TV makers think outside the box
With Google and Intel leading a charge by technology companies to change the face of television, the slow-moving industry is being forced into a radical rethink of its business model.
That could mean that TV sets end up being given away, with a shift towards selling services instead. "You can't just put a TV out there with five to six services and think that will last seven to 11 years," said Richard Bullwinkle, chief evangelist with Rovi, the TV guide and digital content protection company. "We are going to have to look at other models like software, service and application updates, add-on sales and recurring revenues. It's an incredibly exciting opportunity compared to waiting for someone to replace a large television." The industry could even go the way of the mobile phone sector, with TVs being sold at subsidized prices to sell the subscription content services with which they come loaded. "We are witnessing the demise of television, new technologies are going to take over, television is being replaced by the entertainment display," said Ken Lowe, Vizio co-founder.