Digital television and the impact of global e commerceact
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Transcript of Digital television and the impact of global e commerceact
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Digital Television and the Impact of Global E-Commerce and Social Media: Strategies and Stakeholders in the Transition to Internet TV
Anthony J. Pennings, PhD
New York University
Panel Presentation at the EWC/EWCA 50th Anniversary International ConferenceHonolulu, HawaiiJuly 2-5, 2010
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Overview
• The Post-Network Era• Rise of Internet TV• Many Stakeholders
• e.g Broadband Providers, Advertisers• Strategic Advantages of Google• TV and the Digital Divide?
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Eras in Television
• Network Era• Big 3 (ABC, CBS, NBC), BBC
• Multichannel Era• Remote Control, VCR, Cable, Satellite
• Post-Network Era• 3 Screens, mobility, DVR, e-commerce,
social media
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Rise of Internet TV
• Streaming or Downloading Video• Media Player Applications (BBC iPlayer,
Adobe Flash, Media Player• SD or HD• Web-based, CDNs (Akamai) buffering for
continuity• Archived, on-demand• Hulu, Netflix, Apple TV, YuMe, YouTube
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Post Network Era
• http://apennings.com• Video: What is Google TV?
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Internet TV Stakeholders
• Advertisers• Advertising Agencies • Application Developers
and Designers• Broadband Providers • Broadcast Networks• Content Owners
• Equipment Manufacturers
• Guilds and Unions• Measurement
Companies• Operating Systems• Regulatory Agencies• “View”sers
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Advertising
• Global advertising sales are expected to increase during 2010 by 4.2% to total of $377 billion according to MagnaGlobal
• Television continues to lead with the highest sales around the world, with more than 40% of the advertising sales, a total of $151 billion,
• TV is growing
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Advertising
• Online advertising expenditures will reach $61 billion in 2010, and paid search advertising will make up nearly half of that, according to MagnaGlobal
• Google had US$20 billion revenues in 2009
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Google TV
• Google’s stated goal is to “organize the world’s information”
• Video: What is Google TV Ads: Flexibility?
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Google’s Competitive Advantage
Economies of ScaleNetwork Effects, Fixed Costs
Customer CaptivityHabit, brand, switching costs
Proprietary TechnologiesCrawlers, indexers, query processors, advertising systems that bypass traditional advertising co.
Government ProtectionNet neutrality
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Digital Destruction?
The transition to Internet TV will be one of the great cultural and economic transformations of our time. The integration of television into the World Wide Web will continue to add choice, control, customization, and convenience while exploring new realms of community and commerce. But will it also continue the trends of digital destruction and divide?
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TV and the Digital Divide?
• National identity• Language harmonization
• Social mobility