Connected TV: a value chain shuffler

There is a disruptive technology coming very quietly but which will change dramatically the way we consume TV programs: the connected TV.
Connected TV are no more no less than a TV with a small embedded PC. You will be able to browse the internet but as a remote control is not a friendly way to enter text consumer will be channeled into pre selected contents and websites.

Yahoo Widgets

Yahoo Widgets

This content pre selection will be achieved with widgets or portals. Your TV will then offer web services like weather forecasts, facebook access, etc and premium services like Video On Demand.

As for the mobile phones application stores, the decision maker are the manufacturers. And for once manufacturers seem to be in a strong position.Triple play DSL or cable operators have never bought any TV sets or subsidized it, so they can’t control the TV set market. These connected TVs are putting in jeopardy all the triple play strategy of the operators: with Internet connectivity flat rate the triple play was an approach to get an incremental revenue through premium channel subscription or Video On Demand.

Triple play ad from BT

Triple play ad from BT

Broadcasters are in the same weak position: how can they control what the widget application will display on top of their program? They don’t control 100% of the screen any more.

The introduction of services on TV sets  is disrupting the whole value chain.

Operators don’t control any more what the consumer access to, and the broadcasters don’t control the screen you are watching any more. Imagine watching a serial on channel one and having a pop up window notifying this interesting program on channel 2!

Today, the Yahoo Widgets seems to be the mainflow solution in the US but European broadcasters are trying to join forces to reject it.
This is just the beginning of the battle that will cerntainly shuffle the value chain of the TV ecosystem, and let’s hope, for the consumer best.

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3 thoughts on “Connected TV: a value chain shuffler

    • I read a month ago an article in a newspaper mentioning that the European Broadcasting Union (EBU) and TF1 (France’s biggest broadcaster) wanted to develop an alternative technology to the Yahoo widgets. They wanted this technology to be backed by the European Union. Apparently they weren’t satisfied by the terms and conditions of Yahoo.
      I don’t know if they really want to go this route or if it’s just a way to negotiate Yahoo’s offer. Actually Manufacturers are quite cautious these days about the connected TV technology for Europe. They are a bit in a wait and see attitude.

  1. Pingback: The connected TV war has started « Mobiles and Butterflies

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