Just returning from CES last week where we packed 32 meetings into 4 days, we’ve had a chance to digest everything we saw and heard from the show. Beyond the expected glittering gadgets and devices, its been interesting to watch over the years as CES has become as much a show about content as it is about hardware. As the software that drives televisions and set top boxes becomes more important than the actual hardware, manufacturers have realized that the content experience is the final frontier of product differentiation and defensibility. This has created a blizzard of connected device ecosystems and platforms, and there are now at least 10 different offerings trying to win the standards war.
As the market continues to mature, it's becoming clearer as to what’s required to deliver the connected television experience, although the murkiest piece is exactly what the consumer wants and will respond to. The hoped for outcome of course is that a connected experience drives a substantial increase in total consumption, user engagement, and a second screen with which to deliver more immersive and targeted companion advertising experiences.
To deliver on this opportunity though requires a complex coordination across two markets, which historically haven’t had much opportunity or need to interact: the content producers (i.e. broadcast and cable) and hardware manufacturers (set top boxes, televisions, gaming consoles). As a result, the market feels like a bridge that’s being built from opposite banks of a river that hasn’t yet met in the middle.
So based on my many conversations, the ingredients for success have become clearer. It looks something as follows:
• Metadata as the Foundation: The theme we heard over and over again was the difficult of building a comprehensive search and discovery capability when most video assets have poor or lacking metadata. Further, virtually no one has scene-level metadata and thus a timecoded augmented television experience is nearly impossible. This type of metadata can of course be created manually, which many have tried. However, in every case the resulting ROI on such an approach was negative. What’s needed is an approach that is mostly automated but with full editorial overrides. RAMP of course has been preaching this since we launched. Industry Readiness Grade: B