Android content via online-enabled devices, such as operating system and the Google Chrome personal, laptop, or tablet computers, smart browser. For displaying all moving content TVs, set top boxes, or game consoles. Access from the Internetincluding videos and ani - is mostly accomplished by an IP address mation -, a full-fledged Flash plug-in has been check and can therefore be restricted to cer - integrated into Chrome. Google TV was tain territories, if desired. OTT is not broad - launched in Europe with special Sony de - cast, DVD, or PVR. vices, and Google-TV sets from Sony have been available in Germany since fall 2012. OTT TV refers to television sets receiving pro - For 2014, Philips/TP Vision is offering an An - gram content from the Internet. Even periph - droid-based smart TV. The latest attempt to eral devicessuch as Blu-ray player s/ recorders, launch a device-independent Google TV is or game consolescan receive content from called “Chromecast” and consists of an HDMI the Internet via a LAN or WiFi connection. dongle that allows TV sets to access streaming This content is then relayed to the TV screen, services via WiFi. often customized for TV to allow simple nav - igation via the TV’s remote control. Skype Goes TV As OTT providers are generally individual Thanks to OTT-TV, Skype, the Voice-over-IP companies, it is difficult to achieve a software with instant messaging, has also standardization of the consumer de - found its way to television sets. This way, vices and their OS software. Each news and calls can be enjoyed directly in the operator is tempted to promote living room on a big screen. Skype is inte - their own proprietary solutions on grated by Oregan Networks into various TV the market to try to force compet - devices. The Oregan media browser is an em - ing companies off the market. bedded software for Internet and IPTV serv - OTT TV is a software-based ap - ices. CE device manufacturers such as LG, proach. As such, the service Panasonic, and Samsung supply the addi - provider needs to work together tional system prerequisites: Skype-compatible with the device manufacturers of TVs and Freetalk TV cameras with a special Blu-ray players, STBs, TVs, and game microphone system. consoles, since, after all, it is these man - ufacturers that bring the software to the consumer in their devices.
21 Apple TV: Primarily for iTunes Content The device is visually very plain and also fea - With Apple TV, Apple is following concept tures various connections and interfaces different from and not competing with (HDMI, optical-fiber audio connection, Eth - Google or Yahoo!, since Apple does not in - ernet, integrated IR receiver, micro USB for tend to provide access to the free Internet. servic e/ support) and, except for the remote Apple presented the second generation of its control, has no buttons. A training program Apple TV on 1 September 2010 and the third is integrated, though, allowing various re - generation on 7 March 2012: a device to play mote controlssuch as iPhone or iPadto con - iTunes content such as music, podcasts, trol the complete home cinema. As men - videos, movies, and your own photo collec - tioned above, Apple TV has no built-in TV tion. The small streaming box is connected receiver, which is why only content from the to the television or a screen and permits ac - iTunes library can be playednow also in HD cess to media content which is fed from a lo - 1080p. Services like YouTube, Flickr, Vimeo, cal network or saved on the integrated hard and WSJ live (Wall Street Journal videos) can disc, synchronizing computer and Apple TV now be accessed, as can some subscription via AirPlay. An additional five computers can services like MLB.tv. There has only been also stream data to the Apple TV, but without speculation so far regarding a TV made en - an option to save. tirely by Apple. I T n y t p e r e a s c
o t i f v i t y 22 2. 3. Results of the Smart TV Working Group
Jürgen Sweczyk, head of the working group, at the Platform’s press conference at the IFA trade show
As one of its first tasks, the Smart TV (for - requirements referenced existing speci- merly Hybrid Consumer Devices) working fications and standards as closely as pos - group took on the definition of commercial sible, including the HbbTV specification. requirements in 2009. Defining the follow - Taking into account the international sig - ing commercial requirements took several nificance of hybrid TV, these commercial months and was accompanied by lively requirements were phrased in English discussions. In order to remain as close from the beginning. as possible to market development, the
3.1 Commercial Requirements
The following table lists the main Commer - German TV Platform. They are compared to cial Requirements for Hybrid broadcast modules of a technical concept for such de - broadband TV devices which are regarded the vices. basis for the Smart TV working group of the
23 No. Commercial Requirement Realization in HbbTV Specification
1 Technology must be based as far as possible State of the art browser technology: on open standards and allow easy realization XHTML 1.0, ECMAScript-262, DOM 2, of applications CSS TV Profile 1.0 (CEA-2014-A / chap. 5.4)
2 Access to and control of broadcasting service The “Red Button” functionalities and the related (bound) applications shall be easily application lifecycle function in HbbTV cover possible for the user this requirement
3 Access to and control of non broadcasting HbbTV does not mandate any easy access related service (unbound) applications shall mechanism to unbound applications and does be easily possible for the user not prohibit a device manufacturer to imple - ment the system in way that he is a gatekeeper for unbound applications in “HbbTV Implemen - tation Guidelines” the implemen tation of an easy URL entry (soft-keyboard or selection from a list of all available apps) and the possi - bility of permanent storage of favorite apps should be mandated
4 The system shall allow the implementation See 3 of application platforms, where the system features, including application access and control functions, for both bound and unbound applications are well balanced, especially also from a customer usability and convenience perspective
5 Starting and stopping of applications Signalling based on DVB BlueBook A137, (including teletext replacement) triggered by detail clarification by HbbTV profile DVB services must be possible
6 Applications must be able to trigger a service A service change can always be triggered by R S change the application (OITF-DAE / chap. 7.4). If the m
e application is not signaled on the new service, it will be terminated. s a u 7 For users it shall be easily possible to termi - The concept of HbbTV is to avoid killing an r
l nate a running application application in the technical sense (this could t t be done via an EXIT key which is optional s
T for the RCU) but to allow launching and hiding applications using the red button. This is part V of the application guidelines.
W G 3. 24 No. Commercial Requirement Realization in HbbTV Specification
8 The Transmission of applications via the Usage of DSM-CC object carousel according to broadcast channel must be possible DVB BlueBook A 137 (future ETSI TS 102 809) is possible for application transmission. DVB-SI has to be extended to allow the signaling of pure HbbTV data services.
9 Secure data exchange shall be possible covered by HbbTV-Specifications (https server certificates)
10 The inclusion of one TV signal in the applica - OITF-DAE / chap. 7.7 tions must be possible (picture in graphic). Some broadcasters have the requirement to control PiG in their applications exclusively.
11 Applications must be able to use resident OITF-DAE / chap. 9.1 storage minimum 100 cookies; each 4 kByte
12 Access to EIT data (EIT present / following OITF-DAE / chap. 7.9 and EIT schedule actual and other) must be HbbTV profile: restriction to EIT p/f possible by applications (complete EPG data can be transmitted via IP). EIT schedule is optional
13 Synchronization of interactive content and 1) Polling is possible broadcasting services must be possible 2) AJAX according to CEA-2014-A / chap. 5.5.2 3) DSM-CC stream events (DVB BlueBook A137)
14 Individual programming of PVRs by HbbTV Annex A1: PVR API only for “trusted customers should be possible via trusted applications” (triggered by manufacturer or applications broadcaster) – HbbTV chap. 10.1.2: applica - tions could read signs only from applications of the same domain. Manufacturer can create further dialogs (10.2.3.3)
15 Transmission of still pictures must be possible (CEA-2014-A / chap. 5.4) using state of the art encoding GIF, JPEG, PNG
25 No. Commercial Requirement Realization in HbbTV Specification
16 Streaming formats and protocols must comply – HbbTV profile (Minimum) to the state of the art protocols: http (https), RTSP – unauthorized download container: MPEG2-TS/MP4 of streamed content shall not be possible encoding: H.264, HE-AAC – a full DRM system can be integrated (optionally)
17 There must be a defined common set of input basis: CEA-2014-A / chap. 5.4.1 keys for application control (red button, colour details: HbbTV chap. 10.2.2 buttons, number buttons 0–9, P+, P-)
18 Entry of short text (words) into HTML-pages HbbTV profile mandates manufacturer must be possible specific solution
19 It shall be possible for EPG-applications HbbTV-Standard: only if the broadcaster (bound or unbound) to tune to a service allows the EPG-Application selected by the customer. Furthermore it shall be possible for an EPG-application (bound or unbound) with the permission of the content provider to present a preview of a service as a downscaled live video at any time, without termination of the EPG application
20 Applications must be able to tune to a service Streaming video via IP is specified in section or select a (VoD) event delivered via both the 7.3. of the HbbTV specification plus the refer - broad casting transmission path (DVB) or the enced standards. Section 6.2.2.2 of the HbbTV Ethernet path (IP). This shall not be restricted spec. clarifies that tuning can also be done to to services provided by the channel list VoD channels which have no SDT entry. (tuning by frequency), but also cover e.g. VoD services via DVB or IP
21 Applications (bound or unbound) shall be Section 8.2.2 of the HbbTV specification states R S able to access to DSM-CC-carousel data. that for accessing the content of a DSM-CC m
e This would allow especially also applications carousel file, the XMLHttpRequest object can for CPEs without or not yet activated return be used. s
a channel capabilities. u r l t t s T V
W G 3. 26 3.2 Content Guidelines
Hybrid devices and the associated changes At this point in time, it can be said that the in use of media provide a whole range of widest consensus currently possible has been s challenges for the sector. Hybrid reception reached. The market partners’ divergent ideas devices have the potential of triggering long- especially on scaling, dissolve, and overlay
e term changes in the user habits of TV viewers, are well-known, and it is now up to the vari - who are turning more and more into active ous companies to draw their conclusions. The media users and are in a position of compil - basis will be three different documents that
n ing their media intake from various sources. were contributed by and discussed at the Ger - Players from the traditional broadcast sector man TV Platform over the past three years: i find themselves facing competition from the “Web.” • discussion paper of the industry on the l 2010 VPRT requirements The interplay of media from various distri -
e bution channels on a single TV screen has • ARD and ZDF’s demands on HbbTV user not yet been resolved. The regulations in devices as of August 2012 force to this daysuch as the European Audio -
d visual Directive, implemented into German • comments of ZVEI on the demands of ARD law as the 13. Rundfunkänderungsstaats - and ZDF as of July 2012 (in reaction to the i vertrag (“13th Amendment to the Interstate state of the discussions by mid-year) Broadcast Treaty”) differentiate between lin - ear services on one hand and non-linear serv - u ices on the other, with different degrees of The VPRT supports the guidelines introduced regulation for each. In view of the new tech - by ARD and ZDF as specifications shared by nological possibilities of smart TV, however, all content providers. it remains unclear, which rules apply to the G interaction between linear broadcasting and It can be expected that discussions on con -
online services. The new generation of TVs tent handling for smart TV will continue on also raises new questions in the areas of copy - various bilateral levels. The German TV Plat - t right and the protection of minors. form will follow this development on behalf of its members and report on it. If necessary For several years, the German TV Platform or expedient, the “Smart TV” working group
