Why Connected TVs Will Always Be In Mobile’s Shade

Posted on Oct 19, 2010 by Alex Fice

Samsung had their first App Development meeting in London yesterday but it’s a niche market for developersSamsung threw their first App developer meeting for their Smart TVs yesterday at a meeting in Vinopolis in London. The future of the connected TV was conjured up and various luminaries pictured a future of smart TV devices vying for the lead against established mobile platforms. But for a developer who has written for platforms like the iPhone and Android porting their App to Smart TVs must feel like a constricted experience. Hand gestured-based mobile platforms are successful as you always have your hands available and can swipe and pinch to operate an App. The connected TV has no such choice and will use remotes and game pads to illicit responses from Apps. This is why connected TVs will offer such a ‘de-tuned’ experience from the mobile platforms.

Having said that there are obvious Apps that would work alongside your TV, YouTube, Lovefilm, Skype to name just three and three with video at their heart and here is where connected TVs will find their niche.

Samsung is however gilding the lily by awarding a series of prizes for best application through their European initiative. Go here for further information

Household saturation of IP enabled devices in Western EuropeConsumer interest in connected CE devices – particularly connected TVs and Blu-ray players – has been slow to develop, predominantly due to a lack of industry and retail push, and a glut of competing solutions which are already providing swift and easy access to entertainment, information and communications. Pay-TV, PCs, smartphones and – most recently – the iPad are all enabling consumers to access information however, wherever and whenever they want it.

“Despite the initial low level of interest in connected TVs, we are now reaching a point of critical mass,” says David Watkins, Consumer Electronics Consultant, Futuresource Consulting. “Our analysis shows consumer usage growing as connected TV devices become increasingly versatile and the range of content, applications and major web brands available on CE platforms increases.

 “There is a current surge of industry interest in TV application development, closely following the mobile phone model, and in some instances this will also allow a micropayments business model to be put in place. In the mobile market, only Apple and Blackberry have, so far, created revenue models based on apps and services respectively, and other cellphone makers are dependent primarily on device sales. Despite this, in the emerging Connected CE space, hardware makers are looking for monetization models from content owners and online service providers, with a variety of approaches under review.”

Connected CE devices will stimulate further growth in digital content sell-through, boosted by enhanced networking solutions, more flexible access to purchased content and growth in streaming media.

“Online subscription and VoD services may experience some growth through connected CE devices, but there will be competition from incumbent Pay-TV distributors, and these providers are looking to exploit Connected CE, to broaden reach and extend their brands into new and lucrative markets,” says Watkins. “As the penetration and versatility of television sets continues to rise, we’re also going to see programmers, advertisers, publishers and e-commerce providers tapping into Interactive TV, enabling real-time interaction between broadcast and online media.

“A significant amount of flow associated with Connected CE services and apps will come from advertising, sponsorships, e-commerce, and interactive services. Many of the revenue streams will build upon existing opportunities, such as premium rate phone lines.”

For the CE hardware manufacturers, connected CE creates a path to added value via Web services and Interactive TV applications. In the highly commoditized flat panel market, where traditional factors like screen size, thinness and image quality are running out of headroom, value-add inclusions like connectivity, energy saving and 3D capability are adding a new dimension to the offering and adding a new competitive element beyond the battle for price point.

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