CTAM EuroSummit ’11. Over-the-top may look like a big challenge to existing business models, but look at it from the consumers’ point of view, said Aleks Habdank, director digital entertainment products, Virgin Media, speaking at the Connected TV, marketing the ‘new paradigm’ session.“To them it is a pretty confusing world – in a pure OTT world there are so many questions and who do they call if it doesn’t work?”
So Virgin Media’s answer lies in offering a simple solution, “With state of the art PVR functionality, content discovery in a content world. We aim to reduce complexity and retain familiar navigation and menus while adding new features embracing the apps and OTT worlds. This is all about next-generation TV, not the PC and it need to be as simple as possible.”
Virgin media chose TiVo as its solution, but Habdank also cited the company’s success with VOD. “We had a 2005 VOD launch and now we have over 1 billion views this year. In terms of average hours watched per week it is the 3rd most watched channel after BBC One and ITV1, and before BBC Two and Channel 4.”
Habdak said the operator uses the ‘through the middle” approach. “A simple connection through our network; a simple consistent consumer interface; a simple standard based technology and simple comprehensive service.”
Jorge Filip Graça, executive board member, Zon TV, said his company is going a step further “We see ourselves as a content distribution platform, not just as TV or pay-TV platform. We adapt to new consumption patterns and anticipate consumers’ needs. Our communication reflects this positioning, which centres around personalisation and singularity of each person’s use. We offer functionality and how it is relevant.”
Zon TV was the first to implement NDS’s Snowflake interface, which will also be part of Liberty Global’s Horizon gateway.
Jeremy Maddocks, regional director Russia CIS, C& ER Europe at NDS, asked “Is connected TV just a gimmick or a game changing news?” The facts are there: at the end of this year there will be five million connected homes in Germany, same in France and all over the world
“Technology is slow to arrive, when it happens people are surprised how fast it arrived. But not all new technology is accepted. Push button interactivity died a slow death, it took too long, it was too slow. Not ideal way to interact with your bank. The UI needs to be cool and don’t underestimate if it takes a second too long.”
Maddocks stressed the importance of measurement of viewing content, “if it isn’t measure it doesn’t generate revenues.” He believes connected TV and OTT will move towards established brands, as was shown by DirecTV and BSkyB, who launched their own OTT services. “No single brand or delivery will dominate, but smart broadcasters will be there.”
Vassilis Seferidis, European business development director, Samsung, represents a company that on the one hand developed its own OTT services as a CE manufacturer, but is also one of the partners in the Horizon project. “We started early in 2007, in 2010 we introduced Apps and our smart hub in 2011.” The company expects there to be 1,000+ apps by the end of this year. “We see substantial growth in active connections, online purchases and repeat users.”
Samsung does compete with platforms, for instance with their 3D VOD service in which the offer on an OTT basis free 3D content. A situation, which is jot acceptable to Zon TV’s Graça, who argued that such services are mutually exclusive.
“I have rights to all the content that is available on Netflix If Netflix has a better deal than I have, then I will go to the owners, because the two models will not be sustainable. If the likes of Samsung try to break the model – they still need to connect via me.”
The good news for operators is that they can now react to this threat. “if people have a cool EPG, such as the one from Zon, why would they want to use another way. There is a revolution, that’s the reason why UPC has gone for Horizon. They have seen the threat, if they don’t improve the service and the brand people will go away – so it is already changing the market. But it doesn’t mean some other party is taking the market. All this new stuff is being driven by the threat – in a way that it is already having an impact.”
