This new market report takes a look at connected TV services and the UI. It examines how over-the-top (OTT) services are positioned, along with player strategies and the opportunities and risks attached to having control of the connected TV user interface. The report also provides forecasts for the TV services market up to 2015, including OTT services, in both Europe and the United States.

Key questions answered

• What are the main connected TV services and what client interface do they use?

• How are the main OTT services positioned in the marketplace?

• Connected TV: opportunity or threat for traditional TV industry companies?

• Which players are in the strongest position to take control of connected TV, and what role will new online content and service aggregators play?

• Will connected TV applications revolve chiefly around video programmes or internet services?

• Can OTT video services compete with services delivered over managed networks?

• What share of the TV services market can OTT services expect to grab in the coming years?

TABLE OF CONTENTS

1. Executive Summary

2. Methodology

3. Services and interface
 3.1. Connected TV services
 3.1.1. Service profiles
 3.1.2. Video services: the battle for premium content
 • Broad range of still largely untapped content
 • Offers that vary a great deal from country to country...
 • ... but relatively cohesive national markets
 3.1.3. Internet services: offer centred around the Web’s global heavyweights
 3.2. Challenge of creating a streamlined, user-friendly interface
 3.2.1. Quality of the user interface: a critical asset for any connected TV solution
 • Crucial to ensuring adoption of the services
 • The key to distinguishing oneself from the competition
 3.2.2. Major components of the user interface
 • Two sample interface models
 • What instrument to control the connected TV?
 • Integrating advanced features on the TV could undermine the viewer experience

4. Offers and aggregators
 4.1. How companies promoting connected TV are positioning their services
 4.2. “TV +” positioning
 4.3. “OTT video packages” positioning
 4.4. “Connected media centre” positioning
 4.5. “TV app store” positioning
 4.6. “Seamless access to all content" positioning

5. Player strategies
 5.1. Connected TV bringing together a great many players
 5.1.1. Various interests surrounding the same service
 5.1.2. Partnership is the preferred modus operandi
 5.2. Opportunities and threats that connected TV creates for television and telecom industry players
 5.2.1. Issues for TV networks
 • Competition for broadcasters in their key stronghold?
 • ...but connected TV players as well
 • Channels forming partnerships with connected TV manufacturers
 5.2.2. Issues for pay-TV providers
 • Threat of disintermediation
 • Access to the open Web on the TV set could enable piracy
 • Opportunities for pay-TV providers
 5.3. Issues for telcos
 5.3.1. Risks of network overload
 5.3.2. A threat to IPTV
 5.3.3. ISPs can integrate OTT services into their offers

6. Views on the key questions surrounding connected TV
 6.1. More video or more new services?
 6.1.1. Strong demand for access to premium online content on the TV set
 • The television is the device best suited for viewing video content
 • Access to premium content is the prime incentive for adopting connected TV
 6.1.2. Only a handful of Internet services make sense on the TV
 6.2. Can OTT video services be competitive?
 6.2.1. Ad-funded
 • Live TV
 • Catch-up TV
 • Video on-demand
 6.2.2. Fee-based services
 • Pay-TV channels and packages
 • VoD
 6.3. Potential approach to providing OTT video services on the TV set
 6.3.1. Europe: on-demand service estimates for 2015
 6.3.2. The pay-TV market challenge in the US
 6.4. Looking further down the road: who will control the user interface?
 6.4.1. The various UI candidates’ strengths and weaknesses
 6.4.2. In the short term, controlling premium content will remain key
 6.4.3. In the medium term: change in the way viewers interact with the set?
 • Lessons learned from the PC and the mobile phone...
 • ...can they apply to TV?
 6.4.4. In the long term: from managing the set to managing the customer
 6.5. What impact will connected televisions have on the TV services market?
 6.5.1. Impact on consumption
 6.5.2. Impact on markets