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Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

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As Technical Alliances Director of BSkyB's Sky Interactive division, I was asked to speak of the problems and evolution of Interactive TV as we look forward from 2006.

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Page 1: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?
Page 2: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Evolving InteractivityThe effect of PVRs and IP Return Paths

Page 3: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Evolving Interactivity Effects of PVRs and IP Return Paths

• Current Limitations!

• Changing Habits!

• The Agents of Change - PVR and IP!

• Industry Issues – What still needs to be fixed!

• Internet Entertainment – Friend or Foe?!

• Where do we end up?

Page 4: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations

• So lets look at the current limitations:!– Broadcast vs. Online!

– User Experience!

– Billing!

– Technology!

– The Business Model

Page 5: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations

• So lets look at the current limitations:!– Broadcast vs. Online!

– User Experience!

– Billing!

– Technology!

– The Business Model

Page 6: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations

• So lets look at the current limitations:!– Broadcast vs. Online!

– User Experience!

– Billing!

– Technology!

– The Business Model

Page 7: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations

• So lets look at the current limitations:!– Broadcast vs. Online!

– User Experience!

– Billing!

– Technology!

– The Business Model

Page 8: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations

• So lets look at the current limitations:!– Broadcast vs. Online!

– User Experience!

– Billing!

– Technology!

– The Business Model

Page 9: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitation – Content Delivery"

Page 10: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitation – Content Delivery"

• TODAY: Content Delivery Costs!– Broadcast Bandwidth!

• Costly and Limited in availability (but can be fast)!

– Online Bandwidth!• Costly, freely available, (but tends to be slow)

Page 11: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitation – Content Delivery"

• TODAY: Content Delivery Costs!– Broadcast Bandwidth!

• Costly and Limited in availability (but can be fast)!

– Online Bandwidth!• Costly, freely available, (but tends to be slow)

• Broadcast Services!– Fast but shallow

Page 12: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitation – Content Delivery"

• TODAY: Content Delivery Costs!– Broadcast Bandwidth!

• Costly and Limited in availability (but can be fast)!

– Online Bandwidth!• Costly, freely available, (but tends to be slow)

• Broadcast Services!– Fast but shallow

• Online Services!– Slow but deep

Page 13: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitation – Content Delivery"

• TODAY: Content Delivery Costs!– Broadcast Bandwidth!

• Costly and Limited in availability (but can be fast)!

– Online Bandwidth!• Costly, freely available, (but tends to be slow)

• Broadcast Services!– Fast but shallow

• Online Services!– Slow but deep

• Tomorrow

Page 14: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitation – Content Delivery"

• TODAY: Content Delivery Costs!– Broadcast Bandwidth!

• Costly and Limited in availability (but can be fast)!

– Online Bandwidth!• Costly, freely available, (but tends to be slow)

• Broadcast Services!– Fast but shallow

• Online Services!– Slow but deep

• Tomorrow– Fast and Deep

Page 15: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitation – Content Delivery"

• TODAY: Content Delivery Costs!– Broadcast Bandwidth!

• Costly and Limited in availability (but can be fast)!

– Online Bandwidth!• Costly, freely available, (but tends to be slow)

• Broadcast Services!– Fast but shallow

• Online Services!– Slow but deep

• Tomorrow– Fast and Deep

– And

Page 16: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitation – Content Delivery"

• TODAY: Content Delivery Costs!– Broadcast Bandwidth!

• Costly and Limited in availability (but can be fast)!

– Online Bandwidth!• Costly, freely available, (but tends to be slow)

• Broadcast Services!– Fast but shallow

• Online Services!– Slow but deep

• Tomorrow– Fast and Deep

– And

Free!

