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Timothy R. Hawthorne is the founder, chairman and executive creative director of Hawthorne Direct Inc., a leading full-service direct response agency. He is regarded by many as the “Father of the Modern Infomercial.” Hawthorne’s agency has produced or managed more than 600 campaigns for such leading-edge clients as Apple, Discover Card, US Navy, Time-Life, AARP, Paramount, Bose, Taylor Made, and Nissan.

Author of numerous articles, a sought-after speaker, and expert witness, Hawthorne was named Entrepreneur of the Year by USA Today/Ernst & Young, and one of the 25 Most Influential People in DRTV by Response magazine. He received the Electronic Retailing Association Lifetime Achievement Award in 2006.

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Will Widget Channel Be Tuned In?

Written on
November 26th 2008
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by Timothy Hawthorne  |
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tvstatic1.jpgADOTAS EXCLUSIVE — In August, Intel and Yahoo announced plans to launch Widget Channel, a programmable platform designed to supplement TV programming with internet-based applications. Intel will handle the Widget Channel hardware—a chip that enables application functionality in consumer electronic devices. Yahoo will oversee content, managing a Widget Gallery from which consumers can select personalized applications that display while they’re watching TV.The blogosphere buzzed with this news for roughly three days. Since then, nothing. There are two basic reasons for this silence. For the public right now, Widget Channel is more proposal than product. While Intel, Yahoo and a prominent supporting cast—Comcast, ABC/Disney, CBS, etc.—toil tirelessly behind the scenes, there’s nothing for consumers to actually play with. Second, until a deployable product proves otherwise, Widget Channel sounds like just another in a series of internet-to-the-living-room schemes.

There are several reasons for consumers’ tepid embrace of “web-ized TV” and for marketers’ wait-and-see skepticism. But while we remain in the speculation stage, there are just as many reasons why Widget Channel may overcome the tough challenges—and why advertisers may embrace this new medium.

The problem: Technological buy-in takes time. Because Widget Channel requires a specific Intel chip, widespread rollout will require years. Intel must first get its chip into TVs and set-top boxes—which consumers must then buy in sufficient number. The promise: Intel is ubiquitous in consumer electronics. If it’s pushing this chip, many products will use it. And the timing is right. With the analog-to-digital transition now in full swing, consumers are eager to upgrade their gear. Pay TV services, of course, offer set-top box upgrades routinely.

The problem: Consumer media consumption is highly fragmented. Many advertisers adjust to dwindling TV ratings by transferring ad spend to the online culprit. So why would Big Television enable a new medium that distracts viewers more? The promise: Intel’s technology brief states, “The user interface is designed to complement, rather than distract from, traditional TV viewing.” Perhaps. Even with the widget gallery consigned to a bottom-of-the-screen “dock” and the widgets’ operations displayed in a left-of-screen sidebar, the interface still is distracting. But that isn’t necessarily bad. Similar to the information-rich sidebar and text crawl that ESPN News, CNBC and Bloomberg run during commercial pods, program-related content may keep restless viewers from wandering. Bigger TV sets factor in too. There’s room for additional content without sacrificing main image quality.

The problem: DVRs and ad-blocking software have accustomed media consumers to control their advertising consumption. Many TV viewers won’t opt in to widgets that appear to be marketing tools. The promise: Intel’s technology brief tackles this issue head-on, claiming that the Widget Gallery service “can include an advertising engine.” So viewers who want the freedom to check stock quotes or display Flickr photos while watching NCIS, may have to accept advertising as fair exchange for customized content. More important, “content aware widgets” could offer the relevance that online ad networks tout. Desirable sidebar content could itself be supported by advertising. Theoretically, Widget Channel makes it possible to balance push advertising with pull advertising.

