April 11, 2008
Digital Video Recorders: Couch Potato Weapon of Choice
Analysis of:
Study: Online Won't Replace Traditional TV Anytime Soon | telephonyonline.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Digital video recorders and set-top boxes are in the news daily with new features and more control exercised by the service providers that sell them. The parallel streaming video viewing of on-line video compared to TV video will not stand lengthy commercial advertising such as standard TV viewing, where commercials last for what seems like 10-15 minutes. What is the answer that will be accepted by consumers and advertisers/service providers alike when it comes to how advertising time fits into both TV and on-line video viewing?
Analysis: The article indicates research studies by The Convergence Consulting Group conclude that there is no reason for "broadcasters and cable networks to abandon traditional TV or attempt to accelerate a transition to an all online model." We all intuitively come to the conclusion that TV and internet are headed on a collision course, but how soon will that happen or will it ever happen? DirecTV HD receivers have been sold for years with both phone line and ethernet connections as an example. TV's have been sold for years with computer monitor capabilities. Computer towers are being sold with ATSC TV tuners built in and Quadrature Amplitude Modulation (QAM) digital tuners as well. Both TV's and computers are sold with DVD players built-in. DirecTV is trialing video-on-demand with ground-based internet connections to seek content for download in a new service offering being considered. The point of this analysis is that advertising and technology are merging with video viewing, regardless of where the video is watched. There are tremendous opportunities for equipment vendors and service providers alike to find ways to use targeted advertising, IPTV, the internet in general, and DVR's to get more revenue. Just to show a wild and crazy example: would you buy an HD big flat screen TV that had personal computing technology, DVR capability, and anything else you can imagine, all assembled in one device? I wonder, maybe, yes?
Analysis: The article indicates research studies by The Convergence Consulting Group conclude that there is no reason for "broadcasters and cable networks to abandon traditional TV or attempt to accelerate a transition to an all online model." We all intuitively come to the conclusion that TV and internet are headed on a collision course, but how soon will that happen or will it ever happen? DirecTV HD receivers have been sold for years with both phone line and ethernet connections as an example. TV's have been sold for years with computer monitor capabilities. Computer towers are being sold with ATSC TV tuners built in and Quadrature Amplitude Modulation (QAM) digital tuners as well. Both TV's and computers are sold with DVD players built-in. DirecTV is trialing video-on-demand with ground-based internet connections to seek content for download in a new service offering being considered. The point of this analysis is that advertising and technology are merging with video viewing, regardless of where the video is watched. There are tremendous opportunities for equipment vendors and service providers alike to find ways to use targeted advertising, IPTV, the internet in general, and DVR's to get more revenue. Just to show a wild and crazy example: would you buy an HD big flat screen TV that had personal computing technology, DVR capability, and anything else you can imagine, all assembled in one device? I wonder, maybe, yes?
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