Microsoft new media chief warns TV against 'iTunes moment'
Former BBC iPlayer boss and now Microsoft UK’s MD consumer and online, Ashley Highfield has warned broadcasters they have two years to create viable digital businesses, or face an ‘iTunes moment’ in which they could hand over control of their businesses online to Apple.
Highfield warned that advertising spend will eventually migrate to online services such as Facebook, which will create heavy pressure on broadcasters. Rather than give Apple control, Highfield told attendees at the MediaGuardian Edinburgh International Television Festival to take action now.
“So realistically I think the industry has about two to three years to adapt or face its iTunes moment. And it will take at least that long for media brands to build credible, truly digital brands. But, importantly, I do believe TV does have a small two to three year window in which to respond,” he said.
Highfield - who was the man responsible for the initially Microsoft-only BBC iPlayer service, and now works for Microsoft, also observed that online television services such as iPlayer (or the services he’s currently developing for Microsoft) are three years away from achieving a nexus point at which online ads spending may match that of TV.
The executive then launched into a Microsoft moment, calling out for a range of advertising techniques, including controversial forms of behavioral targeted ads based on user’s web viewing habits.
Highfield also demonstrated an Xbox and a multi-touch version of windows, calling for content to be freed from TV archives and be made available on-demand for numerous devices in ways consumers want to access the content.
"One of the biggest shifts has been that viewers want their media on demand and if they don't get it, they will pirate it," he said. "That's fair enough – well, it's not, but it is understandable. I want to work as an industry to make sure content is available. The television industry needs to get into the mindset that it will be consumed through iPods, small screens, laptops, televisions and often multiple screens at once."
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Comments (32)
Adapt or die
TV will live on for sometime or In till someone creates a hybrid of both, computer & TV.
The TV & Computer hybrid must get quick adaptation just like the iPhone.
And just like the iPhone, Apple is the only company I see with the momentum to bring a product like a TV & computer hybrid that would bring quick adaption right away. They already have the name for it if they choose to (Apple TV).
Every determined company will have its moment of glory regardless if we agree. For personal technology Apples time is now and other companies know it. Its up to Apple to make it happen soon. Time waits for no one.
IDIOTS !! and they piss me off.
So this is the guy who created BBC content but Mictosoft only, not for macs. So this is the guy who is preaching DONT let people watch your content using Itunes, Apple TV etc...
Now he works for Microsoft ... Gee I am surprised
Then he goes on to say.... "and be made available on-demand for numerous devices in ways consumers want to access the content."
HEY Millions of people LOVE using itunes, Apple TV, Iphones ... why dont you practise what you preach in your above statement and give those people what they want ... content on their macs, apple tv's, iphones etc..
Seems he is all about Providing content as long as it does not involve Apple
Yeah give power to microsoft...
Translation...... We want to rule the world but Apple is crimping our style.
Breaking News: Life-long Microsoft shill uses public forum to articulate thinly-disguised Pro-Microsoft Propaganda and badmouth Apple. Film at 11?
I don't believe iTunes will take over TV. Very few want to buy TV shows specially at $2 an episode. But what I fail to understand is why the networks refuse to offer the shows for free online with ads built in the normal commercial spots during a show? They would still get ad revenue and perhaps even more show views and customers don't won't need DVRs.
What you fail to understand that is that advertisers are not ready to pay meaningfully for this medium yet. How can the networks free up content when the revenue is not there yet?
which networks don't have streaming in this format? i see fox and nbc on hulu, cbs on tv.com and nobody gives a crap about the CW, however they have full episodes too
oh cable? you're paying once for service, and twice by watching commercials, and that's just criminal.
Yeah, if you can't provide a compelling reason for someone to do something, then simply scare them into it. Sure, that's effective.
What a tool!
He is totally right if you are talking about the mass market and that is not a bad thing. But iTunes is not the only vendor. That is like saying the publishing industry had an "Amazon" moment. Apple and Amazon are the largest retailers of digital media but they don't produce it. There is plenty of room for for production of content any yes, even new retail on-line stores. In our life times there will always be over the air and cable TV and they will be not be irrelevant but not a necessity either.
