Automatic Content Recognition Enables Next-Gen Television Experience

By the end of 2013, there will be over 200 million smartphones in operation in the US. This represents about one smartphone for each 18+ year-old adult. The US installed base of tablets will surpass 90 million by year-end. Within three years, there will be more tablets in operation than laptop PCs. US consumers have additionally purchased 49 million Internet-connectable (Smart) TVs to date. The installed base is expected to more than double by 2017.

The adoption of these Internet-connectable devices is having a significant impact on consumer TV viewing behavior. For example, numerous research studies have found that over 80% of consumers multitask using a smartphone or tablet while watching TV. Considering how often we respond to phone calls, emails and text messages, these results are not surprising.

Of greater interest is user-initiated multitasking activities. MRG research indicates that slightly over half (52%) of smartphone and/or tablet owners frequently initiate activities on their connected devices while viewing TV. However, only a small portion of smartphone/tablet owners (16%) currently perform multitasking activities related to the TV show they are watching. Multitasking in front of the TV can help build audience engagement, but can be a distraction, as well. The challenge for content producers is how best to channel the second-screen interaction toward the former, rather than the latter.

It is important to remember that all of these market trends are occurring independently of the pay-TV industry. The next-generation TV experience is coming whether the pay-TV operators, content producers and advertisers like it or not. Exactly what this next-gen TV experience will look like is not fully clear. What we do know is that the next-generation TV experience will be:

Personalized
Spanning both broadcast and on-demand TV programming
Acquired from multiple video suppliers
Consumed on multiple screens
Enhanced through interactive audience participation with TV programs
Internet services, pay-TV operators, device manufacturers and content producers have all recognized that all five of these core requirements can be enabled through one set of technologies: Automatic Content Recognition (ACR).

This Feature Article provides a brief, yet in-depth look at ACR, how it works, how it impacts device manufacturers and service providers and ACR-enabled applications. Also presented is a five-year forecast of the connectable devices that are having such an impact on this ecosystem.

Table of Contents

Executive Summary 1

Changing TV Viewing Behavior 1

Automatic Content Recognition (ACR) Technology 5

ACR-Enabled Applications 6

Non-Affiliated Second-Screen Apps 7

Device Manufacturers and Service Providers 8

Content-Specific Companion Apps 8

Analytics and Advertising. 9

Conclusion. 10