Interviews with Digital Media Thought Leaders

Netbooks Accelerate Internet-Video-to-the-TV Adoption

Podcast Audio | Posted by Phil Leigh on April 6, 2009

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How will Internet-Video-to-the-TV be impacted if inexpensive “netbooks” take market share away from conventional laptop computers?

By way of background, netbooks are pint-sized laptop computers. Typically they have nine-inch screens as compared to fifteen-inches (or bigger) for a conventional laptop. Also netbooks have less powerful processors, smaller memories, and less sophisticated software. Gartner estimates that they could account for 10% of laptop computer sales by the end of this year.

Netbooks could have a big impact on the streaming video market for three reasons.

First, despite their lower price they are capable of processing streaming video just fine as this video demonstrates. Moreover, the netbooks can be attached to most flat-panel TVs. While few netbooks currently provide the HDMI sockets that would simplify such connections, nearly all offer alternative receptacles such as VGA for video and audio-out jacks for audio.

Second, netbook prices compare favorably to dedicated appliances designed to get Internet Video to the TV. Current units are priced at $200 - $400 and models slated for delivery in a few months are priced even lower. By comparison, the Apple TV is priced at $230 and only permits users to access content from the iTunes store whereas netbooks can stream video from anywhere on the Web.

In Atlanta AT&T is testing a special promotion offering netbooks for $50 to new Internet subscribers. The company may spread the promotion to other cities once the Atlanta test is completed. In short, netbooks could become commonly available for $100 or less if ISPs subsidize the purchase price like the cellular operators do for cell-phones.

Third, as netbooks gain market share they’ll put pricing pressure on laptops. That means that laptop buyers will be able to get units with HDMI sockets that will more easily attach to flat-panel TVs and also accommodate High Definition video. Such units are available for $400 presently and could drop to $300 by year end.

Once netbooks, or laptops, are mated with a flat-panel TV the television becomes a dual function device. In one context it remains a TV as we have always known it, but in a second one it become a giant window into the Internet Cloud. Give a remote mouse and keyboard the user gets a lean-back viewing experience of Internet Video on television 15 – 20 feet distant from the screen.

Ultimately the laptop (or netbook) as Internet-Gateway for the TV will become a forcing factor inducing TV set makers to offer browser-centric televisions as they come off the factory floor.

This is Third Generation Television.

To learn more click here where you can either purchase a copy or our “Third Generation Television: Internet-Video-to-the-TV” research report or download a free copy of the prospectus.