Slightly off topic, the publishing industry will be more like the broadcast TV industry. Publishers have an opportunity to republish interactive versions of their book libraries with links in each digitized book to outside videos, online encyclopedias, dictionaries, etc. Broadcasters have similar opportunities for interactive TV. If they don't lead the way, Apple will. But the coming years will be very exciting for the consumer.
He is a shill, but he's right about access. There are tons of programs and movies I would pay to download that just aren't available because of the industry sticking to it's old practices of licensing and archiving.
Why can't we buy European shows in North America?
Why do I have to search online for a show, find out it's only available on physical media and then order that media through snail mail, and stay at home waiting for it to be delivered? Or worse, have it not be available at all because it's sitting in some media vault somewhere at a broadcaster or movie studio?
Every TV show ever made should be online just like YouTube with a click to buy and click to rent option. It wouldn't take any fancy technology to do it, and it would send sales through the roof for the companies that own the stuff, but they are jut too stupid and old-fashioned to see it.
Does Microsoft ever hire anyone who isn't a massive asshole?
The long answer is NO.
I longed for the day in the nineties when MS was being predatory and usurping the power of the old guard like IBM when MS would fall victim to what got them control.
It's almost hilarious to see them trying to spread fear in order to regain market that they let slip through their fingers.
This man was successful with iPlayer and now thinks he is a big shot. The fact that he made iPlayer exclusive to Windows at the beginning gives scant credibility to his words, particularly when he is pitching for MS.
He does come over as a bit of a Microsoft shill, and perhaps that explains why the BBC's iPlayer was strongly Microsoft only... however, he did say one thing that was almost correct: "One of the biggest shifts has been that viewers want their media on demand and if they don't get it, they will pirate it,"
The TV industry has to wake up to the changing world we live in, and like the music business, its way of doing things is under fire. For example, I would love to buy some mps3 from amazon, but as I'm not in the US, UK, Germany, or France, the won't sell to me, for "licensing" reasons reasons. The same for movies and TV shows, iTunes has some wonderful stuff, but unless you're in the US or the UK, forget it was they won't sell to you. Everybody tends to hate the music industry, and I suspect the TV industry will go the same way unless they learn to adapt.
For me, I want to be able to buy any show or film, irrespective of what country I'm in... and preferably free of DRM crap so I can easily watch it on my computer, Apple TV, or whatever device.
Wow, 9to5, you have a LOT of bonehead followers!!!!
Do you all NOT get what the point of the article ACTUALLY IS?!?!?!?!?!
It is NOT about Apple taking over, it is NOT about Microsoft taking over!!
This is simply stating that BROADCAST TV is in danger of succumbing to the increase of public viewing turning to digital avenues such as ONLINE streaming & DIGITAL viewing (aka iTunes) and that IF the TV broadcasters do NOT create a viable niche in this new & (still) upcoming market, they will be left in the dust & essentially hand their marketshare over to a media powerhouse (aka Apple -since iTunes is HUGE in online media content) that will happily take there space & run with it.
STOP BEING THE BLIND FANBOY DOGS & THINK SOME COMMENTS THRU. HELL, I LOVE MY MAC TOO, BUT I DON'T SEE HOW YOU CAN BE SUCH SHEEP!
I would think the fact he works for Microsoft (mentions the XBox as a media viewer) and describes the upcoming tide as an iTunes (to scare off potential partners for Apple) moment gives you enough facts to work on to deduce his agenda. (i.e. Microsoft doesn't yet have a strategy for it and is petrified that Apple does!)
The Apple TV 'hobby horse' goes from strength to strength each year. Still not cancelled, still making enough sales to justify it's continued development. Could this be Apple's entry into the living room proper?.....perhaps, perhaps not.....I still haven't bought one as it doesn't offer enough but it's starting to look tempting having access to my media on my TV automatically syncing etc......but not yet.
