TV Reinvented

TV Reinvented part 3, TV Technology Game Changers?

I tend to spend more time here talking about content and service providers who are changing the "TV" game (or adapting to changes), especially going "over the top". This week, I've seen a flurry of media coverage related to technology companies releasing new products and services that may (or may not) further enable the reinvention of TV that is taking place before our eyes. I thought it would be helpful to summarize some of this news this week and, more importantly, look at how new OTT technologies might impact the ability for small-mid sized or independent content distributors or OTT service providers to enter into or expand their own OTT service strategies.

Intel TV "OnCue" (?)

Wall Street Journal did an article this week about Intel's plans for a streaming device with a "catch-up TV" service that allows users to "rewind" live TV channels, going back at least 3 days. The idea is that users won't need worry about recording programs if they can just go back and watch anything on Intel's device. Not sure if this is a game-changing service on it's own, but it will be interesting to see if Intel uses this platform to secure it's own content rights or even produce/secure exclusive programming to become an OTT service provider. In any event, I don't see any sign yet that the Intel OTT-TV platform will provide a 3rd party developer ecosystem that would enable independent distributors or service providers to reach their viewers via the Intel device. Possibly operators could view this device as a value-added service to provide to their customers, in addition to or as alternative to DVR.

By the way, Endavo already delivers multiscreen catch-up TV services (48hr lookback) for Dubai Media, launched last month. This service is available for our clients today.  

Google Chromecast 

Google got a lot of buzz this week after unveiling its $35 Chromecast device last week, which is already sold out. This is Google's 3rd try at getting to the TV and maybe this time they got it right - time will tell. As for what Chromecast does and what makes it different, it's not a standalone OTT-TV platform like Roku and it's not just a device for mirroring what's displaying on your tablet or phone, like Apple's AirPlay. Rather, Chromecast allows users to navigate programming from participating content providers on a smartphone, tablet or PC, and then play the video on a TV with an HDMI port occupied by the Chromecast. Once a stream is started, the device used to queue up the content is freed to be used normally (or as second screen), as the Chromecast then streams the video directly from the Internet using an architecture built on the platform behind the Chrome browser and operating system. WSJ did a review of the device if you want to check it out. 

I am not quite sure yet if Chromecast is a game-changing technology, but it is interesting especially for $35. It certainly rides (and maybe pushes) the trend of more people interacting with their mobile devices while they are watching TV, especially tablets. I am not sure yet how independent content distributors or service providers can use this technology to further their OTT strategies, unless Google is going to open Chromecast to independent developers who want to enable viewing video programming from their websites/apps on the TV through Chromecast. That could be interesting way to get OTT video services to the TV - right now I believe the best ways are on Roku or just via AirPlay. We'll be looking into this more as the Google ecosystem, especially Android OS, is an important OTT player. 

Microsoft Xbox

Microsoft is positioning its Kinect platform to enable voice and motion recognition for broader home entertainment purposes. Through Xbox One, due out this fall, it's expected that users can navigate available programming by commanding the Xbox to "Go to ESPN" and the system will respond. Also, some Xbox apps can be used while watching TV, such as Skype. So, again, not sure this is "game changing" stuff, but it does point to the investment being made in the paradigm shift that is occurring in how consumers access TV and media. Xbox has not been an extremely friendly platform for smaller, independent content distributors and service providers to try to get on, so I'm not too sure how much all this matters to the smaller OTT player, but we keep our eye on the Xbox since it represents such a significant installed base. My son says gamers buy game consoles to play games, not to watch TV.

 

In other recent Microsoft news, they finally announced the September 30 shut-down of MSN TV, which was the successor to WebTV. Not sure too many people care....

I would really like to see the Smart TV and OTT-TV device players open up more to 3rd party developers. I don't want see a "free-for-all", as I appreciate and value a controlled user experience, like Apple manages via their iTunes store for iPads and iPhone, and Roku manages closely for their platform (but too bad Roku doesn't allow independent int'l content). Among the platforms in the news this week, maybe Chromecast is indie OTT's best new chance.

That's how I see it. What are your thoughts?

Paul D Hamm 

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TV Reinvented part 2, a new blog series?

