Interviews with Digital Media Thought Leaders

Third Generation Television

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The window above provides a six minute video summarizing our research report Third Generation Television (Februay, ‘09)

If you would like to learn about the five catalysts driving Internet-Video-to-the-TV adoption in 2009, this video is for you.

First Catalyst. The abundance of connection sockets in flat-panel televisions enables a multitude of devices to connect to the TV. Many such units also connect to the Internet. The surprise leader is the laptop computer which has on-board WiFi and is dropping so rapidly in price that it is a more economical selection than many appliances targeted at “Over-the-Top” Video. Given a remote mouse and keyboard the consumer gets a lean-back viewing experience 15 – 20 feet distant from the TV screen.

Over one-third of domestic homes have flat panel TVs now, and the percentage is forecast to rise to nearly 90% by 2011.

Second Catalyst. A large number of popular TV shows and movies are legitimately available for free viewing at a growing number of ad-supported websites. Hulu.com has shows from NBC, Fox, and Comedy Central, as well as many movies.  Many ABC shows are available at the network’s website and CBS recently launched a Hulu competitor named TV.com.

Viewers accustomed to such websites soon come to appreciate that they never have to remember to “TiVo” any programs.

Third Catalyst. The Long-Tail stretches to near infinity. YouTube is sending more than 6 billion streams per month, and not all of it is amateur. Examples of serious, or professional, programming include out-of-syndication TV shows, older documentaries, personality interviews, and instructional videos, among others.

Fourth Catalyst. Once users get Internet-Video-to-the-TV it becomes a multimedia experience. For example, by adjusting the font size, they’ll be reading newspapers online in a lean-back posture. Newspapers providing online video are as likely to be watched as TV news.

Fifth Catalyst. A growing number of appliances are either being enhanced to accommodate Internet-Video-to-the-TV or are specifically designed for it. One example is Microsoft’s Xbox Video Game Console of which there are over 11 million in use domestically.