Internet-Connected TVs Could Change Multichannel Video Business Models

It would have been hard to miss the 'Internet-connected TV' theme at the recent Consumer Eletronics Show, any more than the tablet, smartphone or '3D' TV angles. The 2011 version of the Consumer Electronics Show highlighted many Internet-connected TVs, Blu-ray players and other devices.

That leads some observers to argue that TV manufacturers now own the relationship with the customer. That probably overstates matters too much.

It might be more accurate to say that the application and service providers featured as part of TV menus will increasingly be in position to try and do so, but that it is not the TV manufacturer but the application providers that will be able to contend for viewer loyalties. But most of that potential shift of gatekeeper control lies in the future, so long as the Internet apps featured on connected-TV menus provide much less than the variety of popular programs normally associated with cable TV, telco TV or satellite TV.

That noted, the growing installed base of Internet-capable devices, ranging from TVs and Blu-ray players to game consoles and even smartphones and tablets, increases the likelihood that content owners will someday come to financial terms with one or more distributors able to substantially replace the expected lost revenue from other distribution channels.

Internet-Connected TVs Could Change Multichannel Video Business Models