Google TV aims to bring the internet to the television by allowing users to search web, apps, and programming guides from their TV. However, it faces challenges from lack of content partnerships and awkward web browsing experience on TVs. While the concept of interactive TV is promising, multi-tasking is better done on separate devices rather than directly on the TV shared by others. Competitors like Apple TV and Roku offering walled gardens or less intrusive models like Yahoo may have stronger formulas. Ultimately, the future of television likely involves continued growth of multi-tasking with social media but done individually on separate devices instead of directly on the shared TV screen.

1. Google TV: The next step in the evolution of the television market? Presented by Brett Petersen December 2010

2. INTRODUCTION Overview of the OTT TV market An introduction to Google TV Key Features Problems Recent news Google TV’s main competitors Apple TV Yahoo! Connected TV Roku Multi-tasking and interactive TV Conclusion

3. OVERVIEW OF THE OVER-THE-TOP TV MARKET Brett Petersen Overview of the Over-the-top TV market

4. OVERVIEW OF THE OVER-THE-TOP TV MARKET Definitions Over-the-Top TV (OTT TV): delivery of web video content directly to TV sets. IPTV (Internet Protocol TV): consists of packaged Pay-TV offers similar to those on satellite and cable but offered over an Internet connection. Catch-up TV: online services from TV broadcasters or TV operators that allow users to “catch- up” on TV series on demand. Transaction Video-on-Demand (T-VoD): a service that allows users to rent films and/or TV show on demand, charging a fee for each rental. Subscription Video-on-Demand (S-VoD): VoD service that charges a flat monthly subscription fee for viewing of films and TV shows.

5. OVERVIEW OF THE OVER-THE-TOP TV MARKET Three main factors that are key to OTT TV diffusion: Increased penetration of broadband connections High-quality online video content (i.e. catch-up TV, VoD) Replacement of old devices with those that are Internet-connected (i.e. Smart TV sets such as Google TV)

6. OVERVIEW OF THE OVER-THE-TOP TV MARKET BROADBAND PENETRATION IN THE UK, GERMANY, SPAIN, FRANCE AND ITALY (EU-5) - 2004 TO 2009 (broadband access lines per 100 inhabitants) Source: Eurostat

7. OVERVIEW OF THE OVER-THE-TOP TV MARKET SPREAD OF ONLINE VIDEO CONTENT Catch-up TV User-Generated Content T-VoD S-VoD

8. OVERVIEW OF THE OVER-THE-TOP TV MARKET Have you accessed the Internet via your TV set? (% of respondents answering yes in each country) Source: GWI Wave 3 data

9. OVERVIEW OF THE OVER-THE-TOP TV MARKET FORECAST DIFFUSION OF OTT TV Broadband-enabled TV households worldwide (million) Number of active OTT TV households worldwide (million) +177% +325% Note: Broadband-enabled TV households refers to those with the basic infrastructure to enjoy OTT TV services Source: The Diffusion Group

10. OVERVIEW OF THE OVER-THE-TOP TV MARKET What types of people are accessing the Internet through their TV sets? (% of global sample) Age Breakdown Gender Breakdown Educational Achievement Source: GWI Wave 3 data

11. OVERVIEW OF THE OVER-THE-TOP TV MARKET Social media usage: comparing Internet TV users to the overall market (% of global sample) Source: GWI Wave 3 data

12. OVERVIEW OF THE OVER-THE-TOP TV MARKET Interest in future technology products regardless of cost (% of global sample that is interested in each product) Source: GWI Wave 3 data

13. OVERVIEW OF THE OVER-THE-TOP TV MARKET Summary of consumers using the Internet through their TV set The are generally young adult males that have achieved higher education. They are more likely to use social media to communicate with the world around them than the average global consumer. They are generally more interested in new consumer technologies than the average global consumer. Internet TV users are also nearly four times more likely to be early adopters of new technologies than the average consumer, and they almost always have a more positive outlook on the effect the Internet has on society. Source: GWI Wave 3 data

14. GOOGLE TV What is it and is it important?

16. Problem: DVR search is completely integrated only with Dish Network in the United States;

17. Problem: reports of inaccurate and unexpected search results;

18. Still, the concept of being able to search the entirety of the Web for any given programme or film using keywords is a powerful tool.Images from Logitech

21. Problem: browsing the Web is a personal activity as opposed to TV, which is often viewed in the company of others. A laptop or tablet PC is more conducive to TV viewer multitasking. Images from Google

23. At first, apps for Google TV come preloaded, but beginning in early 2011, apps will be available from the android market;

24. Apps are a key to making Google TV work. If they run smoothly and don’t detract from the viewing experience, they will be an excellent addition.Images from Logitech

25. GOOGLE TV ADDITIONAL GOOGLE TV FEATURES Dual View Personalized Home Screen Use a smartphone as a remote Images from Logitech

26. GOOGLE TV CURRENT GOOGLE TV HARDWARE AND USABILITY Logitech Revue Sony Internet TV Images from Logitech and Sony

28. The catch-up TV and VoD service Hulu (joint venture between News Corp., Disney, and NBC Universal) has also blocked Google TV, and Hulu Plus is still not available.

31. Apple TV comes with a selection of built-in apps:

32. Apple TV allows North American users to access Netflix;

33. The Apple TV can also be controlled with an iOS device and content viewing synced using AirPlay.Images from Apple

35. Yahoo! TV Widgets can run discreetly on the TV set.

36. The platform is centered around Yahoo!’s Konfabulator widget engine, which was originally developed for the PC. This means that widgets are easily written for the TV using existing code;

37. Yahoo! has recently announced that it is launching a Yahoo! Connected TV store and has already released the SDK;Images from Yahoo!

39. Roku has, arguably, the best line-up of online content available:

40. No social networking apps other than photo apps including Facebook photos and Flickr;

41. Likely the best value option for consumers looking just for OTT TV services.Images from Roku

42. MULTI-TASKING A BETTER OPTION Multi-tasking and interacting with the TV via other devices Images from Roku

43. MULTI-TASKING A BETTER OPTION MULTI-TASKING A BETTER OPTION FOR CONSUMING WEB CONTENT WHILE WATCHING TV? Survey found that social media actually encourages linear TV viewing so as to avoid spoilers from friends. (% of survey respondents) Source: Thinkbox and Decipher Note: Survey conducted among 3,000 UK “digitally enabled” households

44. MULTI-TASKING A BETTER OPTION OTHER WAYS TO INTERACT WITH THE TV USING WEB BASED CONTENT Interactive TV Gaming Interactive applications providing additional info and extras Images from Endemol and ABC

45. CONCLUSION So the future of television is...

46. CONCLUSION Not Google TV in its present form A less intrusive model such as Yahoo! Connected TV is better for delivering non-video Web content to a screen being viewed by multiple people. A walled-garden system such as Apple TV or Roku offers content providers security and a guaranteed revenue stream. Multi-tasking will continue to grow, and using social networking services such as Facebook or Twitter while watching TV are more suited to individual use on a separate device (i.e. tablet PC or laptop).