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Social networks such as Hyves continue to expand. The market is still open to providers of content and TV services. Little is known about how social networks affect the ways in which consumers find, view and use TV content. In the second half of 2007, TNO set up a user trial in Enschede in order to study the impact of new ways of watching television (e.g. Joost and Babelgum).
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Fifty-two households in Enschede were provided with ConnecTV, a service that enabled them to send programme recommendations to friends and watch television programmes together. TNO carried out the trial in order to assess the usage of social TV services and measure the effect of the service on the users’ viewing behaviour and the viewing experience. In addition, discussions were held with various parties from the television industry in order to assess the commercial feasibility of social TV services and draw up a business plan for marketing the services. The results show that social TV services can have a considerable impact on television viewing.
The results of the trial show that many users value the service; they used the buddy list several times a day. The functions for watching TV together and sending tips were used frequently, and approximately 40% of users accepted the recommendations of other users. With ConnecTV, 20% of the users watched different channels than they had watched in the past. There was a greater sense of connection with buddies during viewing, and 90% of users regularly switched to a channel that one of their buddies was watching.
The fact that the use of social TV services can have a positive influence on the viewing experience of consumers brings added value for broadcasting companies and advertisers. It can be a way to build consumer loyalty to programmes, by extending the social interaction relating to TV programmes and by increasing advertising. During and after viewing, participants communicated much more with each other about their viewing. They also zapped less often because their decisions about what to watch were often based on what their friends were watching.
In the discussions with the TV providers, it became apparent that social TV services can also generate new opportunities for the TV industry. Above all, ConnecTV and similar services can be used to expand the range of content that TV service providers offer and to stimulate the use of other content services. Although consumers will not be prepared to pay for this, the main sources of revenue will be advertising, increased sales of paid services, and upgrades of existing services. A large viewing public and a link to social network sites such as Hyves are essential if the business case is to succeed. Because it is so important to attract large numbers of users, social TV services are feasible mainly for large providers and partnerships of providers.
