Connected Consumer conference: “iPlayer is dead”

“iPlayer, 4OD, ITV Player – they’re all dying out. They’ve had their day in the sun.”

So says Nigel Walley, managing director of Decipher, as he spoke at this year’s Connected Consumer conference.

It might be hard to take such a claim seriously when you look at the viewing figures for iPlayer – which is now celebrating eight years in the market and described by Walley as having “defined VOD in the minds of the consumer” – but it’s already happening, he insists.

Yet Walley’s argument is trying to make a distinction between the content that branded channels provide and the app platforms on which they exist in the living room.

It is the growing range of VOD apps from channels that is helping to drive fragmentation and consumer confusion in an already clustered market – but it is the set top box (STB) that will put the nail in coffin, he says.

“Apps such as BBC iPlayer, 4OD and ITV Player have had a five to eight year run without any real competition in the home for consumer viewing,” Walley said.

“But suddenly, out of the blue, what we’re seeing is the rise of competitive app sets that are delivered to us by the people that provide the STBs in the lounge.

“So increasingly we’ll be using a set top box app to watch content rather than from the app for those broadcasters.”

For Walley, this is good news for consumers; it will undo the growing fragmentation in the market, sort of tidying things up for the consumer, whilst leaving the branded channels more time and money to simply make great content.

“Channels should make content and STB providers should build infrastructure to deliver that branded content,” he said.

Sharing the panel was Channel 4’s creative lead, David Amodio, who offered a more cautious line of thinking, but could see it happening. “It might be the case that, in years to come, there will be one global app for all the VOD players, but I don’t think we’re there yet.”

Amodio did admit, however, that media was often obsessed with building things – it just wasn’t that great at doing it.

The triple play market

It was fragmentation and a sense of growing confusion that set the scene for much of the wider panel debate at Wednesday’s event.

Walley and Amodio, who were also joined by Freesat’s managing director Emma Scott and BSkyB’s director of AdSmart Jamie West, quickly sunk their teeth into the battle between BT and Sky – then moved on to look in some depth at the disruption to the triple play – broadband, TV and telephony – market.

The aggressive entry of BT into the market with its free broadband deal for BT Sport customers has certainly ruffled Sky’s feathers, outlined this week by Aegis’ Jim Marshall.

“It’s the biggest thing to happen in TV sport for twenty years,” says Amodio. “And it’s brilliant for consumers that like sport.”

In a market where there is less need for new subscriptions, rather subscription swaps, BT is certainly serious about the proposition. “They’ve spent a billion quid,” says Sky’s Jamie West, “of course they’re serious.”

Is he worried? He says not. “Sky are competitive and we are investing heavily in content delivery and broadband is another string to our bow. But it’s very good for consumers.”

There was a lone voice of dissent, however.

“It’s just confusing for the consumers,” says Freesat’s Emma Scott.

Indeed, there are currently nine different packages to choose from on BT’s website – and you can even get BT Sport on Sky – which led, funnily enough, to a confusing conversation about the best package combinations.

“It’s important we look at what all viewers want though,” says Scott. “BT’s move is a great step in the market; the change is good. But the TV market is confusing for normal punters.

“People want to watch television – via a set top box or through a subscription – but it’s hugely important viewers know what they’re getting and what they’re paying for.”

Only five million homes are actually active football subscribers, Scott says. That leaves an awful lot of homes – 18 million in fact – that don’t have football.

“So what about them? There’s lots of noise, but it doesn’t affect most people.”

Yet others didn’t see the worry. “I don’t think it matters that much if it’s confusing for consumers,” said Amodio. “What is important is price. Viewers want lower priced sporting content and that is what BT are going to offer them.”