Page 17: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

Page 18: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience

Page 19: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

Page 20: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

– A single application runs at once

Page 21: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

– A single application runs at once

– Animation is costly

Page 22: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

– A single application runs at once

– Animation is costly

– Video is limited

Page 23: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

– A single application runs at once

– Animation is costly

– Video is limited

– Interfaces are 2 dimensional

Page 24: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

– A single application runs at once

– Animation is costly

– Video is limited

– Interfaces are 2 dimensional

• Tomorrow:

Page 25: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

– A single application runs at once

– Animation is costly

– Video is limited

– Interfaces are 2 dimensional

• Tomorrow:– Applications can be “always

on”

Page 26: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

– A single application runs at once

– Animation is costly

– Video is limited

– Interfaces are 2 dimensional

• Tomorrow:– Applications can be “always

on”

– Multiple applications can run together

Page 27: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

– A single application runs at once

– Animation is costly

– Video is limited

– Interfaces are 2 dimensional

• Tomorrow:– Applications can be “always

on”

– Multiple applications can run together

– Interfaces will be animated

Page 28: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

– A single application runs at once

– Animation is costly

– Video is limited

– Interfaces are 2 dimensional

• Tomorrow:– Applications can be “always

on”

– Multiple applications can run together

– Interfaces will be animated

– Multiple video streams can be supported

Page 29: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Technology and the User Experience

• Today:User Experience– Applications take time to load

– A single application runs at once

– Animation is costly

– Video is limited

– Interfaces are 2 dimensional

• Tomorrow:– Applications can be “always

on”

– Multiple applications can run together

– Interfaces will be animated

– Multiple video streams can be supported

– 3 dimensional interfaces will be possible

Page 30: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

Page 31: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone

Page 32: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

Page 33: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

Page 34: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

– Business models limited to:• Anti Churn

• Revenue by Response

Page 35: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

– Business models limited to:• Anti Churn

• Revenue by Response

• No “Long Tail” Interactivity

Page 36: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

– Business models limited to:• Anti Churn

• Revenue by Response

• No “Long Tail” Interactivity

• Limited empowerment

Page 37: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

– Business models limited to:• Anti Churn

• Revenue by Response

• No “Long Tail” Interactivity

• Limited empowerment

• Tomorrow

Page 38: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

– Business models limited to:• Anti Churn

• Revenue by Response

• No “Long Tail” Interactivity

• Limited empowerment

• Tomorrow– Microbilling

Page 39: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

– Business models limited to:• Anti Churn

• Revenue by Response

• No “Long Tail” Interactivity

• Limited empowerment

• Tomorrow– Microbilling

– Customer Segmentation

Page 40: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

– Business models limited to:• Anti Churn

• Revenue by Response

• No “Long Tail” Interactivity

• Limited empowerment

• Tomorrow– Microbilling

– Customer Segmentation

– Direct Revenue relationships

Page 41: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

– Business models limited to:• Anti Churn

• Revenue by Response

• No “Long Tail” Interactivity

• Limited empowerment

• Tomorrow– Microbilling

– Customer Segmentation

– Direct Revenue relationships

– New Business Models• Click Throughs

• Contextual Advertsing

Page 42: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

– Business models limited to:• Anti Churn

• Revenue by Response

• No “Long Tail” Interactivity

• Limited empowerment

• Tomorrow– Microbilling

– Customer Segmentation

– Direct Revenue relationships

– New Business Models• Click Throughs

• Contextual Advertsing

– Unlimited “Long Tail”

Page 43: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Current Limitations:Billing and Business Models

• TodayCharging by subscription or via the Phone– All customers pay the same

– Great deal of “revenue erosion”

– Business models limited to:• Anti Churn

• Revenue by Response

• No “Long Tail” Interactivity

• Limited empowerment

• Tomorrow– Microbilling

– Customer Segmentation

– Direct Revenue relationships

– New Business Models• Click Throughs

• Contextual Advertsing

– Unlimited “Long Tail”

– Empowerment• What u want when u want it

Page 44: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

Page 45: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

Responses = Revenue

£

Page 46: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:

