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Smart TV and Beyond

February 2013 prehype.com stacey@prehype.com

In2Media Conference: The Fourth Screen – When Content Goes Online

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Stacey Seltzer A Chicago native (Cubs fan) Background in finance, venture, technology, media and rock & roll trombone. Lucky to have worked with BBH, Citigroup, New Vantage Group, Joost, LE Electronics and dozens of media companies, non-profits and startups from around the world. London-based Partner in Prehype

Questions, comments: stacey@prehype.com

prehype Prehype is a product incubator that helps corporations build new digital companies. We bridge the space between the world of start-ups and established companies by facilitating a process to jointly and rapidly build new digital products and services.

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new york | london | copenhagen | rio

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From Smart TV to Beyond: The Fourth Screen – When Content Goes Online 1.  Innovation and TV 2.  Smart TV 3.  Challenges & Opportunities 4.  Q&A !

Innovation and TV:

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Technology Adoption and the S-Curve:

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Time

Tech

nolo

gy A

do

pti

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Mill

ion

s o

f U

sers

# Years

Numerous Attempts at Innovation

Dominant Player(s) are Established

Mature Market

Tipping Point!

End of Cycle!

PALM PRE!WAP!

iPhone 5!

Blackbery!

Galaxy S3!

iPhone!

TV and the S-Curve: 3 Questions

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Time

Tech

nolo

gy A

do

pti

on

Mill

ion

s o

f U

sers

# Years

Numerous Attempts at Innovation

Dominant Player(s) are Established

Mature Market

Tipping Point!

End of Cycle!

Samsung! LG!

1.  Where are we on the S – Curve?

2.  Will there be an iphone moment?

3.  What’s your position in the space?

We would argue that we’re still at the baseline, and that TV and media distribution is an industry that has seen some of the most money and innovation applied to it – without much of that going mainstream yet. No one has reframed the way that TV is done…..yet But there are a lot of people out there trying, and with good reason.

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Smart TV & The S Curve

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Why doesn’t TV innovation break through: Incumbency has a hold on content and High value content is pretty efficiently and well distributed

1. Distribution (web/ mobile / other)

2. Content discovery •  Recent focus social recommendation

3. Participation / extension of narrative •  (transmedia) / social (much of this around 2nd

screen

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Innovation and TV: Three Broad Thematic Areas

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1.  Through online video: •  Youtube’s original content |

Netflix “house of cards” 2.  MSO’s extend their services to

2nd, 3rd, 4th screens •  HBO GO | Sky Go etc...

3.  Through 2nd screen / mobile: •  AEREO – pushing the legal

boundaries of broadcast

4.  Smart TV

TV Innovation in Distribution

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1.  Social Discovery: •  ZeeBox | Get Glue |

SocialGuide | Yap.tv 2.  Gestural & Voice

•  Peel •  Xbox Kinnect •  Smart TV

3.  Through Recommendation

Engines

TV Innovation in Content Discovery

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1.  Narrative and Storytelling: •  Transmedia •  Participation – Shazam, 2nd

Screen opps. 2.  Research and Measurement •  Bluefin | Social Guide

3.  Business Model: •  Dreamworks CEO: “Charge by

screen size”

4.  Hacking things: •  http://www.youtube.com/watch?v=eYveEdhTgBs!

TV Innovation in Other Areas

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From Smart TV to Beyond: The Fourth Screen – When Content Goes Online 1.  Innovation and TV 2.  Smart TV 3.  Challenges & Opportunities 4.  Q&A !

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A Myth About Smart TV -

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It Sucks

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•  New opportunities for broadcasters / content owners

•  New outlet for aggregators

•  New customer bases for service providers

•  New ecosystem for developers

•  New advertising opportunities •  New opportunities for brands •  Powerful real estate

•  Driven by data / 2 way communication with consumers

•  Great experience for customers

Opportunity: OTT | Smart TV | HbbTV

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A 2nd Myth: prehype

Smart TV Is Good

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•  Fragmentation of the market place

•  User activation & adoption

•  Coming platform wars

•  Attracting developers

•  HbbTV & role of Broadcasters

•  UX / UI design is woefully lacking

•  Content Discovery is bad

Challenges: OTT | Smart TV | HbbTV

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So Where does Smart TV Go? To Answer this - we have to go back to the more fundamental question about what it’s trying to change / which aspect.

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Where is the center of gravity

A Quick Aside: Geography and local industrial structures matter.

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From Smart TV to Beyond: The Fourth Screen – When Content Goes Online 1.  Innovation and TV 2.  Smart TV 3.  Challenges & Opportunities 4.  Q&A !

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Opportunities for Brands & Companies: when do you invest? what’s your business model? which one of these areas are likely to be the ones that break the neck s-curve?

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Again an example from mobile The phone is barely a phone anymore - as there are many types of phone applications: •  games: •  utility: camera, messaging, evernote etc •  editorial: content sites, instagram •  business extensions: facebook on

mobile TV becomes the same – where the screen is relevant but not necessarily directly related, (aka mobile phone but not talking on it).

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Platform War?

Probably but….

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The next OS may come from other than where we’d expect

Guilded age of online video and multi-experience / multi- channel video. Brands should stop thinking about campaigns and start looking at how they can build services and content: •  TV is necessary but not sufficient

•  Less about platform – and what’s the relationship with the consumer

•  how can we create processes internally that move us in that direction.

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From Smart TV to Beyond: The Fourth Screen – When Content Goes Online 1.  Innovation and TV 2.  Smart TV 3.  Challenges & Opportunities 4.  Q&A !

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thanks! 50 Eldridge Street New York NY 10002 T @prehype Stacey@prehype.com prehype.com

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