KIT digital’s Global Lead Analyst, Alan Wolk, offers a view of the state of the television industry and its future. The overview are Wolk’s takeaway from his conversations with everyone from Wall Street analysts to high-level industry executives to tech start-up founders.
- People who are ‘cutting the cord’ still need an internet connection which can limit your experience because of bandwidth caps.
- An important competitive asset of MVPD’s (Companies that provide pay-TV services = Multichannel Video Programming Distributors) is their administration infrastructure to collect payments and their ability to connect a service quickly to large number of customers.
- Lawyers are the big bump in the road concerning multiscreen TV-everywhere solutions. The rights issues between MVPD’s, broadcast channels and content creators resolve around authentication of viewers and controlling content and monetization.
- The SmartTV market is developing rapidly but it takes time before it’s integrated in other platforms (second screen) and has industry wide standards for app development. Wolk’s solution to this: wait!
- Hollywood is getting nervous about the drop in DVD sales and its attempt to find new distribution solutions in the form of UltraViolet. Also the shrinking window between theatrical and VOD or OTT releases is threatening income and results in a shorter time frame to make money.
- Buy directly from TV won’t happen anytime soon since too many factors have to be considered when buying online (on your TV) like size, payments, quantity and delivery. Wolk argues that consumers will purchase items after the show on their second screen.
- The second screen provides data for MVPD’s which gives a much more detailed insight in who’s watching what, on what devices and from what location. Data that can be used to deliver more quality advertising and get better deals from content networks.
- (Incomplete) data is also the weakness of many social TV apps. Being unable to process the correct data and get the complete picture results in half-baked recommendation engines and irrelevant context information. Consolidation within the industry will create the “Swiss Army knife” app that offers more refined data.
- Netflix is the most popular on-demand platforms and the only way to beat them is by offering an improved user experience (UX) by providing a great user interface (UI). Key to this interface is the ‘Keep it simple stupid’ experience.
- OTT services are key if MVPD’s want to stay competitive. ‘Simplicity is one of the most appealing features of any type of technology’. So for MVPD’s to compete with Roku and AppleTV they have to provide OTT channels on easy to use set top boxes.
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