apple tv perspectives for networks on the "future of tv"
TRANSCRIPT
TV Perspectives for Networks on the “Future of TV”
Much has been written in the short time since Apple’s announcement of its new Apple TV device and accompanying tvOS. Of this, a fair amount is hyperbole, predicting the demise of various players from across the TV industry, and all manner of shake-ups, revolutions and reinventions of the industry have been threatened. At this point, we don’t want to get into any more grandstanding about the state of the industry. Rather, we want to delve into the immediate significance of the announcement for our many clients in and around the TV industry. Clearly these are very early days, and as the dust settles, we’re working with the new tvOS to establish new principles of development and design. But for now, the following are the main areas for immediate focus:
“Apple TV may trigger a broad rethink of a revenue-generation model that is already in flux.”
Rebuild, redesign Like it or not, anyone with a current Apple TV offering is in for a frustra:ng period in their digital evolu:on. The new tvOS requires a whole new app to be built for the new hardware and app store, while you will inevitably need to con:nue to support content fed to older Apple TV devices. This will doubtless cause irrita:on to networks with ongoing Apple TV projects, which have instantly lost close to all of their value. There’s also a new set of design standards to cater to. One example is the new set of icons which are no longer flat, but require two-‐to-‐five layers of depth to support the anima:on. New gestures, voice, the quasi-‐parallax anima:ons, and a variety of new touch-‐and-‐:lt commands related to the new remote will need to be considered.
It’s not just tvOS While the app itself is wrapped inside a tvOS app (which is broadly similar to iOS using SwiL), much of the body in the app is made up of old-‐fashioned HTML and JavaScript. This may be to make sure all channels feel familiar to users. While it may seem like this opens up avenues for efficiency through code reuse, the new templates and markup have changed significantly, making a full rewrite necessary. So those companies with in-‐house mobile development teams will also have to augment their programs with front-‐end web developers.
Own the schedule With the advent of the app economy, many prac:ces that have emerged over recent years on mobile can be ported to TV. Any contact you can have with a consumer is now that much more integrated with their actual watching of a given TV show. Chief among these interac:ons may be no:fica:ons. Whether we like it or not, most fans don’t associate a show with either its producer or its distributor. When a show is top-‐of-‐mind, Apple’s search func:on is useful, but oLen shows fly under the radar aLer the first season. No:fica:ons will provide an opportune way to alert viewers to shows they’ve seen before, no longer leaving crucial prompts to the whim of cable companies or media.
Rethinking revenue If Apple TV and the app model take off as Apple hopes, there may have to be a broader rethink of the adver:sing and revenue-‐genera:on model that is already in a state of flux. Currently, the focus is almost exclusively on eyeballs and viewers of linear content. Networks, however, will have to take digital repor:ng much more seriously and integrate viewing figures from another major source. The jury must s:ll be out on whether viewers are going to start shopping via their TV as Tim Cook and company clearly hope. This uncertainty was demonstrated by the slightly awkward feel of the Gilt app, demonstrated in the Apple event. However, layering purchase opportuni:es on the viewer or crea:ng truly interac:ve commercials could be a really powerful new ad plaUorm for marketers, and a potent revenue stream to augment product placement. New ad formats will be required: imagine Lexus doing a deal with a drama for product placement. A viewer could click the car with the remote touchpad, learn about it or input data in a smaller lower window—all the while con:nuing to watch the show. This is preXy exci:ng stuff.
Adopt an apps-first strategy While we should never take anything Apple says without a grain of salt, the bold claim that “The Future of TV is Apps” is certainly a portent of things to come. Just as we’ve seen the eleva:on of apps to be the primary content vehicle on mobile, we are likely to see the same for TV—par:cularly in the absence of anyone pushing a viable browser solu:on. Apps are likely to benefit, as with other devices, from a concurrent push into gaming on TV, and from the con:nua:on of games and movies between devices (widely popularized, it must be said, by NeUlix). These will combine to make apps the “new normal” for TV naviga:on. This will likely trigger new TV behaviors in the majority of people who have never used any of the “smart” func:ons on their TV. This is good news for all content generators, as the mobile consumer has been trained over years to pay for content via the App Store. So any OTT offering should find a willing base of consumers with payment details readily available to be converted at the tap of a remote.
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Tagging will be key One of the worrying aspects of the new Apple TV from a broadcaster perspec:ve is the cross-‐app search func:onality, par:cularly with regard to Siri. An example of this problem will arise when a user says, “Show me some exci:ng drama.” In its release version, Apple appears to have indexed the launch partners (HBO, NeUlix, Hulu, Show:me) according to a common taxonomy. To be searchable, it seems that your content will need to match up to this taxonomy, which could be a considerable job for networks with years of archived content. The obvious issue with Apple’s media:on of search via Siri is how it will select from appropriately-‐tagged content to serve into those priceless first couple of search result spots. In the near term, this could result in a coXage industry of SEO gaming as already happened in iTunes. It’s not impossible for Apple to turn this into a commercial venture, although that urge has so far been resisted elsewhere in iTunes.
Single-show apps? While most shows don’t reap long-‐term passionate interest from a large following of fans, there are a number of shows that do. Content creators will have to decide whether these shows go it alone with their own apps, packing the video out with addi:onal content and features, or whether to simply bundle the show in with the rest of their roster. There are arguments on both sides. A single-‐show app will avoid the brand’s credibility and the user experience being crowded out by inappropriate content from other shows. It will also make viewers much less likely to turn off no:fica:ons if they’re sure that they will only receive messages about shows they like. Searches for a show such as Big Bang Theory will probably find results from at least three different networks. How else can users know which network has all the episodes or which has the newest ones unless there is a comprehensive and authorita:ve Big Bang Theory app? On the other hand, divorcing shows from the network might weaken the overall brand experience for the network. This could be mi:gated by cross-‐promo:ons and links between the apps, but it’s another layer of complexity and cost.
And there’s more…
An app ideally shouldn’t be just a player for video content. App func:onality provides opportuni:es for many other types of content
outside of core programming. Sports is the obvious example, with MLB showcasing how their stats and mul:-‐game broadcast can add value to game-‐day. For shows with a dynamic fanbase and a rich
trove of content, an app can add a wealth of value to keep users loyal to the show, generate social-‐media traffic to proliferate clips and excitement, and gather data for other CRM efforts.
So alongside the main video, it’s going to be more important to consider how you keep people around in the app environment, which could be very profitable. What else can you do to make apps more compelling and s:cky? A host of addi:onal content for apps could
include behind-‐the-‐scenes material and ouXakes, compe::ons, social and community features, and more. Of course, as always, decisions must be made about which shows have the requisite interest for these features.