The television industry is still getting to grips with the implications of multiscreen. Nearly a year ago our research (Multi-Screen User Behaviors in the Home) pointed out that "multiscreen" is not a simple concept: different devices attract different behaviour patterns, and content players need to take this into consideration when developing experiences specifically tailored to multiscreen viewers.

Our latest research goes deeper into the multiscreen TV phenomenon which is sweeping through digital living rooms: Tablet TV. We have known since soon after the iPad’s launch that watching video was one of the main applications of the device, and that most of this activity was taking place at home. Service providers like pay TV companies and broadcasters have recognised this consumer demand by making some of the programming available through apps and TV Everywhere services, so the tablet is clearly becoming a recognised alternative to the main TV set.

Our Digital Home Observatory has now explored how the behaviour of tablet TV viewers differs from those watching the big screen. In our recent report, Users More Engaged with Video Consumption on Tablet than on TV, we observed that tablet TV viewers were in the beta state, showing alertness and consciousness regarding the content they were watching. This contrasted strongly with the alpha state of traditional (big screen) TV viewers, whose mode was closer to deep relaxation.

The heightened levels of engagement of tablet TV viewers should present opportunities for content providers to drive revenues associated specifically with tablet viewing, based on the fact that the value of the viewer’s engagement could be significantly higher than traditional TV. This would assume that advertising and marketing communications can be created which do not detract unduly from the core content, and also that technology providers can support them with the right solutions.

It is too early to say for sure that Tablet TV is going to evolve on a different path to big screen TV, but it seems quite clear that behaviour and usage are already quite distinct. It will be very interesting to watch if and how content developers respond to these findings.

David Mercer

The global installed base of smart and connected TVs is set to soar through the 200 million barrier by the end of this year, according to our recent forecast, Global Flat-panel TV and Connected TV Forecast. But it’s been clear for a while that some owners are not using the internet capabilities of these TVs. One of the most frequent questions we get relates to the connectivity rates of connected TVs. Content owners, apps developers and service providers are all keen to know how these new living room technologies are affecting television-related behaviour.

The latest research from our Digital Home Observatory, US & W. Europe Connected TV Owner Survey, gives new insights into this issue. Using the latest wave from our ConsumerMetrix survey, the report finds that there are major differences between the US and European markets. In Europe, nearly half of smart TV owners are not using the connected capabilities of their TV at all: two thirds had never set up the device in the first place, and the remainder had set it up initially but stopped using it. Less than 10% of all European smart TV owners are using the connected capabilities regularly (at least weekly).

In the US, by contrast, we found that nearly a third of all smart TV owners are connecting at least once a week, and by far the most popular application or service is Netflix. In spite of the occasional success story (the BBC’s iPlayer features prominently in our UK sample), most European markets lack a high-profile, well-established OTT video service like Netflix. Netflix itself, of course, is trying to change that, having recently entered some European markets.

Once again our research has demonstrated that what most smart TV owners want is video. If connected TV is to become more widely used manufacturers, content owners and emerging service providers must create compelling video services just as Netflix has done in the US.

David Mercer

Red Bee Media created quite a stir recently when it launched a multiscreen TV app using Civolution’s audio recognition technology to accompany FX UK’s new series of “The Walking Dead”. According to Bill Patrizio, Red Bee Media CEO, the app would deliver a “new dimension in engagement that fuels excitement, deepens experiences and extends consumers’ enjoyment”. My colleague, Caroline Park, conducted an ethnographic study of this second screen app with iPhone and iPad users and reported her results in Multi-Screen TV Experiences: Observing Users of The Walking Dead Co-Viewing Application.

The good news from our research is that “The Walking Dead” fans were excited at the prospect of using the app and interacting with the show. One of the most popular features of this synchonised app was its ability to remind iPad or iPhone users when the TV show was about to start and that the content synchronisation would begin. Developers and service providers should be encouraged that such a basic feature has relatively high value.

However, in general our users felt the app became boring within 10 minutes of the show starting. There was not enough interaction to keep viewers engaged with the app while most of the show was being broadcast. By this time most of our participants had put down their tablet or smartphone and were watching the TV show as a traditional “single screen” experience.

