The Digital Television era has yielded new opportunities for TV producers. These can be categorised as follows:
Firstly, the digital broadcast platforms carry a vast array of new channels, and hence new potential sources of revenue. To date, these new channels have done very little commissioning of new programming. Given their limited audiences and revenues, I don’t expect this situation to change for some time yet. There has however been a demand for the re-purposing and repackaging of existing TV programming. Depending on the rights held by the producer, this is a potential new source of revenue.
The other opportunities lie with digital interactive TV. This is a rather vague, catch-all term that refers to the new interactive services available as a result of new digital technologies. To the TV producer this effectively means that networks and broadcasters will start to demand new types of TV programming as well as seeking to develop interactive elements for existing and archived content.
Whether it’s developing new shows that incorporate some form of interactivity or applying new services to existing content, worthwhile opportunities for traditional TV producers do exist. However, the following issues are currently counterbalancing:
- Lack of proven business models
- Lack of platform capabilities
- Lack of cross-platform standards/conventions
- Lack of proven audience take-up of certain interactive services
- Little knowledge of usability issues surrounding interactive TV
(The above factors tend to vary across different national and regional television markets.)
The role of the traditional TV producer will remain of paramount importance to the industry. New technology provides new opportunities but it does not alter the way most consumers interact with the TV. Hence, creative ideas, based on an understanding of what viewers really want, will still drive the popularity of TV content. The new digital technology merely aids in the delivery of these ideas.
The technologies are evolving, the platforms are investing more and the regulators are struggling to define conventions but one obvious truth is often forgotten:
The crux of the interactive TV debate is about defining what customers want from the TV viewing experience – and using digital technology to improve that experience. Television is still a viewing activity as opposed to an information processing activity. A lot of the so called “killer iTV apps” ignore this fundamental and have therefore not been driving consumers to sign up for the services, nor are they generating revenue for the services after subscription.
The more successful drivers of revenue in interactive television tie back to the primary function of the TV set in the minds of the consumer. In all consumer surveys to date, video-on-demand, EPG and entertainment-oriented (as opposed to commerce-oriented) interactivity are consistently the most popular and effective applications in the new medium.
The massive investment by media conglomerates has however settled one key “chicken and egg” question: Which comes first, the digital broadband networks to carry the interactive TV content, or the interactive content that justifies building the networks?
Digital TV networks are here and online. It is now up to the TV producers to prepare for the real opportunities, while staying focussed on what they do best - creating content that attracts viewers.
Managing Director at Steelside
18 December 2000 17:06pm
The Digital Television era has yielded new opportunities for TV producers. These can be categorised as follows:
Firstly, the digital broadcast platforms carry a vast array of new channels, and hence new potential sources of revenue. To date, these new channels have done very little commissioning of new programming. Given their limited audiences and revenues, I don’t expect this situation to change for some time yet. There has however been a demand for the re-purposing and repackaging of existing TV programming. Depending on the rights held by the producer, this is a potential new source of revenue.
The other opportunities lie with digital interactive TV. This is a rather vague, catch-all term that refers to the new interactive services available as a result of new digital technologies. To the TV producer this effectively means that networks and broadcasters will start to demand new types of TV programming as well as seeking to develop interactive elements for existing and archived content.
Whether it’s developing new shows that incorporate some form of interactivity or applying new services to existing content, worthwhile opportunities for traditional TV producers do exist. However, the following issues are currently counterbalancing:
- Lack of proven business models
- Lack of platform capabilities
- Lack of cross-platform standards/conventions
- Lack of proven audience take-up of certain interactive services
- Little knowledge of usability issues surrounding interactive TV
(The above factors tend to vary across different national and regional television markets.)
The role of the traditional TV producer will remain of paramount importance to the industry. New technology provides new opportunities but it does not alter the way most consumers interact with the TV. Hence, creative ideas, based on an understanding of what viewers really want, will still drive the popularity of TV content. The new digital technology merely aids in the delivery of these ideas.
The technologies are evolving, the platforms are investing more and the regulators are struggling to define conventions but one obvious truth is often forgotten:
The crux of the interactive TV debate is about defining what customers want from the TV viewing experience – and using digital technology to improve that experience. Television is still a viewing activity as opposed to an information processing activity. A lot of the so called “killer iTV apps” ignore this fundamental and have therefore not been driving consumers to sign up for the services, nor are they generating revenue for the services after subscription.
The more successful drivers of revenue in interactive television tie back to the primary function of the TV set in the minds of the consumer. In all consumer surveys to date, video-on-demand, EPG and entertainment-oriented (as opposed to commerce-oriented) interactivity are consistently the most popular and effective applications in the new medium.
The massive investment by media conglomerates has however settled one key “chicken and egg” question: Which comes first, the digital broadband networks to carry the interactive TV content, or the interactive content that justifies building the networks?
Digital TV networks are here and online. It is now up to the TV producers to prepare for the real opportunities, while staying focussed on what they do best - creating content that attracts viewers.