Smart TV Trends in 2013 by Michael Lantz, CEO, Accedo

Increased competition among movie services

If we were to choose one clear winner emerging the Smart TV trend, it would be the movie buff. Already in 2011 and 2012, a number of major film on-demand services have launched Smart TV applications. In some markets, consumers already have five or six services to choose from with additional services on the horizon in 2013. It’s difficult to imagine that only five years ago most consumers were stuck with DVD rentals and recording TV channels as their main home movie services. Consumers have rapidly come to expect a range of attractive new and library titles available directly to their TV. Of course, companies will have to compete with price and the selection, which will ultimately benefit the consumers. Growth, which is already high, will continue to ramp up in 2013. We will see aggressive marketing campaigns and investments in the user experience and content portfolio to capture the mass market before any competitors do the same.

Platform standardisation will not happen in 2013

As previously mentioned, market growth is very high, with an estimated doubling of the number of households who actively use Smart TV application at the end of 2013. The main hurdle for most companies launching Smart TV applications is the multiple platforms that are available on the market. Content providers need to sign distribution agreements with each manufacturer and then develop and launch applications on multiple TV platforms. All TV manufacturers are adding new functions and features to their platform to stay competitive in the global TV market. The rate of innovation is very high, and is expected to remain high over the coming 2-3 years. At Accedo, we believe that Smart TV technologies will remain fragmented in 2013 and 2014. However, with technologies and platforms maturing, porting of applications between different Smart TV platforms will be more attractive and easier to maintain over time.