Responses = Revenue

£

Page 47: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

Responses = Revenue

£

Page 48: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

– Audience association

Responses = Revenue

£

Page 49: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

– Audience association

– Calls to Action

Responses = Revenue

£

Page 50: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

– Audience association

– Calls to Action

– Improved usability

Responses = Revenue

£

Page 51: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

– Audience association

– Calls to Action

– Improved usability

Responses = Revenue

£ £Cost of Content = Margin

Page 52: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

– Audience association

– Calls to Action

– Improved usability

• Cost of Content decreases with:

Responses = Revenue

£ £Cost of Content = Margin

Page 53: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

– Audience association

– Calls to Action

– Improved usability

• Cost of Content decreases with:– Re-skinned applications

Responses = Revenue

£ £Cost of Content = Margin

Page 54: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

– Audience association

– Calls to Action

– Improved usability

• Cost of Content decreases with:– Re-skinned applications

– Templates

Responses = Revenue

£ £Cost of Content = Margin

Page 55: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

– Audience association

– Calls to Action

– Improved usability

• Cost of Content decreases with:– Re-skinned applications

– Templates

– Re-use

Responses = Revenue

£ £Cost of Content = Margin

Page 56: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

– Audience association

– Calls to Action

– Improved usability

• Cost of Content decreases with:– Re-skinned applications

– Templates

– Re-use

– Simpler Authoring technologies

Responses = Revenue

£ £Cost of Content = Margin

Page 57: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactive Business Models - 101

• Responses increase with:– Richness of design

– Audience association

– Calls to Action

– Improved usability

• Cost of Content decreases with:– Re-skinned applications

– Templates

– Re-use

– Simpler Authoring technologies

– Cheaper delivery mechanisms

Responses = Revenue

£ £Cost of Content = Margin

Page 58: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

Page 59: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

• Revenue

Page 60: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

• Revenue– Opportunities for Interactivity Increase

Page 61: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

• Revenue– Opportunities for Interactivity Increase

– Usability increases

Page 62: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

• Revenue– Opportunities for Interactivity Increase

– Usability increases

– Calls to action become tuned, personalised and contextual

Page 63: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

• Revenue– Opportunities for Interactivity Increase

– Usability increases

– Calls to action become tuned, personalised and contextual

– More content and more destinations

Page 64: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

• Revenue– Opportunities for Interactivity Increase

– Usability increases

– Calls to action become tuned, personalised and contextual

– More content and more destinations

• Margin

Page 65: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

• Revenue– Opportunities for Interactivity Increase

– Usability increases

– Calls to action become tuned, personalised and contextual

– More content and more destinations

• Margin– Content becomes free to deliver

Page 66: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

• Revenue– Opportunities for Interactivity Increase

– Usability increases

– Calls to action become tuned, personalised and contextual

– More content and more destinations

• Margin– Content becomes free to deliver

– Content becomes free to acquire

Page 67: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

• Revenue– Opportunities for Interactivity Increase

– Usability increases

– Calls to action become tuned, personalised and contextual

– More content and more destinations

• Margin– Content becomes free to deliver

– Content becomes free to acquire

• Interactivity becomes more profitable

Page 68: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Tomorrow’s Interactive Business Models

• Revenue– Opportunities for Interactivity Increase

– Usability increases

– Calls to action become tuned, personalised and contextual

– More content and more destinations

• Margin– Content becomes free to deliver

– Content becomes free to acquire

• Interactivity becomes more profitable• New Models will emerge

Page 69: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Drive The Evolution

Page 70: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Empowerment

Page 71: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Empowerment• Today"

– PVRs are becoming the device of choice!– A large majority of TV is now watched

Time-Shifted.

Page 72: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Empowerment• Today"

– PVRs are becoming the device of choice!– A large majority of TV is now watched

Time-Shifted.

• Customers increasingly respond to empowerment!– Sky now has a grid of “favourites” in the

EPG!– Sky has a personal “Planner” of recorded

material

Page 73: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Empowerment• Today"

– PVRs are becoming the device of choice!– A large majority of TV is now watched

Time-Shifted.

