What is the future of television?

Thoughts from an exploration project at This Place. Published on This Place’s Medium.

Role: Strategy, UX, UI

Introduction

We’re on the precipice of a major change in the television market. Faster internet speeds have enabled live streaming that matches the video quality of traditional cable providers. It’s one of the reasons why, over the past 10 years, consumers have been shifting towards video-on-demand services such as Netflix and Hulu. By 2022, it’s estimated that 20% of consumers will have cut the cord, while another 15% will have never had cable at all. At the same time, with more and more content and platform choices, consumers are becoming increasingly overwhelmed by the number of available options. This has caused subscribership to decline for video on-demand services.

A shifting landscape

The old guard has finally wised up and the balance of power in the market is about to shift away from a multitude of choices to a few major players consolidating their content. This year, AT&T completed its merger with Time-Warner. Shortly after, they announced HBO Max, a reimagined version of HBO Now, that will combine both properties’ content libraries. Meanwhile, NBCUniversal has pulled all of its content from Netflix — most famously, The Office — to add to its own new service, called Peacock, which is set to launch in 2020. Apple also recently announced that it would be launching its new service, Apple+, throwing their cap in to the ring.

Finally, Disney is about to launch its Disney+ service, a looming behemoth that’s undoubtedly going to capture a large number of users with its vast library of Marvel, Star Wars, and Disney content. This means there will be a culling of video platforms that can’t provide a unique experience in the face of these giants’ strong content libraries.

The multi-screen experience

These new platforms have also changed the role of the humble television. Viewers younger than 50 are now spending more time watching digital content than live TV. But that doesn’t mean the television is dead. 62% of viewers still prefer to watch long-form content on a traditional TV set. For longer viewing, the ergonomics of sitting back and not having to hold a device just makes sense.

That said, consumers are still on their mobile phones when watching this content. According to Nielsen, 45% of Americans use a mobile device or tablet when watching TV. While second screen experiences have been heavily explored in the past, there’s a new opportunity to create a closer connection between televisions and mobile devices with the rise of the internet-connected smart TV.

Looking towards the future

These rapid changes in the market, technology, and consumer behavior leave content providers and platforms rushing to figure out how to cut through the noise. How can platforms differentiate themselves when good content is everywhere? Platforms that create a unique viewing experience can cut through the clutter of a crowded market. The rise of internet connected TVs provides an opportunity to create a more direct connection between the viewer and content. Through cross-device interactivity, viewers can have a more personalized and engaging experience augmented by an ecosystem of apps or platform features. This does not necessarily mean only gamification, but also using content as a means of discovery and inspiration.

Solution 1: Communal content

Consumers are watching live content streams connected to social networks in increasing numbers. Video is no longer a one-way conversation. Services like Twitch, Tik Tok, and YouTube have trained an entire generation that watching videos is an active experience. Viewers expect to be able to see comments and reactions from others and respond in kind.

At the same time, privacy and safety concerns have risen to the foreground. Controversies such as Gamergate in 2014 and Cambridge Analytica in 2016 have made consumers distrustful of interacting with large scale social networks. Micro-networks for live events would allow viewers to still watch and comment on TV with their friends, even if they aren’t in the same room.

Consider watching a reality TV show with your friends. Most viewers are already texting each other, making predictions on which contestant will get picked, and sending gifs and memes to spark further conversation. The platform could pull real-time event data that would feed into a social experience. A bot could send polls to the group and allowing them to see the results on-screen. It could also use machine learning to serve up suggested gifs for viewers to send to their friends, rather than the viewer spending time searching and missing the moment.

Platforms should consider integrating these experiences within messaging apps that viewers are already using, such as Facebook Messenger or iMessage, instead of building a whole new experience. This meets viewers where they are and increases the chances of them adopting the service.

Finally, video platforms can collect sentiment data from live event reactions to understand where users were engaged and where events missed the mark. For platforms, partnerships with existing brands can provide new revenue streams.

Solution 2: Video as a means of discovery

Shoppable content is a well-known interaction pattern. Platforms like Pinterest and Instagram already heavily invest in features for influencers and brands. But it hasn’t quite made its way to video content, especially with TV shows and movies. It’s on its way though. New tech enables platforms to provide a more seamless connection between content and shoppable moments. 

Both NBCU and Walmart’s Vudu have announced that they will integrate shoppable ads in the future. Even Amazon Prime Video has integrated IMDB information through its X-Ray feature, hinting at a future where data and content are more tightly integrated. However, while their intentions are right, the current experience of these ads feels rushed and inconsiderate of the relationship between the user, their TV, and their mobile devices.

These platforms are correct to assume that users want to shop from their TVs. However, they are focused on the latter part of the purchase funnel, which is the product purchase. TV is best used as a discovery opportunity for consumers. They want to stay immersed in watching a video and not be disrupted by ads or distracted by a checkout flow in the middle of their show. Instead, they should be able to view the products they see on-screen and save them to their mobile devices, without ever having to pull out their phones.

This new version of product placement provides another source of revenue for video platforms looking to diversify. Along with the obvious advertising opportunities for brands, video platforms can provide analytics on which placements are successful.

Final thoughts

We’re in a golden age of TV content. There’s never before been a time where consumers have so many choices at their disposal. How shows are delivered is rapidly changing in both format and technology. The companies that take advantage of multi-platform formats will stay ahead of competition and differentiate themselves in the market.

See the prototyping process