From live TV to smart TV
There was a time when watching TV meant to be on time to turn it on.
But now, because of all the new technology compatible with Internet, someone who wishes to watch a show or a game on a smartphone or another device can watch it whenever, wherever. In other words, the television program isn’t limited by a television anymore.
This ubiquity is the meeting of the traditional linear television with videos on Internet.
This change of habits linked to this media needs an evolution in our actual programming and on the satellite delivery to Internet.
This seems simple, no? But it’s actually a lot easier said than done.
The transition form television to Internet has a deep impact on the television’s delivery, on the advertisement and on the viewer’s experience.
The television industry launches itself in a new challenge now and for the 10 next years. It will have a durable impact on the future of television we know today.
TELEVISION: an innovation and changing industry
Sure, it’s a new revolution in the TV industry, but it’s neither the first nor the last for this media, which never ceased to innovate for 60 years!
The innovation has always been regular in this industry. And it’s because of it that it continues to demonstrate an amazing worldly growth, in size and shape.
Notable changes the industry knew how to adapt and reinforced itself. We went form analog to numeric, and then from
HD numeric to 4K.
The delivery itself never ceased to evolve. From a terrestrial to a satellite broadcasting, we are now experimenting a third step with the Internet diffusion. The last step where only the rhythm and the shape of this change are left unknown.
The future in 4 steps
In this third wave of change, the TV industry offers more and more available contents on any device, while experimenting different advertisement and subscription systems.
One goal to an international audience: a live TV, lineal and on demand, anytime, anywhere.
Step 1: TEASERS
Programmers offer teasers on the web to promote some shows that viewers can catch only on their TV.
Step 2: VOD
The industry starts to propose complete episodes on the web, including some advertisement breaks at the same rate as on TV. Each episode is usually available for a short time frame.
Step 3: the TV apps
The massive growth of the smartphones and pads market, thanks to their easiness of utilization and the progress made in video streaming, lead to the emergence of new personalized applications on those devices.
A technological evolution that revolutionizes and changes radically the way a new generation grows with TV.
Step 4: live, lineal, on demand
In front of the success of Boxes and VOD, the industry realizes that it is starting to touch an amazing potential audience through connected mechanisms and starts to propose some live TV to their on demand programs.
Future step: the best of TV and Internet contents come together
Admitting the success and the range of shows, especially on Internet, the industry creates a new generation of creative agencies of multi supports network, offering a mix of TV and Internet contents, definitely mixing the lines between traditional TV forms and Internet video forms newly developed.
THE OPPORTUNITY OF A NEW WORLDLY BUSINESS
The television offered on Internet allows to controle when, where and what type of program to watch. Unlike the traditional TV, options are unlimited, and the remote is condemned!
Consuming “OTT” contents progressively knew a regular growth thanks to services like Netflix, Hulu Plus, HNOGo, WatchESPN and YouTube, among numerous others, and constitute the proof that viewers desire watching TV on other principles.
People want a complete selection of TV shows, including live sports and news.
Why?
Think about how fast this new technology has already been adopted.
The iPad was announced January 27, 2010 by Steve Jobs during an Apple keynote to the press at the Yerba Buena Center for the Arts of San Francisco.
At this time, nobody imagined watching TV on a smartphone or a pas, the screen seemed too small, but the easiness to have a TV in your pocket rapidly became a fashion phenomena.
So much that we see today that 50% of YouTube contents are watched on mobiles and that 58% of TV flows are verified as coming from iOS and Android devices.
For the first tome in 2014, the time spent on TV was topped by the time spent on numeric/ mobile devices.
The growth of TV on Internet seems inevitable. The will to use almost any connected device to watch TV means that TV will evolve towards an Internet delivery really soon.
People already come in numbers to the amazing variety of programs and contents offered on smartphones, tabs, laptops, office computers, smart TVs, Boxes and gaming consoles…
OTT ?
Like its name shows, the OTT services come to include some “under” mechanics to transmit existing ones, on phone networks, or wireless ones or even on bandwidth. In another words, OTT services don’t control the networks and don’t have to pay for its development or its maintenance, but they use it to deliver their services.
AN EVERYWHERE TV
Viewers want to watch their favorite shows anytime, anywhere and on any screen.
There is a lot of TV content online, but it’s still hard to watch them easily in every room in the house.
Doing it requires a new organization of the programs on Interne rather than on waves, satellite or cable.
It’s a massive change that has hard implications for brands, TV broadcasters and TV suppliers.
Over 10 billion euros in France and 70 billion dollars in the US, the advertisement market represents, for a long time now, the biggest part of advertisement expenses in the world.
It will remain the principal part of these expenses, but will change and be fragmented depending on the audience and new media offered.
What will the industry look like in 2025? It’s still unknown, but the speed of the technological evolution, the dynamic in the transformation of habits, and the last strategic choices of majors already confirm that the mutation to Internet is undergoing.
After the big automobile industry adventure, it is rare to assist, and even more to participate in real time to the massive transformation that it is.
All around the world, the marathon has started; majors already work on their strategy and are looking to monopolize technological partnerships that would allow them to make choices that will have an impact on their future.
OPPORTUNITIES TO TAKE
The television industry is once again changing to answer the Internet offer. If it’s still too early to measure the impact, this new world market seems to boost dollars in this ever-growing industry.
The stakes are high and the rewards will be there to those who will successfully navigate into the future of the television industry.
American market – Source: Luma Partner, May 2014, Future of (Digital) TV *