TV is DEAD.... Long live TV!!!

This week has seen a fair bit of press about some big changes coming down the line in TV, with technologies such as IPTV/DSL TV and Mobile TV now being seen by some commentators as being the next "disruptive" technologies.

These technologies provide the ability to deliver television-like content (broadcast video) directly to specialist video devices attached to IP Networks. Emerging devices such as the Apple Video IPod and the Sony PSP are portable video-players with the ability to connect to the internet (either directly or via a computer) and of course, most new 3G mobile phones have the ability to download and play video content on the run and already most of the local telcos are thinking about offering these services. Visit Telstra, Vodafone, Hutchinson/3 and Optus to see more about their respective offerings in these cases.

The attraction of these "on demand" TV services (I'll call it "ODTV") is that they break through some of the traditional conventions of TV. Instead of a TV network prescribing a timetable of programs and the user being beholden to watch the content at the prescribed time, the consumer can now search for and watch TV content as and when they wish to watch it. Sure there have been interim technologies designed to provide some flexibility (VCR, PVR/TIVO, and the like) but in all cases, the primary source of the content has been the TV network schedule. ODTV, of course, changes all this.

In most of the reading I have been able to do on ODTV in Australia, the shift to this model is being seen as an evolution in the traditional model. The press is a-buzz with stories of "content and distribution deals" as the owners of the "channels" (in this case the telcos) seek to acquire exclusive content as a means to enhance their value proposition to their customers. It seems to me that a lot of the talk right now is about "more of the same" as the current players rush to gain turf in a battle where the turf is not yet clearly laid out. The same names are doing deals about the same content and trying to perpetuate at least some variant on the same business models.... but is this really the future of ODTV?

As always, I get drawn to the impact of these changes on our clients - the big companies and government departments we are proud to provide our Online Services to.... and I have to say that I think that ODTV is going to be a very important change for them.

There are three reasons for this:

1. ODTV provides a mechanism for disintermediation of video-based content AWAY from the major networks. By definition, ODTV is accessible via ANY IP connection - we are now in a time where anyone can post TV like content on the internet and it can be reached by any consumer, anywhere.
2. ODTV is digital which means that we can augment video content with technology based services to link the offer to the means to fulfil the offer. A product placement within an ODTV show can be linked to the ability to try, learn more about or buy the product. Conversely, a request for more information about a product can be linked to an ODTV show which provides that information.
3. ODTV can be highly targeted. No longer must a marketer think about buying airtime in TV shows which may be attractive to a target market. They can now either buy advertising / placement within specialist ODTV shows directly suited to their market, or can even create ODTV content to reach their markets.

These three elements will re-shape the "turf" in the ODTV space. Significant owners of brands with a logical reason to create their own ODTV WILL take the initiative and seize the opportunity to create some brand leadership in this space. The brave ones will agressively protect their brands and will use this opportunity perhaps as a catalyst to changing elements of their marketing mix. Good ODTV content delivered directly to the right target markets will become VERY valuable.

Unfortunately, the timeframe between when this technology is available and when savvy marketers are going to be integrating it their advertising plans is not very long. This is an opportunity for NOW and we are working with our clients to help them understand and then take advantage of this exciting opportunity.

For our clients, I encourage you to start thinking about how ODTV is going to create opportunities for you to spread your message, reach your customers, provide improved service or deliver a government service. This IS one of those technological shifts which IS going to have a significant impact.

As I always say, "we have a good job, because we get to change the world..."

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