This is from a session at the Digital Hollywood Fall conference in Santa Monica, California. Here are my notes from the session.
Simon Morris – CMO LOVEFiLM (Netflix for Europe)
Matt Milne – Divx recently acquired by Sonic Solutions (Roxio Now)
Jeff Schultz – SVP Business Development, Clicker
Michael Alexander – Strategy & Growth Initiatives at IBM Global Telecommunications Industry
Jim Funk – VP Development at Roku
Stuart McKechnie – Director of Strategic Marketing at Zoran
Amy Hoffman – President of Priority Digital Media is the moderator
- This session looks at “over the top” TV services
- Half of all TVs that are shipped in the US will now be connected to the Internet – what does this mean for the consumer and for Hollywood?
- LOVEFiLM runs 6 million streams
- Consumers want range, value, and convenience– delivered in a way that is seamless and smart
- The other side of the coin is the supply side. – Content vendors need to be willing to provide their content via new platforms.
- Sports is a major driver – people will not cut the cord because of this – this will keep them as cable subscribers
- Over the top content is supplementary to cable
- Netflix got it right with the vast amount of content that is available.
- Roku is a great example of where the technologies issues are solved. But is this the case? The user experience is not really solved. Though watching movies from end to end seamlessly is solved. We know how to make a secure device.
- Technology is there with the basic tools – but there is still a lot to do on the technology side to deal with the user experience.
- The underlying elements of the technology is there and we have to get it to scale.
- Divx is looking at allowing people to buy a piece of material and put it into a “locker” to allow them to play across a wide variety of devices. Divx TV.
- In 10 years --- all media might be streamed from the cloud and people will stop wondering if they have it or not.
- Streaming to the TV is good --- 18 months ago the consumers started taking hold of this.
- The device people want the most out of is the TV – not the mobile phone. In the evening – consumers want to sit on the couch and watch a TV.
- We are not close as an industry to provide the “any content” solution. It is hard to find the thing that you want to watch and to search through content. There are companies working on this.
- Will consumers be able to handle the same commercial load online as they see on TV? JS thinks yes at the end of the day.
- Search and discovery becomes more and more important for dealing with content.
- LOVEFiLM has 75K files available. What they have had to learn – getting the titles in front of people is the solution. Amazon showed us the way. In how they recommend to people new items. Getting the right titles in front of the consumer is quite vital.
- Consumer peer to peer promotions of items is now starting to be more key to recommendations.
- The layer over all media is now starting to be that social aspect. The consumer’s relationship with their peers. Social circles are very important to content discovery. Clicker will announce something next week on this.
- Clicker will build a layer across all recommendation sites.
- Roku is a hard problem – particularly with the TV. It is a low resolution device and you have to work with the remote. There is work to do and people in the software business tend to overcomplicate things. The consumer really only wants one movie in the next 2 hours – not 75K.
- Technology has a long way to go. For instance, YouTube videos are low quality and then being shown the on TV.
- A lot needs to be done to improve picture quality of the existing content.
- Now when consumers will watch a show that is not in HD – the consumer now is starting to go elsewhere.
- Companies are moving to game consoles (apps) to get at the consumers.
- The new devices (iPad etc) are not disrupting the content models that are out there today.
- The business model for content is going to have a tough time getting away from cable and subscriber based services. We have this business model that funds the entire industry and it is going to be hard to get away from this.
- There will be many subscriptions – cable will have to learn to live with the others. People might have around 10 different subscriptions that they are supporting.
- Download to rent – one off single transaction – economics are different for this model. Download to own also. Subscription is where the consumers want it. They don’t want the other model. We need to not devalue digital in front of the consumer. Many think that digital is free.