The problem: Widget Channel can’t offer advertisers direct access to consumers if programming providers are gatekeepers. Your killer widget is useless if programmers won’t let viewers see it. But cable and satellite companies have little reason to embrace the new Channel if they don’t receive compensation. The promise: Wisely, Widget Channel is open to big TV partners. Comcast, reportedly, is already working toward a January launch of an electronic program guide test. And gatekeepers typically admit anyone willing to buy tickets.

The problem: Widget Channel is literally that—a new marketing channel that brands and agencies must manage. To reach target audiences, agencies must not only create specialized content, they have to buy media, track it, and adjust. The promise: According to Widget Channel’s team, developers will write their TV applications in popular Javascript, XML, Flash, and HTML languages. In theory, this eliminates the need to create specialized content. Videos that play in web page margins can play also in TV screen sidebars.

The problem: Many companies have tried to bring internet functionality to television, but none achieved widespread acceptance. Perhaps TV viewers just want to watch television. The promise: Widget Channel involves big time players—Intel, Yahoo, Comcast, ABC/Disney, CBS, Blockbuster, and so on. That means enough money to ensure a fair trial. The trial will center on a new internet-connected TV model that Yahoo calls “the Cinematic Internet.” While that sounds like a new name for old goods, the involvement of companies like Twitter could change the concept’s appeal. The one common factor that unites all TV viewers is that everybody talks about television. If Twitter created a widget to enable real time conversations nationwide, that’s the sort of thing “regular viewers” might truly enjoy. Advertisers, meanwhile, could dedicate Twitterers to respond to any chatter their commercials might trigger—not to shill, but to correct misinformation and hopefully answer direct questions.

This is just one small example of thinking ahead, so we’re ready for the opportunities soon to channel our way. And we need to start scheming today. If we don’t—and Widget Channel too fails to gain major traction—we risk losing even more years before interactive TV starts to work. At which point we can look forward to another round of excited announcements, followed by quiet interludes, and finally a series of brief disappointed obituaries.



Reader Comments.

I’m not sure that a widget on a TV really works all that well. Verizon’s FIOS service offers these today, but I can’t really see this as being a ‘channel’ that people will depend upon.

http://www22.verizon.com/residentialhelp/fiostv/guide/enhanced+tv/questionsone/84825.htm?

Posted by Tom | 12:02 pm on November 26, 2008.

This article brings to a head questions about what consumers expect out of video. The answer, at least as its worked its way out in my own life has surprised me, since I had imagined I would be far more convergent than I am. A year and a half ago I bought a 1080p 42″ LCD TV with both DVI and HDMI ports, bought a mid-range video card and added VLC software to drive it all. I also kept my 20″ inch LCD monitor hooked up. Both are set-up at optimal distances, and a simple command that takes maybe 15 seconds to execute is all that it takes to flip from one screen to one to the other.

This article made me realize that I’ve reserved the two screens for completely different “viewing experiences.” The TV serves for what I would call the traditional TV experience, series I like, sports, DVD/DVR playback, as well as any “high-quality” shows pulled from the Internet (like movies from Netflix, time-shifted network stuff, etc.). Analyzing my own behavior, I’d say I save the TV for what I’d call “real video” experiences – that is, videos where the overall quality of the set itself works with the program to create an admittedly passive, albeit very pleasing, aesthetic experience.

I use the 20” monitor for, what I’d call, active Internet use where my interest in the information or experience provided there trumps my interest in the video quality. These include most traditional sites like MSNBC, CNN etc and almost everything in the amateur video area where the bigger screen shows a few too many “warts and all” for a pleasing experience.

Within this very personal perspective, I see Intel’s new widget maybe doing something for me on the Internet side. What, I’m not sure, but I’m open to the idea. Maybe some DR stuff, though, I don’t watch much of those under any circumstances. On the TV side, and maybe I’m a little weird here, but I’m still with Shakespeare, “the play’s the thing,” and I’m pretty happy with things the way they are.

Posted by Dave Beckert | 12:56 pm on November 26, 2008.

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