The battle for the TV screen is really starting to heat up.
The announcement in the last couple of days that LoveFilm is coming to the Sony PS3 platform really signifies that digital distribution is really kicking on in the UK. BBC i-Player and Vidzone already exist on the PS3 platform, but now with the added firepower of Lovefilm, Sony are sending a clear signal to competition that they mean business.
Netflix has been a key player in the US market in delivering high quality movie experiences via Microsofts Xbox 360 platform. The user can log in via their Xbox Live Gold account and purchase movies digitally in the same way one would select a movie to be sent to their home ( Zune is the equivalent in the UK ). This is the same model that will be implemented by LoveFilm on the PS3. The CEO of Netflix published a really interesting slideshare presentation about 6months ago outlining the future of their business, but it seems to have been taken down ( probably because he realised it was too good to share ), however below is a snapshot on how they believe streaming will replace mail over-time.
Within the next year there will undoubtedly be more and more channels vying for the opportunity to serve their content everywhere and anywhere they can. So, Will a platform that was traditionally a gaming hardware become infiltrated with 600 channels of other content essentially replacing our Sky HD + box ? Do we even need a Sky box? If we have a good internet connection why can’t all my games, films and music just be streamed onto my internet enabled 42″ LCD ?
Answer: The quality of internet bandwidth will influence any potential.
Sony has invested billions in electronics over time, and with their foothold in the TV screen market i think that they will be the best equipped to tackle the convergence of this media in the next few years. What becomes really interesting is when you consider the multitude of other consumer electronic companies in the mix, and the advertising opportunities that will be available to us in the future.