Deadline Media Television has just published its latest report, Connected Television in the UK and Ireland. Their comprehensive 250 page analysis, complete with forecasts, shows that connected television currently accounts for some 4% of broadcasting industry revenues, rising to around 15% in 2017.
The UK and Ireland, between them, have the largest and most competitive broadcasting sector in Europe. Nevertheless, the UK has not got its act together on standards. YouView has failed in its objectives and it needs to promote the MHEG-IC platform.
The cost to the consumer of connecting their televisions to broadband has become irrelevant. Streaming media boxes and dongles are likely to play an increasing role but connectivity is increasingly being built into televisions as a matter of standard practice. In the meanwhile STBs will continue to play a major role in the provision of OTT TV services. Samsung looks to have won the battle to become the dominant proprietary smart TV platform.
By far the biggest challenge facing OTT TV is the development of new advertising models, particularly in relation to social TV and the second (companion) screen.
OTT TV services have largely emerged as “top up” TV options rather than low-pay alternatives to BSkyB.
We are unconvinced that pure play pay OTT, particularly sVoD, will become a major player in the connected television environment.
Underlying connected television is a battle between content owners weak on technology and technologists who have no compelling content. There is no obvious outcome. The very definition of what is meant by television is now uncertain.
Communications regulation is falling behind technological change. This is likely to cause huge problems in providing a competitive market for high speed broadband. LLU and facilities-based competition are beginning to break down.
For more information visit Deadline Media Television.