• Customers increasingly respond to empowerment!– Sky now has a grid of “favourites” in the

EPG!– Sky has a personal “Planner” of recorded

material

• Other devices are following the trend:!– Personal Music Players!– Home media Distribution systems!– Niche Content delivered by Broadband TV

to PCs

Page 74: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Empowerment• Today"

– PVRs are becoming the device of choice!– A large majority of TV is now watched

Time-Shifted.

• Customers increasingly respond to empowerment!– Sky now has a grid of “favourites” in the

EPG!– Sky has a personal “Planner” of recorded

material

• Other devices are following the trend:!– Personal Music Players!– Home media Distribution systems!– Niche Content delivered by Broadband TV

to PCs

• The Future

Page 75: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Empowerment• Today"

– PVRs are becoming the device of choice!– A large majority of TV is now watched

Time-Shifted.

• Customers increasingly respond to empowerment!– Sky now has a grid of “favourites” in the

EPG!– Sky has a personal “Planner” of recorded

material

• Other devices are following the trend:!– Personal Music Players!– Home media Distribution systems!– Niche Content delivered by Broadband TV

to PCs

• The Future– PVR capability will be extended by

network storage over IP

Page 76: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Empowerment• Today"

– PVRs are becoming the device of choice!– A large majority of TV is now watched

Time-Shifted.

• Customers increasingly respond to empowerment!– Sky now has a grid of “favourites” in the

EPG!– Sky has a personal “Planner” of recorded

material

• Other devices are following the trend:!– Personal Music Players!– Home media Distribution systems!– Niche Content delivered by Broadband TV

to PCs

• The Future– PVR capability will be extended by

network storage over IP

– Vast Libraries of content will be available “on demand”

Page 77: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Empowerment• Today"

– PVRs are becoming the device of choice!– A large majority of TV is now watched

Time-Shifted.

• Customers increasingly respond to empowerment!– Sky now has a grid of “favourites” in the

EPG!– Sky has a personal “Planner” of recorded

material

• Other devices are following the trend:!– Personal Music Players!– Home media Distribution systems!– Niche Content delivered by Broadband TV

to PCs

• The Future– PVR capability will be extended by

network storage over IP

– Vast Libraries of content will be available “on demand”

• Online Programme search and recommendations will come

Page 78: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Empowerment• Today"

– PVRs are becoming the device of choice!– A large majority of TV is now watched

Time-Shifted.

• Customers increasingly respond to empowerment!– Sky now has a grid of “favourites” in the

EPG!– Sky has a personal “Planner” of recorded

material

• Other devices are following the trend:!– Personal Music Players!– Home media Distribution systems!– Niche Content delivered by Broadband TV

to PCs

• The Future– PVR capability will be extended by

network storage over IP

– Vast Libraries of content will be available “on demand”

• Online Programme search and recommendations will come

• Networks will begin to Exploit “The Long Tail” of media and Interactive Content

Page 79: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Empowerment• Today"

– PVRs are becoming the device of choice!– A large majority of TV is now watched

Time-Shifted.

• Customers increasingly respond to empowerment!– Sky now has a grid of “favourites” in the

EPG!– Sky has a personal “Planner” of recorded

material

• Other devices are following the trend:!– Personal Music Players!– Home media Distribution systems!– Niche Content delivered by Broadband TV

to PCs

• The Future– PVR capability will be extended by

network storage over IP

– Vast Libraries of content will be available “on demand”

• Online Programme search and recommendations will come

• Networks will begin to Exploit “The Long Tail” of media and Interactive Content

• Entertainment based content from the Internet will “interoperate” across multiple non-PC devices, using a common content format to build the front end.

Page 80: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

Page 81: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)

Page 82: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero

Page 83: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

Page 84: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:

Page 85: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:• You do it all, sell it all, store it all

Page 86: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:• You do it all, sell it all, store it all• You do everything, and then throw away

what does not work.

