Tag Archive for 'IP'

IMS Research: 65m homes worldwide able to watch Internet video on TV sets last year

Some interesting stats and predictions from Texas-based IMS Research in their new study Market Opportunities for Internet Video to the TV.

IMS reckons that an estimated 65 million households worldwide had the capability of viewing Internet video on their television set at the end of 2008, up 134% on 2007. The ‘vast majority’ of these were doing so via a game console or ‘proprietary device’, notes IMS, but expects that to change in the future: “it is expected that households using a PC to deliver Internet video to the TV set via a media centre PC and a media extender (or digital media adapter) will see an 85% CAGR through 2013 reaching nearly 60 million households by that time,” says the research firm.

Shane Walker, research manager and author of the study, puts that down to projected price-falls in Windows Media Centre devices, media centres in general, and extenders, with media centre costs falling by as much as 15% annually during the next five years.

After 2013, however, the story changes, as more advanced Internet TV functionality is delivered by digital TV set-top boxes. This will cause a drop in demand for media extenders, although IMS believes that for one category - media centres connected to the TV via a device other than an extender - demand will continue to grow, and they will slowly replace DVRs.

On the whole, Connected TV thinks these are reasonable scenarios, although perhaps the role of the hybrid, IP-connected set-top box is not accorded enough importance given current developments in Europe and elsewhere. Hybrid DTT STBs should arrive in the UK in quantity next year, and there are already substantial numbers of STBs in the UK with at least theoretical broadband capability - namely the later BSkyB PVRs and current Freesat boxes.

It is true, however, that the notion of offering the full panoply of Internet-based, over-the-top video services to the TV through a set-top box is fraught with practical and technical difficulties, so if IMS is talking about that type of advanced capability (rather than a walled garden that might, for example, only offer one or two services such as the BBC’s iPlayer), a 2013 timeline may not be that unreasonable.

Also, the idea that the TV-connected media centre might eventually replace the PVR in this type of environment is not that implausible. By the time you have added a hard drive, IP capability and home networking features to a set-top box, what you have is pretty close to a PC-derived media centre - so why reinvent the wheel? That is likely to be one of the central battlegrounds between traditional pay-TV operators and the ‘over-the-top’ video providers in the coming years.

IPTV World Forum: ANT Software demos Amazon TV shopping through STB IP port

Over a decade ago, I remember reviewing the interactive shopping service BSkyB offered its subscribers when it launched what was then called its Open… service. The Sky box had (and still does) an analogue dial-up modem which, when I wanted to try browsing the Somerfield supermarket shelves, spent a good 15 minutes connecting and (apparently) attempting to download the entire product range via the phone-line. I was underwhelmed.

I recalled this experience when I visited ANT Software’s stand at the IPTV Forum today and saw a demonstration of an interactive TV application which allowed the user to buy a DVD or a book from Amazon related to the channel or programme being viewed. The contrast, a decade on, was staggering - and provided a convincing example of at least one way the Ethernet port now being added to many broadcast digital TV set-top boxes could eventually be monetised.

ANT’s application - in this particular emulation - works like this. First, the user has to link his or her Amazon account to the service, and assign a PIN to the TV application. The Amazon application subsequently signals to the user when it is available for a particular channel or programme, and - when the action is paused - an Amazon-branded window is automatically called up showing a range of books or DVDs related to that content. These can then be purchased by navigating to the relevant title and entering a PIN at the point of sale. Amazon’s back-office then does the rest, and the title is delivered to the user’s home in the normal way.

In the example I was shown, the Nascar racing channel was the one being streamed and then paused, so Nascar-related books and DVDs were displayed. Richard Baker, ANT’s executive vice president of sales and marketing, who demonstrated the concept to me, noted that the application could in principle be tied to any piece of EPG meta-data associated with the content being viewed: for instance, if watching a movie where the meta-data contained the actors’ names, the Amazon window might show relevant biographical titles or DVDs they had starred in.

Baker also noted that the ‘pause’ trigger was just one idea. Pressing ‘info’ or perhaps the red button on a remote control could be used instead.

The Amazon application - believed to be the first time the online book-store has been linked to TV in this way - is just one of a suite of multimedia services supported by the latest version of ANT’s Galio Suite under its new ‘IP Active’ banner. The idea is to enable new services on the IP port which extend and go beyond the TV environment. The platform uses familiar W3C standards-based Javascript, HTML and CSS elements and open media APIs, and allows access to a wide variety of applications including an online photo album (which allows users to view and interact with photos uploaded to a site such as Flickr or Snapfish), and online games (such as those aggregated by Accedo Broadband).

A number of things are significant about ANT’s approach. First, the broadband link’s speed is being exploited to offer more than just over-the-top video - one of the major applications being touted for the IP port at this year’s Forum event. Second, while retaining Amazon’s distinctive branding, this is clearly a TV-tailored version of the online book-store, which respects the constraints of a window within the TV display. Third, and perhaps most importantly, the call-to-action is contextual.

One of the major misconceptions behind Open… was the assumption that allowing impulse purchases via the TV screen was a killer app in itself. This was largely based on a misinterpretation of the success of impulse pay-per-view into the US cable market, where buy-rates shot up as soon as it became possible to purchase movies through the remote control instead of ordering them over the phone. What was forgotten (or ignored) was that a pay-per-view purchase is necessarily contextual: the consumer is buying video through a device which is optimised for … displaying and promoting video. That does not (necessarily) apply to non-video-related products.

Those lessons were learnt by Sky some time ago - but the technology, in terms of the power of the set-top box, learnings about the design of user interfaces, and the speed of Internet connections, has taken a decade to catch up.

ANT is by no means the only company exploiting this fact - but it was encouraging to see an interactive TV shopping application that, for once, looked as if it meant business.

(NB in the initial version of this post, I inadvertently promoted Richard Baker to CEO. ANT’s CEO is, of course, Simon Woodward. Apologies)