Trends Report

Connected TVs Need To Sharpen Their Value Proposition

TV Makers Can't Reinvent TV Without Dramatic Steps

November 11th, 2009
LM
Laurence Meyer
With contributors:
J. P. Gownder , James McQuivey, PhD

Summary

Connected TVs offer a huge advantage compared with legacy interactive TV and Internet TV platforms; they will also be in more than one-third of European TV households by 2014. With more than 150 million potential European users in 2014, connected TVs will attract new digital content providers and advertisers and will contribute to a transformation of the TV experience. However, connected TVs could still fail here: Consumer electronics (CE) manufacturers currently face challenges around the value proposition, standardization, and business roles and models, as well as competition from traditional pay-TV offerings. To win, TV product strategists at CE manufacturers should first opt for connected-TV systems that really blend broadcast and broadband. They should also focus on over-the-top (OTT) video services delivery and involve advertisers in the ongoing debate.

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