n and its “Smart TV” working group have been will revisit the subject and deal with it in hosting discussions between public and com - greater depth. mercial TV broadcasters and the consumer e electronics industry, where the networks’ demands on hybrid consumer devices in gen - t eral and HbbTV devices in particular were discussed, with a focus on audiovisual con - tent. The aim of the discussions was to align n the supply-chain partners’ visions and expec - tations and to create the best possible frame - work for the introduction of services and o devices. These discussions have honed the market players’ sensitivity towards and un - derstanding for each other. Thus far, the me -
C diation of the TV Platform had a considerable effect on the positive development of the market. 27 3.3 Workshop of the German TV Platform: “From Smartphone to Smart TV: Apps Conquer TV”
The German TV Platform with its dedicated tablet computers. Dr. Stefan Arbanowski of working group had long foreseen the devel - Fraunhofer FOKUS gave an overview of the opment from hybrid TV to smart TV and introduction of the Web programming lan - made it the topic of an event. At the “Smart - guage, HTML 5, and the related opportunities phone to Smart TV: Apps Conquer TV” work - for the CE industry and the TV sector, in - shop on 6 April 2011 in the “media city” of cluding the option of cloud-based apps. Potsdam-Babelsberg, over 120 experts dis - Volker Blume, Philips Consumer Lifestyle, cussed in ten lectures and panel discussions presented the various possibilities of smart how smart TV can add real value and provide TVs. Along with a comprehensive media
Workshop of the German TV a new television experience to viewers. The portal with access to content offers from the Platform on hybrid TV and apps (1) unanimous opinion was that, in addition to Internet and digital teletext from the TV
Workshop networking: Jürgen Sew - attractive content and services, a user-friendly broadcasters, the devices offer an advanced czyk, Board Member of the navigation was essential. Uwe Welz, director interactive program utilizing the red key on German TV Platform and Head of the “Smart TV” working group, talk - of the ARD Playout Center, described rules the remote control. As remote control for the ing to attendees in Potsdam (2) how a combination of linear and non-linear smart TV, Volker Blume envisions the use of both smartphone and tablet computer.
Carsten Urbanski of Ping 2 4/ 7 explained how viewers will soon be able to buy directly via a smart TV’s remote con - (1) (2) (3) trol. According to Urban -
Carine Chardon, Executive Secretary ski’s forecast, home shop - of the German TV Platform, wel - television in the fashion of HbbTV could be ping will gain a new meaning with the con - comes Uwe Welz, Director of the ARD Playout Center (3) organized. This required continued arrange - nection between TV and Internet. This ments among all market players. Rike Brecht required easy solutions for secure payment from the Illmenau University of Technology systems on smart TVs. How well HbbTV is called for uniform operational concepts also suitable for B2B solutions was shown by R S across all devices and services. With reference Matthias Schwankl of Eutelsat Kabelkiosk, m
e to the current different navigation concepts using Kabelkiosk Interactive as a white-label
s of the major TV networks, Brecht explained portal for cable network providers. Lars a
u that for the use of video libraries and digital Friedrichs of SevenOne Intermedia outlined teletext, improvements were required. new advertising and marketing options for r l commercial providers in a networked TV t t Matthias Greve of VideoWeb illustrated how environment and announced new HbbTV s
T hybrid flat-panel TVs could be turned into applications for ProSiebenSat.1. multimedia terminals and gave practical tips V for HbbTV implementation in interactive
devices. Professor Claus Sattler, managing
W director of Goldmedia Innovation, does not see the development of consumer electronics stopping short at the TV screen. Instead, G smart TVs would be linked seamlessly with 3. 28 mobile devices such as smartphones and 3.4 Symposium of the German TV Platform on Second Screens: Perspectives on Smart TV and Social TV
The trend towards a “second screen” and thus experimented in the first season of The Voice the prospect of smart TV in combination with of Germany with social TV apps. These will other consumer devices was a central theme be expanded due to the overwhelming viewer of six specialist lectures and a panel discus - response. But he emphasized that money also sion at the 21st Symposium of the German needed to be made. Strubel added that the TV Platform on 24 May 2012. Although the advertising industry is already interested in simultaneous use of smartphones, tablet or the new forms of usage, but that quantifica - laptop computers alongside the stationary tion issues still needed to be worked on. TV may distract viewers, the smart TV screen will not fall behind as a resultquite the con - Dr. Marc Mogalle of Zapitano showed that trary. That was the conclusion of the event second screen services also provide opportu - in the Rhein-Main-Hallen in Wiesbaden with nities for new companies. The start-up com - over 200 participants. Intelligent networking pany sees itself as a social-TV platform and and synchronization of the devices means wants to modernize television by turning it that TV networks can benefit from multi- into “permanent public viewing.” The vision
Impressions from the German TV Platform’s symposium on screen applications. For the viewers, the sec - of TV viewers as members of a community is second screens (left to right): ond screens offers a clear benefit through ad - at the heart of Zapitano’s strategy: a com - Guido Bülow, SWR Stephan Strubel, ProSiebenSat.1 ditional information, convenient interaction, munity connected by the TV medium. Dr. Dr. Marc Mogalle, Zapitano and social TV. Mogalle said that second screens are not a Oliver Lewis, Sky threat, but that they breathe new life into Guido Bülow of Südwestrundfunk (SWR) the smart first screen. said: “Viewers like to interact with the tele - vision program and participate in a commu - Oliver Lewis showed how much multi-screen nity experience.” The online expert gave a solutions were already in demand by using comprehensive overview of worldwide apps the example of Sky+ and SkyGo, which per - and platforms for second-screen applications. mit the pay-TV subscriber to enjoy their fa - With the use of such apps, TV broadcasters vorite program on any screen of their choice. can already actively involve their viewers, as Particularly popular is the use of Sky content demonstrated by first experiences with on the iPad. Social features that have recently “Tatort+” as an extension of the popular been introduced allow more interaction on crime drama into the Web. Skyboth with the program and with the com - munity. Stephen Strubel of ProSiebenSat.1 regards the use of interactive applications as an impor - Dr. Peter Baum of Technicolor explained tant strategy for building viewer loyalty to - which available technology allowed the syn - wards specific TV network. ProSieben already chronization of first and second screens. He 29 explained the methods of audio watermark - HTML5 expands Smart TV and HbbTV ing and audio fingerprinting, which both re - An important role for the future development quire a matching of data streams. Baum also of Smart TV and HbbTV falls to HTML5 as a sees a benefit of second screen applications new, emerging standard. HTML5 is not yet in the personalization of services. an official standard, however it is already widely used in some areas, e.g. in developing Dr. André Schneider of Samsung showed how Web apps, which are Websites in an app look wide the fields of application for second with touch functionality. They are able to screens are: The smart screens can be con - run in the browser across all systems on vir - nected to browse content, control content, tually all operating systems. For providers or use them on the go. For the “allshare” of - and developers, they thus appear to be a fer, user-generated content in the cloud is bridge and an efficient alternative to native available anywhere and could be transferred apps, which would have to be programmed to the neighbors’ TV screen, for example, via individually for iPhone, iPad, Android, and second screen. Also, the networking options other operating systems. of the devices are com - prehensive: tablet com - puters, smartphones, and cameras are connected to flat-panel dispalys and Blu-ray player s/ recorders. Multifunctional applica - tions also play a central role, such as the “smart view” app by Samsung. Insights at the German TV Plat - form’s symposium on second In the concluding panel discussion chaired Essential HTML5 procedures like WebSockets, screens by (left to right): Dr. Peter Baum, Technicolor by Prof. Ulrich Reimers of the Technical Uni - Canvas, WebStorage and Application Cache Dr. André Schneider, Samsung versity of Brunswick, the question whether enable intelligent apps with completely new Gerhard Schaas, Loewe the viewer “still actually watches the TV user interfaces that work well on the smart- proper” was clearly affirmed. Dr. Andreas TV screen and outsource CPU-intensive or Bereczky (ZDF) and André Prahl (RTL time-consuming tasks into the cloud. Deutschland media group) emphasized that second screens owe their attraction to the An example of this are the projects of the content displayed on the first screen. How - CELLULAR agency, specifically the network - ever, the inclusion of social media into the ing of third-party apps with smart TVs. At R S concepts of the program providers had be - the same time, the desire of the HbbTV con - m
come imperative. In the opinion of the ex - sortium to integrate HTML5 into future ver - e
perts, the non-linear use of moving-picture sions of the HbbTV standard is a logical next s a
content is also becoming more important. step that shows how important this key tech - u Gert von Manteuffel (German Telekom) de - nology is for multi-device apps. r scribes the development that is currently tak - l t ing place as “emancipating television from t s
the television set.” Interoperability based on T standardized procedures for the connection V of first and second screen is the crucial factor
in the supply chain, according to Gerhard
Schaas. The chairman of the German TV Plat - W form sees this as an important challenge for companies over the coming months and G years. 30 3. 3.5 Usability – Studies on Usage Concepts
With hybrid TV, conditions have changed in Nevertheless, this raises the question how In - comparison to personal, laptop, or tablet ternet use via TV should be designed in order computers. A key aspect, for instance, is to achieve sufficient acceptance among users. screen size. In the case of computers, it is Apart from a presentation during a German comparatively small, while TVs use screens TV Platform’s workshop, representatives of that are as large as possible. This is related, the Ilmenau University of Technology have of course, to the typical use of these devices. given lectures on the topic at several meetings While computers are primarily intended for of the German TV Platform’s “Hybrid De - a single user and the distance between viewer vices” (now “Smart TV”) working group. The and screen is relatively small, TVs are de - following comments are based on these con - signed as consumer electronics (CE) enter - tributions. tainment devices for multiple viewers, and the distance to the screen is correspondingly The definition of the term usability can be large. There is also a substantial difference in derived from the DIN EN ISO 9241-11 stan - Cover of the German TV Platform’s „TV in der Zukunft“ operation. On the one hand, there are the dard, “Ergonomic requirements for office (“TV in the Future”) brochure keyboard and mouse mainly used with com - work with visual display terminals (VDTs), puters, on the other hand the remote control Part 11 Guidance on usability” for the fol - for TVs. Since IFA 2013, however, keyboards lowing definition: “Extent to which a product on TV remotes, pointers, gesture and voice can be used by specified users to achieve spec - controls have entered the field. For faster nav - ified goals with effectiveness, efficiency and igation, newer remote controls have inte - satisfaction in a specified context of use.” grated small touchpads, which are familiar to users from laptop computers. The following guidance criteria must be met: TV in der • effective solution of the tasks to be achieved • efficient use of the system Zukunft • user satisfaction Eine Bestandsaufnahme der Deutschen TV-Plattform In principle, users view hybrid TV in positive terms, since the simultaneous use of the Internet parallel to watching TV facilitates access to more content. This includes, for example, the video libraries now available on the TV screen, the more diverse teletext but also the large number of applications which can be accessed directly by clicking on an icon rather than by entering an URL. Either way, this involves the effective adaptation of visual content to the large television displays. Another advantage is seen in the fact that all the information is current, due to the Inter - net connection.
