Report: Social TV - How Facebook, Twitter and connected television transform global TV advertising, pay-TV, EPGs and broadcasting

written by: Richard Kastelein

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In a fresh report, digital media research company Futurescape reveals how Facebook and Twitter are now power brokers for the global television industry... their ability to create new business opportunities and engage viewers, boosting advertising and pay-TV revenue, gives them a significant and increasing influence over all aspects of television.

The key findings come in the second edition of the Futurescape report, Social TV. Facebook and Twitter are now power brokers in global TV, through creating new business opportunities for the television industry.

Shows such as The X Factor will use the Facebook Credits digital currency so that viewers can readily pay to vote. Pay-TV electronic programme guides (EPGs) are incorporating .

Facebook and Twitter: this lets viewers instantly recommend shows to friends and followers, encouraging them to subscribe to pay-TV channels for particular programmes.
More than 30 startup companies are launching innovative forms of social TV to entertain viewers and provide value for broadcasters and advertisers: most have deep integration with Facebook and Twitter.

The social networks' power over the TV business will increase, because the future of television is social. Many viewers already communicate via Twitter and Facebook on  mobiles and laptops while watching TV. This trend can only grow: consumers are buying Internet TV sets with Facebook and Twitter apps pre-installed and also entertainment tablets, such as the iPad.
Viewers commenting during programming, particularly live event shows such as the Oscars, is likely to boost viewing and raise advertising revenue for broadcasters.

Connected TV sets with Twitter and Facebook apps mean that television programming will co-exist with social media on the same screen. Television shows will be viewed with an on-screen, social context.

This is the first critical appraisal of how Facebook and Twitter are now power brokers for the global television industry.

New business opportunities
Discover the opportunities that Twitter and Facebook make possible for television, such as paid voting with Facebook Credits, distribution via Promoted Tweets, interactive Web TV formats and pay-TV content recommendation.

Social TV strategies
Understand Facebook’s and Twitter’s strategies for television, as viewers increasingly engage with TV via mobiles, laptops, connected TV sets and tablets.

Social media’s impact on TV
Find out how social media impacts the entire TV value chain – production, broadcasting, pay-TV distribution, viewing and advertising.

Enter the startups
Analyse the 30 innovative social TV startups that aim to revolutionise the industry, via Twitter and Facebook. Full company profiles, including deals, partnerships and business developments.

Executive summary

  • Internet connectivity transforms TVs, platforms, business models and the viewing experience
  • Facebook and Twitter have entered the entire TV value chain
  • CE manufacturers need social networks for consumers’ expectations of TV social interactivity
  • Cable, satellite and IPTV operators need social networks for content recommendation
  • Facebook and Twitter will compete for $180bn global TV ad spend – via the TV screen
  • Data sales: the opportunity for Facebook and Twitter to diversify revenue streams
  • Connected TVs will increase social networks’ influence over TV ratings

141 pages / 67,200 words, 30 tables and figures, 80 colour screenshots. Published May 2011.

Abbreviated table of contents

  • Second edition – key updates
  • Executive summary
  • Connected TVs and social networks are creating social TV
  • The connected TV market: data and predictions
  • Key players and partnerships in building social TV
  • Social TV and the TV industry: innovation and disruption
  • CE device manufacturer strategies
  • Platform operator and middleware provider strategies
  • Broadcaster and content owner strategies
  • TV advertiser strategies
  • Social TV startups: company profiles
  • Social TV market resources – interviews and briefings
  • Interviews with NDS and BT executives
  • Connected TV company position statements – Mitsubishi, Panasonic, Philips, Verizon and Vizio
  • Platform briefings on Facebook and Twitter
  • Viewer behaviour with connected TV systems
  • Marketing connected TV apps – the consumer proposition
  • Implementing social interactivity on TV
  • Key data: 30 tables and figures, 80 colour screenshots

Companies and sectors covered in the report include:
  • Social networks, Internet and software companies
    • Facebook, Twitter, Google, Yahoo, Microsoft
  • Connected TV manufacturers and their partners
    • Hisense, Intel, LG Electronics, Mitsubishi, Panasonic, Philips, Samsung, Sanyo, Sharp, Sony, Toshiba, Vizio
  • Pay-TV platform operators
    • BT Vision, DirecTV, DISH, Liberty Global, US cable operators, Verizon FiOS, Virgin Media
  • Set-top box and middleware companies
    • Motorola, NDS, Nagravision, Rovi (Macrovision)
  • Game consoles
    • Microsoft Xbox Live, Sony PS3

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