UPDATED 08:05 EDT / OCTOBER 20 2011

NEWS

Should Internet-Connected TVs Fear Extinction?

We have witnessed how an ordinary TV set has evolved finding its way to suit and cater the demands in this time we call the PC era.  Given all the publicity and marketing strategies for this connected device, according to the panel at MediaTel Group’s Connected TV Experience, only a small number of people are actively looking for a connected functionality when buying or purchasing a new TV set.

“Consumers look at screen size, how good the TV looks and price when buying a new set, not necessarily the ability to connect to the internet,” LoveFilm’s Chris Bird (pictured) told delegates on day two of the event at RBS in London.

Statistically, about 12% of the consumers who purchased televisions only bought the Internet-enabled TV because it is the latest trend available in the market not because of connectivity feature, according to HMDG’s Greg Grimmer.  However, regardless of the reason in purchasing, Internet-enabled televisions are reaching households.  As a matter of fact, 4.6% of homes nowadays own connected TV according to Ofcom.  In the US, more than 10% of households with broadband Internet connection plans to buy a smart TV during the second half of this year, thus has been tempting more households to get hold of this device.

With all the connected TVs purchased, the biggest challenge is whether the device is used to connect or is being used as an ordinary TV purely for watching and entertainment.

“Even people who have the devices don’t understand the capabilities,” Bird said. “We have an awful long way to go to educate viewers”.

Given this challenge, Rhys McLachlan of Mediacom has high hopes that this matter will be okay especially that the industry has come a long way.  Moreover, this change will not be an overnight progress, but with large number of people who already have this smart device, in the next 12 months, this device will be web-enabled.  Continuous education and information campaigns must be given to the consumers for them to maximize the capability and experience of Internet-enabled TV.

Speaking of TV, it was reported that Sony is recalling over 1.6 million Bravia flat panel units sold worldwide for faulty components that could cause safety risk and fire.  This shall be a major lesson that every electronic consumer manufacturer must remember.

Along with the hope of being able to use smart TV as what it is built and designed for, the recent partnership of Skype and Microsoft shall bring the application closer to the living rooms.

Intel eschews Internet-TVs for set-top-boxes

On the other hand, Intel has decided to abandon plans to supply its processors to manufacturers of connected TVs.  It plans however to maintain its presence in the TV set-top box market.  It shall divert its focus from connected TVs to STBs, smartphones and laptops after failing to gain a foothold in the market.

“This is a business decision where we’re taking those resources and applying them to corporate priorities,” Claudine Mangano said, spokeswoman for Santa Clara, California-based Intel.

“The company decided that engineers at its Digital Home Group should focus more on tablets, smartphones and a new category of laptops, which Intel is calling Ultrabooks”

With this move by Intel, connected TV industry must move faster in educating the consumers to stay connected using their internet-enabled TV.  Otherwise, this technology advancement might be in great risk and might end up to extinction.

Dan Saunders of Samsung understands that there is a need for the manufacturers to work with and support retailers to get people to acquire, purchase and connect. At the same time manage to have an out of the box experience.

“New funnel of connection will mean that viewers will realize that they’re not getting the full value out of their TV, even while they are watching linear TV”, Saunders added, noting that the ideal process of setting up your new TV should be a plug and play experience.


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