FROM LIVE TV TO SMART TV
There was a time when to watch television you had to be on time before switching your set on.
Nowadays, thanks to new devices compatible with internet, you can watch a show or play a game whenever or wherever you want. TV programming is no longer limited to a TV set.
This omnipresent facility is the result of the coming together of linear television and Internet Video.
This change of habits linked to this media requires an evolution in the current programming and satellite transmission to Internet.
This sounds rather easy, doesn’t it ? But actually, it is easier said than done.
The move to TV on the Internet has a deep impact on TV transmission as well as advertisement and the viewer’s experience.
TV is setting itself a new challenge and the next 10 years, will have a lasting impact on the future of television as we know it today.
TELEVISION :
AN INDUSTRY
OF INNOVATION
AND CHANGE
It is indeed a revolution for the TV industry, but it’s not the first one and will not be the last for this media which has continually evolved over the past 60 years !
Innovation has always been developing at a steady pace in this industry. Thanks to this continues to grow globally in both its shape and size.
The industry automatically strengthened and adapted in consequence of these changes. We moved from analogue to digital and from HD digital to 4K.
Transmission has also evolved. From terrestrial broadcasting to satellite, we are now initiating the third step with the move to Internet. Just one step more, for which the rhythm and nature of this change are still unknown at this stage.
THE FUTURE IN 4 STEPS
In this third wave of change, the TV industry offers more and more content available on any possible device, whilst experimenting with various combinations of advertising models and modes of subscription.
This started with TV clips, VOD and more and more through TV apps.
There is only one aim for a seamless public: live TV, linear and on demand whenever and wherever wanted.
Step 1: TEASERS
The programmers offer teasers online which promote programmes that the viewers can only watch on TV.
Step 2: THE VOD
The industry is beginning to offer full episodes on line, adding commercial spots as often as on TV. Each episode is generally available for a limited time.
Step 3 : TV APPS.
The massive growth of smartphones and tablets’ market as well as the progress made in the field of streaming video has generated a wealth of personalised apps on peripheral devices. This is a technological evolution which has revolutionised and drastically changed the way a new generation with TV.
STEP 4 : LIVE, LINEAR AND ON DEMAND
Given the success of Box and VOD, the industry realizes that it is starting to reach an incredible audience potential through the connected devices and is starting to add online and linear TV to their demand programming.
FUTURE STEP : THE CONVERGING OF THE BEST OF THE TV AND INTERNET CONTENTS
Acknowledging the success and the impact of tailor made programmes for the Net, the industry has created a generation of creative agencies or multichannel networks which offer a mix of TV and Internet content blurring once and for all the line between today’s traditional TV format and Internet video that has been developed lately.
THE OPPORTUNITY OF A NEW GLOBAL BUSINESS
TV available on Internet enables the viewer to control when, where and what typ of programme to watch. Contrary to the historical television, the options are unlimited… The remote control is doomed !
The “OTT” content watching has steadily grown thanks to services such as Netflix, Hulu Plus, HBO Go, Watch ESPN and YouTube, among many others, which explains why viewers are watching TV with different expectations.
People want a complete selection of TV shows, including sport events and live news.
Why ?
Just think how quickly this new technology has been adopted.
The Ipad’s arrival was announced on January 27th 2010 by Steve Jobs at an Apple conference at the Yerba Buena Centre for the Arts in San Francisco.
At the time, no one thought TV could be watched on a smartphone or a tablet. The screen seemed too narrow, but having a pocket size television available soon became a trendy phenomenon.
So much so that today, 50%of You Tube content is watched on mobile phones and 58% of TV flux are authenticated from IOS and Android devices.
For the first time in 2014, more time was spent watching digital mobile devices than TV screens.
TV growth on Internet seems inevitable and the trend to use almost any connected device to watch TV means that TV will evolve very quickly towards an Internet source.
Viewers are already flocking towards the incredible variety of programmes on offer on smartphones, tablets, laptops, computers, smart TV box and game consoles…
OTT ?
As its name suggests, the OTT services insert « above » the actual transmission infrastructures, whether it be the telephone lines networks, wireless networks or low bandwidth. In other words, the OTT services don’t control the network and don’t have to pay for its development and upkeep, but they use it to deliver their services.
A TELEVISION
“EVERYWHERE”
More and more, viewers want to watch their favourite TV shows at anytime, anywhere and on any screens.
There is much TV content available on line, but it is still difficult today to watch these programmes easily in every room of the house.
To allow this to happen, programmes must be organised differently on Internet not as it is on the airwaves, by satellite or cable ?
This massive change has had a strong impact on the announcers, TV programmers and TV distributors.
The TV advertising market represents more than 10 billion Euros in France and 70 billion dollars in the US which is the largest part of global advertising expenditure in a long time.
TV advertising will remain the most important part of such expenditure but will be shared between different audiences and the new tools for watching.
What will the TV industry look like in 2025? No one knows yet, but the speed of technological development, the rate of change in viewing habits and the recent strategic choices made by the major players already confirm a transition towards the Net is taking place..
Like the adventure of the car industry, a major change in consumer habits of this type rarely takes place and is certainly rare to witness.
Across the world, the race has started: majors are already working on their strategy, organising financial technological partnerships which will allow them choices with lasting impact on their future.
OPPORTUNITIES TO SEIZE
Once again, the TV industry is transforming itself to meet the demands of Internet. If it is too early to measure the impact, this new global market is nevertheless a dollar boost for this industry which has not finished growing.
Much is at stake and the rewards will be forthcoming for those who navigate with success towards the future of the TV industry.
American market – Source: Luma Partner, May, 2014, Future of (Digital) TV *