31 The experience, however, will only be en - A very important requirement is in fact that joyed by users under optimal usability con - the user does not want to lose reference to ditions. Here, user interface and processes the current program. Therefore any action play a major role. It should be noted that must always offer a quick return path to the with hybrid TV, only the remote control is previously visited content. available. It provides fewer features for Inter - net use than the keyboard or mouse with a Rike Brecht of the Ilmenau University of computer. Technology emphasized the fact that, apart from the fundamental requirements, the spe - cific tasks of the user must always be consid - Well-structured navigation in the portal of a smart TV manufactured by TP Visio n/ Philips ered. The core duties of an HbbTV offering include: • switching the HbbTV package on and off • return to the home page • navigate within the package • access teletext • parallel TV viewing • personalization • change settings • using help
A variety of content is usually displayed in the form of menus, and it is therefore neces - sary to support fast access to information through transparent navigation. Only a few individual steps should be required. Users must at all times have clear navigation op - The usage concepts must be based on the fol - tions at their disposal to show them how lowing keys on the remote: they can return to the home page of the hy - • number keys (0 through 9) brid-TV package, and this should be possible • arrow (cursor) keys in a single step. • OK/enter key • color keys (red, green, yellow, blue) The teletext now available on hybrid TV is substantially more powerful than the previ - User expectations must not be overlooked, ous version. For the user however, no adap - and usage should be designed to be equally tation in operating it should be required. R S simple for children and senior citizens. This m
e includes particularly clearly visible displays Especially in case of program-related appli -
s on system status and actions taken. Each user cations, users are often interested in watching a
u action must thus lead to a clear feedback. these at the same time as a program, which Users would also like to have their customary is usually referred to as “parallel viewing.” In r l passive “lean-back position” preserved and order to do so, there should be various op - t t not be forced into an active “lean-forward tions. One would be to display the television s
T position” for the Internet. In the case of picture in the background, another the split- hybrid TV, the various usage options of tele - screen display of application and program. V vision devices should be also taken into Another popular concept is to display the
account. Thus there would have to be a dis - television picture in small format in a corner
W tinction between individual television use, a of the screen. Switching back to the television cozy TV night in a small circle, the broadcast program in full format must in all cases be of a sports event with more viewers, and possible in a single step. G other scenarios. 3. 32 Personalization means nothing else than the For the above reasons, there is a continuing possibility for all users to tag applications need for action on the harmonization of user an d/ or programs with individual identifiers interfaces. This can be achieved by the fol - to facilitate targeted access. This includes lowing steps: bookmarks, favorite lists, and reminders. • avoid long navigation strings • ensure that returning to the home or pre - When settings have to e changed or the help vious page is possible in a single step function is used, it is absolutely vital that • adapt the display size to the TV screen size necessary instructions for the user are unam - • display each navigation option in a clear biguous and clear. manner • ensure display of system status and user In all hybrid-TV applications, special atten - actions tion must be given to the legibility of text on the display. Font size, in particular, plays First tests and usability studies provide in- an important role for the typical viewing teresting indicationsincluding one study distance of 2.5 meters and more to the tele - commissioned by the German TV Platform vision screen. In case of computers, consid - from the Ilmenau University of Technology erably more text can be better displayed on (July/August 2011). The study, which focused the screen because of the substantially smaller on the usability of HbbTV “red button” ap - viewing distance. plications, was performed at the Institute for Media Technology by a team of scientists un - Adapting to the situation of hybrid TV leads der the leadership of Professor Heidi Krömker. to the following requirements: The objetive was to identify the strengths • use an appropriately sized font and weaknesses of HbbTV “red button” of - • avoid long copy and subdivide wherever fers, in order to map out the usability opti - possible mization potential and provide style guide • reduce the horizontal extension of lines suggestions. and separate into text blocks • design text blocks in a way that they can be accessed individually Samsung demonstrates their range of smart TVs, • avoid scrolling which are subdivided into various areas of application for enhanced user-friendliness.
These conditions for the layout on the screen correspond to the operational features offered by remote control with hybrid television. Ob - serving these criteria will substantially affect user acceptance. This raises the question of how the requirements listed are satisfied in practice, and in this respect, there are still considerable deficits because content is par - ticularly heterogeneous and the structure of user interfaces is quite diverse. This consid - erably affects user satisfaction and also puts high demands on future standardization in this sector.
33 As seen, the inconsistency in the user-inter - others. A usability study commissioned by face concepts of various TV broadcasters (e.g. ARD in early 2011 indicated that HbbTV serv - color key layout), the slow response time of ices “at their current state of development several HbbTV options with sometimes are already very positively accepted by po - poorly visible navigation confirmation and tential users and seen as clear added value to missing personalization features hamper user- existing digital television.” Increased accept - friendliness. “However, since usuabiltyapart ance could be achieved by improved usability from the actual services and information - and particularly by harmonizing the user strongly affects the success and acceptance interface concepts of the various TV broad - of HbbTV options, ergonomic guidelines casters. should be observed in design, as well as user- oriented development,” according to the style In order to analyze the current development guide, “Usability of HbbTV Red Button Of - of smart TV and issue specific recommenda - ferings” by the Ilmenau University of Tech - tions for the user-friendly design of HbbTV nology. applications, the German TV Platform has commissioned another study in late 2013. At the same time, it contains specific sugges - For this study, the University of Applied tions on navigation, displaying information, Sciences in Mainz will test about 15 select speed of response, media control, help and HbbTV offers by German TV broadcasters on personalization features. The style guide pro - five common smart TV sets with various test poses generic usability guidelines as recom - subjects and evaluate usability. Early advance mendations for developers and designers of tests were conducted during the Olympic HbbTV offerings. Their intuitive operation Winter Games in February 2014, but the has substantial influence on whether viewers main study will take place in sprin g/ summer, take advantage of “red button” options, and results are scheduled to be published in according to the Ilmenau researchers and early September at IFA 2014. R S m e s a u r l t t s T
Illustration of typical usage scenarios V from the German TV Platform’s „TV in der Zukunft“
(“TV in the Future”) brochure W G 34 3. 3.6 “Search – Find – Navigate” Joint Event
On 4 November 2014, the Verband Privater ities’ Digitalization Report showed a tendency Rundfunk und Telemedien (Association of of German smart-TV users to access video Commercial Broadcasters and Tele-Media, content directly via the device and less fre - VPRT), the German state media authorities, quently via secondary devices, such as per - and the German TV Platform will present re - sonal computer, laptop or tablet computer. cent developments in the area of user guid - ance and control of smart TVs at a joint event Next, Michael Wörmann, Managing Director entitled „SuchenFindenNavigieren” (“Search - of Facit Digital, presented the results of an FindNavigate”). “The devices’ new technical ethnographic study on smart-TV usage, options also offer new potential for content, which documented behavior patterns in In -
Representing the hosts: and we all have to adapt: regulatory bodies, ternet-connected TV households. It showed Carine Chardon (German TV Plat - content providers, hardware manufacturers, that linear television programming still form), Dr. Jürgen Brautmeier (die medienanstalten), and users. We are only at the threshold of played an amazingly central role in the Dr. Tobias Schmid (VPRT) a potentially revolutionary development,” subjects’ daily lives. The media authorities’ declared Dr. Jürgen Brautmeier, President of study, „Wie smart ist Konvergenz?” (“How the State Media Authorities’ Commission for Smart Is Convergence?”), which was first pre - Licensing and Supervision (ZAK). “Conver - sented at this event, also showed that the gence is an extremely exciting and challeng - distribution channelbroadcast or Internetwas ing opportunity for broadcasters. We intend barely relevant from the user’s point of view: to explain these complex processes, because What counts is content. Moreover, the study the gain in diversity does, of course, also raise conducted by Facit Digital in Munich showed questions about how content can be located,” that the households mainly used their smart added Dr. Tobias Schmid, Chairman of VPRT. TVs to access video on demand. While EPGs “As an industry forum that transcends indi - and listings are a key factor in accessing vidual interests, we are happy to contribute, broadcast content, the pre-installed layout of with this event, to an open dialog on the op - the manufacturers’ portals influences the portunities and challenges of changing media choice of Internet-based content. It was one usage. It is the common goal of all market of the key results of the study that users will players to create added value for the user,” rarely add extra apps to those pre-installed Carine Chardon, Executive Secretary of the on their devices. German TV Platform, emphasized in front of approximately 200 attendees. In a practical demonstration hosted by Se - bastian Artymiak (VPRT), Head of the “User At the beginning of the lectures, Dr. Kristian Guidance” project group within the German Kunow, Advisor on Platform Regulation and TV Platform’s “Devices and Connectivity” Digital Access (die medienanstalten), demon - working group, new features that will revo - strated the market’s basic economic parame - lutionize content search, access, and retrieval ters for smart-TV portals. Although the cur - while watching TVsuch as program listings, rent variety of available offers was quite grat - gesture and voice control, or recommenda - ifying, there was no guarantee that it would tion managementwere shown on smart TVs endure as the market developed. A compari - from various manufacturers. Online features son with similarly structured marketssmart - were demonstrated via browsers and “red but - phones, for exampleshowed that it might ton” functions that facilitate access to the eventually concentrate on just a handful of broadcasters’ HbbTV content. In addition to user interfaces and app stores. Another key installing and sorting apps on the device por - factor was whether users were committed to tals, it was demonstrated how online streams a certain method of accessing content, or can be integrated into the existing channel whether they were free to choose and would list, thus making broadcast and Internet con - do so. The figures in the state media author - tent indistinguishable to the viewer. 