Internet TV goes mainstream

Although promised for a number of years, internet optimised televisions have yet to grab consumers’ attention in the way that many media and tech firms had hoped.

Apple famously labelled their Apple TV set top box a “hobby”, unwilling to commit serious resources to a product that the average consumer might not be quite ready for. However, rival firms have sprung up in recent times. Google released the Google TV set top box in 2010 to a lukewarm reception, while Microsoft has enabled an internet TV service through their Xbox 360 games console.

There have also been start-ups that have carved their own niches in the area, such as Boxee and Roku. However, traditional media providers have been wary of allowing their content to be available on these platforms, concerned that they will damage their tried and tested delivery platform that relies heavily on advertising. Similarly, services like Netflix have taken a large chunk out of many channels film services, as the website allows users to access a vast library of films that they can watch when they want.

It seems this is starting to change. Newscorp and BSkyB on Wednesday invested $45m in Roku, with the intention to help the firm grow its business internationally. It also shows that content providers realise the future of television will be through the internet, and so want to be able to profit from such services. Last year, Roku saw its revenue increase to $100m, from the previous year’s $47m.

Roku’s CEO Anthony Wood said the investment from Newscorp was “a lot of money” for the company, and meant that content providers saw the value in their offering. Newscorp’s Chief Digital Officer Jon Miller, who will join Roku’s board, added: “We have watched Roku maintain market leadership since the launch of its streaming platform four years ago and we look forward to deepening our relationship.”

Enthusiasm for these services is steadily growing. In the UK, a partnership between terrestrial television providers like the BBC, Channel 4 and ITV has resulted in their own set-top box being launched. Dubbed Youview, the box allows users to access online databases of each channels programmes. Apple is also expected to launch a massively upgraded version of their Apple TV in the next few months, perhaps a fully integrated TV set, which may yet further revolutionise the industry.