Leading up to and since my last post, TV Reinvented, I regularly see news about TV game changers and how the TV game is changing. So much so, I'd like to begin a regular series of posts that highlight news around the U.S. (and globe) of the TV and film industry being reinvented as a result of paradigm shifts in consumer behavior and changes in the way video programming is being delivered to consumers. Of course, I'll have particular focus on "over-the-top" (OTT) providers and content. Undoubtedly, changes are happening very quickly, so I believe MVPDs and digital media companies (broadcasters, networks, producers, etc. who are becoming MVPDs in their own right) might benefit from a regular summary of what's happening in this area, maybe once or twice a month. So I'll provide a series of "TV Reinvented" posts here, highlighting "game changers" and "how the game is changing", as long as I see a continued stream of relevant news and events.

No better time than the present... 

How the Game is Changing: Cox is targeting "cord cutters" with OTT-TV service being tested in Southern Cal.

Looks like Cox Communications is launcing a beta OTT service, called flareWatch, in Orange County. It's a broadband-only TV service of 97 channels and 30 hours of cloud DVR service for $34.99 per month. This channel lineup looks to be targeting cord-cutters, since it includes ESPN, Disney, CNN, CNBC, and many other top cable channels. With flareWatch, Cox certainly looks like an incumbent provider adapting to the changing TV game. As TDG points out, FlareWatch might also become a game changer if Cox is flirting with a "forbidden fruit", preparing an online-only service to deliver outside of its own territory and competing with other MVPDs. 

 

Game Changer: Crackle finds a hit series with Comedians in Cars getting Coffee. 

Crackle, owned by Sony Pictures, has been a bit of an "also ran" behind Netflix and Hulu. But recently their traffic has doubled in large part to a Jerry Seinfeld series played on Crackle, "Comedians in Cars getting Coffee". As Eric Berger, exec vp of digital networksat Sony Pictures Television stated in an interview posted by AdWeek, Sony views Crackle as a global next-gen network for premium long form content. He compares Crackle to AMC and FX, yet Crackle is an OTT-only network. I certainly would consider Sony a game changer, if they continue to come up with high quality programming exclusive to their OTT network, Crackle. If you click on the link to the AdWeek article, and haven't seen Seinfeld's series yet, there is one there to watch there, definitely worth a few minutes of your "TV" time!! 

 

 

Can't forget about Netflix - Game Changer!

Wall Street Journal did an article this week entitled "How Netflix Is Shaking Up Hollywood", describing multiple examples of Netflix buying up exclusive programming rights for its OTT service. I've talked about "House of Cards" and "The Killing", but apparently Netflix is not slowing down....now to the point that Hollywood is changing the way it looks at Netflix. 

Series like "House of Cards" and "The Killing" have story arcs, which seems to be a focus of Netflix's buying spree. Some new examples of Netflix licensing are PBS's "Super Why" and "Orange is the New Black", debuting this week. Hollywood used to think of story arcs as riskier bets due to future syndication limitations. Netflix is changing that, because "binge" consumption lends itself to story arcs and catching up via OTT on-demand, subscription service model. Studios are actually talking about changing production models based on the "Netflix" effect. Talk about a TV game changer! :-)

So, I hope you find this summary of TV "game changers" and "how the game is changing" useful, especially if you're a broadcaster, content producer/owner or MVPD. I'll keep posting and hope to hear from you. 

That's how I see it. What are your thoughts? 

Paul D Hamm

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A Great OTT Video Service Starts with a Clear User Experience Strategy

As the folks involved with the first Google TV launch will be the first to tell you, user experience can be the difference between success and failure when it comes to launching any video service. I am sure Google will eventually get it right, but as consumers become more and more discriminating when it comes to how, where and when they are watching video programming, it’s all about the user experience.

Peter Contardo’s recent blog post highlights how hard it can be to “generate eyeballs” for a consumer video service. While I certainly appreciate the process of smart branding and marketing to consumers, I thought I’d take a step back and delve deeper into what it takes to create a compelling user experience in the first place.

So, where do you start when planning your service? Two words…Requirements Definition. And we recommend always beginning by asking two fundamental questions that set the stage for a quality user experience (UX):

1. What business objectives do you want to achieve with your OTT video service? This answer yields the requirements necessary to achieve service objectives.)
2. What do your customers (and you) want to experience from your OTT video service? This answer yields the requirements necessary to achieve user needs.