35 Panel discussion on the regulation of smart TV, hosted by Dr. Christian Stöcker (Spiegel online). Participants: In a keynote speech, Gareth Barr, Head of Gareth Barr (Ofcom), Dr. Hans Hege (mabb), Public Service at the U.K. Office of Commu - Dr. Matthias Knothe (Office of the Prime Minister of Schleswig-Holstein), Dr. Tobias Schmid (VPRT), nications (Ofcom), outlined how Britain deals Dr. André Schneider (ZVEI), Stephan Zech (Axel Springer). with the challenges of connected TV and new platforms. He called for the development of ways and means to prevent discrimination In the future, recommendations for TV and in the findability of content and to safeguard video usage will play an ever-growing role. equal opportunity. The question how this Recommendation systems based on viewer might be achieved in Germany was the main habits and personal preferences were demon - topic of the subsequent panel discussion. The Top: Sebastian Artymiak (VPRT) strated. Finally, various features for the inte - panelists agreed that the technological de - moderated the appliance demon - gration of a “second screen” (smartphone, velopment offered a wide range of opportu - strations; bottom: Gareth Barr from the tablet computer, etc.) were demonstrated, in - nities for all players. A heated debate followed British Office of Communications cluding the transfer of TV content from the on the necessity, scope, and implementation (Ofcom) smart TV to a smartphone. of rules for smart TVs and their content.
3.7 Consumer Protection with Smart TVs and HbbTV
The media have repeatedly reported on 1. Security security loopholes in interactive television: computer viruses that might damage hard - The manufacturers of consumer electronics ware, Trojan horses that may spy on pass - (CE) are taking the issue of securityi.e. the R S words or the users’ banking information, shielding of devices against hackers and m
e and even cyberattacks that could instru - virusvery seriously. First of all, the intrinsic mentalize hybrid TV and STBs for large- s structure of smart TVs already provides a high
a scale network attacks. Another cause of
u level of security: From a technological point concern is the fact that viewing habits of view, these devices are, by and large, closed r l might be transmitted, recorded, and ex - and thus secure systems. This makes the t t ploited, for instance, through the use of installation of malware or the clandestine, s
T cookies. The German TV Platform is con - unauthorized retrieval of data far more diffi - cerned with both aspects of consumer pro - cult for hackers. In addition, security mecha - V tection, which will be examined in the nism, such as data encryption within the de -
following sections, in order to contribute vice, are constantly being developed and up -
W to an objective debate by naming and ex - dated. Firmware updates will allow users to plaining the facts. reliably close even those security gaps that might be discovered after delivery to the con - G sumer. 3. 36 Although smart TVs are hooked up to the In - Free Internet Access via a ternet via LAN or WLAN (WiFi), they access TV-integrated Browser the Web mainly in two ways: either via apps There are also smart TVs that allow users to supplied through the hardware manufactur - freely enter an URL as free text via an inte - ers’ portals, or via HbbTV (Hybrid broadcast grated browser. In these cases, the manufac - broadband TV) services that are linked to turer minimizes potential risks through directly from the broadcasters TV programs. browser settingsfor example by blocking In both cases, the service providers or opera - plug-insthat the user cannot change or ma - tors ensure the best possible protection for nipulate. the receiving devices.
Connections within the Home Network Smart-TV Portals and TV Apps and with Other Devices In the case of app services supplied via man - In addition to app portals, HbbTV services ufacturer portals, the security is provided by and the free-text input of URLs, many smart the fact that the hardware manufacturer or TVs offer a variety of connectivity options, any third party he has commissioned will e.g. with IT, telecommunications or other check all applications before offering them equipment in the home network, or with to consumers on the portal. In many of the game consoles. For these cases, smart-TV devices, the apps are not downloaded directly manufacturers have also taken various pre - to the device, but a connection is established cautions to prevent damage to the TV set to the manufacturer’s secure server instead. caused by the transfer of malwareas long as The portal provider’s preliminary check will viewers keep using the device manufacturer’s include the exclusion of viral infections and original software. security gaps, and it will be applied in partic - ular to apps that were created by a third party As a rule of thumb, users should handle all using an open-source software development devices connected to the TV panel responsi - kit (SDK). bly. This applies, in particular, to the so-called “second screens” (smartphones, tablet com - puters, etc.) and the home network, which The HbbTV Standard and should be protected using passwords and en - Pertinent Services cryption technology for the router. The TV’s The same applies to the TV network’s HbbTV firmware, on the other hand, should be up - applications and to the HbbTV offers pro - dated frequently from the manufacturer’s vided by infrastructure operators for satellite, server and always reflect the very latest ver - cable, or terrestrial broadcast. HbbTV, an in - sion available. ternational ETSI standard, is based on estab - lished Web standards and does allow the set - ting of cookies. However, it does not provide any interfaces that would allow Websites to install scripts, plug-ins, or other executable files. In other words: Apart from setting cook - ies, apps have no access to the system under the HbbTV standard. It is thus impossible to smuggle spyware, e.g. for recording viewer habits, into the TV set.
37 Technically, a viewer accesses the Internet when using HbbTV services or a TV app. Sim - ilar to using equivalent services on a com - puter, certain information has to be acquired (e.g. the TV’s IP address) in order, for exam - ple, to stream a program from a media library. Only information that is technically required will be collected. At the same time, both broadcasters and portal providers are well aware of the sensitive nature of this issue and try to keep their users informed. Contrary to certain media reports, no personal data are collected but only data pertaining to the de - vice. Moreover, a distinction has to be made between various contexts in which the in - formation is acquired.
Using Smart-TV Portals an d/ 2. Privacy or Smart-TV Apps In order to be enable viewers to make full The handling of user data in connection with use of the device-based services offered by a smart TVs and HbbTV services is an impor - smart TV, it is necessary for manufacturers to tant subject, since the viewers’ trust is key to acquire certain device information. This ap - their acceptance and thus the success of plies, for example, to all personalized services, smart TV and HbbTV services. For this reason, such as viewing suggestions. For the viewer’s the German TV Platform has dealt at great maximum convenience, certain information length with the handling of user and usage is also acquired via cookies, e.g. the access data and their protection against misuse. data of frequently used services, so the viewer does not have to enter them again each time Television ratings are and have been deter - he or she uses the service. mined in Germany by the Television Research Consortium (Arbeitsgemeinschaft Fernseh - In all of these cases, data acquisition takes forschung, AGF) that analyzes TV usage by place within the framework of currently ap - means of special viewer panels. Unlike when plicable privacy laws and regulations, which usingfor instancea personal computer, the include the requirement for users to give their R S average viewer in front of a TV watching lin - advance consent to the acquisition of their m
e ear programming is anonymous. This situa - data. During set-up or first use of device-based
s tion changes, however, as soon as he or she Internet services, such as the smart-TV portal, a
u uses HbbTV-capable smart TVsat least when the user will thus receive a statement of the using the additional options the device of - manufacturer’s privacy policy, in which the r l fers. information acquired via the portal has to t t be specified. Only after the user has given s
T his or her express consent will this informa - tion actually be acquired and the services can V be used. In this manner, manufacturers pro -
vide the greatest possible transparency in col -
W lecting user data. G 3. 38 Using HbbTV Services From the outset, the German TV Platform’s In order to signal the availability of supple - “Smart TV” working group has dealt with the mental features to viewers by inserting a “red issues of security and privacy in hybrid tele - button” into the linear program, the trans - vision. Since January 2014, memberswhich mission of the smart TV’s IP address is a tech - include representatives of the state media nical necessity. Some TV broadcasters anony - authorities, the Federal Network Agency, and mously count devices and red-button usage, the offices of the always within the boundaries of applicable German states’ prime German privacy laws and regulations. ministershave been discussing with in - Cookies, which collect usage information - creased intensity the such as browser ID, IP address, or hardware specifics of data pro - informationare familiar to computer users. tection as well as secu - Cookies like these can also be employed by rity issues concerning service providers for smart TV; however, they consumer hardware, do not record user names, mailing addresses, platform operators, or other personal data, nor do that relay such and content providers. information to third parties. As on a com - puter, cookies are used, for example, to Apart from exchanging information, they anonymously register the frequency of use have consulted corporate and institutional for certain services or to customize content, privacy experts andin the interests of all mar - such as barrier-free services, to the user. The ket playerstaken a critical look at the situa - precise manner in which cookies are used is tion. The goal is to achieve a consistently usually described in the content provider’s high level of privacy for all small TVs and privacy policy and/or terms and conditions. services in Germany. The major public and commercial broadcast - ers allow consumers to switch the usage of cookies on or off.
