ASIA-PACIFIC BROADCASTING

N-Screen services on the rise

By Lee Jae Hwan

N-Screen services (integrated platforms for multiple devices) are becoming a widespread trend in the IT industry, not only among telecommunications companies, but also consumer electronics manufacturers, cable companies and IT solution companies, which are offering content services for multiple screens.

Apple, the icon of innovation, has already introduced Airplay technology in its iOS devices to allow free flow of content between devices. Consumer electronics companies, such as Samsung and Sony, are also actively launching products that enable seamless use of content in various media, such as TV, PC and mobile devices, using interoperability technology approved by the Digital Living Network Alliance (DLNA), while aggressively marketing N-Screen services centred on smart TV.

Even pay-TV companies, such as US-based Comcast, and Web companies, such as Google and Amazon — which previously had no business related to content or device — have now entered the N-Screen service market.

The fact is, N-Screen is still emerging and it has not been in the spotlight for very long. N-Screen service was first introduced to the world in 2007 by AT&T, when it announced the so-called “Three Screen Strategy”, under which it provided content across all the three screens — mobile phone, computer and TV — which people use for their daily information needs. Then drawing much attention at the 2010 and 2011 Consumer Electronic Shows (CES) in Las Vegas, USA, as well as at many conferences, “three-screen” became widely called as multi-screen, or N-Screen.

What is N-Screen and why are major industry players focusing on N-Screen service today? N-Screen refers to a service that enables seamless use of content and information across all devices with screens, including PC, TV and smartphone. Simply put, users can freely enjoy content on diverse devices.

The emergence and growth of N-Screen services are being driven by the advancement of smart devices and networks, which brought about changes in consumer behaviour and preference. Smart devices such as smartphones and tablets that allow users to stream content by accessing the Internet have become widely adopted, and sophistication of networks have brought to reality speedy transmission of large-volume content.

People who used to watch movies and shows on TV in their living rooms have first migrated to PCs on their desks and then to smartphones. With such changes in the IT environment, consumers naturally came to demand services that allow them to use content regardless of device and time, with content optimised for display on each and every screen of the device.

SK Telecom has been focusing on the new market opportunities created by these changes. The company took the first step to grow as a leader in the new media market by launching “hoppin” this year, after three years of market research and technology development. Hoppin, based on cloud computing technology, allows users to access the same content from multiple devices including PCs, smartphones, tablet PCs and TVs with a one-time payment.

Moreover, it established a personalisation platform that realises precise target advertising and provides users with custom-tailored recommendations, using accurate analysis of users’ taste based on past choices and keyword search history. Within six months of its launch, hoppin attracted some one million subscribers, which represent approximately 13% of its total smartphone subscribers.

The N-Screen service market is expected to further develop in two main directions that will help increase user base, and create a larger and more profitable market.

First, the popular “One Person Multi Device” trend is calling for technologies that make it easier for consumers to shift content between devices. Content shifting allows users to freely access the same content regardless of device and network. For instance, users can start watching a movie on TV and then continue to watch it on PC or mobile phone.

At present, it is difficult for general users to move content stored in a specific device to another device due to complex encoding process (resolution, codec, file format and so on) and setting procedures. However, with N-Screen providers’ efforts to enhance service compatibility and convenience through the establishment of a standardised technology, N-Screen will be able to become a more popular service.  

Second, a totally new value will be created through services that did not exist before. Not only will the number and type of devices for N-Screen increase, but also a wide variety of services will be offered for the same content reflecting device characteristics.

Moreover, these differentiated and value-added services of N-Screen service providers will lead to the emergence of numerous third-party companies and new business models, thereby enlarging the N-Screen ecosystem and market. For instance, customers can, while watching a sports game on TV, receive relevant information such as data on athletes and share opinion with friends at social networking sites using their smartphones. They can also search and purchase the uniform or sneakers the athlete’s wearing after reading buyers’ reviews and price-comparison information.

N-Screen market players, who come from a broad range of industries, should keep in mind this openness and cooperation, and focus on enhancing consumer convenience and benefits, which will help make their N-Screen business successful. Higher value for consumers will ultimately bring the creation of a bigger market.

At present, many players in the new media market are maintaining a somewhat defensive position, rather than seeking an appropriate level of agreement in order to create a profitable market for N-Screen services. For instance, companies are experiencing challenges in areas relevant to copyright and publication right — that is, time period and number of screens a certain content can be used for — when sourcing contents.

With the spread of smart devices and advancement of telecom networks, content consumption will increasingly become centred on N-Screen services. With all these changes ahead, market players should therefore actively cooperate with one another and take a leadership role in creating a market environment that focuses on delivering new value to customers in the new N-Screen era. A spirit of openness that induces participation of many different players and active cooperation with other industries will become key factors in the future success of the N-Screen market.

 

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Lee Jae Hwan is senior vice-president and head of SK Telecom’s New Media Strategy Office, where he is responsible for strategy and marketing of new media business — SK Telecom’s next-generation Internet and media initiative.