Such a device would also negate the need for UK consumers to pay the 'hated' TV Licence tax (£142.50 annually just for the privilege of owning a TV) as they would no longer need to watch 'live tv' and could just download it as the ability to 'view live' is what makes you eligible for the tax....so he's also shilling for BBC, especially given BBC's occasional anti-Apple bias which shows their hand.
....In any case, play nice and shouting at everyone! ;D
...else they'll think you a tool.
No, we don't. We all dream about the IQ level that only you possess. Please continue to enlighten us, as we love you so much for your words of wisdom.
Bleahhhh
You're obviously too stupid to read between the lines!
Kevin,
You're an idiot.
This is about Microsoft coming to the rescue of networks before their business goes to iTunes.
He doesn't give a crap about networks building their own brands in the next three years beyond the fact that it appeals to the networks themselves and is an effective pitch for Microsoft when selling there solutions to the networks.
You think that Microsoft won't wind up getting a share of the profits under his plan? If your answer is no, that he is only warning the networks solely for their benefit and not for the benefit of his employer, then mommy should take away your Internet access as soon as possible.
hehe as i understand he's saying:" oh my god the era of people using the worst form of computing is ending, lets not let apple kill the worst way of getting media "
this article is a big 'so what'. (and in terms of being apple news it's a double so what)
everyone knows this already. advertising will follow the viewing figures. and the figures are all shifting to narrowcast rather than broadcast.
i would guess the nimble broadcasters will rise up and make the grade, whilst some of the behemoths will die, or exist only through back catalogues.
here in the UK, it's interesting as our largest broadcaster is publicly funded. and they have been able to push technological boundaries (such as iplayer) as they are not concerned with advertising revenue. every other commercial channel has had to adapt to this (inevitable) change.
I think an iTunes moment is coming, if one broadens the term a little further than just Apple. Cable TV could be threatened as more and more programming is available on the Web. While cable companies are the broadband connection to the Internet for us, I could see no longer subscribing to the high end packages as more and more is available for streaming or download.
How is it possible that nobody has uttered the syllables "Hulu" in the original article or even in the comments (maybe because the article is a bit UK-centric?)... I think most of the US broadcasters ARE finally dragging themselves into the 21st century by buying into the Hulu model for online access. ABC just recently gave in and now I really feel like I can count on finding most of what I want by starting there. I even put them on the white-list of my ad blocker and gladly watch the embedded commercials (well, not actually gladly, but I am willing to put up with them if it keeps the free shows coming!).
I love it. As long as Microsoft continues a position of defensive against Google and Apple, they'll never get anywere. Keep dying Microsoft!!
hulu isn't available in the uk, but it sounds amazing and ultimately the way to. the irony is that unlike the olden days of piracy where you might have gotten a dodgy vhs or dvd, online piracy delivers better or equal quality, a broader range and in some cases a speedier delivery.
the content providers have to wise up and realise that they aren't competing until a similar legitimate service is offered.
it's all about ease of use. we want everything and we want it now.
hulu and other streaming services have the potential to kill piracy if they're quick, comprehensive and not expensive (itunes tv shows are off the hook expensive at the moment)
has anyone tried voddler yet? looks like a similar thing for movies.
having said all this. we'll still be putting all our eggs in the hulu basket or something similar. it'll be the big entities as the gatekeepers as usual.
I believe it is a bit late to consider the starting up of another channel of retailing contents to the viewers and listeners.
Apple have made it simple to reach viewers and listeners and content providers wouldn't be interested in creating another itunes store to sell theirs contents - imagine the costs and technical know-ho. It would be easier to hand it over to Apple and make a cut from there.
Besides with Apple they can offer their contents worldwide.
Looks like starting one of the largest the servers farm in NC is not without merits.
TV will live on for sometime or In till someone creates a hybrid of both, computer & TV.
The TV & Computer hybrid must get quick adaptation just like the iPhone.
And just like the iPhone, Apple is the only company I see with the momentum to bring a product like a TV & computer hybrid that would bring quick adaption right away. They already have the name for it if they choose to (Apple TV).
Every determined company will have its moment of glory regardless if we agree. For personal technology Apples time is now and other companies know it. Its up to Apple to make it happen soon. Time waits for no one.