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Do We Really Need

Do We Really Need. Interactive Television?. Denise Huang. TV. Agenda. ITV: What’s new Industry overview Consumers’ attitudes and usage patterns What are the demands? Challenges from the Internet(web) Conclusions. TV. ITV (R)evolution. Revolution: Technology

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Do We Really Need

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  1. Do We Really Need Interactive Television? Denise Huang TV

  2. Agenda • ITV: What’s new • Industry overview • Consumers’ attitudes and usage patterns • What are the demands? • Challenges from the Internet(web) • Conclusions TV

  3. ITV (R)evolution • Revolution: • Technology • Media convergence- The Telecommunication Act of 1996 • Digital technology and broadband • Viewing Experience • Convention TV: passive viewing • Interactive TV: Interactive, more participatory, • two way communication TV

  4. What is ITV? • Digitalized, Value added programs transmitted by telecasters (cable, digital satellite, and terrestrial broadcast) through the broadband system. It goes through a set-top box (STB) in the household, which serves as a decoder and a storage hard disc before signals displayed on the TV screen. • Interactive television includes technologies and services such as VOD (video on demand), EPG (electronic programming guides), PVR (personal video recording), Internet access, T commerce, games and customized information. TV

  5. Interactive services • 1.Video On Demand- Ex: Pay-per view movie, public video data base accessing and distant learning. • 2.T commerce- customized advertisings are possible. • 3. Internet access- check on weather, traffic, emails or online banking. • 4. Personal Video Recorder (PVR) • - enables us to rewind or pause live programs • 5. Interactive functionalities- voting • 6. Online gambling • 7. Online Games Program recording menu TV

  6. Industry Overview (Unit: Million households) • Analysts predict that it would be the main home entertainment medium in few years. • The prediction of ITV market growth: • 2004 : reach 100 million households globally • Profits come from: subscription fee and advertising revenue • Business conflicts, technology issues and huge costs drag out the industry development TV

  7. Market Acceptance U.K: 1. The highest ITV acceptance in the world 2. BskyB is the leading digital TV brand, 6.3 millions subscribers by the end of 2002 3. Why higher? Partly due to the comparative PC penetration rate is not as high as U.S U.S: 1. Limited success, many of the big media had failed 2. Consumers’ demands had been ignored by ITV operators 3. High cable, satellite TV penetration result in consumers’ lack of interests in paying for additional interactive features TV

  8. Consumers’ Attitudes & Usage Patterns • According to the findings of usage surveys by Forrester Research, Statistical Research and Oftel (U.K) in 2000: • 75% TV consumers said they are NOT interested in • interactive programs • 2. The most popular ITV services are: • - Electronic Program Guide(EPG) • - Video On Demand (VOD) • - Personal Video Recorder (PVR) • 3. Interactive services that are rarely used : • - Email, chatting, online banking. TV

  9. What Do Consumers Demand? (1) • Familiarity is important - Consumers expect for familiar TV experiences: watching movies, shows, playing TV games and browsing through the program guide • A simple, easy-to-use interface - A good interface design enables increase of productivity, reduction in errors, and better user experiences • Just want to be entertained - Watching TV should be a relaxed activity - High degree of interactive activities will exhaust the audience TV

  10. What Do Consumers Demand? (2) • Interesting contents - Original programs with some extension of interactivity - Reality show: “Big Brother” • Speed and stability • Privacy protection • Security transaction TV

  11. ITV Web Supply chain National, closed operator- Single global, open platform controlled platforms Technology Fragmented, proprietary Standard, open Bandwidth Typically asymmetric Variable Access device Set-top box with limited PC with large and increasing memory and processing power memory and processing power Input device Remote control, sometimes Mouse and keyboard keyboard Screen resolution 625 horizontal lines per frame 800x600 average typical (576 pixels used). resolution. Viewed from 12ft. Viewed from 2ft. Environment Family or shared environment Alone, private Psychology Lean back. Entertainment- Lean forward. Task-focused focused passivity concentration ITV V.S Web Forrester Research, 2001 TV

  12. Conclusions • The industry should do more post market research on consumers’ demands • Familiarity and simplicity • Content is the king • Conventional TV might not be eliminated through competition • ITV will combat with the Internet (web) service before finding itself a specific market position TV

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