Feature

IPTV: where TV meets the web

Internet TV is turning set manufacturers into content providers, discovers Andrew McCormick.

Sony Bravia: 'Television redefined' campaign for IPTV
Sony Bravia: 'Television redefined' campaign for IPTV

By pitching its Bravia range as 'Television redefined', Sony is the latest company to combine broadcast content and functional online browsing through a television set. For the manufacturer and its rivals, including Samsung and Panasonic, internet TV is their next marketing challenge.

Companies as diverse as Apple, Google, Microsoft, Sky and Nintendo are attempting to 'own' the TV experience. The reason is obvious - more time spent online means more opportunities for consumers to purchase goods and services. Bringing the internet to the TV offers an interactive experience to audiences, and gives brands the opportunity to engage with them in a new environment.

With Sony and Samsung leading the charge for TV manufacturers, what can they bring to the market that does not exist elsewhere? More importantly, how should they change their positioning to promote these innovative services?

'Manufacturers such as Sony are desperately trying to grab ownership of the TV experience in the home with a device-centric strategy,' says Nigel Walley, managing director of digital media consultancy Decipher. 'They are connecting all their devices to the web and trying to create interfaces and on-demand packages that are available without subscription. However, their offerings are very clunky and have no intelligence, because the manufacturers have no experience of pulling services together.'

Web partners

It is certainly new territory for the manufacturers. Having hitherto concentrated on creating cutting-edge TV sets, they are now striving to forge partnerships with content providers. Flickr, Facebook, Twitter and eBay, have developed apps for the Bravia, proving that TV makers are definitely serious about their involvement in content development.

Last summer, Samsung ran a competition offering $500,000 (£307,000) to the creators of the best app for its internet TV sets, prompting hundreds of entries from a plethora of potential media partners. Betfair's app, which enables users to place bets online while watching live sporting events, is one interesting proposition as it brings ecommerce to the TV.

'Making it easy to buy stuff online through TV sets is the right ambition,' says Mat Braddy, the former TopTable marketing director, who is now chief marketing officer of internet takeaway service Just-Eat.co.uk. 'Making meal decisions and browsing could be a shared experience, enabling people to consider purchases as they relax.'

As the TV manufacturers sign up more media partners, their marketing task will, theoretically, get easier. Skype through TV is another compelling proposition, for instance, and one that can be promoted through partnership marketing.

Uncertain market

There is one important question, however: do consumers really want to use the internet via their TVs, especially those who have recently splashed out on 3D and HD sets?

'Connectable TVs are going to be widely available and, in fact, quite soon you won't be able to buy one without connectivity, (but manufacturers need to communicate) the value of their content,' says Dan Cryan, head of broadband media at media consultancy Screen Digest.

As well as picture and build-quality, screen-size and price, one future selling point of internet TVs will be the bundled content and service packages that come with them. It is important to note that the manufacturers face strong competition in this regard.

'Sky and Virgin Media are the gatekeepers of content, and people are also connecting through games consoles,' says Cryan.

The situation is made more complicated by the divided ambitions of UK broadcasters. Channel 5's Demand 5 and the BBC's iPlayer are already available via some TV sets, but it is unclear whether ITV and Channel 4 will do the same for their catch-up services.

Sky and Virgin Media, meanwhile, are no-go areas, as they are fiercely protective of their own territory.

So, as the fortunes of manufacturers' attempts to combine two of the UK's favourite pastimes - watching TV and surfing the web - pan out, the positioning of Sony's Bravia could give it a head start in the race to own internet TV. Moreover, where Sony goes, its rivals tend to follow.

Internet TV Brands and their services

- LG's Netcast model promises to 'change the way you watch TV'. Content deals include YouTube, vTuner internet radio and acetrax, which streams films.

- Panasonic is playing up the entertainment available on its Viera Cast model via the strapline 'Online fun on your TV'. Partners include Eurosport.

- Samsung's Internet@TV platform leads the way in terms of content partners. LoveFilm, Muzu.TV, USA Today and Skype have all signed up to the service, available through its TV sets and Blu-ray players.

- Sony is promoting its Bravia range as 'Television redefined'. TV ads, by Grey London, chart the story of internet and TV convergence. Partners include Flickr and eBay, as well as Sony's own entertainment channel, Qriocity.