By John Antonchick, NCN Associates (June 29, 2011)

Moderator: Kurt Scherf, Parks Associates
Panelists:
- Jim Funk, ROKU
- Bismark Lepe, Ooyala
- Alan Messer, DLNA
- Russ Schafer, Yahoo!
- Peter Schwartz, VIZIO

Smart internet-connected TVs were introduced about 18 months ago and growth is rapid with expanding numbers of models and improved features. With 70% of homes having broadband access and increased bandwidth, growth is being enabled. Bismark suggested that improving ease of access/discovery to content is important and improving. Connected homes also dovetail with connected TV service(s). Jim suggested that people really like new streaming services like Netflix and that is stimulating usage.

Kurt asked Russ about Yahoo international efforts, e.g. where Yahoo is in 135 countries. Kurt asked if they will have a platform for service providers. Russ indicated that they are talking with service providers worldwide about advanced services. In comparison, Peter said Vizio is expanding in several countries but is dealing with content issues in new countries. Bismark said that Ooyala is seeing new types of services in India and other countries. Alan suggested that from the DLNA perspective, a set top box can supply content to other devices in the home.

Problems with current platforms include inadequate memory space, queing of content,display-based ads, etc. according to Yahoo’s Schafer but they have been developing system platforms to accommodate ad and content requirements.

Kurt questioned how these companies are helping monetize smart TV for their customers, e.g. broadcasters, brands, etc. Bismark suggested those with profitable models have content stream(s) that are more than 10 minutes. Many are experimenting with Ooyala’s technology, e.g. different app modes, to optimize revenue. Last year, one of their broadcaster customers made their content available simultaneously both to broadcast and online customers. They experimented with various transaction models, etc. and had considerable increases in revenue from changes like reducing ad times from 3 to 2 minutes, etc.

Kurt asked if there is a new revenue channel for gaming with smart TV? Peter said yes although it’s at a very early stage moving from simple to more robust online games. He noted that the TV is the largest display in most homes and provides a better gaming experience (online).

Kurt asked how soon there could be support for natural human interfaces like Kinect on TVs. Peter responded that basic functions are still mainly the province of hand held remotes. Jim thought that much of the interesting experimentation is with portable devices and tablets. Alan commented on DLNA certification for software and app certification (not just device certification) which was initially released at CES last January.

Mark suggested that there will eventually be interactive control built into other types of devices, e.g. desks, chairs, etc. He said that he is hoping that there can be standardization on platforms like Android.

Russ suggested that using WiFi and internet connection you could serve content to various devices as if they were IP-enabled. This would allow targeting of ads to specific devices (not just the TV) and utilize characteristics of those devices, e.g. gestures.