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Similaire à Connected TV Research Deck Highlights Growth and Opportunity
Similaire à Connected TV Research Deck Highlights Growth and Opportunity (20)
Connected TV Research Deck Highlights Growth and Opportunity
- 2. what it really means
• Connected TV refers to television
sets that are connected to the Internet
and offer directly on the TV screen a
variety of content and services
provided through a broadband
connection
• This term encompasses not only the
Hard Gaming
direct connection of the TV set to a Box TV DVD
Blu-ray Drives consoles
modem (via WiFi or ethernet cord), but
also the use of connected devices
hooked up to a TV set, as gaming
consoles, Blu-ray players, and set-top
boxes
© Purescreens SAS - Confidential 2
- 3. what it changes
The advent of Internet TV introduces two fundamental changes:
• The connected TV offers the viewer the ability to interact with TV
content. It breaks with the passivity of the broadcast stream to
allow an interactive consumption.
• Access to the TV screen is no longer limited to TV channels but potentially to
providers of contents (text, photography, maps, graphs, games, etc.) or services
(interactive weather forecast, diet monitor, work-out coach, skype, betting, card
games, etc.) that make sense on a TV screen.
© Purescreens SAS - Confidential 3
- 4. value chain
Content/service Hardware Distribution Revenue
providers Platforms manufacturers model generation
Free apps Ad sales
App download
Pay apps
Transaction
In-app
payments
© Purescreens SAS - Confidential 4
- 5. no common standards to date
In absence of a common technical standard, app publishers must adapt their
service to each platform
App
Publisher
© Purescreens SAS - Confidential 5
- 6. a massive, global phenomenon
500 million
Television sets connected to the internet in the world by 2015*
© Purescreens SAS - Confidential * Source: DisplaySearch 6
- 7. explosive growth
Global sales of connected TV sets
© Purescreens SAS - Confidential Source: ScreenDigest 7
- 8. strong growth in Europe
Connected TV penetration (million sets)
© Purescreens SAS - Confidential Source: ScreenDigest 8
- 9. connected TV poised to become the norm
90% of TV-sets sold in Europe by 2014 will be connectable to the Internet
© Purescreens SAS - Confidential Source: ScreenDigest 9
- 10. business potential in the US
• Shipments of connected TVs with integrated TV applications will grow by
an average 36% per year over the next five years.
• 22% of US broadband households already own an HDTV with integrated TV
apps.
• 60% of these connected households will use a TV app at least once per
week.
In the world’s most advanced television market, TV apps are becoming
part of the mainstream TV experience.
© Purescreens SAS - Confidential Source: Broadband TV news (sept 2011) 10
- 11. new sources of revenues
• Analysts predict that app stores on TV
sets will meet a similar success as app
stores on mobile phones. Few
projected revenues figures are
available though (they focus often on
VoD services or advertising only).
• Over-The-Top video services could
generate around €4 billion by 2015 in
Europe and in the US
• More than 1 million downloads
already on Samsung’s Smart TV
© Purescreens SAS - Confidential Source: iDate (may 2011) 11
- 12. market dynamics favorable to new players
• Connected TV is still a market in its infancy
o There are still few TV apps out there, compared to mobile apps
o CE manufacturers are currently on the look-out for “killer applications”, such as Shazam in
the mobile field, to convert customers to connected TV usage
There is a window of opportunity to gain a leading position in all popular connected TV
genres: VoD, weather, ambient, gaming, news, etc.
• Access to the end-user is (almost) disintermediated, creating room for new
household TV brands
o Connected TV app stores are walled gardens, but the launch of a new service is still a lot
easier than the launch of a new TV channel via a cable/sat operators, because:
CE manufacturers don’t pay flat fees to app publishers (there are rare exceptions)
App publishers host their apps, and pay for their bandwidth
o Established web or TV brands have a great advantage, to stand out from the clutter of new
apps coming out every week
© Purescreens SAS - Confidential 12
- 13. new players are investing the TV space
Company type Examples Objective
Video sharing Increase ad sales potential
Social media Increase ad sales potential
Replicate success in mobile
Games
field (micro-payment)
Enable transactions on
E-commerce
another screen in the home
Increase ad sales potential or
Web services
transactions
Brick-and-mortar brands Branding, promotion
Information / services Increase ad sales potential
© Purescreens SAS - Confidential 13
- 16. business models
Revenue sharing
Distribution mode Revenue model Example
scheme
Advertising
Free app
In-app purchases
App publisher: 70%
Platform: 30%
Download-to-own
model
Pay-app
Subscription model
© Purescreens SAS - Confidential 16