We also found that some users experienced technical problems with audio synchronisation. Viewers were told to raise the volume on the TV in order to improve audio synchronisation, to the extent that one viewer complained of being deafened by the noise. Not surprisingly, when connection is lost between multiscreen devices during a live broadcast, the risk of viewer dissatisfaction becomes very high!

More detailed research, conclusions and recommendations are available to clients of our Digital Home Observatory service.

David Mercer

Two recent pieces of research from our Digital Home Observatory have given us tremendous insight into one of the great strategic challenges of the digital content age: how digital consumers navigate their way through the complexity and wealth of choice they are now faced with. In two key emerging areas – TV apps and online video – we have identified key lessons for industry players seeking to build new opportunities in these markets.

The first report, TV Apps: Owners Won't Give Them Up, researched behaviours and usage surrounding the apps available on the latest generation of connected and smart TVs. Recent adopters of these devices were interviewed and observed in their own homes to understand the thought processes they were going through as they made use of these advanced capabilities.

Surprisingly, perhaps, we found that most of the participants in our study had not intended to buy a “connected” or “smart” TV when they first purchased the device. The key deciding factors when buying a TV, even for “smart TV” buyers, were those we have recognised for many years: price, picture quality, screen size, high resolution and matte screen. A typical respondent told us:

“I didn’t know there were apps on the TV till I got it home. The sales guy told me I could watch iPlayer on it but that’s all I knew”

But every one of our participants, once they had installed the TV and begun to explore its capabilities, became hooked on at least some of the apps, to such an extent that they felt the apps had become the most important element of the TV’s capabilities and that they could not imagine being without them.

Critically, however, our research found that users were unlikely to make use of apps with which they were not already familiar from other devices and services. So Hulu Plus subscribers would quite happily use the Hulu Plus app on a smart TV, but would be reluctant to explore apps they did not already recognise.

Our second report, The Online Video Discovery Process, emphasises the variety in discovery processes apparent in different types of online video application. The discovery process related to television shows, for example, assumes a high degree of knowledge about the specific show and even a particular edition or episode of that show: viewers frequently know precisely what they are looking for and are less interested in recommendations or suggestions.

However, viewing of movies online is often driven by a quite different set of motivations. The decision to watch a movie is often taken only when no television shows of interest are available from various sources. And partly for this reason, many potential movie viewers have not decided which movie they wish to watch when they begin the discovery process. This explains why recommendations engines are much  more critical in the movie genre than in television shows.

There is a lot more richness to be found in our research which can’t be revealed in a blog posting. But these pointers demonstrate that technology vendors and service providers still have a great deal of work to do as they maximise the business potential of emerging connected television platforms.

Smart or connected TV is still very much in its infancy: early implementations, going back to 2007 or earlier, certainly had their limitations: the products now being introduced are clearly a leap forward in terms of user experience, and our research shows that their advanced features and apps can offer high levels of appreciation and satisfaction. But the industry will fail to meet its objectives if it does not urgently address the remaining challenges, which largely centre on communicating the benefits of connected TV to potential customers. Manufacturers, developers, service providers and retailers must each play their part.

David Mercer

Client Reading: TV Apps: Owners Won't Give Them Up; The Online Video Discovery Process

A colleague and I witnessed a fascinating example at lunchtime today of why LG’s strategic conversion to passive 3D is likely to gather momentum with retailers and across the industry. Demonstrating 3DTV in-store is never easy at the best of times. TVs need to be set up with appropriate demonstration material, glasses need to be available, and customers have to be persuaded to pick up those glasses and try out the demonstration.

LG appears to have done a deal with our local John Lewis department store, because the company’s two new passive 3D sets have been moved to a prominent position at the front of the AV department – a few weeks ago they were positioned in amongst the rows of regular TVs. Judging by our short time in the area, it seems to have worked because a couple of other customers also came along to try out the demo while we were there.

The first good news was that the store feels comfortable enough, given their low value, to leave several pairs of 3D glasses lying around, unsecured, next to the TVs. Customers do not therefore feel as inhibited in picking them up and trying them on as they do when they see glasses tied by a security wire to a specially designed point-of-sale unit.