It is these initial questions about the services that will be deployed that are used to help more efficiently create the desired user experiences for service providers, and ultimately for their end users. It is this process that helps increase the success rate of any OTT video service.

With these requirements properly defined, we then focus on four areas impacting the design, development and deployment of the consumer video offering as depicted in the diagram below:

• Content – Beyond having great content that people want to watch, it’s the organization and discoverability of video programming that helps users find what they want to watch, and keep them watching.
• Services – Creating a service, website and/or app that is generally easy to use and supports specific features and functions related to the service is a key driver of user experience.
• Access – The primary driver here is devices/screens, making the service available on the screens that end users access.
• Delivery – Delivering video content and services users with highest QoS and QoE possible is a key user experience driver for end users.

Our perspective on building a great user experience is grounded in a thorough understanding of the overall business goals. The goals guide the UX and ensure it is aligned with the fundamental reasons why the service is being offered. There can be a big difference in the UX when supporting a pay service or an advertising model, or both.  Device strategy, functionality drivers, content optimization, social sharing options and even the targeted user demographics and psychographics are just more examples of the depth to which you must go in order to thoroughly define your requirements prior to building the user experience.      

Here at Endavo, we always try to keep in mind all 4 key areas of user experience as we develop our products and services. Usually, service providers are forced to cobble together the necessary parts that make up an end-to-end video service experience. We have seen this result in sub-optimal user experience, which can lead to business failure. This is why we strive to keep the user experience strategy at the forefront of what we deliver.

With a solid user experience strategy feeding scope and requirements, a compelling and seamless user experience can be created. If you can nail down user experience first, you can then focus on creating great content and getting eyeballs to watch your content with confidence, knowing that once your customer experiences your video service, they’ll have every reason to stay, watch and come back for more.

That’s how I see it. What are your thoughts?

Paul D Hamm

Quick Thoughts - Keep an Eye on Content Providers' Use of OTT

As content providers continue to embrace OTT as a viable option for direct delivery of programming to their audience, telco and cable operators need to pay close attention as they consider their own video services initiatives.  Whether it’s a single channel provider or a multi-channel media organization such as Dubai Media Inc. (our current “Client Spotlight”), content producers, broadcasters and aggregators know that it takes both multiple programming windows and multple distribution methods to satisfy an audience, plus meet their business and revenue objectives.

When offered as an integrated service along with traditional broadcast or pay TV, OTT distribution can be used to increase audience awareness by offering everything from sneak previews of full-length shows, to catch-up programming, or even “extra” content only available to OTT subscribers. This strategy for expanding their audience through OTT enables content providers with a compelling way to build their case to service providers for negotiating increased per subscriber rates for their video programs.  

Peter Contardo, Endavo’s CMO/Head of Content, adds: “Content providers can also use their expanded OTT audience to deliver additional value to existing advertisers and sponsors of their programming. Advertisers are looking for ways to embrace emerging multi-screen opportunities and what better way than to jump right in by leveraging an established business relationship with a trusted content provider.”

Once again, my advice to Service Providers is to closely follow what’s happening in the content provider space. Knowing what is driving producers, broadcasters and aggregators can help as you evaluate/plan/launch your own OTT initiatives.

That’s how I see it. What are your thoughts?

Paul D Hamm

LG/Etisalat 3D Ad Experience Is Cool, But Wait Till You See The Real Thing.

Okay, okay, so they’re not exactly high-stylin’ Oakley 3D glasses, but they did the trick over here in Dubai for the official launch of the LG and Etisalat eLife OnWeb ad campaign – which included the UAE’s first-ever 3D newspaper ad as shown here in the Gulf News daily newspaper.

Yeah, that’s me taking in the 3D ad experience at a local restaurant. You may recall I shared with you a few weeks back that Etisalat had partnered with global consumer electronics brand LG to deliver Etisalat’s eLife broadband content service to millions of homes through LG Smart TVs.

