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Monetising TV widgets for pay-TV operators

Continuing our ‘widgets’ series, this newsletter focuses on the value of a widget and what it means for both users and operators.

In the last newsletter, the article Bringing widgets to TV covered what a widget is. It looked at the changing viewing and content-consumption habits of subscribers, and how to adapt to them without affecting the consumer’s experience. Here, we’ll look at how to secure widgets and content – and what the operator stands to gain.

Summing up Bringing widgets to TV

As we established in our previous article, users are now ready to pay for certain applications and even a new ecosystem that could include an application store and applications made for a specific device.

On the back of this, demand is being driven by users – widgets can add information and services to the TV via a user-friendly interface. And in today’s world, with people storing more and more information in the cloud – whether it’s their to-do list, friends’ contact details, pictures, videos and general documents – they want access to it from anywhere, including from the TV.

Having access to your social network on the TV takes the social aspect of TV a step further for friends and family. Subscribers with similar content tastes can create or join groups and share content with other group members, or interact with those watching the same programme.

Viewers can also receive recommendations from friends. Consumers trust their peers more than TV adverts for product information and recommendations, and this creates further opportunities thanks to the widget. New widgets can be created by users for local sport events, new mashups of existing web services, etc – and if the operator opens up the platform to them, the user will be able to develop and publish these widgets on the TV.

Watching relevant and personalised content takes on a whole new meaning.

The Nagravision solution

The technology behind widgets is not just ‘yet another widgets store’.

• It’s TV-specific, valuing TV-specific viewing context and user experience.
• It can be white-labelled for the manufacturer’s and operator’s own branding.
• It’s user-friendly, containing some internet and social services – but is also specific to operator needs with a library of both TV and pay-TV widgets, valuing their assets such as content, subscribers and communities, and making sure paid-for services guarantee high-quality services and widgets.
• It can be integrated into the overall operator offering and EPG.
• It can also be deployed on devices already in the field.

TV is a new medium when it comes to widgets, and they need to be designed specifically for TV consumption – not just taken as is from PC or mobile widgets. They need to be complementary. We’ve already started developing high-quality widgets for the TV – from here we’ll adapt the most frequently used services and turn them into suitable ones for TV.

It’s also crucial to control the rights to displaying widgets on TV content. You need to value all players in the chain by protecting their assets, yet at the same time highlight the benefits that widgets can bring.

We can adapt existing technologies (both services and infrastructures) to incorporate widgets – for example, our NAGRA Media STUDIO can manage the workflow of widget applications and content. Publishers can offer content via widgets within their own brand and quickly make it available on an operator’s platform to monetise the service.

The open platform benefits all players in the chain, as it brings them together (TV stations, content and services providers) to develop their widgets for existing pay-TV offerings.

What’s in it for the operator?

Consumers expect easy and convenient user interfaces. Widgets can offer ‘best-of’, ‘selected’ and ‘personalised’ services to subscribers, which are specially designed for navigation via the TV remote control.

While this is key for customer retention, operators also stand to benefit – they can increase the value of their platform by adding web content to their content offering. This can include video (long-tail and user-generated), pictures and photos and even online radio. Openness to internet services can always remain under operator control.

Those who benefit include younger users (Europeans under 30 spend more time using the internet than watching TV, according to Forrester), content partners and publishers, advertisers and new internet players and companies.

From a control point of view, operators are in charge of the set-top box but partners can contribute to the open platform to vary the content. The operator’s content is valued by recommendations and viral propagation, and new services can be quickly added to keep it up to date and featuring the most recent and relevant content.

Developing the business

This is an opportunity for operators to monetise content while also improving the user experience. TV is a premium marketing channel and offers a chance to create value by providing access to internet service providers. Operators can also increase the value of their platform for sponsors and advertisers. Given that widgets are personal, targeted ads can be included to offer personalised and relevant advertising. And with online advertising revenue, the operator can really benefit.

From a broadcaster’s perspective, widgets also help increase the value of live programmes and channels – the flagship product of most pay-TV operators. Social applications can bring audiences back to a programme via live chats and chatroom discussions. This keeps people watching the TV even if they want to access internet services at the same time – and shows that operators are keeping TV alive while diversifying with other services. Also, recommendation widgets will let users find their way into the large variety of choice in pay-TV bouquets and increase the perceived value of their subscription.

What’s next?

Previous attempts to bring web to the TV have been less than successful. But now that the web has become a social experience, the time is right to connect the social web with the social TV. At the moment, networking trends and applications such as Twitter, social networks and widgets are most popular on specific personal devices – Twitter on the iPhone/mobiles in general, Facebook on your PC. What people don’t yet fully grasp is the idea that the TV can bring it all together in one place – without anyone losing out.

To make this work, you need a reliable partner who:

• leaves control in the hands of the operator
• integrates internet services and widgets with TV programmes
• has the experience to ensure secure integration can happen on legacy set-top boxes.

These partners are ready to make the TV the centre of all social interaction – now it’s time for the operators to wake up to the possibilities.

 

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For more information

Will TV Widgets work?
Philip Hunter // 17 Nov 2009
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