Looking at what comes after mobile. This week, we look at TVs.
The impact of modular approach can also be felt in the television business. Personal Video Recorders like Tivo have managed to break down television into its most basic set of modules: the TV show, attacking the concept of broadcasting in the process. The problem here is that television stations have been working on bundling several TV shows as part of a package. The science of primetime planning is predicated on the concept that people who watch one TV show may also take a look at shows that are broadcast before and after that particular show. Based on this concept, TV stations can prop up the audience of a particular show by broadcasting it at a time that is close to another more popular one. However, Tivo breaks down that logic by giving the user leeway in terms of what they see (only the content they want) and when they see it (when they want), distributing audiences over any time of the day. The Tivo approach is breaking the TV business model because it attacks the concept of primetime television. On Tivo, primetime is any time, which means that audiences become much harder to track and makes it impossible to assume…Read More
Back when they came out, I said that tools like Tivo and Replay could change the face of television watching. A couple of years ago, I assumed that game boxes would be the new home media center. What I missed, though, was the end run that Tivo was doing around the game companies. With yesterday’s announcement that they would offer connectivity to computer platform, Tivo is placing itself square in the middle of the convergence world. Their strategy is simple: focus on the core engine and use the PC as a storage area. It is braindead simple logic. The Tivo box comes with a big hard drive but it is mostly filled with TV programming. Alternately, the box does not need to provide web surfing as attempts by companies like AOL and Microsoft have failed in that space, probably bringing on the realization that most people don’t want to surf on their television sets. Thus, Tivo leaves the download of music to computers for now. The reason I am saying for now is that I expect them to eventually offer a more widespread network connectivity set in the future. However, they realize that most Tivo users are probably already computer…Read More