Media Playground: Connected TVs hitting a tipping point
Speaking at MediaTel Group’s Media Playground event, Nigel Walley, MD of Decipher, said that people want to buy the “biggest, flattest, shiniest TV” possible that will fit next to the fireplace, and that they’re not looking necessarily for connected capabilities.
When looking at connection rates for TVs, Decipher look only at TVs post 2011. Nigel explained that the user experience from the hardware pre-2011 was very poor, but now TVs are good enough to connect, are easy to connect and often it is actually harder to not connect them.
A key point for Decipher is working out where the sold connected TVs are going, in terms of whether to a Freeview/Freesat home or a pay TV home. If you have a pay TV home he said that they will most likely watch video on demand offerings via their Virgin or Sky set top box rather than via the connected TV, as this is what the consumer would be used to doing, adding that there isn’t enough research yet on what version of iPlayer consumers are watching.
The panel were all in agreement that Samsung are the trailblazers in this market at the moment and that the 2012 models are very good. However Nigel pointed out that Curry’s will still be selling off the 2011 models at discount at the moment, and that the 2012 models would only have arrived in store in May.
Consumers think they are getting a good deal but they are actually purchasing old technology.
Unlike set top boxes or mobile phones, internet connected TVs are not upgradeable, so if a 2011 product is purchased, you would not be able to get any of the newer technology added onto it.
For example, ITV announced that they will be launching an ITV Player app on connected TVs soon, but this service would not be available to anyone with an older version of that smart TV.
Nigel Walley explained that the consumer electronic industry at the moment is only interested in shipping units, and not necessarily in having customers.
Stephen Poole, multi platform group sales controller, ITV, said he had read an article this morning stating that there was an “armada of ships coming to Europe” with 90 million connected TVs for the market.
James Grant, country manager UK, Vindico Group, said that despite the recession and families being under financial pressure, there is still evidence to suggest that consumers have an appetite for small luxuries, and with smart TVs now hitting a £300-£400 price point, they could fall into this category, and likely upgrade their TV.