3.8 New Focuses of Activity and Open Questions of the Smart TV Working Group
The “Smart TV” (formerly “Hybrid Devices”) working group of the German “Smarter Fernsehen” (“Smarter TV Viewing”) TV Platform has discussed and answered many questions since 2009. and “Auf ROT geht’s los: Meine Taste für However, other points that have not been settled or new points for dis - smartes Fernsehen” (“RED means Go: My key cussion continuously arise from the ongoing development process. to smart TV”), the working group will con - tinue to align the terminology used by all parties concerned, in order to facilitate the Coordinated Consumer Education / marketing of smart TV and HbbTV. The ob - Marketing jective is to inform and educate consumers The term “smart TV” seems to have prevailed by focusing on the various aspects of smart over terms such as “hybrid TV” or “connected TV. All these activities are most effective TV.” The abbreviation “HbbTV” for the stan - when all market players act in sync, both in dard most commonly used, however, appears terms of timing and content. For this reason, mostly in technical publications, while the the “Smart TV” working groups will focus on term “red button” has gained hold in con - supporting market partners and their mar - sumer communication. In two initiatives keting activities. 39 Usability of content types of advertising. There are also issues The simple method of accessing and using related to privacy and consumer protection, content and applications is often key to the especially since social media are already in - success of new devices and services. This has corporated into smart TV (“social TV”). The become especially evident in the market for working group will continue to monitor and smartphones, which has grown exponentially analyze these developments and contribute in the last three years. The manufacturers of to an exchange of informatio between all consumer devices have managed to introduce parties. new device features in a playful manner. This has, in turn, stimulated the development of interesting, diverse applications and services. Smart TV and Regulation The German TV Platform believes that smart Two services that were previously subject to TVs and interactive services from TV net - separate regulations have merged in smart works and other providers have a similar TV devices: TV is subject to broadcast law, potential. And so the working groupin col - Web content is subject to telecommunica - laboration with the “User Guidance” project tions law, and other services are not regulated groupwill intensify its focus on user-friend - at all. Moreover, some services come prein - liness and the intuitive control of HbbTV stalled with the device, and applications may services and smart TVs, in order to continue be bundled. In addition, services and apps contributing to consumer-friendly solutions may be downloaded individually by the now and in the future. smart-TV user, who can install or deinstall or sort services and apps according to individual preferences. In view of the increasing number OTT and Second Screen of options and features that hybrid TVs offer, The term Over the Top (OTT) refers to smart it is important to discuss the regulatory TVs accessing online video and audio con - framework for smart TVs and their content. tent. OTT TV is a method that allows the cus - On this topic, the European Commission has tomer to receive Internet content on their mailed a comprehensive questionnaire to the television, frequently in a form specially industry that had to be filled out in 2013. adapted to the medium. Second screens are The German TV Platform will participate in also often used in this context, especially for the discussion as far as possible, taking the social TV. The summaries on these topics in heterogeneity of the membership into ac - versions 1.0 and 2.0 of the German TV Plat - count. form’s White Book as well as the present Mar - ket Analysis are intended to reflect prelimi - nary results at this point in time. The working DRM and Content Protection R S group will continue to observe and analyze Content protection is becoming more and m
e the national and international market de - more complex as the range of consumer
s velopment here, partzicularly in terms of the devices and contents grows. How will the a
u relationship with smart TV and HbbTV serv - content be played back over the various plat - ices. forms, such as TVs, smartphones, or tablet r l computers? What are the market needs of t t the consumers, Internet providers, and device s
T Business Models manufacturers? What can the various pro - and Consumer Protection ce dures achieve, and what does the market V The search for business models for smart TV require? How can content protection work
and HbbTV is still in its initial stages. Com - with all the devices in the home network?
W mercials, e-commerce and VoD seem to be The working group will tackle and discuss among the primary moneymakers of the fu - these issues. ture, yet there are many issues to be resolved G in all three areas, such as user-friendly pay - 3. 40 ment methods, coverage quantification, and 4. Market Situation, Audience Acceptance, and Forecast
4.1 Appliance Sales and Usage Development
According to GfK Retail & Technology, 20.5 Again, with 4.7 million items sold, TVs ac - million Web-enabled consumer devices count for the largest share of Web-enabled had been sold by the end of 2013 on the consumer devices. This corresponds to 59 German market, including TVs, Blu-ray percent of all TVs sold in 2013, an increase players, and set-top boxes (STBs). The of 9 percentage pointsin 2012, 50 percent of share of HbbTV-capable smart TVs was 92 the TVs sold were Internet-enabled. percent at that time. A total of 92 percent of all smart TVs sold in In 2013 alone, 6.4 million consumer appli - 2013 support the HbbTV standard for inter - ances were sold which are capable of dis - active viewing via a red button on the remote playing Web-based content (“smart TV”). control and are able to display corresponding In spite of a decrease in the overall num - content. The HbbTV share was first surveyed ber of items sold, the dynamic rise of Web- in 2011, when only about 8 percent of the enabled consumer electronics is virtually devices were HbbTV-capable, while the per - unbroken, compared to the previous year centage was close to two thirds (89 percent) (6.5 million). in 2012. All told, about 9.5 million HbbTV- devices had been sold to German consumers 41
Web-enabled (“Smart”) Devices by the end of 2013, including STBs. 4.4 mil - lion were sold in 2013 alone, which corre - sales 2013 cumulative sales 2008 – 2013 sponds to a share of 70 percent of consumer
14:38 Seite 3 electronics.
As in the past, not all smart TVs sold are actually being connected to the Internet: A study of the Gesellschaft für Unterhaltungs- 4,7 Mio TV displays 15,2 Mio und Kommunikationselektronik (gfu) showed 1,7 Mio STBs, DVD, and BD players 5,3 Mio in Apri l/ May 2013 that nearly 60 percent of the smart TVs in German households are in - HbbTV-enabled Devices deed hooked up to the Internet. In summary,
sales 2013 cumulative sales 2008 – 2013 it can be said that both the share of Internet- enabled and HbbTV-supporting consumer devices on the German market and their us - age are on the rise. 14:38 Seite 4
of Web-enabled of Web-enabled CE devices CE devices
Share of Share of Web-enabled TVs HbbTV-enabled 2013 smart TVs 2013
German TV Platform infographics (02/2014) on the Status quo of market penetration in Germany
Source: GfK Retail & Technology GmbH, 02/2014 Graphics:
4.2 Smart TV and Audience Acceptance & in Germany and Beyond
S F “Smart TVs have spread in German house - 1. Digitalization Report by the i o holds faster than almost any other type of State Media Authorities t r
u appliance,” the Zentralverband Elektro - The state media autorities’ “Digitalization Re -
e technik und Elektronikindustrie (ZVEI) port” is based on a survey conducted by TNS a
c stated as early as 2012 (Pr-8 4/ 2012). Infratest. Under the heading, “Connected
t TV,” it is pointed out that in the course of a
i Important information on acceptance and 2013, a 40-percent increase in the number of s o usage of smart TVs and HbbTV by German smart TVs connected to the Internet was ob - t
n consumers and viewers is also contained in served. At the same time, smart TVs only numerous recent studies. rank third in the list of devices used to access 4. 42 video content on the Internetbehind per - sonal or laptop computers and smartphones, in terms of connectivity. With 34 percent of but ahead of tablet computers. Concerning households using a smart TV as their primary HbbTV, the Report notes a dynamic increase TV, Germany ranks in the middle: In Britain, in awareness and usage in Germany. In fact, the rate is only 21 percent, and the Nether - 54 percent of smart-TV owners know about lands (26%), Spain (26%), and Italy (28%) the “red button” and its purpose, and one also have a lower rate than Germany, while quarter frequently or occasionally uses the Poland (36%), Turkey (40%), and France broadcasters’ extra options via HbbTV. (42%) show higher rates of “smart” primary TVs in their households.
2. gfu – Gesellschaft für Unterhaltungs- In terms of the percentage of smart TVs actu - und Kommunikationselektronik Study ally connected to the Internet, Germany, According to a representative study commis - with a rate of 58 percent, also lags behind sioned by gfuGesellschaft für Unterhaltungs- other European countries and Turkey: The und Kommunikationselektronik and con - leader in Internet hook-ups is Britain with ducted by Concentra Marketing Research in 86 percent, followed by France (79%), the Apri l/ May 2013 (based on a survey of 1,000 Netherlands (76%), and Turkey (73%). The households in Germany and an additional other countries surveyed had rates in the 7,000 in seven other European countries and mid- to upper 60s percentile range. Turkey), 14 millionmore than a third (34%) of all German households use a smart TV as One of the conclusions of this study is thus their primary TV. Overall, the results of the that there continues to be a need for con - survey attest to the interest in and acceptance sumer education and information, especially of smart TV on the part of viewers as well as in Germany. For this purpose, ZVEI and the the general trend to connect devices wit h/ to German TV Platform are working together in each other, both in German households and publishing a variety of brochuressuch as a in other European countries. “Connected-Devices Shopping Guide” and a “Smart-TV Shopping Advisor” – and flyers On the other hand, the results also show that, on HbbTV and interactive television (both in comparison with other European countries available [in German] on the German TV and Turkey, Germany lags somewhat behind Platform’s Website).
