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I2 TV
Thursday, June 2, 2011 at 3:59PM 
Interactive and Internet TV
When was the last time you rushed home to catch your favorite show on TV? The introduction of the DVR by Tivo® in 1999 was the first change to the way in which we watch television since the remote control added “channel surfing” to our couch-potato lexicon in 1950. Tivo is to the television industry what the MP3 player is to the music industry: a piece of technology that challenges the distribution and revenue models of traditional broadcast.
The DVR, “over-the-top” devices (Apple® TV, Boxee®, Roku®), Hulu®, and network sites (abc.com, nbc.com, etc.) are all signs that television as we know it is slowly dying. The ability of consumers to consume content à la carte, and to “pay as you eat,” will be what kills today’s business models, models that have remained artificially lucrative for too long and have impeded the progress of giving consumers choices. But, as evidenced by other sectors like mobile, the consumer eventually wins, thanks to technology and enterprising entrepreneurs who solve for the gap between supply and demand.
Audiences are shifting online, led by younger viewers who demand the ability to consume television content when, how, and on whatever device they want. Research by eMarketer1 suggests that these viewers are happy to watch ads if they don’t have to pay for the content. Now imagine the day when people can watch their shows on demand, on their big screen, at 1080dpi without being constrained by the limited memory of their DVR and the astronomical size cable bills. That day is coming.
The newly connected, rich, and immersive nature of the living room offers a playground of new opportunities for brands to deliver experiences and tell stories across multiple screens. Hyper-connected consumers who have learned how to tune out noise in order to enjoy their chosen content will have little room for disruptive advertising in the world of TV 3.0.
The unstable, complex ecosystem of today will eventually give way to a display, destination, and distribution system that offers marketers increased opportunity and more transparent ROI given the ease of delivery, measurability, and interactivity.
This piece is excerpted from I2TV by Ashley Swartz and Jeff Freedman, which will be published in Digitas Cache vol. II Infinity. To read the full article, download Digitas Cache from the iTunes App Store after June 9, 2011.
1 eMarketer, October 2009, “Marketing to the Online Video Audience”eMarketer, August 2009, “Video Content: A Premium Opportunity”
2 http://www.gamasutra.com/view/news/33842/GameStop_Details_Europe_US_Installed_Base_For_Consoles.phpeMarketer, October 2009, “Marketing to the Online Video Audience”
3 http://gigaom.com/video/big-cable-is-bleeding-500k-subscribers-lost-last-quarter/
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