Un-Interactive TV
Christopher Carter
The latest issue of Business Week included an article updating the status of Interactive TV (iTV) or, as the article states, the lack thereof. Its not surprising this conclusion is the same as it was several years ago. Technically the ability to create a pure iTV experience exists. Economically it does not. True iTV is predicated on the ability to develop a business model that provides economic incentive for all participants and a technological solution that protects content from piracy or illegal distribution. A broad, integrated, service has yet to be developed that meets the requirements of all constituents of the business model. Movielink has stumbled. Moviebeam has failed (one of the backers of this idea, a former Disney exec, will now lead Bus Dev at NBCU). A littany of devices has been developed that connect to the TV that lack the video library to gain traction. Even the vaunted Apple's iTV product has failed due to a lack of content. The Slingbox is a great idea but has not gained critical mass, and hence their tie-up with Echostar.
I wonder why the CE manufacturers have yet to build a TV set that includes the technology, and a User Interface, that would permit downloads from sites like Joost, Netflix, or other media aggregators. It seems feasible to include a broadband connection and the internal hardware in a flat panel TV to permit such a service. If Apple can build a computer with all of the components in the screen (iMac) shouldn't a TV manufacturer have the same capability? One would think a business model for such an Alliance could be accomplished. Doesn't Sony own both content AND a TV factory? The problem is CE manufacturers are just that, manufacturers. My experience with them is they are not the ones to proactively pursue relationships to develop end-to-end consumer "solutions". They have historically let others build the solution and have waited for someone to present them with the opportunity or technology to participate, with little ability to drive the business model.
Apple's success with the iPod and the iPod store have scared the bejesus out of the video industry, and their attempts to create an online video distribution business have failed as well. Until the content owners are comfortable with a business model and service that protects their revenue streams and distribution cycles, and CE manufacturers wake up, iTV will remain a pipe-dream.