internet television might happen this year… (no, really)
Monday, January 9th, 2012 at 1:48 pm by Brian Ales
Back where I come from, they like to say that “soccer is the sport of the future, and it always will be”.
You could say the same about internet television. OK, sure – even as I type this, millions of video streams are being watched by millions of solitary computer users at this very moment – but while some folks (including us) have spent the last few years promising that internet television is right around the corner, the consumer electronics landscape has become littered with failed attempts to deliver the lean-back/multi-viewer/couch-centric user experience we know and love (and how we do love it – in 2010, Americans spent 2.7 hours per day in front of their televisions).
It’s going to happen, though. Simply put, the benefits to the user (time shifting, long tail content, à la carte pricing) and the benefits to the advertiser (targeted advertising – need I say more?) are just too compelling for it not to.
So here we find ourselves on the eve of CES: time, once again, to predict the advent of internet television. Let’s see: there’s Google, back with new and with improved Google TV – as well as a roster of hardware partners that now includes the world’s top two TV makers Samsung and LG (they join founding Google TV partner Sony). And then there’s Apple – we’ve been speculating about this forever, but recent rumors about an impending Apple TV this year have achieved critical mass, based on word from both Apple suppliers and from the at-large tech media .
Make no mistake: internet television is, to use a technical term, The Big Enchilada. Precisely because the stakes are so high, though, the incumbents (internet service providers, cable companies, cable networks) have been struggling to stay out in front of the impending disruption (and avoid having what happened to the music industry happen to them). Up until now, the best way to do that has been to deny these internet television services access to the same top-tier content they’re happy to be making available via your computer’s web browser (more on one viewer’s workaround: here and here).
The next step in the evolution of internet television is not going to have to do with processor speed or Siri voice-based remote controls – rather, it’s going to involve that vital third part of the internet TV equation: content.
The real thing to watch for in the Google TV announcements coming out of Las Vegas this week will be what content agreements are in place.
It was Google’s inability to ink such agreements (and some less than well-received hardware) that made 2011 a disappointing year for Google TV. Google CEO Eric Schmidt has high hopes for 2012, though: he was recently quoted predicting that “by the summer of 2012, the majority of the televisions you see in stores will have Google TV embedded.“ That’s a pretty bold statement. After the disappointing 2011 Google TV has had, it’s hard to imagine Schmidt going out on a limb like that without having some new top-tier content agreements up his sleeve. And as for Apple? Building an internet television has been their obvious next move for at least the past few years. Why is it only now that it (finally) appears imminent?
The answer to both questions could be that that new business models for internet television content licensing and distribution have recently been ironed out – and we’ll be hearing about them later this week.


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