Accedo estimates at least 20 million Smart TVs will be sold across Asia-Pacific in 2012. According to NPD DisplaySearch, nearly 20% of all TVs shipped worldwide were Smart TVs, the highest country worldwide being Japan at 36% of all TVs shipped, with China closely following at 30%. This is a truly global phenomenon as no region worldwide has Smart TVs at less than 10% of all TVs shipped in that region.
From CES 2012 (Consumer Electronics Show) in Las Vegas, it was clear that Samsung, LG, Panasonic and just about every other major TV manufacturer advertise the Smart capabilities of their latest TV sets as much as they do hardware breakthroughs in 3D or ultra high defi nition. These manufacturers promote new models with content applications from tier one broadcasters and media companies.
So how does one defi ne Smart TV? Beyond simple internet connectivity, Smart TVs offer the consumer a manufacturer branded TV Application Portal and TV Application Store. The TV Application Portal is the home page that a user launches when they hit an Apps button (or similar) on their remote control. Here the user can see their favourite apps or manufacturer-featured apps. The TV Application Store contain applications that include descriptions, previews, ratings, comments and pricing where applicable. Similar in some respects to mobile app stores that we are all familiar with, but now on your TV.
The TV Portal and Store provide access to a wide choice of local, regional and global content over the internet, through TV applications. The larger manufacturers offer developer programmes where content rights owners or other application developers can submit their TV application to be launched on TV App Stores in the countries of their choosing. Accedo is right at the centre of these new application delivery platforms for TV.
In the last couple of years, we have also seen innovation in user interactivity with manufacturers offering mobile device controllers, motion control remotes, hand-based gesture control and voice control through speech recognition. These provide better interactivity than the now dated-looking remote control and provide a means for manufacturers to differentiate themselves.
We believe that Smart TV is a potential disruptor to the established content delivery ecosystem. A Smart TV takes the capabilities traditionally provided in a set top box (STB) and integrates them into the TV itself. Smart TVs today have network connectivity, media chips sets, application runtime platforms and digital rights management built into them, that enable the delivery of premium HD content direct to the TV without the need of a STB. This obviously has benefi ts for TV operators by removing the costs associated with sourcing, delivering and supporting thousands, if not millions, of closed platform STBs. Fragmentation has been a concern for many TV operators considering a move to Smart TV, however increasing application development standardisation on HTML4 or HTML5-compliant browsers means there is now a reasonable degree of reuse across several Smart TV platforms (e.g. Samsung, LG, Sharp and Philips).
However, it’s not a simple port of the web or mobile experience. The TV application experience needs to be customised for the screen size, the viewing distance, the expected ease of use on TV and the control device available. Accedo is working with media companies across the region to redesign the experience they have developed for the web or their mobile application into a user experience that is going to entertain in the living room on the big screen.
Next generation TV is also going to be social. We are integrating social networking services like Facebook and Twitter into the programme guide, video viewing and video discovery experience.
Smart TV platforms are available today in your country, however there is a lack of knowledge in the wider industry of how to proceed. What should a big brand’s presence be on TV through an application compared to traditional TV advertising? We see experimentation from big brands, which want to engage with their customers in new ways. For example, a car manufacturer creating a TV application to promote a new car model through video clips, and the ability to book a test drive. We also see a need for education of marketers across the industry. The newly formed Connected TV Marketing Association is an independent industry body intended to fi ll this gap. CTVMA’s goal is to educate industry professionals about the business opportunities of Connected TV.
We are very positive about Smart TV. Smart TV is enabled, not just through TV manufacturers, but also through a range of devices that can be plugged into a traditional TV to give easy access to applications and media content over the internet. This gives more choice to the consumer and breaks them out of traditional, more restricted vehicles for content delivery. We think this is a good thing for Asians wanting to do the right thing and pay for the content they love.
