The smart device is a bit of a scary breed. Sure it’s powerful and capable of some pretty amazing things, but it’s also all-encompassing and downright dangerous to other technologies. We’ve already seen companies like Kodak fall from grace, in part due to the success of the modern smart device, but what about the influence of them within the TV market? Recent research into smartphone usage by Flurry suggests that the fastest growing areas are still personalisation and news content, while music, media and entertainment trail at the bottom of the list. Does the TV industry really need to feel threatened by such a small, pocket-sized device?
Well, the general consensus is yes. Although television will never completely disappear, it’s likely to be integrated into existing set-ups because of convenience. Consumer insights director for consumer experts Kantar Worldpanel ComTech, Imran Choudhary believes that the shift in the way we consume television content is primarily down to enhanced portability. “We need to take into account that traditional TV and media viewing habits are becoming more fragmented”, he says.
“For example, a sizable proportion of people who have Netflix or over-the-top subscriptions are starting to view things on their tablets and phones. Consumers now have the flexibility to watch things how they want and where they want”.
Netflix and chill
Of course, Netflix is the major player in home streaming and continues to grow rapidly in the mobile sector. Nielson compiled a report way back in 2011 concluding that most people watched content on a computer, with mobile devices at a lowly 3% in comparison.
Fast forward a few years later in 2013 and a similar study had 23% of users admitting to using their tablet or smartphone for video streaming. Now in 2015, just over 50% of mobile users regularly watch video clips on their devices according to Kantar Worldpanel ComTech, a figure that speaks for itself. Mobile TV is on the rise and in a big way.
Netflix itself is only a small piece of the entertainment market and represents a mere fraction of what’s actually available. There’s plenty of other services which are just as powerful – FilmOn being a prime example. Available on Android and iOS, it allows users to freely watch 1,000 channels from all across the world, showing the full power of streaming media when co-ordinated in the right way.
Unbound by the copyright issues which usually prevent people from watching certain shows abroad, you basically get free reign of all your favourite television shows. As we begin to lead ever more autonomous lives, services like this are going to get ever-more popular as a way of keeping up with our regional content when away from home.
What’s more, the steady decline of PC streaming year-on-year combined with the rapid acceleration of mobile streaming sets it up to become the next market leader within the coming decade… And this doesn’t even take into account the increase in mobile streaming capabilities.
Data revolution
Previously, perhaps the one major hurdle mobile devices had from successfully topping the list is the networks themselves, which provided frugal data allowances and slow speeds. Back when 4G initially launched in 2012, you may remember EE controversially stating that ‘500mb was enough’ for the new mobile spectrum. They released statistics to back this up, quoting that the average unlimited user barely consumed 1GB of their allowance.
It’s worth bearing in mind that this study was conducted under previous generation 3G speeds, which were understandably much slower and not a direct representation of future trends. Users on the whole were limited by what they could do, simply because the overall speed of the networks failed to handle it.
With the advent of 4G, speeds made a monumental jump from an average of 6.1Mbps to 15.1Mbps. This is equal to many fixed internet lines that go directly into your home. Prices were also grossly inflated, with a 500MB data plan costing £36 per month when EE first launched their 4G service. Today, you can get 10GB of data allowance at just a fraction of that (£26.09). So not only is it becoming more efficient but it’s also becoming cheaper.
However, it’s worth noting that this data revolution is also happening at spectrum level. Changes to the overall bandwidth of our network capabilities will allow double the amount of data to be sent over certain spectrum areas, meaning even faster speeds are just on the horizon.
EE is already pushing its 4G+ service to select areas in London, with claimed speeds of up to 90Mbps. If this is true, your router suddenly looks slow in comparison.
That all sounds great, but we still have the issue of data allowances. While 10GB is a nice gesture, it can’t match the unlimited allowances we get on our home networks.
As such, for television to really get knocked off its pedestal, something will need to take the heat off our usage. WiFi hotspots are that answer and, if used effectively in the future, have the ability to completely change the way we consume data when on the move.
When the BT/EE merger is finally completed, they will become the biggest mobile network operator overnight, giving them the capability to take the fight to television in a whole new way. The company’s BT TV service already uses a streaming-based system to deliver content to your living room – with the benefit of the EE network they could potentially offer the full service to mobile consumers by using the WiFi masts as interim networks which help reduce data usage on the move.
Then there’s Sky, which is looking to get into the smartphone market and currently have the biggest TV content library of any company. If anyone can take the big screen to the small screen, it’s the Murdoch Imperial Empire.
Adapt to survive
So, if the TV will inevitably be absorbed by the all-powerful smartphone, how should the networks expect to survive? Choudhary points to co-existence as the key to its survival, rather than relying on direct competition.
Embedded technology will help networks keep making money, with the TV just becoming another extension of our increasing number of smart devices. “They must accept a long-term future where they are co-existing. They need to embed themselves in the ecosystem where the TV becomes another connected device as part of the consumer’s portfolio.
“Eventually, the majority of content will be consumed outside of regular television consumption.
“EE’s new TV proposition is a very realistic way of how people may be consuming television content in the future. It’s based on a box that streams channels from the internet, however you and everyone else in the household can also view that content on your tablet or mobile phone”.
It seems the logical step for television companies would be to embrace and not compete if they want to avoid a very inevitable and ugly end.