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TV Evolution: The War For The Start Screen

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Dec 1, 2013.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    TV evolution: The war for the start screen | VentureBeat | Media | by Tom Cheredar (click for full article)

    by Sean Knapp - Nov. 30, 2013

    -- In the 1980's, about the time Ferris Bueller took his famous day off, a war was first waged that has resurfaced in new forms ever since. No blood has been shed, but billions have been spent by factions vying for one prize: to be the first thing people see when they fire up their PCs, smartphones and tablets.


    Now that war has reached TVs. Media fragmentation and the growth of cord cutters, cord shavers and younger "cord nevers" are making TV one of the most hotly contested theaters of The War for the Start Screen. The victors will be those that "own" the viewing experience from the moment the power button is switched on. Their spoils will be riches from the ad revenues, subscriptions and transactions flowing from viewer "ownership."


    The stakes are high, and there will be blood. Control of the screen is a sophisticated play requiring good timing, deep pockets, the right content and the ability to deliver the best viewing experience. At stake is a whopping share of the $150+ billion-a-year broadcast TV industry.
     
    Last edited: Dec 1, 2013
  2. CatfishRivers

    CatfishRivers Well-Known Member

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    I thought the following part of the article was spot on:

    ** Device manufacturers, Apple with AppleTV, Roku, Boxee, and Google with Chromecast are a mixed lot. While they don't own the start screen yet, this group is more nimble and diverse than the larger hardware guys, so they have a good shot. However, some of these devices need to address ease-of-use issues before they can reach critical mass. And, to survive the long-term battle, all device manufacturers need a recurring revenue stream to make up for the typically low margins in device sales.

    Among this group, Apple and Google are well positioned for success because of their ability to treat devices as loss leaders while building the mass market acceptance needed to win service fees and transactions at a massive scale. Chromecast gives Google (which can certainly weather a loss leader) a low-cost device to not only simplify web video access, but to boost YouTube viewership and revenue as well. **

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    I've been saying for a long time that there is little money to be made in the hardware set-top box market. The only way the current GTV marketing model with the OEMs willl work - is if Google opens up their wallet for some exclusive premium content on GTV - and spends some money promoting GTV. Then the consumer would have a higher perceived value of GTV - and at least the OEMs would have a shot at making a go of it.

    Otherwise the only way I envision GTV set-top boxes staying afloat in the market is if Google produces their own Nexus set-top box. As the article mentions Google is better positioned to offer a TV device at approximately break-even - because they stand to gain much from other revenue streams related to the box such as advertising, Google Play Store, YouTube, data monitoring, transactions, subscriptions, etc.

    None of the GTV OEMs are as well positioned as Google to benefit from these related Revenue streams - and thus they cannot afford to stay in the market offering a non-compelling box for "nickels & dimes".
     
    Last edited: Dec 1, 2013
  3. ChrisG8

    ChrisG8 Well-Known Member

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    I am not sure why the author includes Boxee in the discussion. After two failed products and abandoning its customers twice, I don't think we will see that name on another product. I believe Samsung owns the rights now but I don't know what Samsung plans to do with that acquisition.
     
  4. Carlszone

    Carlszone Well-Known Member

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    Yep, if you think about it, Google should have brought everything under the Android OS before venturing on Google TV. Android from the outset would have made more sense. They already had a user base familiar w/Android on their Smart phones, tablets and the Chrome browser. But to start out w/a Chrome based OS and then attempt to shift to Android after GTV has been out and failed by Google's marketing standards?

    Not too swift...
     

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