The smart TV market is up for pivot and Big TV manufacturers are acting like Nokia in 2007
Consumer internet market is on fire. The hunger for more internet volume and speed drives telecom operators to constantly investment in improving their infrastructure. Optical fiber deployment is on the rise around the globe, and in parallel with deployment of 4g and 5g cellular networks, broadband internet usage is exploding.
The main reason for such increase in demand in one: video content. From the web’s largests: YouTube to facebook, and twitter, to streaming technologies: Netflix, Hulu, Torrents, Kodi and others. Online video, in high quality, becomes a standard. And that’s before at least 2 huge players are warning up to get in the game: Amazon and Disney
One would expect such a change not to go unnoticed with TV manufacturers. TV sets are becoming end user device for this booming market, yet no game changing TV has emerged.
Currently, each manufacturer runs its own native OS. A native platform means differentiation, a unique user experience. A good one, might keep users loyal to the brand. A personalized one, subscription based, can hold users and generate more revenues without the necessity of buying another TV set (the flowers to Apple).
But manufacturers are sleeping.TV apps stores are short on app supplies, and present a low level user experience. Unlike selling a box, mastering an app store platform, a service, is a complicated business on it own.
1st of all, a unique platform makes developers have to learn it. Developers’ intrests in learning a new OS derives from its market size and potential – how much jobs will come by them because of it. In turn, market size and potential comes from users and their engagements: how many OS users are out there, how often and how frequently do they use the OS and its apps, and the holy grale: how much money can be made based on these activities.
The 1st answer is a simple one: large TV manufacturers market share is high enough to generate a user base. now how about engagement? well, that depends on the experience: How easy is it to browse through the their app gallery? are all apps available to all users, globally (at least for the most part)? Is there a complementary phone app (remote controls are poor browsing tools)?
The answers are well known. Ironically, these companies also manufacture smart phones
While their poor OS kills their users experience, other streaming platforms are constantly improving. Google’s Android dongle, chromecast, and Tv boxes, Roku, and others, diminishes the demand for a native TV platform, and require nothing more than a “stupid” screen attached to a small box.
Marketing wise, this is a disaster for TV manufacturers. Instead of brand loyalty, stupid TVs will stand next in line to microwaves, on the “who cares about brand” corner.
Their ultimate test comes up now.
Without any drastic measures now, We’re about to witness a “Nokia scenario” soon enough.
Continue reading: Smart TVs up for grabs