Reasons for Purchasing a New TV in Other Countries for Comparison new TV Lowest offer flat-panel instead of CRT should be Internet-connected
France 74% Germany 52% Turkey 58% Belgium 74% Italy 39% Spain 57% Netherlands 67% United Kingdom 37% United Kingdom 56% European average 57% European average 33% Netherlands 50% Spain 56% Belgium 31% Poland 49% United Kingdom 49% Spain 29% European average 48% Italy 49% France 28% Italy 45% Turkey 47% Poland 28% Belgium 43% Poland 43% Netherlands 27% France 41% Germany 35% Turkey 16% Germany 39%
Source: based on a representative study on behalf of gfu – Gesellschaft für Unterhaltungs- und Kommunikationselektronik, conducted in Apri l/ May 2013 by Concerta Marketing Research. 43 One out of four owns a smart TV
“Is your TV smart?” “Do you intend to purchase a smart TV Figures in % within the next 12 months?”
68.3 +12.8% 26.4%
24.0
7.7
2013: 23.4% 2014 definitely perhaps no purchase yes yes planned TOMORROW FOCUS Media has been studying smart TVs More than one quarter of those surveyed owns a smart TV, in German households since 2013. and nearly one third of those wo don’t intend to buy one in the coming year. Graphics from the study, “Smart TV Effects 2014-I.” Source: On-site survey in the TFM network; base: n = 5,797 (cases: 5,166 / 3,313); February 2014; in “Smart TV Effects 2014-I”
One out of two goes on line several times a week with his smart TV
“How many times do you access the Internet with your smart TV?” Figures in %, yellow = 2013, red = 2014
Sum “several times a week” to “several times a day” = 53.5% 30.5 27.6
17.0 15.3 14.2 14.8 13.9 12.5 10.9 11.6 8.8 9.5 7.2 6.2
Several times daily several times once several times once less a day a week a week a month a month frequently
Source: On-site survey in the TFM network; base: n = 5,797 (cases: 466); February 2014; in “Smart TV Effects 2014-I” & Smart TVs are not purchased “by chance.” In other European countries and in Turkey, Asked whether the “smart” features influ - the “smart” attribute proved to be a much
S F enced their decision to purchase a new TV, stronger buying incentive: “yes” or “likely 25 percent of smart-TV owners replied with yes” was the reply of 85 percent of those sur - i o
t a clear “yes.” Another 33 percent replied veyed in Turkey, 77 percent in Spain, and 76 r
u “likely yes.” This means that for more than percent in Britain. In most other countries,
e halfnearly 60 percentof German smart-TV the “smart” features also have a stronger ap - a
c owners, the hybrid features played, at least peal than in Germany. Only in France (50%)
t in part, a key role in their purchase decision. and Belgium (43%) are they a less relevant a
i factor in making a purchase decision. s o t n
4. 44 Smart-TV owners in Germany who also make ices like Skype or e-mail, in which commu - active use of their TV will, for the most part, nication with others is the primary function. use typical TV features, first and foremost the The study also points out that the enthusiasm Electronic Program Guide (EPG) with 30 per - for and the usage of smart TVs depends heav - cent, followed by the broadcasters’ media li - ily on the user’s age, as shown by the dis - braries (28%), Facebook (27%), and YouTube crepancies in the connection rate: While two (23%). Of all smart-TV owners, 15 percent thirds of 16- to 39-year-old owners in Ger - access charged video-on-demand (VoD) con - many hook up their smart TV to the Internet, tent from online media libraries. only half the owners over 60 do so.
There are discrepancies by age and gender in The effect on their purchase decision is also the usage of smart TVs: While older users far more pronounced among younger buyers make disproportionate use of media libraries, than among those over 60. And so the rela - women are more likely than me to use serv - tively modest enthusiasm for smart TV in
Web-surfing via smart TV peaks at prime time
“At which time of the day do you access the Internet on your smart TV?” Figures in %
+10,9% on a working day 2013 on a weekend day 2013 +3,9% on a working day 2014 63,7 on a weekend day 2014 63,7 27,3 61,3 23,4 57,4 11,8 20,9 15,9 42,9 20,2 15,0 10,3 42,3 13,9 14,4 10,5 8,6 7,5 42,6 9,2 9,7 39,3 6,1 6,2 3,4 4,3 3,6 7,3 4,1 3,3 5,8 1,9 5,0 1,5 3,2
0300–0600 0600–0900 0900–1200 1200–1400 1400–1700 1700–2000 2000–2300 2300–0100 0100–0300
Source: On-site survey in the TFM network; base: n = 5.797 (cases: 466); February 2014 in „Smart TV Effects 2014-I”
Smart TV: Usage Habits in Germany (smart TV owners)
Electronic Prog. Guide (EPG) 30% media libraries 28% Facebook 27% video-sharing Website (YouTube, etc.) 23% E-Mail 18% Skype 17% Video on Demand 15%
Source: based on a representative study on behalf of gfu – Gesellschaft für Unterhaltungs- und Kommunikationselektronik, conducted in Apri l/ May 2013 by Concerta Marketing Research. 45 Germany, compared to other European coun - However, many users found Internet access tries, may also have a demographic explana - via smart TV inconvenient: 50 percent com - tion, since the German population has the plained about the TV’s long load time, and oldest age average in Europe. nearly 80 percent found it cumbersome to access smart-TV functions via a TV remote This should be taken as an incentive for trade control. With regard to the average smart-TV and industry to “pick up” the older genera - user, the study, in summary, comes to the tion and introduce them to the benefits of conclusion that he is typically a male (70.2%) smart TV. Currently, the previously men - between the ages of 40 and 59 years (47.7%). tioned joined campaign of trade (BVT) and He is also an early adopter, since he and industry (ZVEI), „Smarter Fernsehen,” is in - his friends like to try out new technologies tended to support this effort by demonstrat - (70.4%). The typical smart-TV user is on line ing uses that appeal especially to the older several times a day and accesses the Internet generation. more than the population average from a mobile device, such as his smartphone (66.1%) or tablet computer (44.8%). 3. Tomorrow Focus Media Study According to a February 2014 study by To - morrow Focus Media (“Smart TV Effects 2014-I”), more than a quarter of those sur - veyed already own a smart TV, and nearly one third of those who don’t are planning to buy one in the coming year. For this study, 5,797 persons were surveyed, and the focus of the study was the awareness and usage of smart TV. Results were compared to those of the first “Smart TV Effects” study, conducted in 2013.
While only 20.4 percent of those surveyed had actively accessed online options on their smart TV in 2013, the percentage of active Internet users via smart TV had grown to 25.1 in early 2014. One out of two users sur - veyed accesses the Internet several times a week via their smart TV and uses smart-TV apps. The most frequently used apps are news (60%) and weather (58.5%) apps. &
S F i o t r u e a c t a i s o t n
46 4. 4.3 HbbTV and Market Development
The following section will thus address the HbbTV standard in some more detail (cf. also chapter 2.3). HbbTV has repeatedly been de - scribed as “improved, modern-day teletext” because it does much of what was impossible with the old version of teletext technology:
It is fast andthanks to the Internet connec - tiontelevision becomes interactive. Further - more, HbbTV offers a wide range of options for content of all typesstarting from text through a variety of illustration options all the way to high-resolution video. In addition to the added value of more content and new ways of usage, HbbTV brings even more ben - efits for broadcasters and viewers:
The German TV Platform is committed to • Many HbbTV-based services are free of open standards for digital television tech - charge, with the exception of the purchase nology. The networks, in particular, have re - cost of an HbbTV receiver. peatedly pointed out the need for a standard in interactive television from the outset. In • Because of its recognition by a European the German TV Platform’s dedicated working standardization organization, HbbTV is a group, the development of an HbbTV speci - standardized system with a high probabil - fication was closely monitored from the be - ity of international recognition, resulting ginning. After the international standardiza - in a mass market potential can be leveraged tion of HbbTV (Hybrid broadcast broadband for driving prices down. Television) by the European Telecommuni - cations Standards Institute (ETSI) in June • Using HbbTV, a number of value-added 2010, the potential for market players became services can be developed with a high de - much clearer. Even the most recent sales fig - mand potential as well as modern usability ures surveyed by GfK indicate that the market and functionality. is headed in the direction of HbbTV. It should be noted here that from the CE manufactur - • For the use of HbbTV-based services, con - ers’ point of view, HbbTV represents only one nection to an IPTV network is not required. of several features of smart TV, and that spe - This however applies also to all services of - cific device portals exist alongside HbbTV fered via hybrid user devices. The drawback without any “cannibalism” taking place. is that the quality of service (QoS) cannot be guaranteed (signal stability, uninter - rupted real-time transmission etc.).
The bottom line: Smart TVs with HbbTV en - able users of traditional television distribu - tion systemssatellite, cable, and terrestrial broadcast (DVB-T)to enjoy interactive tele - vision and offer them a variety of options.
