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Widgets And Idjits
By: Scott J. Berry   Friday, August 22, 2008 12:37 PM
Sectors: Computer and Technology , Finance
Symbols: GOOG, INTC, TCHC, YHOO
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Intel (INTC) and Yahoo (YHOO) recently announced a venture to develop a platform–dubbed “The Widget Channel”–that in effect turns your TV into an Internet thin client. Seth Gilbert over at Metue.com has a great summary.

Developers can write software widgets that can be uploaded to your TV and run in the background. You could check email, share photos with friends, bid on eBay, anything a widget on your Mac or PC can do. All while watching your favorite TV show or sports event.

Still, I’m skeptical of this and other similar initiatives.

Of course, you’ll also have to buy a new TV or Set-Top Box (STB) that is equipped with Intel’s CE3100 Media Processor. Good luck with that. I wonder sometimes whether anyone ever sees the obvious disconnect between relatively fast new media business development cycles (i.e. “Internet time”), and the much slower frequency with which people upgrade expensive items like TV sets. Many, many firms are vying to deliver a “convergence” solution. Which, if any, will be sufficiently compelling and have enough staying power to become embedded within a sizable share of TVs or STBs?

What I do like about the initiative is that it’s expected to be a relatively open standard (from the software point of view, at least–you still need Intel processors). Tapping the creativity of the wider software development community is a proven method for both good product and built-in viral marketing. iPhone apps, Google Maps mashups, and Firefox extensions are just a few examples. However, this alone won’t guarantee consumer adoption of the platform, just ensure functionality is available.

At the end of the day, do consumers even want this?

What seems to be true is the following:

  1. People like to use the Internet for a growing variety of things, including watching video.
  2. People enjoy watching TV, preferably on a TV set. (I’d hazard a guess that most people watch TV with someone else in the room, but typically watch video on the PC alone.)
  3. Many do some form of Internet activity (surf, email, etc.) while they watch TV.
  4. Past attempts at interactive TV–at 15 years and counting–have been underwhelming, and that’s being charitable.

What isn’t at all clear, is whether those surfing while watching TV are paying any attention to the program while doing so. What also isn’t clear is what the other people in the room are doing. Most likely, they’re actually watching the program.

So what happens when the surfer starts fiddling around with widgets, essentially “doing Internet stuff” while others are watching the show on the same screen.

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