However, the main problem then became apparent:– the two LG TVs (one 42”, one 47”) were positioned below standing eye level. LG’s Film-type Patterned Retarder (FPR) technology limits the 3D effect to same-height viewing. If you are standing with your eyes above or below the top or bottom of the display you will see not a 3D effect, but what will appear like ghosting with very little image depth. So to see the 3D image effectively in the store we had to crouch down. The transformation was dramatic: suddenly the quality of the 3D material became apparent across a variety of clips, including sports, movies and nature. I have seen enough 3D demonstrations to have become sceptical about many so-called improvements, but this was genuinely impressive. Inevitably the quality of content production had an impact on the 3D effect, but overall I was very pleasantly surprised. One or two other customers were watching the same demonstration and were also making encouraging comments.

We then tried a Sony 3D demonstration, which was parked in the regular line of TVs. Here we saw immediately the weakness of the active shutter approach: four pairs of glasses were available for the two TVs on display, but neither TV was set up to demonstrate 3D. I had to fiddle with the menu to get the set to convert 2D to 3D, and then it became clear that the glasses were simply not functioning. After an assistant finally came over to help us we established that only one of the four pairs of glasses had a working battery. By this time, even though the (2D converted) 3D demonstration was reasonably good, we both felt we would have long ago walked away as potential customers.

Finally an assistant helped us with a Samsung active shutter demonstration. Again, there was a considerable delay while the set was configured correctly and the glasses were found and prepared for use. The 3D experience again was of good quality, in my experience, although people perceive the impact of 3D differently according to the content itself. Nevertheless we again felt that the usability of the active shutter TV and glasses would be seen as a strong negative by many customers who had already experienced the LG approach.

So once John Lewis positions their LG TVs at correct viewing height, I think they will find they have hit on the ideal in-store 3DTV demonstration. I notice today that Cello Electronics, a UK TV manufacturer, has joined the FPR club and will launch budget-price passive 3DTVs this summer (42” retailing at £499). Sony, Samsung and Panasonic had better beware: active shutter’s days look like they are numbered and manufacturers which remain wedded to that technology could lose share rapidly if they don’t find an answer before long.

David Mercer

Client Reading: Cost Concern & Lack of Interest Main Barriers to 3D TV Adoption

There has been an ongoing debate on the extent to which consumers desire (or will accept) social networking on connected TVs. Strategy Analytics recently undertook a series of UX research sessions with consumers of digital media and we probed in depth whether participants would want to integrate social networking functions into their digital media experience. Their responses suggest that the notion of social networking incorporates several related, but distinct concepts, and individuals’ perceptions of social networking include these concepts to varying degrees. The principle concepts related to social networking according to these participants are:

• Messaging
• Sharing Pictures and Videos
• Gaming
• Recommendations
• Finding Old Friends/Colleagues

Not all of these functions are considered particularly appropriate to be accessed via a connected TV, and a user’s attitudes towards incorporating ‘social networking’ into the TV experience depend on the extent to which they equate social networking with each of the above functions. Broadly, consumers consider viewing pictures/videos and recommendation aspects of social networking to be appropriate functions to incorporate, however person-to-person messaging is generally considered less appropriate – usually due to concerns over privacy. These participants generally felt that social gaming aspects of social networking are not a very good fit with connected TV, because most generally prefer to play such games on personal devices (e.g. PC, smartphone) while watching video content on their TV at the same time. When they think of gaming on the TV screen, they expect a superior gaming experience similar to a dedicated gaming console. Notifications of messages (social networking or indeed even emails/text messages) on the TV screen are appealing to some consumers, although they would generally prefer to access these messages via a personal device. Our report on consumer preferences from digital media devices - including UX benchmarks of Google TV, Apple TV, Boxee, and Roku - will be available to subscribers of our Digital Home Observatory later this week.

