WILL SMART TVSBE INTELLIGENT?

BY RAPHAËL STEINMAN & KJELL KOLSTAD

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WHY IS THERE A SMART TV WAR GOING ON?

Content has always been king. The way that we consume it however, is changing at break-neck speeds. Cable companies used to be able to control what people saw and when they saw it. But with emerging technologies, it’s becoming increasingly simple for people to access the content they want through streaming ser-vices like Netflix, Hulu, as well as directly through content creators that have reached an inflection point and are breaking away from cable companies (e.g. HBO, CBS).

This simple access to content is motivating more and more people to cancel their cable agreements, which frees up their spending money to purchase the exact content they want. If a consumer wants to watch Breaking Bad, it’s very easy for them to exclusively purchase that show without having to have a slew of unwant-ed content bundled with it. Instead of tuning in every week at a specific time to watch a show, they can now binge-watch a show all at once, adapting their media consumption to their unique schedules.

This trend of “unbundling” offerings is changing the dynamic of media consumption. It’s no longer about who made the content. It’s now about who gives you the easiest access to it. In a way, it’s the return of Pay-Per-View, and every tech company wants a piece of it.

In response to the growing demand for immediate content, many companies like Apple, Amazon and Google offer dongles- small external devices that connect to TV systems to give users access to streaming media content. While these products offer a solution for consumers who have already invested in TV systems that don’t directly connect to the internet, they represent a fragmentation of technology and will likely begin to fade away in the coming years.

Vying to compete with the rise of dongle technology - many companies are embedding technology directly into TVs to give people what they want: access to a browser, apps, and content (streaming or otherwise). Huge industry players like LG, Sony, Sharp, Toshiba and Panasonic are all currently manufacturing Smart TVs and are constantly working on evolving their technology to make the devices more sophisticated.

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These systems will no longer simply be a means of entertainment. They bring a new level a interconnectivity to all tech devices in a home; bringing the control of sound systems, thermostats, video surveillance systems, alarms and more to a smart, central hub.

With Smart TV sales predicted to sell over 123 million units in 2014 alone1, it’s no mystery why this war is an important one to win. It’s not just about simply selling a TV set- there’s an entire realm of lucrative possibilities that come with owning the format that eventually becomes the industry standard.

INTERCONNECTIVITY

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THE POTENTIAL

Beyond offering easy access to streaming content, emerging and ever-improving smart TV technologies give the devices the tremendous potential of becoming the central hub within a household.

While mobile technology is for the most part single-tasking and personal, TV is intrinsically social due to the sheer size of the screen, and it’s often central location within a household. Smart TVs with open ecosystems offer an endless realm of possibility for innovation and development - a chance to bring life to technological experiences that could not exist on mobile. Devices running open OS’s like Android can allow for some amazing advancements that will transform our view of what a TV can do.

With device synching technology constantly improving, people will be experiencing a much more fluid interconnectivity between all of the devices in their lives (tablets, mobile, PC... anything digital), all of which can easily convene at the “main screen” of the household: the television.

While some of the following scenarios seem like far-fetched fantasies straight out of a science-fiction novel; they are not only possible, but will most likely become a standard reality within the next few years.

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You’re planning a vacation to Cuba with your friends. While you’re using a travel app to read hotel reviews on your Smart TV, another friend looks up flights on his Android phone. With multiple windows open on the TV, you’re watching The Big Bang Theory at the same time. When your friend finds a good deal, he swipes upwards to “throw” his findings onto the TV alongside the multiple on-screen windows for all to see. You decide to book both your hotel and flight right there, simultaneously.

Another friend wants to go scuba-diving once you’re there, but you’re unconvinced (Are there sharks in Cuba? Google it while he’s talking.) From his tablet, he throws a scuba video he took last year in Jamaica onto the Smart TV screen, pausing Big Bang to share his experience. Alright, looks like fun. You toggle back to the travel app and book some lessons.

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Your wife and son are watching Despicable Me on the main part of the Smart TV screen, while you draft up an email in a smaller window. Halfway through the film, it’s time for hockey practice. As they get dressed, you speak to your TV (it has voice recognition) to set the house alarm, lower the thermostat, enter the arena’s address into your GPS and start warming up the car.

Once in the vehicle, the car’s entertainment system picks up the GPS address and starts navigation mode, while Despicable Me picks up on your wife’s tablet exactly where it left off so they can keep watching the movie from the back seat. During the second intermission, you finish the email draft you started writing on the Smart TV earlier that night. As you drive home, the Smart TV detects your location to warm up the house as you get closer to home. You all finish the rest of your movie before going to bed.

