Internet on TV is the future of home entertainment
Posted on Feb 13, 2013 by YuMe
When entertainment technology makes a breakthrough, the innovation may seem special at first, but it’s usually not long before it vampirizes the entire industry. Once new products see overwhelming popularity, they don’t just become the standard in their category, they also wipe out whatever people relied on beforehand.
For example, while flat screen televisions were once considered luxury goods less than a decade ago, consumers today have a variety of flat screen options across ranges. It’s also close to impossible to find a new television that is not flat screen in stores and online.
As TVs that connect users to the web gain a stronger grasp on the home entertainment device market, it won’t be long before all televisions have these capabilities, states Arthur Goldstruck for Business Day Live. Goldstruck is the founder of World Wide Worx, a technology research firm.
The future of TV is internet
In late 2012, 45 percent of respondents to YuMe’s respondents said they plan to purchase a new television in the next 12 months. This rate is up from 33 percent the previous year, which suggests tablets, smartphones and other devices are in no way replacing the television set.
What is likely being replaced though is TV in its traditional sense. One-third of respondents who plan to buy a TV are expecting to purchase a smart TV, meaning nearly 20 percent of homes could have one of these devices in the next year.
Meanwhile, consumers are also showing interest in connecting devices to their TV to view internet content on the big screen.
What and how consumers watch
While many on-demand services provide users with the option of purchasing one video or a monthly subscription to content that is ad-free, the majority of consumers prefer watching free content that integrates commercials throughout the video. While traditional television commercials often get muted or cut off when viewers change the channel, online content viewers understand the tradeoff between free content and being shown ads. They’re more likely to watch ads in their entirety.
A growing advertising platform
Miles Lewis, the vice president of advertising and sales at Shazam, agreed, adding that multi-screen campaigns give brands the opportunity ”to enable consumers to engage more deeply with a 30-second spot.”
YuMe’s whitepaper supports these claims. More than three-quarters of consumers said they’ve used a laptop, mobile phone or tablet while watching television. More than half reported using two screens at least half as often or more frequently than when they are only watching TV.
Most often, multi-screeners are accessing email, using Facebook or shopping, which explains why brands that have a presence across platforms are getting consumer attention.