social tv presentation for digital tv expert group

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Digitale TV expertgroep, 22 mei 2008

The impact of Social TV on the television business

Martijn Staal, Michiel Peters

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Social TV PilotContext1What is social Television?

User experience2What is the effect of social TVon television viewing behaviour & experience?

Business3Impact of social TV serviceson the TV business

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Consumers have access to multiple content sourcesand content selection methods

New content servicesContent selection tools

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Social networks move into the living room

What is the impact of social networks on the TV business and

the way how people are watching TV?

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“Tele2 brings socialnetworksite Hyves to

television”Webwereld, 6 february 2008

Objective: insights & experiences on social TV

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TNO investigated the impact of using social TV within a pilot with 52 households

• 9 groups with 4-10 interrelated friends

• TNO provided media PC with ConnecTV application with social TV functionality

• Period: September till November 2007

• Measurement of viewing behavior and TV experience of ConnecTV users

• Measurement of experience, attitude and emotion with new research method

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ConnecTV pilot functionality

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Few general impressions of participants

“Nice add-on to television.”

“Although a few bugs, it is a nice service.”

“No added value for what I’m willing to pay money.

“Set-up of the service is good but still very limited.”

“Knowing what your friends are watching is fun.“

“Changing of channels is slow, start-up is slow, only few

people are online.“

Where is the chat-functionality. If a buddy comes online I would like to chat with him.

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Participants indicate a small change of viewing habits through the use of ConnecTV

• 20% of the participants indicate that they sometimes watch different channels with ConnecTV

• The log information also shows a small movement of viewed channels

• “Most popular” button was rated as nice/useful by half of the participants

• Status messages (‘Armin also watches this channel’) were ratedas most useful functionality

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Social TV may change the way people watch TV

• Most popular functionality during the pilot:• Buddy list (2.3x per TV session)• Viewing tips (47% accepted)• Watching together (75-90% accepted)

• ConnecTV stimulated communication via other channels (sms, calling, etc.)

• Decrease of zapping behaviour (29% of total users)

• 20% change in watched TV channels

• More interactive services wanted (Instant Messaging, etc.)

“It is not an intrusion of privacy. You actually learn to know you friends better.

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Digital TV in the Netherlands> 95 percent of cable (DVB-C) coverage > 99 percent of telephony coverage

DVB–T ~ 70% coverageTerrestrial

DVB–S – 100% coverageSatellite

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Internet video services

New interactive services will be important to keep ahead the competition from internet services

+ Analogue & digital+ Large user base+ Growth interactive services+ Quality content & HD - Limited social functionality

- Limited offer of TV channels- Limited quality- Primarily for TV onPC, not in living room+ Growth of interactive services+ New ways for finding& organizing content

Sustainable competitiveadvantages fade away

TV business need to develop extra differentiated services

CurrentTV services

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TV SPs have an important role in social TV services

ConsumerContent

productionContent

aggregator

TV platform

STB distribution

Advertising

TV service provider

TV SPs can fulfill most of the roles in the TV value web

TV SP candistribute

application onsettop boxes

TV SP can integratesocial TV platform with

systems & processes

Social TVprovider

TV SPs can use social TV in with extensive collection of

other’s and own content

TV SP has access to the needed connectionwith the TV platform

TV SP can use socialTV to stimulate other

services

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Social TV services can generate multiple sources of revenues for UPC

Advertising

Premium

Upgrade

Social TV can stimulatethe use of other

(premium) services

The use of social TV opens up extra ways

of advertising

Social TV relatedservices can

stimulate upselling & reduce churn

Extra:

Insight formats& targetedadvertising

Extra:

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• TV business needs to be prepared for social TV

• Join other existing TV & internet initiatives to maximize reach and strengthen the situation

• Make social TV services useable for TV as well as other content.

• Minimize barriers to use social TV

• Work together to enlarge the reach for ConnecTV and maximize the network effect.

• Search for extra revenue models that make the business case stronger (e.g. agreements with advertisers/broadcasters)

For optimizing the business case for social TV, scale and new revenue models are needed

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Thank you for your [email protected]

06-5191 6237