Page 87: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:• You do it all, sell it all, store it all• You do everything, and then throw away

what does not work.• The concepts of “Distribution” and

“Chokepoints” go away

Page 88: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:• You do it all, sell it all, store it all• You do everything, and then throw away

what does not work.• The concepts of “Distribution” and

“Chokepoints” go away • New Audiences are created, new content is

formed, new models evolve

Page 89: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:• You do it all, sell it all, store it all• You do everything, and then throw away

what does not work.• The concepts of “Distribution” and

“Chokepoints” go away • New Audiences are created, new content is

formed, new models evolve

Page 90: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:• You do it all, sell it all, store it all• You do everything, and then throw away

what does not work.• The concepts of “Distribution” and

“Chokepoints” go away • New Audiences are created, new content is

formed, new models evolve

• The Future

Page 91: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:• You do it all, sell it all, store it all• You do everything, and then throw away

what does not work.• The concepts of “Distribution” and

“Chokepoints” go away • New Audiences are created, new content is

formed, new models evolve

• The Future– Any and All interactive Services are

available

Page 92: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:• You do it all, sell it all, store it all• You do everything, and then throw away

what does not work.• The concepts of “Distribution” and

“Chokepoints” go away • New Audiences are created, new content is

formed, new models evolve

• The Future– Any and All interactive Services are

available

– Network based and time-shifted content remains interactive

Page 93: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:• You do it all, sell it all, store it all• You do everything, and then throw away

what does not work.• The concepts of “Distribution” and

“Chokepoints” go away • New Audiences are created, new content is

formed, new models evolve

• The Future– Any and All interactive Services are

available

– Network based and time-shifted content remains interactive

– Any Content is available and can be made Interactive

Page 94: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits – Niche

• The Long Tail (Chris Anderson)– Advances in technology drive costs to

almost zero– When the elements that make up your

business are essentially “free” you should adopt business models that use them differently from the “Economy of Scarcity”

– You no longer worry about waste:• You do it all, sell it all, store it all• You do everything, and then throw away

what does not work.• The concepts of “Distribution” and

“Chokepoints” go away • New Audiences are created, new content is

formed, new models evolve

• The Future– Any and All interactive Services are

available

– Network based and time-shifted content remains interactive

– Any Content is available and can be made Interactive

– Favourite Internet Services available “on demand”

Page 95: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Community

Page 96: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Community• Today:

Community DRIVES internet usage

Page 97: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Community• Today:

Community DRIVES internet usage• Sites!

– Messenger!– Skype!– MySpace!– YouTube!– Friends Reunited!– Linked-In

Page 98: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Community• Today:

Community DRIVES internet usage• Sites!

– Messenger!– Skype!– MySpace!– YouTube!– Friends Reunited!– Linked-In

• Services!– Recommendations!– Reviews!– Knowledge Sharing

Page 99: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Community• Today:

Community DRIVES internet usage• Sites!

– Messenger!– Skype!– MySpace!– YouTube!– Friends Reunited!– Linked-In

• Services!– Recommendations!– Reviews!– Knowledge Sharing

• Tomorrow:Community will DRIVE Entertainment

Page 100: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Community• Today:

Community DRIVES internet usage• Sites!

– Messenger!– Skype!– MySpace!– YouTube!– Friends Reunited!– Linked-In

• Services!– Recommendations!– Reviews!– Knowledge Sharing

• Tomorrow:Community will DRIVE Entertainment

• Examples of programming already occurring

Page 101: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Community• Today:

Community DRIVES internet usage• Sites!

– Messenger!– Skype!– MySpace!– YouTube!– Friends Reunited!– Linked-In

• Services!– Recommendations!– Reviews!– Knowledge Sharing

• Tomorrow:Community will DRIVE Entertainment

• Examples of programming already occurring

• Recommendations from your Community will drive your viewing Schedule

Page 102: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Community• Today:

Community DRIVES internet usage• Sites!

