Next Gen TV, What's in it for Gen Next?
Christopher Carter
I attended CE Week NY 2012 on Wednesday. Sitting in on a panel titled Next Gen TV I walked away with a couple of thoughts. First, CE manufacturers are still enamored with developing devices based on wiz bang technology (think 3D) than user need or affordability. The latest buzz is 4K, basically taking the current 1080 pixel structure times 4. While the image may be breath taking, many technology pundits in the blogosphere believe this is overkill. Relevant for the digital cinema in a town near you but not so relevant for the average consumer at home. Consumers were forced, so to speak, to convert to digital TVs not long ago. Shortly thereafter the 3D TV was thrust upon consumers as the "must have" device, and now we are being told all of these devices are obsolete. You must have 4K. Its no wonder the TV businesses of Sony and Panasonic are in such dire financial straights.
A second takeaway is what's in this for Gen NEXT? Consumers coming out of college and those in their early 30s are struggling with student loans, high unemployment and a lack of cash for these expensive devices. This generation is also leading the way in the use of OTT and cable bypass alternatives, streaming many programs on their computers or tablet devices. They can't afford cable or satellite TV packages. Why would those crazy folks who manufacture TVs think this rising consumer population will buy a 4k TV? The panel did not discuss what, if any, devices, or solutions, were being developed to address this segment of the market. Again, the focus of CE companies has been on technology, not the wallet of the consumer. In this case, Gen NEXT's wallet is empty and they are already loaded with enough debt to limit their ability to purchase a device of this nature.
A big push towards app-based user experiences is evident, which is how Gen NEXT interfaces with their digital devices. Many TVs now come with app-based first screens, as do many DVRs, DVD players and game consols. While this is great, the ability for the next generation of CE consumer to afford these devices is questionable. In fact, an Xbox 360, Roku, Apple TV or other TV streaming device is more affordable and probably a better solution for this consumer as a multi-function platform.
I particularly loved the comment by the VP of Public Affairs and Communications of LG, John Taylor, in response to a question about the rumored "Apple TV". "There's enough room under the tent" for everyone and they are not worried. One thing in which Apple has excelled is simplifying user experience and integrating that experience across devices. Smartphone, iPod, tablets, computers and next, TV. Google's Android platform is working to do the same, but Apple has nailed this ecosystem integration and has a legion of loyal followers who will ditch the traditional CE manufacturer's products globally to incorporate the Apple TV into an already familiar interface for communicating and being entertained.
One thing still is evident. The traditional CE manufacturers excel at hardware design and manufacturing, but fail at software development. Exhibit 1 is SONY.
Lastly, the question of Dish Networks' Hopper device arose with Nick Slater, VP of Video Product Management for Dish Network on the panel. Probably the most recent disruptive innovation, as evident by the attention this is receiving from broadcasters and their lawsuits, in CE but not a new concept. It basically puts into the public domain what everyone with a DVR already does, fast forward past commercials, as was witnessed by a show of hands during the panel. In fact, Mr. Slater described this as giving the consumers what they wanted, which is unlike the typical mandate of large CE manufacturers, who give the consumer what THEY believe is the next best thing for the consumer and hope it sells.
On a side note, I did like the new Skanz product. It basically a wrist band with your personal QR code that is linked to your personal site at Skanz. So instead of trading business cards one merely needs to download the Skanz QR code reader app for iOS and Android and scan the QR code on the wrist band to upload a person's contact information. It then can be automatically downloaded to your contact list. Time saving and clever.