And all indications are, the initial UAE promotional launch has been a success. I saw banners and signage already going up at Dubai Mall and Mall of Emirates as well. This should also generate some good interest as it's hard not to spend time inside restaurants and the malls in Dubai during the summer.

That’s how I see it. What are your thoughts?

Paul D Hamm

Quick Thoughts: Will 2012 Be The Year Of Cord Cutting?

Just a few years ago “cutting the cord” meant nudging junior out the door to make a life on his own. Today it’s cable companies fighting to keep customers who suddenly have a lot more video content and TV programming options available to them.

Look, we know today’s set-top (STB) box manufacturers are aggressively pursuing wholesale and retail OTT STB strategies – manufacturers who had previously sold their STBs exclusively to pay TV operators are now pursuing bold direct-to-consumer strategies.

New players such as Roku, Boxee and even Apple TV in the U.S. are already tapping into the burgeoning new OTT market, along with Blu-ray and game console providers. The direct-to-consumer OTT device market is quickly filling up with participants, which benefits consumers as long as the market doesn’t become too confusing.

We see this as a huge, immediate opportunity for telcos to help consumers make sense of OTT by providing guidance, recommendations, common services and bundling. And at Endavo, we’ll continue our mission to help telcos do just that.

That’s how I see it. What are your thoughts?

Paul D Hamm

Recent Whirlwind Activities Give Rise To New Blog Feature – Quick Thoughts.

The past few weeks have seen a whirlwind of activity at Endavo, with my recent time in Korea attending meetings with our MENA telco client Etisalat, and working closely with consumer electronics giant LG and its Smart TV Group to plan the launch of Etisalat OTT (OnWeb) services in the MENA region. And that’s what got me thinking of creating a new TalkingTelcOTT blog feature – Quick Thoughts.

I’ve recently noticed a few themes related to OTT that are worth sharing via Quick Thoughts.

First, it’s clear Connected TVs are seeking to strategically align with telcos and Pay TV operators. Multiple TV manufacturers are rolling out Internet-enabled “Smart TVs” allowing consumers to access video, applications, social media and gaming. The smart ones, like LG, are thinking “local” by aligning with local and regional pay TV operators and content producers to provide more value to local consumers. Content is aggregated and delivered by third-party service providers, in addition to continuing to support more traditional broadcast TV services, like IPTV and satellite.

The Connected TV market is quickly proving to be very competitive for TV manufacturers seeking to differentiate their brands, while 3D TV sales have not sold as expected in many markets. What’s interesting is, some of the leading Connected TV companies have already realized the importance of aligning with telco and pay TV operators.  Operators provide existing subscribers, network, strong brand recognition, billing, customer service, etc. – all necessary to deliver high-quality, premium OTT service with QoS and QoE. Operators also bring broadcast content for “catch-up TV” and VOD services. For Operators, Connected TV manufacturers provide massive retail distribution power. This is a very powerful combination and ultimately good for consumers and therefore the OTT industry.

Also, we’re seeing Connected TV and OTT device manufacturers seeking to differentiate with unique content and services. The playing field for OTT content is even more complex than OTT devices – in the U.S., Netflix and Hulu are on all (or nearly all) OTT devices, but the content availability landscape becomes convoluted quickly as you go a little further down the food chain. As a result, OTT device providers are scrambling to get content on their devices to make their devices relevant and valuable. We believe those service providers and platforms who can reach deep into a vast specialized content universe, to create curated, differentiated content services will be extremely valuable to consumers in the on-demand multi-screen world.

Once again, in my meetings in Korea I saw Connected TVs, OTT devices and telco operators aligning to aggregate content, which will be good for consumers, if relevant, well-organized and discoverable. Of course, if it’s good for consumers, it increases user adoption and uptake, which is the ultimate goal of everyone in this ecosystem.

These are my Quick Thoughts. What are yours?

Paul D Hamm

Endavo Partner Etisalat and LG Enter into Major Strategic Alliance with Etisalat’s eLife Services Being Featured on LG Smart TVs.

It was announced last week that long-time Endavo platform licensee, global telco and burgeoning media brand, Etisalat, has partnered with consumer electronics giant, LG, to deliver Etisalat’s eLife broadband content service to millions of UAE homes through LG’s new range of Smart TVs.