– Messenger!– Skype!– MySpace!– YouTube!– Friends Reunited!– Linked-In

• Services!– Recommendations!– Reviews!– Knowledge Sharing

• Tomorrow:Community will DRIVE Entertainment

• Examples of programming already occurring

• Recommendations from your Community will drive your viewing Schedule

• You will be part of Multiple Communities !– making you Unique

Page 103: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Community• Today:

Community DRIVES internet usage• Sites!

– Messenger!– Skype!– MySpace!– YouTube!– Friends Reunited!– Linked-In

• Services!– Recommendations!– Reviews!– Knowledge Sharing

• Tomorrow:Community will DRIVE Entertainment

• Examples of programming already occurring

• Recommendations from your Community will drive your viewing Schedule

• You will be part of Multiple Communities !– making you Unique

• There will be Niche and user generated content just for your communities

Page 104: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Community• Today:

Community DRIVES internet usage• Sites!

– Messenger!– Skype!– MySpace!– YouTube!– Friends Reunited!– Linked-In

• Services!– Recommendations!– Reviews!– Knowledge Sharing

• Tomorrow:Community will DRIVE Entertainment

• Examples of programming already occurring

• Recommendations from your Community will drive your viewing Schedule

• You will be part of Multiple Communities !– making you Unique

• There will be Niche and user generated content just for your communities

• The TV will be a communications and video messaging hub !– On the bridge of the enterprise – they use

the biggest screen they have!

Page 105: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Our “Wired” Lifestyle

Using a 1ft user interface Using a 3ft user interface Using a 10ft user interface

Page 106: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Our “Wired” Lifestyle• The Internet has already eroded

“Entertainment Time”

Using a 1ft user interface Using a 3ft user interface Using a 10ft user interface

Page 107: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Our “Wired” Lifestyle• The Internet has already eroded

“Entertainment Time”

• Most western people “depend” on the Internet

Using a 1ft user interface Using a 3ft user interface Using a 10ft user interface

Page 108: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Our “Wired” Lifestyle• The Internet has already eroded

“Entertainment Time”

• Most western people “depend” on the Internet

• “Life Style” services are demanded to be Ubiquitous!– Mobile eBay!– Hotmail Kiosks

Using a 1ft user interface Using a 3ft user interface Using a 10ft user interface

Page 109: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Our “Wired” Lifestyle• The Internet has already eroded

“Entertainment Time”

• Most western people “depend” on the Internet

• “Life Style” services are demanded to be Ubiquitous!– Mobile eBay!– Hotmail Kiosks

• The Internet is becoming a key entertainment source!– PCs and Mobiles are ideas devices for

Content Creation!– The TV is an ideal device for Content Consumption

Using a 1ft user interface Using a 3ft user interface Using a 10ft user interface

Page 110: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Our “Wired” Lifestyle• The Internet has already eroded

“Entertainment Time”

• Most western people “depend” on the Internet

• “Life Style” services are demanded to be Ubiquitous!– Mobile eBay!– Hotmail Kiosks

• The Internet is becoming a key entertainment source!– PCs and Mobiles are ideas devices for

Content Creation!– The TV is an ideal device for Content Consumption

• Its inevitable that these services will be made available via the TV

Using a 1ft user interface Using a 3ft user interface Using a 10ft user interface

Page 111: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Changing Habits - Our “Wired” Lifestyle• The Internet has already eroded

“Entertainment Time”

• Most western people “depend” on the Internet

• “Life Style” services are demanded to be Ubiquitous!– Mobile eBay!– Hotmail Kiosks

• The Internet is becoming a key entertainment source!– PCs and Mobiles are ideas devices for

Content Creation!– The TV is an ideal device for Content Consumption

• Its inevitable that these services will be made available via the TV

• Mobile TV

Using a 1ft user interface Using a 3ft user interface Using a 10ft user interface

Page 112: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interactivity in a Broadband / PVR world

