See http://www.tno.nl/connectv Social TV presentation for Immovator Digital TV expert group in May 2008.

1. The impact of Social TV
on the television business
Digitale TV expertgroep, 22 mei 2008
Martijn Staal, Michiel Peters
Social TV Pilot
1 Context
What is social Television?
2 User experience
What is the effect of social TV
on television viewing behaviour &
experience?
3 Business
Impact of social TV services
on the TV business
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2. Consumers have access to multiple content sources
and content selection methods
New content services
Content selection tools
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Social networks move into the living room
“Tele2 brings social
networksite Hyves to
television”
Webwereld, 6 february 2008
?
What is the impact of social networks on
the TV business and
the way how people are watching TV?
4 Objective: insights & experiences on social TV
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3. Social TV Pilot
1 Context
What is social Television?
2 User experience
What is the effect of social TV
on television viewing behaviour &
experience?
3 Business
Impact of social TV services
on the TV business
5
TNO investigated the impact of using social TV within a
pilot with 52 households
• 9 groups with 4-10 interrelated friends
• TNO provided media PC with ConnecTV
application with social TV functionality
• Period: September till November 2007
• Measurement of viewing behavior and TV
experience of ConnecTV users
• Measurement of experience, attitude and emotion
with new research method
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3

4. ConnecTV pilot functionality
1. 3.
4.
2.
5.
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Few general impressions of participants
“Changing of channels is slow,
“Nice add-on to start-up is slow, only few
television.” people are online.“
“Although a few bugs, “No added value for what I’m
it is a nice service.” willing to pay money.
“Knowing what your friends are watching is fun.“
“Set-up of the service is good but still very limited.”
Where is the chat-functionality. If a buddy comes online I
would like to chat with him.
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5. Participants indicate a small change of viewing habits
through the use of ConnecTV
• 20% of the participants indicate that they sometimes watch
different channels with ConnecTV
• The log information also shows a small movement of viewed
channels
• “Most popular” button was rated as nice/useful by half of the
participants
• Status messages (‘Armin also watches this channel’) were rated
as most useful functionality
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Social TV may change the way people watch TV
• Most popular functionality during the pilot:
• Buddy list (2.3x per TV session)
• Viewing tips (47% accepted)
• Watching together (75-90% accepted)
• ConnecTV stimulated communication via other channels (sms,
calling, etc.)
• Decrease of zapping behaviour (29% of total users)
“It is not an intrusion of
• 20% change in watched TV channels privacy. You actually learn
to know you friends better.
• More interactive services wanted (Instant Messaging, etc.)
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6. Social TV Pilot
1 Context
What is social Television?
2 User experience
What is the effect of social TV
on television viewing behaviour &
experience?
3 Business
Impact of social TV services
on the TV business
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Digital TV in the Netherlands
> 95 percent of cable (DVB-C) coverage > 99 percent of telephony coverage
DVB–T ~ 70% coverage DVB–S – 100% coverage
Terrestrial Satellite
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7. New interactive services will be important to
keep ahead the competition from internet services
Internet video
services
- Limited offer of TV
Sustainable competitive channels
Current advantages fade away - Limited quality
TV services - Primarily for TV on
PC, not in living room
+ Analogue & digital + Growth of interactive
+ Large user base services
+ Growth interactive services + New ways for finding
+ Quality content & HD & organizing content
- Limited social functionality
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TV business need to develop extra differentiated services
TV SPs have an important role in social TV services
TV SP has access to
the needed connection
with the TV platform
TV platform
TV SP can use social
Advertising TV to stimulate other
services
Content Content TV service
production aggregator provider Consumer
Social TV
provider TV SP can integrate
social TV platform with
STB systems & processes
distribution
TV SP can
distribute
TV SPs can use social TV in
application on
with extensive collection of
settop boxes
other’s and own content
14 TV SPs can fulfill most of the roles in the TV value web
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8. Social TV services can generate multiple sources of
revenues for UPC
Upgrade
Social TV related
services can
Premium stimulate upselling &
reduce churn
Social TV can stimulate
the use of other
(premium) services
Extra:
Extra:
The use of social TV Insight formats
opens up extra ways & targeted
of advertising advertising
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Advertising
For optimizing the business case for social TV, scale and
new revenue models are needed
• TV business needs to be prepared for social TV
• Join other existing TV & internet initiatives to maximize reach and
strengthen the situation
• Make social TV services useable for TV as well as other content.
• Minimize barriers to use social TV
• Work together to enlarge the reach for ConnecTV and maximize
the network effect.
• Search for extra revenue models that make the business case
stronger (e.g. agreements with advertisers/broadcasters)
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9. Thank you for your attention!
martijn.staal@tno.nl
06-5191 6237
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