Sony will be the first to incorporate Google TV in to their HDTVs, with models hitting Sony Style retail stores this weekend and reaching Best Buy stores by October 24th. Sony will offer four different TV sizes, ranging from 24-inches to 46-inches with price points varying from $599 to $1,399. Along with these TVs comes a handheld full QWERTY keypad with standard navigational controls and touchpad mouse. The compact size of the controller should provide a nice trade off between traditional full-size QWERTY keyboards and current standard TV-service provider controllers. The QWERTY keypad appears to provide users direct access to the core features of the Google TV OS. The fact that it has a full QWERTY keyboard is one of the most important features of this controller. Our research, Profiling the Connected Media Consumer: a Contextual Study, has found that the lack of a QWERTY keyboard often acts as a barrier to adoption of current connected solutions. Strategy Analytics has also found that users want to easily multitask while watching TV, which involves split screens. A Dual View key (1) will allow users to view TV and web sites at the same time, split on the same screen. The Search key (2) allows users to access the search bar to enter their search query which Google TV pulls from various aspects of the web, electronic program guide, or DVR. A Home shortcut key (3) will take users to their customizable home screens, which displays their set bookmarks and installed apps. However, I do have some concerns about general usability. Users may not want to access the advanced aspects of their Google TVs all the time, leaving some of the current core TV controls in awkward places. The Guide and DVR (4) keys are some of the most commonly accessed features of users. With these keys in the center of the controller, users would need to reach across. Also, while the controller may be ideal for the early adopter target customer, other members of the household may find the controller to be rather overwhelming or difficult to use and/or hold, especially as the Sony controller requires the use of two hands. Our best practices suggest that touchpads and directional keypads should be integrated and be on the right side of a controller, as most users are right handed and therefore naturally navigate with their current controllers using their right hands. This controller will provide a more enhanced and, through the use of Google TV, a more customized TV viewing experience – for the advanced, early adopter user. Unfamiliarity with this innovative controller will be an issue for all users at first, with a steeper learning curve for less advanced users. Strategy Analytics Digital Home Observatory will be conducting a comparative benchmark of Google TV versus other competing products on the already on the market.

Over the past six months, Strategy Analytics has conducted in depth interviews with 60 consumers across five countries who are watching over-the-top content on their television screens. This group - that we call "Connected Media Consumers" - access online content via a variety of methods: some own connected TVs, BluRay players or gaming consoles, while others have purchased digital media center PCs or media adapters. Despite this diversity, when it comes to their attitudes and motivations for consuming OTT content, we have found that these consumers are often surprisingly similar. Saving Money is Not the Main Motivation The rising number of "cable cutters" who have cancelled their pay TV subscription and consume only OTT media has received a lot press recently. However, our research has found that, while saving money is a factor for some of our Connected Media Consumers (especially in Spain or China), the vast majority are using OTT primarily as a way of increasing the variety of content available to them and providing the convenience and flexibility to consume their preferred content anytime, anywhere. For most, OTT supplements their broadcast viewing and our research has shown that the vast majority actually consume more content now than they did before adopting connected media, and that their number one method of consuming content is still broadcast. They mostly tell us that broadcast TV and OTT content serve different purposes and that both are valuable to them. When families come together to watch TV, they are most likely to be watching a program 'live' as it is broadcast. As such, for these consumers, watching broadcast TV is likely to be considered a social activity. By contrast, OTT content is more often associated with personal interests. For this reason, we have found when observing these consumers in their homes that attention levels for broadcast TV are generally lower than for OTT media. While broadcast TV is being 'watched', family life is occurring, whereas digital media is generally consumed at a time when the viewer can devote much more of their attention to the content. Legal Alternatives to P2P Sharing of Digital Media Needed Finding the content they are interested in is the biggest frustration for these consumers. Most are willing to pay to be able to find all of their favorite content in one place. They also want better options for discovering new content that may be of interest to them. While many have no qualms about accessing content illegally via file-sharing, there are also many - especially in markets like Germany - who do this only reluctantly because there are no legal alternatives that truly meet their needs. Our research suggests that if a solution was available that met their demand for access to international content in one place, there would be strong demand. Discovery of Content Based on Social Recommendation is Highly Desirable Since digital media is more likely to be consumed by an individual alone rather than with the rest of the household, and since attention is higher, consumers place a much greater emphasis on the relevance of the content to their tastes. This means that many of them choose to watch their preferred shows via digital media. It also means that they choose the digital content they watch more carefully and seek out information to help them decide whether it is worth watching a particular show or not. To identify content that will be most relevant to them, these consumers place great value on recommendations. We found that recommendations based on reviews or activity generated by friends is of the highest value, while recommendations automatically generated based upon the preferences of other users of a service are also valuable (e.g. “People who watched this also liked...”). Appropriate Controllers Required for Digital Media Access According to our interviews, one of the main limitations of connected media consumption is current controller technology. Text input - for content searching - is cumbersome using traditional TV remotes. Additionally, consumers want fewer and smaller controllers in their living rooms, while at the same time they are wary of universal remote controls because they are concerned that these will not replicate every function of all of their existing remotes. We believe that bundling more appropriate controllers for digital media consumption will be vital to driving adoption. Our research suggests that touchscreen and direct pointing technologies represent the most effective technologies to meet the interface needs of these consumers. For more information about Strategy Analytics’ in depth research with Connected Media Consumers, click here.