TV access!“wtv” sites

IP TV NETWORK

Your web content

www server

PC access “www” sites

wtv server THE INTERNET

GATEWAY

Page 113: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Industry Issues – still to be solved

Page 114: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Today:Web services and entertainment do not work on TV devices

Web Site!Operator #1

Web Site!Operator #2

Web Site !Operator #3

Web Site !Operator #4

Web Site !Operator #n

PC !Category!Devices

PC!Standard

TV category devices not part of mainstream e-business

TV Network 1 HTML 3.1

TV Network 2 Html 4.0

TV Network 3 OpenTV

TV Network 4 MHP

Page 115: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Today:Web services and entertainment do not work on TV devices

Web Site!Operator #1

Web Site!Operator #2

Web Site !Operator #3

Web Site !Operator #4

Web Site !Operator #n

PC !Category!Devices

PC!Standard

TV category devices not part of mainstream e-business

No Good!

TV Network 1 HTML 3.1

TV Network 2 Html 4.0

TV Network 3 OpenTV

TV Network 4 MHP

Page 116: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Device specific authoring?

Authoring the same service over again for each network…..

Web Site!Operator #1

Web Site!Operator #2

Web Site !Operator #3

Web Site !Operator #4

Web Site !Operator #n

TV Network 1 HTML 3.1

TV Network 2 Html 4.0

TV Network 3 OpenTV

TV Network 4 MHP

PC !Category!Devices

PC!Standard

Page 117: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Device specific authoring?

Authoring the same service over again for each network…..

No Good!

Web Site!Operator #1

Web Site!Operator #2

Web Site !Operator #3

Web Site !Operator #4

Web Site !Operator #n

TV Network 1 HTML 3.1

TV Network 2 Html 4.0

TV Network 3 OpenTV

TV Network 4 MHP

PC !Category!Devices

PC!Standard

Page 118: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interoperability between Broadcast and Broadband and the Internet

PC !Category!Devices

PC!Standard

Web Site!Operator #1

Web Site!Operator #2

Web Site !Operator #3

Web Site !Operator #4

Web Site !Operator #n

TV Network 1 HTML 3.1

TV Network 2 Html 4.0

TV Network 3 OpenTV

TV Network 4 MHP

Page 119: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interoperability between Broadcast and Broadband and the Internet

PC !Category!Devices

Worldwide-TV Standard

PC!Standard

Web Site!Operator #1

Web Site!Operator #2

Web Site !Operator #3

Web Site !Operator #4

Web Site !Operator #n

TV Network 1 HTML 3.1

TV Network 2 Html 4.0

TV Network 3 OpenTV

TV Network 4 MHP

Page 120: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interoperability between Broadcast and Broadband and the Internet

PC !Category!Devices

Worldwide-TV Standard

PC!Standard

Web Site!Operator #1

Web Site!Operator #2

Web Site !Operator #3

Web Site !Operator #4

Web Site !Operator #n

TV Network 1 HTML 3.1

TV Network 2 Html 4.0

TV Network 3 OpenTV

TV Network 4 MHP

Page 121: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Interoperability between Broadcast and Broadband and the Internet

PC !Category!Devices

Interoperability promises to unify “TV category devices” making themas populous as Internet connected PCs

C

Worldwide-TV Standard

PC!Standard

Web Site!Operator #1

Web Site!Operator #2

Web Site !Operator #3

Web Site !Operator #4

Web Site !Operator #n

TV Network 1 HTML 3.1

TV Network 2 Html 4.0

TV Network 3 OpenTV

TV Network 4 MHP

Page 122: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Market Trends

Traditional Internet!Transactional and

Information Services

Traditional TV!Multi channel Entertainment

Page 123: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Market Trends

Traditional Internet!Transactional and

Information Services

Traditional TV!Multi channel Entertainment

Today

Page 124: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Market Trends

Traditional Internet!Transactional and

Information Services

Traditional TV!Multi channel Entertainment

PC style Internet sites do not work on TV

Today

Page 125: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Market Trends

Traditional Internet!Transactional and

Information Services

Traditional TV!Multi channel Entertainment

Rapidly moving to “IP” TV!TV delivered over!Internet Protocols

Page 126: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Market Trends

Traditional Internet!Transactional and

Information Services

Traditional TV!Multi channel Entertainment

Rapidly moving to

Multimedia Internet!Entertainment!