47 4.4 Initiatives on Behalf of Smart TV and HbbTV
In order to acquaint viewers and customers This and further information can be found with the benefits of smart TV and HbbTV, on the campaign’s Website, www.smarter - two initiatives were launched in 2013, ac - fernsehen.info, which is also the campaign’s tively supported by the German TV Platform. communication hub. On the occasion of IFA 2013, the joint in - dustry initiative of ZVEI (Zentralverband der To promote the usage of HbbTV in particular, Elektrotechnik und Elektronikindustrie e.V.) the „Auf ROT geht’s los” (“RED means Go”) and BVT (Bundesverband der Technik des information campaign was also launched at Einzelhandels e.V.), was launched under the IFA 2013, a nationwide joint initiative of title „Smarter Fernsehen.” This campaign was both public and commercial broadcasters. backed by twelve companies in the industry Under the title, „Auf ROT geht’s los! Meine and four trade associations with their respec - Taste für smartes Fernsehen” (“RED means tive subsidiaries. It was the goal of the cam - Go: My key to smart TV”), it is intended to paign to familiarize consumers with the ex - introduce viewers over the next few years to perience of interactive television viewing, the benefits of HbbTV: since many consumers were not yet familiar with the options available on a smart TV. The focal point of the campaign is the red button on the remote control, since it leads The focal point of communication with con - viewers straight to the HbbTV content asso - sumers were practical scenarios for smart-TV ciated with the German TV broadcasters’ tel - usage: accessing the broadcasters’ media li - evision programs. It also allows users to re - braries via the red button on the remote, trieve programs independent of scheduling video on demand, YouTube, social media, in addition to the linear broadcast. Depend - Skype, and watching images on a large TV ing on what a network decides to offer, this screen. These realistic scenarios were illus - might include access to media libraries, VoD, trated by cartoon-style moving images and livestreams for special events, customizable texts that showed real-life applications in an teletext, interactive games, voting, shopping State-of-the-art remote controls easy-to-understand form. TVs labeled with offers, etc. with a touchpad also include color keys. The red key provides access to the „Smarter Fernsehen” logo are guaranteed the broadcaster’s HbbTV services. to provide Internet access, contain a browser, With a variety of information schemesinclud - offer the option to connect to the Internet ing TV spots, information material, and via WiFi, and have TV apps for numerous service offers via teletext and Internet –, the bonus features and added content. Partici - participating networks are bringing the red pating retailers also adopted the „Smarter button’s various options and benefits to the Fernsehen” logo to advertise their expertise attention of their viewers. & in letting customers experience smart TV in the shop, giving them advice, and if re -
S F quested delivering the TV to their home and connecting it to the Internet. i o t r u e a c t a i s o t n
4. 48 4.5 Trend Forecasts and Future Opportunities
Regarding smart TV, trend forecasts can only easy access to content, the intuitive use of be made on the basis of market figures to collateral offers without switching media or date, as well as assessments from various mar - devices, the market penetration of smart flat- ket players that may be tinted by a subjective panel TVs, increasing broadband coverage, view. The following collection does not claim and consumer experience with personalized to be exhaustive: media usage could all be contributing factors to a long-term success on the mass market. Moreover, HbbTV offers new transaction op - tions to the advertising and Internet industry as well as portal solutions, e.g. for hotels.
All major CE brands support the current de - velopment, and nearly all manufacturers of - fer smart TVs, most of which support HbbTV. Gradually, all TV models will be turned into smart TVs, including those will smaller dis - play sizes. Smart TV and thus HbbTV are well on their way to becoming standard products, just like iDTV (TVs with built-in digital tuners and HDTV receivers have almost completely replaced “plain” flat-panel TVs). And this In their report on IFA innovations, “Trends trend is by no means limited to the German in Consumer Electronics 2012,” gfu expresses market: Since 2011, nine more countries have their belief that an enormous surge for smart launched HbbTV services, and there is also a TV is still in the offing. The fusion of televi - growing interest in other parts of the world sion and Internet, which has been a growing to introduce HbbTV (cf. chapter 2.3). market trend, was seen by the gfu as “not just a technological trend, but also a para - Two further aspects that became apparent
Examples for interactive offers digm shift in the business models for the CE from a study carried out in 2011 by Facit Dig - accessible via the red key: ARD for industry: The successful linkage of devices ital have now been confirmed: the 2014 Winter Olympics equipped with content options as well as industry-wide cooperation between compa - nies from the hardware and content industry, will considerably impact on future business success.”
The Institute for Broadcast Technology (IRT) also saw excellent prospects for the HbbTV standard as a liaison between linear viewing and individual forms of usage. The quick and
The IRT in Munich even has an HbbTV test lab and is working on the continued development of the standard, including handicapped-accessible offers.
49 • The majority of tech-savvy respondents re - firm, Mücke, Sturm & Company (MS&C), in ported using television, Internet, and their study entitled “HbbTV.” The three fac - smartphones simultaneously. The use of tors that MS&C had seen as a precondition other screens other than the TV display for for the breakthrough have now been largely video media (“second screens”) is already fulfilled: no longer a rare exception. The German • an increasing market penetration of TV Platform dedicated this year’s sympo - devices with integrated HbbTV, sium in May 2012 to this phenomenon, • high-end quality content, and along with all its corollary aspects, oppor - • a user-friendliness. tunities, and challenges (cf. also chapter 3.4) Because of the open standard, HbbTV has the best chances to win against company-specific proprietary solutions, such as Google TV and Apple TV. The study summarizes: “From de - vice manufacturers to broadcasters to online portal- and e-commerce providers, all of them All of the major commercial networks are also offering HbbTV benefit from the free market approach of services with their programming. HbbTV, an approach that promotes diversity.” Screenshots of ZDF’s HbbTV service This analysis is still valid. during the 2012 Summer Olympics and the 2014 Winter Olympics
• “In the industry, HbbTV is increasingly referred to as ‘smart TV’,” wrote Facit Dig - ital in 2011. In the meantime, the term “smart TV” has replaced the term “hybrid TV” almost completely, and while “con - nected TV” is still used on occasion, the term “smart TV,” which is catchy and memorable for consumers, has gained cur - rency by now. The German TV Platform & has stated repeatedly that “smart TV” does not designate the same as “HbbTV,” yet it
S is a fact that an increasing number of smart F TVs support the HbbTV standard (currently i o
more than 90 percent of new TVs sold, cf. t r
chapter 4.1). u e a
By 2014, there will be a total of 23 million c
HbbTV-enabled flat-panel TVs in German t a
households: This was the November 2010 i s forecast by the Munich-based consultancy o t n
50 4. 5. Glossary Key Terms and Abbreviations*
Ad(vertisement) forwarding Consumer electronics hypertext markup Manual skipping of commericial breaks language (CE-HTML) within an audiovisual program by fast-for - Version of the HTML Internet programming warding within a recorded program language, adapted for use in consumer elec - tronics (CE) Ad(vertisement) skipping Automated skipping of commercial breaks Cross-media within a recorded audiovisual program The usage of several media for a single pur - pose Android Google operating system, used by Google TV Data rate The amount of data that is transferred per App unit of time via a cabled or wireless connec - short for application tion, indicated in bits per second as kilobit (kB), megabit (MB), or gigabit (GB) Application A defined interactive service via Internet for Electronic Program Guide (EPG) smartphones, tablet computers, and also Electronic guide that provides users with de - smart TVs, usually depicted as a ‘tile’ tailed information about television programs, radio programs, and screen services available Authentication Process of secure connection of a user to a Google Chrome system Google browser, used for Google TV
Bound application Graphical User Interface (GUI) Application that relates directly to the current Graphical arrangement and function of user- television program operated elements in devices and systems
Broadband access HbbTV Internet connection with a data transfer rate Hybrid broadcast broadband TeleVision: a of at least 1 Mbit/s European standard since mid-2010 that de - fines the technical specifications for the con - Catch-up TV nection of TV and Internet in TV reception Collective term for time-delayed TV that can devices with an Internet connection: a central be viewed on demand, e.g. in media libraries: feature is the red teletext key on the TV re - catch-up TV can also be used on TV screens mote control (“red button”) through the HbbTV standard or via the app * detailed explanations and fur - portals of smart TVs Hybrid television ther terms are available A form of television that permits access to (only in German) at: www.tv-plattform.de/de/digi - Connect(ed) TV the Internet in addition to viewing linear tales-fernsehen/glossar.html An alternative term for hybrid or smart TV broadcast content from TV broadcasters; in - terchangable with connected or smart TV 51 Insert LAN Full or partial superimposition of one picture Local Area Network which permits data to with another be exchanged via cable; in cases where the exchange is wireless, it is called Wireless LAN, Interactivity or WLAN (often incorrectly used as a syn - Bi-directional communication of the user of onym for WiFi) a system with the aid of a return (feedback) channel. Language recognition The control of operating processes by voice Internet-capable TV input Television device which is equipped with connections for broadcast signals (terrestrial, Linear television cable, satellite) and Ethernet for Internet Real-time reception and viewing of broadcast access via LAN or WiFi and capable of dis - television programs playing each form of content in the correct format Mediathek German video-on-demand service that pro - Internet TV vides easy and convenient access to various see: Web TV audio and video files online (media libraries)
Interoperability Media disruption The usability of devices in different networks Switching of devices in media use (e.g. watch - an d/ or for different applications ing TV and picking up a telephone to call a number displayed on screen) Intuitive operability Self-explanatory operation of devices and sys - Network / Home Network tems, so that the user requires neither a man - A connection of networkable home enter - ual nor training for their operation tainment components (TVs, Blu-ray players, G game consoles, computers, data storage de - IPTV vices, etc.) into a private network, either l
o Internet Protocol Television: transmission of linked by cable or wirelessly in several rooms television signals via a DSL network, using or throughout the house s the Internet protocol; unlike Web TV, IPTV s has a guaranteed signal quality so that pro - Non-linear television a grams can be viewed on television in the Time-delayed reception of television pro -
r same way as via terrestrial, cable, and satellite grams via intermediate storage or video on
y transmission; IPTV was established in 2006 demand (VoD) as a fourth broadcast transmission method alongside these alternatives
5. 52 OTT (over the top) / OTT TV “Red button” feature The online transfer of video and audio con - Special use of the red teletext key on a TV re - tent, regardless of available bandwidth; the mote control to launch and terminate pro - material can be displayed on all Internet- gram-related applications while a television capable devices, but if the device is a TV set, program is running it will be referred to as OTT TV SDK Overlay Software Development Kit: a set of tools that Superimposition of image content on the allows the development of applications for screen by other content specific smart-TV portals, enabling third- party providers to make their services com - Package (service) patible with the portal at hand A structured information package delivered via Internet connection to hybrid television Second Screen devices A mobile display device (tablet computer, smartphone) that can interact with smart- Personalization TVs and also with the members of a social net - User-specific settings for channels, services, work, discussing TV programs (“social TV”). and applications Signal integrity Picture-in-Picture (PiP) The consistency of the television signal re - Insertion of a second, smaller picture in a ceived during playback section of the main image; if the images are juxtaposed in equal size, this is referred to as Signal protection PnP or split screen Measures against manipulations of the broad - cast signal Proprietary Technology specific to one manufacturer or Smart TV provider and generally developed by or for Generic term for the new generation of TVs them and related CE devices that allow viewers to access a variety of additional services and PVR content from the Internet via an app gallery Personal Video Recorder: Recording device in or via HbbTV out of a running program. the form of hard drives, Blu-ray or DVD recorders or as a receiver/set top box with an Smart TV Alliance integrated hard drive; some TVs have built- Manufacturer alliance founded by LG, in hard drives for digital recording; allows Philips/TP-Vision, and Toshiba in early 2012 timeshift for the purpose of standardizing the program - ming of apps for TV portals; numerous other manufacturers have joined in the meantime 53 Split screen USB Division of the screen for the concurrent dis - Universal Serial Bus: computer interface for play of a television program and an applica - the connection of external components; to - tion or the simultaneous display of two tele - day, many TVs and connectable devices such vision programs as Blu-ray players and game consoles have USB interfaces so that flash drives or external Streaming hard discs can be connected The distribution of video content that can be received over the Internet as a continuous Video on Demand (VoD) data stream without first having to be down - Service that allows reception of specific video loaded content at any time from “video library”; there is a distinction between on-demand Time-delayed television / timeshifting streaming (no download), near-on-demand Non-linear viewing that permits flexible streaming (loop or carousel), download (op - pausing, repeating, and continuing of a TV tion to save content locally), and podcast program recorded before or being recorded (download with subscription). while watching Web TV Unbound application Random programs freely accessible on the An application which is not related to the Internet to be used anytime and anywhere; current television program (program-inde - unlike with IPTV, TV-compatibility and signal pendent application) quality are not guaranteed.
