MGEITF 2006: On-Demand And Mobile Platforms Signal The Future For TV
The increasing number of digital channels, combined with the emerging possibilities offered by on-demand viewing, will give viewers a more democratised broadcast experience than ever before, although there will still be a place for scheduled broadcasting as the market evolves.
This was what emerged from a discussion between some of the most important figures at the forefront of the digital revolution, present for an enthralling session at this weekend’s MediaGuardian Edinburgh International Television Festival (MGEITF).
Jonathan Sykes, managing director of content strategy at Video Networks, said that with video-on-demand increasingly being seen as an important step for the television industry, it is imperative that good quality of service accompanies the roll-out of on-demand to ensure that the method of delivery is not overshadowed by, for example, poor ease of use. This statement was echoed by Patrick Walker, head of content partnerships at Google Video, who said: “If you don’t allow people to feel empowered and to be able to get what they want, they may not be coming back.”
Sykes also commented on people currently using on-demand services and on the way in which their actions are changing the viewing model from a passive to an active mode. He said: “It’s interesting to see how many people are personalising their TV in a way that they’re choosing what they watch and then almost scheduling themselves. It’s a very high percentage of people that are doing that.”
With regard to revenue from on-demand services, Sykes said that it was clear that the winds of change had already struck the television industry, saying: “This is something that may be hugely overblown to start with but [people] are paying per TV programme, that behaviour is something we’re going to watch.”
Gidon Katz, director of content acquisition at NTL, sounded a note of caution on the subject of on-demand viewing though, saying that people generally go home to ask what’s on, not what’s on-demand, adding that even in the US, at most 4% of viewing is on-demand.
Griff Parry, strategic planning manager of BSkyB, was of the view that, as on-demand viewing is based on a credo of providing a consumer not just with what they want, but also when they want it, viewing restricted to a television set-top box is not enough, especially when audiences want to be able to access content on the move. Parry said: “We also recognise that users increasingly want content on a multiplicity of devices and it’s early days yet but that’s where it’s going. What we’re doing in mobile is a very important first step in that run.”
Katz was also of the opinion that on-demand, as has already been seen, will not be restricted to just one platform, and, speaking about the importance of broadband as a delivery method, he added that “YouTube and streaming video drive the uptake of broadband.”
In addition, Sykes was of the same opinion that companies cannot ignore consumer choice. “When is it that people will want a YouTube equivalent on the television? I know it will happen.”
Currently a big part of on-demand viewing, especially with regard to sites such as YouTube and Google Video, is the strong showing of user-generated content, about which Patrick Walker said: “I think a lot of people look down their noses at user generated content but… you have to give some respect to the type of programming that’s coming out. The line between user-generated and professionally produced is blurring.”
Advertising revenue models and the monetisation of on-demand is a big issue at the moment and something Walker was keen to talk about as the proliferation of on-demand continues apace. He said: “The thing to keep in mind is where is the advertising going? There are four-second clips that get more money than things on multi-channel television that cost a whole lot more money.”
Katz also had a view of how revenue will be accumulated from on-demand, saying: “Advertising funded on-demand is what’s going to drive consumer usage, it’s what’s going to really drive business models for broadcasters.”
Overall the television industry, particularly with on-demand, faces some testing times, and Griff Parry welcomed the changes ahead, saying: “There are challenges but I don’t think the future is as bleak as it’s painted.”
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