Re-Engineering Television — the Next Twenty Years of TV.
For me, and computer geeks like me, we saw the birth of the Internet back in the mid-80s, with services like Playnet and Q-Link. That was the technical birth of it. From a consumer standpoint, however, I like to think the actual birth of the Internet, as we know it now, began in 1994–95, right around the time those AOL disks started showing up in the (physical) mailbox. For most people who were alive then, and doing what people did before the Internet, it was that marketing push by the then-largest Internet service, America Online, that initially got them wondering… WTF is this Internet-thing all about? Of course, we didn’t have the WTF acronym back then, it wasn’t invented yet, but I remember people telling me they put the AOL disk in their CD player and nothing happened… what the —
In 1995, there were 40 million people online worldwide. About 25 million of them were right here in the U.S. Today, there are more than 2 BILLION people online… what was once considered nothing more than a tool for watching porn, chatting, cybering, beating off, and ultimately getting “catfished,” (that wasn’t a term yet, either), has now become a part of just about everyone’s every day life, and in more ways than one. Friends who couldn’t understand why we were online, how do you like us now? Oh wait, the Internet is a fad… (and it was invented by Al Gore, too.)
No, as it turns out, the Internet was a REVOLUTION.
Twenty years later (twenty-one, actually), the Internet is still growing strong. The whole revolution idea has kind of worn off, but it’s safe to say, it’s stronger than ever, and like electric power and automobiles, it’s safely embedded into the world as we know it. It’s not going to disappear tomorrow. At the same time though, a new revolution is happening… and it’s happening on a much bigger stage …well, on a much bigger screen, anyway. It’s called Connected Television.
Connected Television includes Netflix and Hulu, but it also includes what we call “over the top” or OTT devices like Roku, Amazon Fire Stick, Apple TV, and countless televisions and other devices with built-in apps that stream video content from the Internet to the Television. Right now, today, 1 in 3 Americans get their television through one of these devices. That’s more than 100 million people — 4 times more than were on the Internet at its birth. Funny thing is, most people have no idea this new revolution is even happening. They’re just doing what they do…
Yet, tune into CNBC or Fox Business or open up a news magazine, or an entertainment magazine, or even a tech magazine for that matter, and if you’re lucky enough to find a story about Connected TV, it’s probably buried somewhere behind news of some new social media platform, or the latest, darling whatever start-up, or the new version of the iPhone. Connected TV just isn’t headline news — and there’s somewhat of a good reason for it: it threatens television as we know it.
Years back, the Internet didn’t pose a threat to TV. You couldn’t (comfortably) watch video on it, streaming wasn’t on the radar yet — we were dialing up for the Internet, people, it took forever just to download a jpg. Before AOL, chatting was IRC —Internet Relay Chat — basically posting to a forum and waiting for a response — much like texting today. Then came AOL and Javascript, and real-time chatting became awesome… then came animated GIFs, and audio WAV files — they could easily be shared and enjoyed. Video was possible if you had the right tech, and as time went by it got better and better. It wasn’t however, until broadband came along that video started to make a dent. Today, streaming a video is just as fast as opening an email. In fact, you can now start watching a video faster than Gmail loads your mail.
We went through this period where screens got smaller and smaller…phones and tablets, but then something happened: video became a given, easy to stream on any device, and suddenly television as we knew it had a real competitor. It was OK to talk about the Internet back in the day when television never saw it as a threat, but today, Connected TV is a clear and present threat to the television status quo. That said, they know it’s happening, and they’re even embracing it, they just don’t want to talk about it yet, until they have a firm handle on it. They don’t want you to make the move to it until they’re confident you have their best interests in mind — until it benefits them FIRST, then you. And the media powers-that-be are working very hard to make that happen sooner, rather than later. They missed the boat on the Internet — most of them late to respond, as other “new media” were created amidst their hesitations — but they’re not missing it again…
As you read this, television is being re-engineered. Your local cable company is working hard to squeeze themselves into the mix. They’re losing cable subscribers left and right, but their Internet business remains strong. The shift comes in converting those lost cable subscriber dollars into Internet service profits. Cable companies aren’t going away, they’re simply becoming Internet Service Providers …who also do cable.
Television networks are hopping on-board, too. Each one is creating their own Connected TV presence. NBC, CBS, HBO NOW — they all want to be like Netflix, and Hulu, and countless other apps — or “channels” — available via Connected TV.
This brings with it a multitude of new opportunities, just like the Internet did. New television “networks” are being created, new profit centers are being discovered, and the technology is developing and broadening further into new frontiers like Augmented Reality and Virtual Reality. One can safely assume that television twenty-one years from now will be a lot like the Internet twenty-one years later… a totally different, ever-growing and exciting place.
That said, connected television will ultimately give way to immersive television — television that takes you there. Imagine entering the realm of your favorite TV shows, being a part of the action, watching from every angle, interacting with the environment and other viewers, and creating alternate storylines. Imagine witnessing that sporting event from any seat in the house, sitting ringside, feeling every punch, looking at the guy next to you to say, “Wow!” Imagine feeling the pounding of the drums and the rhythm of the guitar penetrating your body as you experience new concerts and events, or relive those of the past as if you were there. Woodstock, here I come! Imagine test driving that new BMW, hearing the roar of the engine, feeling the excitement as it grips the turns. Imagine trying on that new shirt or suit and seeing it in on yourself in the mirror before you click and buy it right there from the TV. Imagine interacting with friends via Social Television wherever they are, as if you’re right there with them… Take it a step further, and advanced technology will alter your brain so you not only see and feel but realize a virtual sense of smell …and touch. Think Avatar. THAT is where Television is going, and right now, around the world, companies are working very hard to make all of that happen.
We’ve still got a long way to go, but considering where we were twenty-one years ago, and where we are now, it only makes sense that television is the media that will take us anywhere and everywhere we want to be …with the help of Internet technology and new technologies to come. Billions, if not trillions, of dollars in research and development will be spent. Opportunities will come and go, there will be another “bubble” because of it, fortunes will be made and lost, and in the end, there will be winners and losers, but the viewers will win regardless.
Phil Autelitano is founder and CEO of Mediarazzi. We develop and produce TV channels and applications for connected television platforms. www.mediarazzi.com