BRAVIA Internet Video is one of the key propositions that we
offer to customers who buy a Sony connected device. It gives
consumers the chance to watch content from a variety of different
providers such as BBC iPlayer, Demand Five, Lovefilm, Youtube, Sky
News to name just a few. Customers also have the opportunity to
purchase premium movies on a pay-per-view basis from the 'Video on
demand' service and subscribe to 'Music Unlimited' which lets users
listen to unlimited tracks from a library of over 7 million
songs.
BRAVIA Internet video features on 23 out of 24 of our Bravia
televisions as well as on all of our Blu-Ray players and our
Netbox, which is great for people who have a slightly older TV
without internet functionality.
Content partners, assuming they have the rights to a given
territory, can share their content anywhere in the world. So, in
the UK, when you first buy a device it connects to Sony servers,
checks your location and shows you the services you can get in your
region. In the UK, that's principally the major catch-up suppliers
like BBC iPlayer and Channel 5, Sky News, Sony Entertainment TV
plus subscription services like Lovefilm and Video on
Demand.
We're still in the very early days of Connected TV and as an
industry, we're trying to understand what connected TVs mean to the
consumer. With second-screen applications on the horizon, how are
multiple connected devices in the lounge going to talk to each
other and provide an enhanced consumer experience?
At present Sony have over 20 video services on the platform as
well as supporting Twitter and Facebook, but Sony are currently
approaching it from a qualitative rather than an quantitative
standpoint. Having too much choice can sometimes paralyse
decision-making and we want to make sure the services we do make
available are recognised, trusted and, most importantly, going to
be useful to our customers.
We really value our content partners and the additional services
that they deliver to the consumer as well as helping us to
differentiate our proposition. We tend to describe BRAVIA Internet
Video as a shopping mall, in that the mall is owned by Sony and we
rent plots out to content partners to showcase their content and
acquire new customers.
Much of the content from partners is free at the point of
delivery. Some services, such as Channel 5, are ad-supported and
then we have subscription services like Lovefilm. Video on Demand
is a pay-per-view service. The way we look at it is trying to
understand what the partner wants to get out of the service and how
we can best work them to achieve their goals, thus any new deals
that we sign with content partners clearly have to work for both
parties and, using our experience, we look at tailoring a deal to
the specific partner.
Whilst the current trend is around ad supported content, one
just has to look at the news to see that many different types of
business models are being examined as this is such a dynamic ad
fast moving industry.
We give our content partners reach, that is, immediate access to
the many millions of customers who have bought one of our connected
devices across the globe. And because the platform is
backwards-compatible, the partner service is available to use both
for people buying new devices but also all the of the customers who
already own a connected device. This is one of the key differences
to an 'App Store' approach where the customer has to actively go
out and look for the app. On Bravia, the apps are directly pushed
out. Partners don't have to rely on consumers to find the
service.
Sony is one of the leading brands in this space and was the only
major TV manufacturer to win a Connected TV award earlier in the
year at the Connected TV Summit held in London.
We've done a lot of research on how people watch television
these days and particularly looking at the 'lean-back /
lean-forward' experience depending on whether a person is watching
programmes on a TV screen or an a laptop. One of the most
interesting things we've found is that up to 40% of people in the
UK had connected their PC to a television at some point whether
that's to watch catch-up on the web or stream a movie or even just
to look at photographs - basically using the TV as a big second
screen driven by the PC. And what we take from that is that most
consumers prefer the 'lean-back' experience for big-screen
entertainment. And that's borne out by viewing figures for
something like the BBC iPlayer. Although iPlayer content is still
mostly viewed on a computer there are a growing number of people
watching it on their TV sets. Connected devices are starting to
take a share away from PCs.
For me, the second-screen experience - and how it evolves - is
absolutely fascinating. Anthony Rose (one of the architects of the
first BBC iPlayer) was quoted the other day as saying that
second-screen is going to be a disruptive technology in both good
and bad ways. Second screens will help provide a unique experience
for every single person. One could argue that Facebook and Twitter
aren't main-screen applications: they can be private to the
individual user. So, in a 2.4 children household, the TV will be
the big public screen for the whole family to watch whilst the kids
might be individually interacting with these social services on a
tablet or a phone but still getting a private, customised
experience to what the user feels like doing or consuming at that
time. They complement the main screen.
We want to see BRAVIA Internet Video on as many devices as
possible. Our chairman said a couple of years ago that 95% of our
product categories would be connected to the Internet by the end of
2011 and we are well on the way to achieving that.