SMARTTELEVISIONS

IN 10L a s t U p d a t e d : A u g u s t 2 0 1 2S h a y M e r r i t t é | A G I n t e r a c t i v e F o u n d r y

S M A R T T VA SMART TV IS A TV THAT INCLUDES AT LEAST A RUDIMENTARY OS, ACCESS TO WEB AND INTERNET FUNTIONS AND STREAMING CONTENT.

1 D E F I N I T I O N

At stake is a growing world market for internet-connected TVs forecast nearly double from $68 Billion in 2011 to $122 Billion in 2016

2 0 1 12 0 1 6

2

At the end of 2011 there were 82 million conntected TVs in homes worldwide by 2016 it forecasts that number will have ballooned to 892 million.

HOW

MANY2 0 1 1 2 0 1 6

3

S M A R T T V SA R E S C A R Y

Many consumers face FUD (Fear, Uncertainty, Doubt) in their decision to purchase smart TVs. There is a temporal mismatch between the lifetime of a TV and the lifetime of a mobile device, mobile OS or mobile processor, the performance aspect of a smart TV while decrease precipitously over time tying relatively cheap 2-3 year life cycle smarts to an expensive 10 year product just doesn’t make sense. Consumers fear the planned obsolesce of their pricey TVs, compounded by the various comepeting companies and their proprietary products.

4

P E R F O R M A N C EU T I L I Z A T I O N

PE

RF

OR

MA

NC

E

T I M E

P E R F O R M A C E C O N S U M E R S C A N R E A L I S T I C LY U T L I Z E

T E L E V I S I O N P E R F O R M A N C E

The television manufacturers have been purshing Smart TVs for more than a decade, but haven’t addressed the fact that the devices are still a high-end product and have more performance than the average consumer can realisticly utilize, and justify the price premium, until the performance of the Smart TVs or the service that a Smart TV provides can match the utilization of the consumer, consumers will be leary of purchasing them. I N T R O D U C T I O N

O F T H E I N T E R N E T C O N N E C T E D T V

5

10 F O O T R U L E

CONSUMERS WANT TO CONSUMEConsumers for the most part want to passively consume when they are in front of the television, rather than create. Currently the most used apps on smart TVs, are those that deliver content to the television like Netflix and MLB.tv. Consumers haven’t been as receptive to apps that require active interaction. This has led to the idea of the “10 foot rule”: On Televisions content must be created for easy consumption from at least 10 feet away or else consumers will not use it.

6

DUAL SCREEN EXPERIENCE

Millions of people are now partaking of the “dual-screen” experience -- watching TV while using a smartphone or tablet to share their thoughts about what they’re viewing and to look up related content, adverstising and other inforation. The result: a massive and rapidly expanding real-time focus group and promotional force, that disrupts many of the attributes a smart tv is supposed to have.

7

T O P 5 S M A R T T V P L A T F O R M SP R O S ( + ) C O N S ( - )

L G S M A R T T V

V e r y g o o d s e r v i c e s e l e c t i o n ; M a g i c M o t i o n r e m o t e m a k e s f e a t u r e s e a s i e r

t o a c c e s s

T h i r d - p a r t y a p p s t o r e i s u n d e r w h e l m i n g ; b r o w s e r d o e s n ’ t

s u p p o r t f l a s h o r H T M L 5

S A M S U N G S M A R T H U B

V e r y g o o d s e r v i c e s e l e c t i o n ; f u l l Q W E R T Y k e y b o a r d o n r e m o t e m a k e s

s e a r c h i n g e a s i e r

N a v i g a t i n g w i t h s t r a n d a r d r e m o t e c a n b e a n n o y i n g ; a p p s t o r e n o t v e r y w e l l

p o p u l a t e d

V I Z I O I N T E R N E T

A P P S

O k a y s e l e c t i o n ; f e a t u r e s a r e e a s y t o a c c e s s v i a Q W E R T Y k e y b o a r d a n d

c o n f i g u r a b l e p r o f i l e s

N o t a s m a n y o p t i o n s f o r s t r e a m i n g i n t e r n e t v i d e o ; n o r e m o t e a p p

S O N Y B R A V I A

I N T E R N E TV e r y w i d e f e a t u r e s e l e c t i o n N o s p e c i a l r e m o t e f e a t u r e s

P A N A S O N I C V I E R A

C O N N E C TG o o d S e l e c t i o n ( e s p e c i a l l y f o r s p o r t s ) N o s p e c i a l r e m o t e f e a t u r e s

8

10 WAYSS M A R T T V S C A N B E I M P R O V E D

1) Awkward Text Input2) No Simultaneous Multitasking3) No Full Internet Browsing Experience4) Limited Data Storage Capacity5) Loading Times Too Long6) Limited Content Choices7) Lack of “Touch Screen Feeling”8) Un-Intuitive Navigation9) Limited Application Choices10) Focus on Content Rather Than Technology

9

1 0

ALTERNATIVES

S E T - T O P B O X E SSet top boxes are small devices with simply a processer and a small amount of memory that connects to a home wi-fi conneciton, set-top boxes can have apps and stream content from services like Netflix for a low device price of $50-$150. Millions of these devices have been sold by the major players including, Roku, Boxee and the Apple TV.

C O N N E C T E D D V DMany mid-grade and high-end dvd players can connect to the internet and can stream content from services like Netflix, and also have apps, similar to set-top boxes with the added functionality of playing physical media.

V I D E O G A M E S All modern video game systems are essentailly high-perfomance comoputer systems, which means they can connect to the internet, have hard drives and can download content, to this end, many consumers have been placing their systems in the focums of their home media centers and powering thier televisions because of their ability to stream content from services like Netflix, play DVDs, and of course, video game media.

Although Smart TVs connotate a very specific image, there are several devics that replicate a lot of the features promised by Smart TVs including downloading apps, and streaming content. They essentially tansform any “dumb” television to a “smart” one and many consumers already have them in their living rooms.