Monday, September 27, 2010

Innovative or Dumb Old Box? Internet-connected TVs need more than an Ethernet port and handful of service agreements to play in the Internet sandbox

Monday September 27, 2010 – Myra Moore

There may be a new class of TVs with Ethernet ports and pre-set Internet connections, but are they truly innovative?

Internet-TV enhancing middleware/software pitches were numerous at IBC earlier this month. The simple message: If you’ve got folks watching TV that’s coming from multiple sources (traditional pay service, over the air, Internet) somebody’s got to deliver a seamless navigational/search experience. This is where the innovation part comes in.

The big-name TV makers are now throwing their hats into the connected ring in order to make their products more relevant in our hyper connected world. But including components like Ethernet ports, cable receivers, and terrestrial tuners isn’t enough to make them relevant next-generation viewing appliances. If the imbedded software doesn’t bind all the services together in a seamless way that exploits all the power IP technology affords, it will just be an underachieving box with a lot of parts inside.

Of course, middleware/software companies are happy to provide TV makers with the solutions to make their new TVs relevant. And TV suppliers have some experience with imbedding software in their sets having equipped TVs with on-screen instructions and some with grid-based programming guides.

But the software hurdles are much higher now. Programming from multiple platforms, sophisticated programming guides with video, audio and search abilities, and integration of metadata, transactional functions, and rights management make for a complex ecosystem that most TV divisions in major CE companies are unaccustomed to managing. Add to that the constant and incremental improvements required to remain competitive, and you’ve got a serious commitment to constant innovation delivered to TVs that were sold and shipped months ago. TV makers can buy some of that from third parties, but to compete at a high level that demands pumping millions of dollars into fine-tuning their products to integrate IP technology and Internet-delivered programming, third parties can’t do all the heavy lifting.

The TV makers that build additional R&D into their organizations with a solid commitment to implementing and managing software and networking technology are the only ones that stand a chance at competing with the best STB, smart phone and other device providers. For those who don’t: Your TV might be smart now but it’s going to be way behind the curve in very short order.