TV 2.0 Overview - Convergence at Last

What in the heck is TV 2.0?  I just got Web 2.0 all figured out last year and now we have TV 2.0!?!  While this was slated as an overview, and Susan Bratton told us earlier that today’s sessions would be walking us through the Big Picture with top level views, moderator Andrew Moskowitz did not introduce the subject or give that explanation.  In fact, he did little else other than read from cards (perhaps for the first time?) to introduce our two panelists.  Luckily the session improved once the panelists got started.

The first topic, covered by Peter Storck of Points North Group was Viewer Habits, taken from surveys of Internet Users.  He opened by telling us that habits are changing, and the interest in convergence is getting there.  Learning from the mistakes of the music industry, the TV industry is ahead of the consumer.  While penetration of digital TV is getting there, hand held capability and interest is much lower that you would think based on all the recent media coverage.  Only 16% of all Internet users even have the capability of accessing TV on their mobile devices, and even less are using it.  When asked why they don’t want it, 35% cited the small screen size, yet those who are already using it are not complaining about the size of their screens. 

That data fits well with other answers given by DVR users.  While a quarter of non-DVR users think that they would want one because it is easy to record shows, almost 60% of current users say this is what makes them great.  Similarly, 35% of DVR users want them for pausing live TV, only 6% of those without think that pausing live TV would be something they would want.  What you find when you start using a leading edge technology is that what was once something that sounded just OK turned into something you could not live without.  Just because I may not think I want video on my Treo, I may just change my mind once I try it.  If DVRs went away today, I might just stop watching TV altogether!

When looking at the usage of video content online, of all the top responses, watching movie previews (#2 on the list with 31% of users doing it frequently or occasionally) was the only one that was advertising content.  The rest of the top five were were news video (32%), music videos (23%), sports highlights (16%), and TV highlights (15%).

Peter also had survey data that (unsurprisingly) showed that only a small minority (17%) or respondents were willing to pay $2 to watch a downloaded show instead of having one with ads.  He said, “the pay model will have a place in the mix, but advertising will be the biggest.”

Daisy Whitney, a writer for such publications as TV Week, Advertising Age, and Media Magazine were there to talk about the transformation of Television.  Daisy opened by agreeing that the DVR use slide was a good transition for her.  When consumers are not interested you can have a “game changer where once you start using it, you can’t live without it.” She said that TV has already moved way beyond broadcast, with VOD and downloadable shows for PCs, portables, and mobile devices. Shows are already everywhere after (and in some cases before) the broadcast.  Cable companies have VOD, shows can be found on iTunes, Google Video, YouTube, ABC, DirecTV, Fox, and more.  Some (DirecTV/Fox) are even available in advance for a fee.

There are difference for this type of content.  Daisy noted that short is best.  She said “snack sized content” such as 45 second clips on SOAPNETIC and 3 minute versions of 30 minute TV shows are what the users would prefer.

Advertising is changing too.  New tools enhance targeting and accountability such as dynamic ad insertions and interactive ads.  Ads will eventually be delivered to the viewer based on information known about them, not to a broad group based on the shows demographic.  As Peter said, “media is changing and advertising will too.”

There were a few final thoughts they wanted the audience There were a few final thoughts they wanted the audience to take away from the session:

• The industry is ahead of consumers. It was important for them to learn from the music industry, and they see the situation today akin to the wild west.
• The blurring is here.  We have convergence at last.  The industry is finally living up to the hype of the ‘90s.
• Experiment.
• Be everywhere.  As Daisy said, “you need to protect yourself from the inevitable fallout” as users go from TV to DVRs, PCs, mobile devices, webisodes, mobisodes, vidcasts, and whatever else will be coming along.