Google TV could provide a missing link in the OTT ecosystem
May 24, 2010
“Connected Media Users,” those who use Internet connectivity to consume digital media on their televisions within the homeâ€”often at the expense of Pay TVâ€” represent a growing demographic in the US and worldwide. Strategy Analytics estimates that the number of so-called “cord cutters” could reach more than 10 per cent of US television households by the end of the year. The Google TV platform will potentially further drive this migration
Fewer than 22 per cent of US television households feel that they are getting good value for money from their pay TV provider, according to research conducted by Strategy Analytics. This dissatisfaction, coupled with the availability of a suitable and less expensive substitute, could spell trouble for traditional operators.
A separate observational research study of Connected Media Users in the US and Europe, conducted by the Strategy Analytics Digital Home Observatory, uncovered several missing links which have hampered the uptake of widespread Over the Top (OTT) consumption. These included
– The ability to effectively “discover” new relevant content based upon a viewer's existing likes and interests; and
– More relevant advertising and payment options.
– “Whereas ten years ago viewers scheduled their lives around television, today it is the other way around,” according to Ben Piper, Director of the Strategy Analytics Multiplay Market Dynamics service. “As we move in that direction, content search and discovery become increasingly important to consumers. This has been a major challenge to-date, and we are hopeful that Google TV will help to manage that transition.”
While Google TV is not the industry's first attempt to bring Internet content to the television, past attempts have been met with lackluster results. The success of Google TV lies in the strength and importance of the partnership with Sony, Intel, and Logitech.
“We do not think that this is going to be another WebTV,” said Martin Olausson, Director of the Strategy Analytics Digital Media Strategies service. “We see a demonstrated market need and willingness, and the experience and resources of these partners give Google TV a good shot at success.”