Question 8: Many U.S. households already use broadband Internet access to view television and film content. What can be learned from this phenomenon that will be important for iTV providers?

User choice/control. Traditional delivery sources still want to own all elements (consumer contact, pricing, inventory, etc). If they don't let go, they will lose. See AOL's previous walled garden mindset.

take apps from niche markets to mainstream- but continue to target demographically

Interface is important, including all aspects of the user experience from search, to browse, to viewing. Social features are also powerful, particularly because they can augment search and browse.

- That the content currently available directly on the TV sorely underestimates consumers' desires for a broad range of content - that people don't want to pay for TV and film content - but they will pay a flat fee for access to video content much more readily than as a pay-as-you-go or pay for each movie/show you access.

The screen experience has to be better for mass appeal (to get to your 50% benchmark). Need for speed! As HDTV or something approaching it becomes viewing standard in US, the tiny screen, slow response of internet TV will not appeal to masses.

it will be used when it is easy and fast

The primary lesson is that competition drives demand for interactive services. 8 years ago, the cable industry viewed its self as a monopoly and moved slowly. Now they recognize they are in a competitive market and are demanding new and better products from companies like NDS and other television service providers.

Easily searching for content is key. Content branding will be key.

That choice, control and use of personal computers to access meaningful content is most important. Programming has had the negative effect of forcing viewers into an all-or-nothing fork in the road - either they like the program and stay, or they dislike it and leave. The music industry has experienced the consequences of this model already, where radio stations used to be the principal source of content, and used to make-or-break an artist. MySpace, iTunes et al have dismantled this model and caused labels to have to re-think their business. TV programming is the next in line to suffer the same fate, and we are already seeing some of this with YouTube. Being able to choose what to see, and when, is critical. For advertisers, the model is one of associating their products with content addressing segments and values of interest to the advertiser. The long tail has broken down the one-fits-all model and that has to be addressed by iTV, can't be ignored or else it will become yet another iteration of Pops TV.

As consumers get more comfortable with the broadband experience for TV and film content consumers will expect the same experience via iTV applications. Again, fopr the consumer it should be a seamless experience with respect to their branded television experience -- regardless of how the content is delivered.

As with the rampant growth of online education, people want convenience. The easier it is for a potential student to gain access to the education they need at home, the more likely they are to participate.

The question assumes that iTV providers are not web services, which to me says that companies who think they are iTV providers but who do not have active web services are going to find a lot of new competition.

They had better embrace broadband distribution. When they do (as they already are) the next lesson is to understand how to produce niche content for niche audiences. The budgets and production values are less than traditional televisoni so they will find it hard to adapt. Innovative producers and new niche "broadband televsion networks" will be delivering content in quanitites that will push out User Generated Content and become the real challange to tradtional televsion production.

Not sure.

Viewers do not want to be limited in their programming choices. welcome to the 1 million channel world.

The customer feels as though they are "cheating" the system by viewing tradition television programming on the web. They are getting something for nothing. If iTV can provide this same effect it will be utilized.

User interface, advertising models, usage and demographic information. Accessing film and TV on the Web is not always easy and not always a great experience. However, the viewer will put up with inconvenience for good content that cannot be accesses elsewhere. Content, Content, Content...It is always about matching your target demographic with the right quality content.

The main issue is make the content easily discoverable and well integrates into the existing internet landscape. Compatible software and hardware will ened to be ubiquitous with minimal user configuration.

There is a demand there. The Interent provides far more choices than TV. If it is easier to get content on the living room TV, than more people will watch it. People want good content, and are willing to timeshift/placehshift.