More able than cable? How smart are smart TV makers?
Rumor has it that Apple wants a bite out of your living room. The tech world anxiously anticipates the introduction of the “iTV” in the near future—a significant remodel of the traditional television set that is more able than cable featuring Internet connectivity, streamed live cable & network content, direct on-demand digital content and more. Samsung, Sony & Google have already made a foray into this realm with their smart TV designs, and others like LG and Microsoft have ideas up their sleeves as we’ll likely see at the Consumer Electronic Show next week. Other competitors think consumers will prefer an add-on device to make their existing TV smarter rather than having to pay for a whole new unit. Roku, for example, hopes that an added “stick” or set top box will bring all of this smarter functionality at a more reasonable cost. And the Apple TV product offers this sort of solution although it has received lukewarm reception in the marketplace to date. But as we enter 2012, all eyes are on Apple’s “iTV” for its customary novelty and potential to disrupt another market segment. In 2003, Steve Jobs ruminated: “The most corrosive piece of technology that I've ever seen is called television - but then, again, television, at its best, is magnificent.” Is Apple ready to make TV technology magnificent?
Simply having an Internet ready TV puts the world at your fingertips and on a big screen at that. But Apple has bigger plans than that and already offers many appealing elements, although not in a neat package just yet. For example, Apple’s AirPlay—which is already a part of the Apple TV set-top box—allows wireless connection with iPhones, iPods and iPads. This technology opens the door for truly connected & integrated content innovations. Apple’s iCloud storage makes access to content ubiquitous. Including Apple’s OS would allow app accessibility directly from your TV. Apple’s Siri technology invigorates the notion of a television with no need for a traditional remote control (as does Microsoft’s Kinect technology). And if Apple can offer a la carte TV shows and cable networks without the typical cable subscription package required (much like the way it offered digital songs on iTunes in a more appealing package), on demand TV will be much more of a reality. Sounds like the recipe for a pretty smart TV.
So what are two of the biggest challenges facing smart TV designers?
1) Access to the content people want. The providers of this content are not going to easily hand over rights to smart TV designers. These negotiations will be complex and expensive. And securing beloved content is a necessary ticket to a smart TV victory. Content is king no matter what the platform. Even if you have the coolest TV on the planet, if you have nothing good to watch or are even missing some of the key shows, you’re in trouble.
2) Creating and defining a brand in this new territory. Apple and Google are powerhouses that have a leg up with their existing brands, but how will brands define themselves in a non-traditional TV landscape? How will they demonstrate that they are more able than cable? Will searching replace flipping channels? What will make the smart TV better than a current TV with a Wii or an Xbox? And most importantly, how will all this be communicated to consumers? Differentiation, definition and description will be crucial to win a space in the coveted living room space.
In order to gain traction in the television marketplace, smart TV designers are going to have to be more than just smart—they are going to have to be wise, and not only in their design and offerings but also in their message and branding. As William Butler Yeats said, “Think like a wise man but communicate in the language of the people.” Which smart TV brands are tuned in to that wisdom?
