Research from Capablue is advising those actively looking at connected TV to nail down quickly a robust strategy to take advantage of the potential opportunities even though the industry is in its infancy.

The web-tv convergence company believes that fundamentally the connected TV market is evolving rapidly and broadcasters need to pursue flexible strategies that allow them to react to evolving technology, platform and consumer-behaviour.

Overall Capablue is confident that connected TV, in particular VOD, solutions offer content owners quick and simple deployment to multiple devices with a low cost, low risk route to market that does not require individual investment in building applications. Indeed an iPad or Android tablet play effective sees the end user, gladly; meet the cost of purchase for the essential receiving equipment.

The survey revealed that a significant majority of participants are exploring pay per view (PPV) and micro-payments as extensions to subscription or in addition to advertising revenues. On-line payment solutions integrated with outsourced connected TV platforms, make this feasible.

Moreover the analyst argues that personalisation of the video player and homepage offers opportunities for personalised recommendations and interactivity such as games, quizzes and surveys. These are all seen as key tools to deepening the relationship between the content owner and viewer, which benefits the broadcaster in terms of increased viewing time and therefore potential revenues.

Capablue also identifies brand modernisation benefits whereby the acquisition of new customers and increased viewing by existing customers and the exploitation of older archived content have tangible value. Other opportunities include expansion into new geographies and brand modernisation, embedded.

Yet the research also highlights areas of concern such as a popular perception that the market is fragmented and that it is difficult for operators to predict which systems will become the standard. In addition Capablue warns of viewer numbers being constrained by a perceived lack of quality content and consumer confusion and that poor bandwidth in certain areas is diminishing quality of experience.

Most worrying, from a business perspective, Capablue argues that the commercial case for attracting advertising revenue is not clear in every instance of a connected TV installation.

Yet in conclusion, Capablue says that it recognises that all connected TV participants are seeking to grasp the opportunity to improve their customers’ viewing experience and increase revenue.

It observes that indeed the market is still embryonic with uncertainty around commercials, devices, content and consumers. Such uncertainty is said to be engendering most participants towards a managed service implementation outsourcing to Connected TV platform experts who can deliver a single solution (and user account) across multiple connected devices and platforms.

The bottom line, suggest the analyst, is that it should not take long for the potential gating factors to be addressed and resolved and until then it is right for broadcasters to follow a flexible strategy that allows them maximum penetration, with low investment and low risk