“Broadband TV”

“IP” TV!TV delivered over!Internet Protocols

Rapidly moving to

Page 127: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Market Trends

Traditional Internet!Transactional and

Information Services

Traditional TV!Multi channel Entertainment

Rapidly moving to

Multimedia Internet!Entertainment!

“Broadband TV”

“IP” TV!TV delivered over!Internet Protocols

Rapidly moving to

Delivered using set-top boxesand home entertainment devices

Page 128: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Market Trends

Traditional Internet!Transactional and

Information Services

Traditional TV!Multi channel Entertainment

Rapidly moving to

Multimedia Internet!Entertainment!

“Broadband TV”

“IP” TV!TV delivered over!Internet Protocols

Increasing requirement fora 10ft User experience

Rapidly moving to

Delivered using set-top boxesand home entertainment devices

Page 129: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Market Trends

Traditional Internet!Transactional and

Information ServicesMultimedia Internet!

Entertainment!“Broadband TV”

“IP” TV!TV delivered over!Internet Protocols

Increasing requirement fora 10ft User experience

Interactive Opportunities

Bringing Internet

Content and Services

to the 10ft Interface

Delivered using set-top boxesand home entertainment devices

Page 130: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Market Trends

Multimedia Internet!Entertainment!

“Broadband TV”

“IP” TV!TV delivered over!Internet Protocols

Delivered using set-top boxesand home entertainment devices

New Content

Friend or Foe? You Decide

Page 131: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

So where do we end up?

Page 132: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

So where do we end up?

• A Converged Broadcast and Broadband TV world

Page 133: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

So where do we end up?

• A Converged Broadcast and Broadband TV world

• Interoperability – the problem that MUST be now solved.

Page 134: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

So where do we end up?

• A Converged Broadcast and Broadband TV world

• Interoperability – the problem that MUST be now solved.

• Internet Business Models will now support TV entertainment!– Whether delivered over broadcast or broadband

Page 135: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

So where do we end up?

• A Converged Broadcast and Broadband TV world

• Interoperability – the problem that MUST be now solved.

• Internet Business Models will now support TV entertainment!– Whether delivered over broadcast or broadband

• Personal, Empowered and Local!– The TV takes on a new character

Page 136: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

So where do we end up?

• A Converged Broadcast and Broadband TV world

• Interoperability – the problem that MUST be now solved.

• Internet Business Models will now support TV entertainment!– Whether delivered over broadcast or broadband

• Personal, Empowered and Local!– The TV takes on a new character

• It will be your mechanism to share and consume all forms of entertainment

Page 137: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

So where do we end up?

• A Converged Broadcast and Broadband TV world

• Interoperability – the problem that MUST be now solved.

• Internet Business Models will now support TV entertainment!– Whether delivered over broadcast or broadband

• Personal, Empowered and Local!– The TV takes on a new character

• It will be your mechanism to share and consume all forms of entertainment

With the birth of IPTV and Broadband TV there will be a Tsunami of Content

Page 138: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Can You Hear it?

Tsunami2.mp3

Page 139: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Can You Hear it?

Tsunami2.mp3

Page 140: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Thank You" Ian Valentine " +44 796 796 5298

Page 141: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Thank You" Ian Valentine " +44 796 796 5298

Tsunami of Content courtesy of Colin Dixon

The Diffusion Group www.tdgresearch.com

The Long Tail!Courtesy of

Chris Anderson!www.thelongtail.com

Page 142: Interactive TV Show - Berlin - 2006 - What's the future of Interactive TV?

Discussion