Here’s the next hype: TV apps
March 30, 2011 2 Comments
I felt very flattered to be invited to a panel on apps and digital distribution at the D-Media conference in London. Even more so sitting alongside the legendary Victor Harwood, founder of Digital Hollywood. Apparently his first conference in the 80s was on http. I think I was playing around with a Commodore 64 at the time trying to get my head around BASIC – completely oblivious to the beginnings of the interweb.
The panel was at BAFTA, so inevitably the subject TV apps came up - it’s the sort of stuff that makes my blood boil, particularly when it is mentioned with that over-excited tone of voice. Here is my take on it: TV apps are at the beginning of the hype cycle. This means nobody really understands the benefit of the technology to content producers and users whilst a bunch of gadget cheerleaders are talking it all up.
One developer, who shall remain anonymous in order to protect his reputation, seriously sent me a white paper saying that my employer could earn up to $200k a month in advertising revenues, were we to launch apps on all major connected TV devices. It’s a brilliant sales technique if your customers are a bunch of hopeless boneheads. I felt insulted.
Don’t get me wrong, I do believe we are at the beginning of another revolution here and TV companies need to look out for a major agent of disruption. When your audience can break out of the hitherto walled garden of broadcast TV all sort of things can and will happen. There is no doubt that it will eventually change user behaviour and challenge conventional business models.
Yes, it’s coming our way, BUT it’s not here yet. Millions of households will have internet enabled TVs, but it doesn’t necessarily mean they will connect and use the web. (There’s also another debate to be had on set-top boxes, companion devices etc. another time) Before we get to the new world of TV apps we will have to endure a senseless hype and people like me have to get their head around the main question: what does it do?
I don’t know the answer yet, but over the next 12 months I will be working on a story. Here is one I’m considering: Give viewers the option to dive into detail when they opt to do so. Eg. I am watching a story on Shell’s stock price collapsing – now I can open the app to view an interview with the CEO, charts comparing Shell’s stock price with competitors, further analysis and outlook from our website. Or what about a personalised ticker I can overlay onto any programming? I want to make an app that’s actionable and personalised.
Now I am getting excited – about the drawing boards, story drafts and brainstorm sessions with creative minds. In the meantime I need to ensure that I gather some data and experience on how this new world works. My colleagues in the US have already launched on Google TV who despite their problems with content and hardware have got to be a safe bet. The experiment begins, but please don’t ask me for a business plan.
Very interesting opinion especially when it comes from the side of content owners without whom that revolution can’t happen anyway. I can agree there aren’t any existing business models that can be applied as-is or modified to start working or simply said – generating revenues. That’s why I think the only way to start that revolution happens is by trying new things out with some small steps. And those steps to be done by all involved parties.
However, before making such a step when you try something it is needed to become available to as many people as possible with a single shot. It is also crucial to do it fast with as less possible as resources. And building a TV app is not quite the case – build a TV app for every single TV or media box make, upload and manage that app in its TV apps store, etc, etc. Market today is quite fragmented and there need to have solutions that establish content distribution channels regardless of the end-device (where user actually consumes the content). In addition content integration with such solutions shall be close to zero for content owners and publishers so that they can keep their focus on the content itself and not on integration effort. In short such a solution can be compared to todays internet service providers – they are the must have pipes that bring the content to the consumer but nobody deals with them how to integrate that content.
Thanks for your insight, Stefan. Fragmentation is a real risk to us content owners. Ideally, we would like to serve all platforms via one app or database and we are already looking to do that on mobile, where HTML 5 and web-kits are now good enough to provide a unified distribution channel.
However, quite often native applications still have the advantage of enabling a superior user experience. We have to balance our desire for experimentation at low cost with our ambition to produce best of breed apps for our audience.