Traditional TV operators need to innovate to cash in on online

Editor ©RapidTVNews | 07-10-2011

New research released by Ovum has concluded that the rise of the second screen is now widespread, with three-quarters of viewers with broadband surfing the Internet at same time.
The analyst adds that its data provides concrete evidence as to how social TV is heating up the battle for the living room as 38% of those surfing discuss TV shows on social media. Yet it warns traditional TV players that they must understand and innovate around this area if they are to survive in the long term.
Ovum is confident that social networking will play a huge role in how people access TV and video content, with a number of devices working together to provide the complete experience.

Said Ovum principal analyst Michael Philpott: “Traditional TV players must understand and innovate around this area if they are to survive in the long term. To simply watch from the sidelines will be to hand the advantage to more innovative direct competitors, or online operators, which are becoming increasingly powerful in the media space.”
The data also revealed that just over half (51%) of the consumers it surveyed use the Internet to access further news or information related to the TV content they are viewing; 38% use the Internet to discuss the TV show on social networking sites such as Facebook. For 16–23 year-olds this rises to 59% and 53% respectively.
Even though this clearly offers opportunities for broadcaster, Philpott insists that there are also negative conclusions to be drawn.
He added: “Increased adoption of more personal Internet-connected devices, and our growing reliance on and interest in Internet applications, has reached such a level that they are diverting our attention away from the TV. It is therefore feared that it might only be a matter of time before more valuable advertising revenues also move away from the TV and onto the second screen.
“However, on a more optimistic note, there are a number of applications currently being developed that help the TV industry take advantage of these trends. The applications directly tie the TV and social networking sessions together, creating a new, fuller, and more interactive TV experience.”