Logos for TV Companies

2013: TV is dead! Long live TV!

It’s both and 2013 will be the year it happens.

If you’re interested at all in TV you can’t miss rumors of the (real) Apple TV or the rising sales of the actual Apple TV as the most popular “accessory” for iPhones and iPads (10 million sold). We also hear that Intel’s announced its working on its own TV killer. And the one less talked about, which I think is much more likely, is the possibility of a Kindle TV by Amazon–they continue to rack up content deals (e.g. CBS, NBCUniversal) for their streaming service, have hired countless folks from the TV industry, and have a proven track record of building consumer products with billing relationships tied to them (Kindle).

Logos for TV Companies

Who will shape the Future of TV?

If you’re new to thinking about the TV space then I recommend a primer on the business done by Kit Digital which outlines the players, how they make money, and their general strategy. As someone operating in the business, I’d say its fairly accurate:

The 7 key players, circa 2013: The Networks, The MVPDs, The Premium Networks, The OTT Networks, Smart TVs, Third Party devices and Social TV. —Alan Wolk

The primer addresses many of the common questions I tend to hear in discussions like “When will HBO sell HBO GO a la carte?” and “Why are there a bunch of channels I don’t want bundled into ‘Basic Cable’?”

As you might expect, I disagree that all MVPDs are standing still or against innovation (see 5 things you didn’t know Comcast offered). As we innovate in the TV space though we’d be wise to better understand why people pay for TV in the first place. Perhaps the best piece on this was recently shared by Jeremy Toeman (CEO of TV startup Dijit Media) on GigaOm:

As the primary way of watching TV shifts from a traditional broadcast, linear, scheduled, single-device mode to one that is all on-demand, on all devices, available at any time, anywhere, the consumer’s TV watching world is suddenly filled with a curse of choices. If everything we watch requires us to navigate menus, pick from lists, and choose, choose, choose — TV watching is in danger of losing its primary function: escapism. – Jeremy Toeman

In many ways the TV Industry is on the verge of great change in a similar way the mobile phone market was 6 years ago and music industry 12 years ago. Technology is enabling greater innovation, customers are interested in trying alternatives, and there are millions of dollars being invested in developing new products at companies big and small.

In the end I think the winner will need a good combination of understanding the user, great design, saavy business development, and the ability to achieve broad distribution.

What was missing in the 1st iPhone? (5 years later)

This week Apple will share their latest innovations at WWDC. However, I think its time we reflect back on what Steve Job’s announced 5 1/2 years ago at Macworld 2007: the 1st iPhone (worth another watch).

Steve Jobs pitched it under the backdrop other historic Apple products:

  • Macintosh (1984) – which changed the computer industry
  • iPod (2001) – which changed the music industry
of which it definitely became the third industry changing product for the company.

But remember what was missing?

  • It didn’t have the App Store – Native third-party apps weren’t available until 18 months after the announcement in mid-2008.
  • It wasn’t affordable – It cost a steep $599 and was cut in price by $200 two months after launch.
  • It wasn’t mass adopted – Despite the lines, only 1.2M were sold in the first full qtr of availability (vs. the 35M last qtr ending Mar 2012)
  • It didn’t have push email or MS Exchange support – the most important feature on other “smartphones”… missing.
  • It didn’t have GPS – It triangulated “good enough” location using wi-fi and cell towers, but no chip til the 3G.

Yet, we already look upon the Apple iPhone as one of the most successful consumer products ever. It shows how in Lean Startup language, Apple’s MVP did everything they needed to learn about the market and the space.

Apple focused on what it could do better and in a unique way. That’s good advice we each should take when building our new products.