Through this alliance, Etisalat will deliver both eLife OnDemand, Etisalat’s IPTV-based video on demand service, and eLife OnWeb, Etisalat’s OTT- based video service, to its fiber-connected residential customers on all LG Smart TVs in the region. The new connected service is slated to officially launch to consumers on July 1. Here you can view a demo of the service from the press conference held in Dubai.

In addition to the announcement at the press conference, Etisalat’s new service on LG Smart TV was featured during a demonstration this week to operators, content producers and broadcasters as part of the LG SmartTV Solution for Pay TV at The Cable Show in Chicago.

At Endavo we’re especially excited, as for more than a year our team has worked very closely with Etisalat to implement our video services platform, as well as acquire many of eLife OnWeb’s content providers, which we continue doing today. We’ve seen market awareness of the Etisalat/LG syndication opportunity spread quickly throughout the global content community, and expect to see this accelerate as the news becomes public. So, if you’re interested in delivering your programming to one of the fastest growing regions in the world, and get paid, now is the time to contact Peter Contardo, our CMO and Head of Content, about getting in the Endavo Screening Room.

With more big Endavo news scheduled to soon follow, we promise to keep all TalkingTelcOTT blog readers apprised, so come back soon and often.

Paul D Hamm

Hooray For Digital Hollywood – Connected TVs Play Starring Role.

Last week, Endavo’s Jason Anderson traded in the Florida humidity for the arid confines of Digital Hollywood in Marina del Rey, California. The event was hosted at the Ritz Carlton Hotel, and attended by a wide range of industry executives, including service providers, studio toppers, hardware manufacturers and ad agencies.

Jason confirmed to our team that the connected TV experience (in the living room and beyond) was the talk of the conference, as panel after panel explored what is required to deliver an incredible viewing experience across multiple devices, with the TV being front and center.

As discussed at Digital Hollywood, connected TVs and other web-enabled living room devices such as Blu-ray players and media centers offer a powerful platform for service providers. We believe telcos are especially well-positioned to profitably combine traditional pay TV services with new content that satisfies consumers’ growing appetite for a la carte programming. In fact, telcos can use connected living room devices to deliver existing and emerging content via IPTV and OTT, with unparalleled quality of service and experience.

Digital Hollywood also highlighted the incredible advertising potential of connected TVs. 

As Yahoo is privately testing with many top U.S. broadcasters, ads on connected living room devices will soon allow users to interact with products while commercials play including choosing the color of a new Ford truck and scheduling a test drive. Considering a telco’s ability to offer such advertising in the living room and beyond, smart operators will use connected TVs to grow ad revenue by leaps and bounds.

As you consider your IPTV and OTT strategy, be sure to consider the significant revenue and customer retention opportunities available on connected TVs.

That’s how I see it. What are your thoughts?

Paul D Hamm

Connected TVs Represent An Immediate Opportunity To Telco TV Operators.

Connected TVs that connect the Internet to the TV represent a very quickly growing segment of the CE market. DisplaySearch forecasts global Connected TV units shipped to grow over 30% CAGR from 40 million sold in 2010 to 123 million to be sold in 2014. Emerging markets, such as MENA, will also play a key role in global Connected TV growth.

Connected TVs have the ability to quickly penetrate the market given their retail marketing power, which makes them very important compared to previous attempts to develop the OTT market based on set-top boxes (STBs). And as Connected TVs are purchased, consumers will tend to keep their TVs longer than other CE equipment, such as OTT STBs.

Telco TV service providers should not ignore the impact  Connected TVs will have on their businesses. Telcos who are embracing OTT video services, even alongside IPTV services, should view Connected TVs as an opportunity to reach subscribers and consumers with value-added services and cross-marketing opportunities through retail distribution channels. 

Connected TVs and OTT devices can be effective ways to entice subscribers with new OTT services that stand alone as additional revenue streams, while also encouraging the consumer to purchase/upgrade other services such as Internet packages and IPTV services. These retail CE distribution channels also allow telcos a competitive strategy, to reach beyond their existing networks and retail subscriber bases to offer consumers compelling OTT video services that open the door to convert them to other telco services.

That’s how I see it. What are your thoughts?

Paul D Hamm