Product types

The view held by many consumers that Internet TV and conventional TV will converge and finally merge, is only partially supported by the anticipated forms of use for Internet TV and conventional TV. In the areas of entertainment, recreational TV, game shows and home shopping, there are already to some extent considerable differences in usage patterns (Figure 20). It is only in the area of information where usage is more or less equally divided between the two. In this context, conventional TV has much more strongly defined usage patterns, particularly in the entertainment sector.

Figure 20:		Use of Internet TV and conventional TV (consumers)

By contrast Internet TV has substantial advantages with respect to interactive use, such as home shopping - which is also reflected in the findings. The potential of the interactive nature of Internet TV is also clearly highlighted in the product preferences of consumers with respect to Internet TV. Here the biggest interest is in Video on Demand, i.e. the personal and time-independent selection of TV content (Figure 21). Consumers also give high ratings to customizable products without a rigid program structure. There is also a marked consumer interest in Near Video on Demand and interactive TV. This indicates that there is one common element that all of tomorrow's consumers expect of Internet TV: the option of being one's own program producer whenever one wants to be.

Figure 21:		Interest in types of Internet TV product (consumers)

In addition to product types, consumer preferences with respect to program content are also of considerable interest. Internet TV consumers exhibit the biggest interest in local information (Figure 22). This clearly demonstrates how important the local environment is. It is in this respect in particular that Internet TV can fully assert its strengths: a high degree of interactivity and program diversity with the option of catering to much smaller audiences. Apart from local information, the greatest preference for Internet TV content is shown above all for education, sport, politics and music.

Figure 22:		Interest in Internet TV program content (consumers)

Now we know what kinds of Internet TV product and program content people want. But what is it that makes Internet TV really successful? Here, too, consumers have a clear notion. On the demand side, the most important success factor for Internet TV is that the products are characterized by attractive price-performance ratios (Figure 23). This is closely followed by exceptional image and audio quality, ahead of program diversity and customizable use of content.

Figure 23:		Internet TV success factors (consumers)

Technological innovations are considered successful above all if they are capable of attracting a large number of consumers. When technological breakthroughs like Internet TV are launched, the yardstick for success is a high level of market penetration. For Internet TV providers, it is therefore essential to reach high user figures in a short time. Broadband experts envisage that Internet TV can best capture large user figures above all by offering the conventional TV program spectrum (Figure 24). After a gap, this is followed by the delivery of special-interest programs such as sports or music. New, interactive program formats are not seen as having, initially, any substantial impact here.

Figure 24:		Programs that quickly generate high Internet TV user figures (broadband experts)

Program formats will play a big role in the success of Internet TV. In this context, the format type is crucial for the diffusion of Internet TV. Broadband experts regard above all sports and shopping as highly suitable formats for Internet TV (Figure 25). These are best integrated in an overall program package. For Video on Demand, the most suitable formats are primarily feature films, TV series and documentaries.

Figure 25:		Suitability of broadcast formats for Internet TV and Video on Demand (broadband experts)

For the consumer the most important success factor is therefore attractive product price-performance ratios. Because of this the costs for Internet TV are an important criterion.