On May 20, 2010, Google announced the launch of Google TV – an Android-based set-top box solution that enables users to consume web content on their TV screens. While the concept of internet TV is not new, based on information gleaned from the official Google TV site, Strategy Analytics believes that Google’s approach meets many of the needs of consumers who are interested in adopting such technology. Our observations of Connected Media Consumers in the US and Europe, identified consumer demand for a more personalized viewing experience, based on access to preferred content, scheduled for their convenience and with more relevant advertising/payment options.

• By providing a streamlined, one-box solution to the problem of accessing internet content on a TV, Google TV offers a simple approach that will appeal to mainstream segments who are interested, but who have a very low tolerance for technical complexity.
• An Apps-based menu system will provide a familiar interface structure that consumers will find easy to learn and use, while an ecosystem of applications or widgets will provide value-added innovative elements and aid the discovery of new content sources.
• Google has stated that all Google TV input devices will have a QWERTY keypad as well as a D-PAD and pointer. This meets the demands that we have consistently heard from consumers for a more appropriate human-machine interface to support easier searching for content.
• Also, convergence over multiple Android devices could provide the type of seamless placeshifing opportunities (both within the home and beyond) that consumers desire, such as the ability to consume content in bed via a smartphone or tablet.

However, while these innovations may be useful to consumers, SA believes that for Google TV to provide a truly compelling experience, it must provide access to all of a user’s preferred content. Mass market consumers want a simple, one-stop shop where they can find all of their familiar content. Having a good quality sit-back experience with YouTube is nice to have, but consumers won’t pay simply for the extra convenience when they can access the same content on a laptop for free. Our research has found that mass market consumers are motivated to adopt digital media technology primarily for the convenience of being able to time-shift and configure their viewing around their lives. This fundamentally depends on them being able to manage access to their favorite content. They will not adopt unless all of their favorite shows are on the platform. Having an ecosystem of applications and the ability (potentially) to place-shift their content onto other compatible Android devices, are interesting innovations, but do not in themselves represent a viable value proposition without a broad range of familiar content. Available demonstrations suggest that Google TV will incorporate details of broadcast programs and content stored on the user’s DVR into its search results, thereby potentially providing a single point of access to all of the user’s content, whatever the source. While such integration is certainly a step in the right direction, we believe the critical question is whether Google TV will interface directly with broadcasters’ catch-up services. Doing so would provide a solution that meets the most important requirement of potential adopters – i.e. the ability to access all of their favorite content in one place at any time. See “Profiling the Connected Media Consumer: a Contextual Study” Kevin Nolan

Strategy Analytics has recently completed a series of in-home interviews and observations with a segment that we call “connected media consumers” – i.e. individuals who connect their home entertainment devices to the web to access and view digital media content on their televisions. By taking an ethnographic approach, we identified four key motivators for adopting media connectivity that are common across those we studied. • They want a more personalized TV experience. Having access to web-based content on their TVs frees them from the standard cable/satellite TV schedules, allowing them to watch what they want, when they want, and where they want. This also enables them to pay just for the content they are interested in. • They want to customize the TV experience – i.e. to control and configure their set up to optimize it to their situation and preferences. For example, being able to choose the way they see advertising on Hulu.com is important to them. • The discovery of new content is also important. They use services such as Pandora online radio because they like how it suggests new music based on their established interests and preferences. The ability to discover new, and importantly relevant, content is a compelling part of digital media entertainment for these consumers. • And finally, they want a more social TV experience, so that they can share their experiences with friends and family, both physically and virtually. They are at the forefront of the convergence between social networking and digital media. The full findings of this study, which includes insights into barriers to adoption and unmet needs of connected media consumers, are available for purchase here: Profiling the Connected Media Consumer: a Contextual Study.