Connected TVs, smart TVs, IPTV, OTT, FAST – we have come up with a lot of ways of trying to define television now that you don’t need to stick a satellite dish or antenna on your roof, and get fed a steady of stream of fixed programming or play a DVD. Let’s call a TV what it is, a TV.
| Term | Definition | Notes |
|---|---|---|
| Connected TV (CTV) | A television that connects to the internet to access web-based content, often through integrated applications. Enables streaming, games, social media, etc. without external devices. | Essentially, all Smart TVs are Connected TVs, but not vice versa. |
| Smart TV | A television with integrated internet and interactive features, including preloaded or downloadable apps. | Essentially, all Smart TVs are Connected TVs, but not vice versa. |
| FAST (Free Ad-Supported Television) | Streaming services that offer viewers free content in exchange for watching advertisements. | Examples include Tubi, Pluto TV, etc. |
| OTT (Over-The-Top) | Refers to content providers that distribute streaming media as a standalone product directly to viewers over the Internet, bypassing traditional cable or satellite pay TV service providers. | Examples include Netflix, Hulu, etc. |
| IPTV (Internet Protocol Television) | A system where digital television service is delivered to the subscriber through internet protocol technology via the internet or broadband connection, rather than over air, satellite, or cable. | IPTV can be either OTT or traditional pay TV. |
It isn’t the TV that most people over the age of 20 will remember from their childhoods. That just means that we have come a long way in pure technology terms, and also in the ways that we have adapted the role of the TV to align it with all the other devices that we have been using in the last 10-15 years. The TV is an extension of our smartphones, which have shaped almost every aspect of our computing experience and needs.
Then, I got to thinking about something, after TCL launched a 98-inch TV in the North America with a special NFL package bundled in from YouTube TV. As part of its branding, TCL has gone all in with the NFL. Live sports and event are about the only pure television programs left, ones that are destination viewing as opposed to binge watching or delayed viewing.
But, TV manufacturers don’t make money from live sporting events. Sure, the more people like them, the more they want those big screens to watch them, but TVs offer so many different new revenue models, some exploratory for now, and some well established. There is advertising, there is videoconferencing, and there is a free TV model paid for with a second screen ad service.
What about sports betting. The TV as a slot machine, if you will.
The deregulation of online sports betting is helping fuel phenomenal growth, and in turn, changing the dynamics of sports watching.
Is there money for TV manufacturers? Putting aside any personal moral or philosophical feelings about gambling, from a pure business perspective, yes. Not many manufacturers may want to admit to being intrigued by gambling as a revenue model, but the way it looks right now, if you want to leverage sports for TV sales, you might want to think about leveraging gambling.
It’s just another app. Again, no judgement, only the desire to go Gordon Gecko and feed that greed is good feeling you get when you think you might be able to up your margins by another couple of points because you have a recurring revenue model for your sports fanatic TV buyers.
I mean, ESPN and Penn Entertainment announced a 10-year deal on August 8, 2023, to create ESPN Bet, a sports betting brand. Under the terms of the deal, Penn will pay ESPN $1.5 billion in cash over 10 years, as well as grant ESPN $500 million of warrants to purchase approximately 31.8 million common shares of Penn. That’s mainstreaming sports betting, and again, if you are trying to get sports enthusiasts to buy your TVs, you may want to think about the betting angle. Heck, find a partnership with a fantasy league app, too.
Professional sports sponsorships are expensive. It can suck a company’s marketing budget dry, and while the returns may be make it all worthwhile, the opportunities don’t extend beyond branding. As it stands right now, sports and sports betting online are going to become so intertwined that it is hard to see which came first, the chicken or the egg.
More importantly, this raises the point that TVs don’t exist as TVs but are TVs meaning, a TV is whatever you want it to be, and it is everything you want it to be. Just a bigger window on the world than the one in your hand. The connectivity, the application base, and the opportunities to build around those things are endless. You can’t just stick to diagonal screen measurements, resolutions, and colors alone. Even if you think consumers aren’t asking for any more, if you make and sell TVs you need to ask for more. You need to be greedy and try and get as much revenue per user over time as you can fit into your strategy.
So, the TV as your Vegas-in-the-living-room hub isn’t so far fetched. Someone is going to figure this out soon enough.