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You’re watching a hockey game (Canadiens winning against the Bruins, obviously) on your Smart TV. During a commercial break, you hear a song playing in an ad that you really enjoy. You quickly open up Shazam in a second window to identify it, then over to the Play Store to purchase the album. When play resumes, you get a push notification on your mobile phone.

There’s a limited-time special on Carey Price jerseys for people watching the game. Could make a great Christmas present-- you throw it onto the TV screen to get a closer look at the shirt quality before making the purchase. During intermission, you toggle to your music player (connected to your surround-sound system) to listen to the album you just purchased. As the game ends with a Canadiens shut-out , you vote for Carey Price as the 3-Star play of the game from your mobile device.

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These imagined scenarios are very real possibilities of what you could be experiencing in the near future with the Smart TV boom. The barriers between

broadcasters, advertisers, content creators and app developers are being blurred by the ever-improving technology, which will create some amazing

opportunities for enterprises and users alike.

For that world to exist and function properly – the Smart TV ecosystem has to be open to innovative development, and the applications that companies hit the

market with need to be excellent.

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THE PENDING SMART TV APP WAR

App developers and brands are aware of the value of having their app on the front page of someone’s mobile phone. It’s not an easy position to earn, and only the best mobile applications retain those spots. People in the United States currently spend just under seven and a half hours consuming screen media every day, 34% of which is spent on smartphones and 33% in front of televisions2.

Since the development of SmartTV technology essentially bridges the gap between mobile and TV, the average time spent on app-capable devices will be explod-ing to over four hours a day. With the projected global app revenue predicted to jump to 92 billion dollars by 20183, it’s not difficult to see the value of having an attractive application on the home-screen of someone’s SmartTV.

However, app users are notoriously harsh critics and have little patience for bugs, glitches and lagging. In fact, 20% of users only open an application once- and 60% who don’t return to an app within a week, never return at all4.

In addition, with SmartTVs costing several thousand dollars, versus mobile phones which cost a few hundred, consumers will likely only be upgrading their tele-visions once every three to five years. This means that companies with high-quality applications that earn spots on the home-screen of a SmartTV can expect to locked in with a consumer for a very long time.

The real estate of a TV screen will be extremely valuable for a multitude of companies, and the competition to earn those limited spots will be fierce. Most for-ward-seeing companies have already started development on SmartTV applications, and others should follow suite if they want to take part in this new, lucrative environment.

There’s no doubt that the TVs we’ll be seeing in the near future will be smart- but what’s needed to make them truly intelligent is a high-quality, thoroughly-de-veloped and open ecosystem of content and applications, as well as smart communication with all connected home systems.

Right now it’s about SmartTVs but it’s just a step towards a bigger war for the entire home.

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ABOUT SOLUTEO

Founded in 2001, Soluteo is a leader in mobile innovation with deep roots in enterprise mobility, security and mission critical solutions. We apply our expertise in mobile connectivity, complex back end systems and design in every engagement, providing optimized and field-proven solutions that combine exceptional user experience with leading edge technology across all mobile platforms. Backed by longstanding partnerships with BlackBerry and Samsung, Soluteo delivers high-performance productivity and lifestyle-enhancing mobile applications for a wide array of clients such as Air Canada, CBC, CBS, iHeartRadio, the McIntyre Group, NBC, Radio-Canada, Securitas, VIA Rail and Videotron.

1. “Connected TVs Forecast to Exceed 123M Units in 2014” Display Search. http://www.displaysearch.com/cps/rde/xchg/displaysearch/hs.xsl/110425_connected_tvs_fore-cast_to_exceed_123m_units_in_2014.asp2. “InternetTrends2014–CodeConference”,MarkMeeker,KleinerPerkinsCaufieldByershttp://s3.amazonaws.com/kpcbweb/files/85/Internet_Trends_2014_vFINAL_-_05_28_14-_PDF.pdf3. “TabletsWillGenerate35%ofThisYear’s$25BillionAppRevenue;ExpectedtoSurpassSmartphonesby2018”,ABITechnologyMarketResearchhttps://www.abiresearch.com/press/tablets-will-generate-35-of-this-years-25-billion-4. “HowtoWinintheNewApp-DrivenWorld”–BrynAdler,Localyticshttp://info.localytics.com/blog/infographic-how-to-win-in-the-new-app-driven-world

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