Usability Widget General term for the extent to which a device Small programs that appear as icons on the or system can be operated easily by the aver - TV screen (or computer desktop), allowing age user certain Internet services to be used, also on some smart TVs. G User data All relevant personal information about the l
o user of a service or application s s a r y
5. 54 6. Sources
Preface http://www.tv-plattform.de/de/arbeitsgruppen/smart-tv.html http://www.tv-plattform.de/images/stories/archiv/2013/ifa-pk_sewczyk.pdf http://www.smarterfernsehen.info/ http://www.ard.de/home/intern/Start_der_Infokampagne__Auf_ROT_geht_s_los__/338762/in - dex.html http://www.zvei.org/verband/fachverbaende/consumerelectronics/Seiten/default.aspx http://www.gfkrt.com/de/ http://www.gfk.com/de/news-und-events/presse/pressemitteilungen/Seiten/Wachstum- f%C3%BCr-Unterhaltungselektronik-in-innovativen-Segmenten.aspx http://www.gfu.de/srv/easyedit/_ts_1373472398000/page:home/download/insightstrends/sl_1 338454764893/args.link01/de_kamp.pdf http://www.gfu.de/srv/easyedit/_ts_1373473009000/page:home/download/insightstrends/sl_1 264763666163/args.link01/de_wienands_schipper.pdf http://www.die-medienanstalten.de/fileadmin/Download/Publikationen/Digitalisierungs - bericht/2013/Digitalisierungsbericht_2013.pdf
Chapter 1 http://www.media-perspektiven.de/6658.html http://www.tv-plattform.de/de/dokumente/dokumente-internetatv.html http://www.tv-plattform.de/de/digitales-fernsehen/glossar.html
Chapter 2 http://www.hbbtv.org http://www.irt.de/de/themengebiete/digitales-fernsehen/hbbtv.html http://www.irt.de/de/produkte-beratung/digitales-fernsehen/hbbtv.html http://www.etsi.orghttp://www.hbbtv.org/pages/about_hbbtv/specification.php http://www.smarttv-alliance.org/ http://social-tv.muecke-sturm.de/?lang=de http://www.goldmedia.com/presse/newsroom/smart-tv.html http://www.teveo.de/produkte-und-services/ http://www.ping247.de/ping-next/connept-einkaufen-mit-2-klicks/ http://www.google.de/tv/ http://www.apple.com/de/appletv/ http://www.skype.com/intl/de/get-skype/on-your-tv/ http://www.die-medienanstalten.de/fileadmin/Download/Publikationen/Positionen/DLM-Po - sitionspapier_Connected_TV_2013-02-19.pdf
55 Chapter 3 http://www.tv-plattform.de/de/hybrid-workshop.html http://www.tv-plattform.de/de/21-symposium-informationen.html http://www.tv-plattform.de/images/stories/pdf/hybrid-tv_white-book_2012.pdf http://www.cellular.de/ http://www.tv-plattform.de/images/stories/pdf/styleguide_usability-hbbtv-redbut_ton_2011 _auszug.pdf http://www.media-perspektiven.de/6278.html http://www.dlm-symposium.org/de/symposium.html http://www.tv-plattform.de/images/stories/archiv/2013/TVZ_Extra11_13.pdf http://www.die-medienanstalten.de/fileadmin/Download/Publikationen/Studie_Connect - edTV.pdf http://www.die-medienanstalten.de/service/veranstaltungen/veranstaltungsarchiv/pdz-tagun - gen/navigationstagung-2013.html http://www.die-medienanstalten.de/fileadmin/Download/Publikationen/Positionen/DLM-Po - sitionspapier_Connected_TV_2013-02-19.pdf http://www.die-medienanstalten.de/service/publikationen/digitalisierungsbericht.html http://www.tu-darmstadt.de/vorbeischauen/aktuell/einzelansicht_69632.de.jsp http://www.spiegel.de/netzwelt/netzpolitik/hbbtv-sicherheitsluecke-in-smart-tvs-entdeckt-a- 904086.html
Chapter 4 http://www.gfu.de/home/download/marktstudien.xhtml http://www.zvei.org/Verband/Fachverbaende/ConsumerElectronics/Seiten/Smart-TVs-treffen- den-Nerv-der-Zeit.aspx http://www.zvei.org/Downloads/Auszug%20aus%20Studie.pdf http://www.die-medienanstalten.de/fileadmin/Download/Publikationen/Digitalisierungs - S bericht/2013/Bericht_Digitalisierungsbericht_2013.pdf
o http://www.angacable.com/index.php?id=pressreleases&no_cache=1&L=1 http://www.irt.de/de/presse/presseinformationen.html u http://www.gfu.de/home/download/praesentationen.xhtml
r http://www.facit-digital.com/studien/
c http://www.muecke-sturm.de/de/publikationen
e http://www.tomorrow-focus.de/newsroom/dokumenten-datenbank/pressemitteilung/neue- smart-tv-effects-studie-apps-ueberzeugen-auch-auf-dem-fernseher_aid_1205.html s
6. 56 A p p e n d
i Publisher We are especially grateful x Deutsche TV-Plattform e.V. to GfK Retail and Technology GmbH for providing market http://www.tv-plattform.de data, to gfuGesellschaft für Unterhaltungs- und Kommu - nikationselektronik for their European smart-TV study, and to TOMORROW FOCUS Media for their “Smart-TV Effects” study. Contact Deutsche TV-Plattform Lyoner Str. 9, c/o ZVEI Disclaimer 60528 Frankfurt The information in this report was accurately and thoroughly Germany researched and consolidated to the best of the knowledge and under neutral approach of our Working Group. Any in - [email protected] formation reflect the current status at the time of the edi - phone: +49 69 6302-311 torial deadline for each chapter. However, the members of fax: +49 69 6302-361 the Working Group and the German TV Platform cannot guarantee that the compiled information is current, correct, and complete, and therefore cannot accept any liability for material or immaterial loss or damage arising as a result Editorial Staff of inaccuracies or omissions or the reliance on or applica - “Smart TV” Working Group of the German TV-Platform tion of false or incomplete information.
Authors: Rike Brecht (Ilmenau University of Technology) Gernot Busch (Busch Consult) The “Smart TV Market Analysis” (May 2014) Carine Chardon (ZVEI / German TV Platform) is a revised version of the eponymous brochure published Alexa Christ (ZVEI) in October 2013, based on the professional publications, Volker Blume (TP Vision / Philips) “White Book Hybrid TV” (2011) and “White Book Hybrid TV / Ulrich Freyer (Agentur für Medientechnik) Smart TV” (2012) of the German TV Platform. Anja Hornbostel (TU Braunschweig) Andreas Karanas (teveo interactive) In addition, the German TV Platform has published con - Klaus Merkel (IRT) sumer information in German on the subject of smart TV: Jürgen Sewczyk (JS Consult / Eutelsat) Interaktives Fernsehen (flyer, 2012) Holger Wenk (konzeptW, German TV Platform) Wegweiser Smartes Fernsehen (flyer, 2013) Hybrid-TV (brochures, 2010 and 2011) Translation: Einkaufsberater Vernetzte Geräte (brochure, 2012) Dorothea Eßer (Technik-Sprachendienst GmbH) Einkaufsberater Smart-TV (brochure, 2013) Martin Hafner (Bayerischer Rundfunk) Thomas J. Kinne (Übersetzungsbüro Dr. Kinne) Peter Yves Ruland (ruwido austria GmbH)
Illustrations ARD, DTVP, LG, Loewe, Panafoto/A. Franke, Philips, Samsung, Technisat, ZDF. From Fotolia Agency: Pink Shot (cover [M]), Alexey Popov, Dkimages, Kumer, Real Photo Italy, Spectral Design.
Layout / Print: Layout and Graphics: Petra Dreßler, Berlin Printed by Das Druckteam, Berlin
57 About the German TV Platform
The German TV Platform is an association of commercial and public-service broadcasters, de - vice manufacturers, network operators, service and technology providers, research institutes and universities, state and federal authorities, and other companies, associations, and insti - tutions concerned with digital media. For more than two decades, it has been the goal of this non-profit organization to establish digital technologies in television broadcasting, based on open standards. In our Working and Project Groups, representatives from nearly every field in the consumer-electronics and media industry are committed to set the course on key issues of digital broadcasting.
Contact
Herausgeber: www.tv-plattform.de Deutsche TV-Plattform e.V. [email protected] c/o ZVEI, Lyoner Str. 9 Tel.: +49 69 6302-311 60528 Frankfurt am Main Fax: +49 69 6302-361