Following up on my last post, the reason that the big TV on the living room wall is going to become less relevant is because it’s a shared device. The way of the future is personal devices.
It’s sad but true – we prefer to have our own personal versions of things rather than share them with others. Maybe this is a particularly Western trait, but I suspect not. For example, despite the additional cost, most people prefer to travel in their own car rather than use a taxi or use public transport. Car sales are booming in China, showing it’s not just something that happens here.
When it comes to video devices like TVs, pretty much all actors in the economy are benefiting from move to selling household video devices to individual video devices: the screen manufactures, content providers, telcos, and most of all, the viewers. It’s part of a larger trend. Initially, all households in a city got the pretty much the same video content at the same time, broadcast from TV stations. Then, with the uptake of VCRs, DVDs, PVRs, and so on, different households were able to get different video content at the same time. Now, with PCs and iPods, individuals within the households are getting different content at the same time.
U.S. factory-level dollar sales of portable audio products, consisting overwhelmingly of MP3/portable media players (PMPs), exceeded the combined sales of the home audio and aftermarket car audio industries for the first time in history in 2005, and again in 2006 and 2007, according to CEA statistics.
Another aspect to consider is that portable media players and PCs are increasingly becoming connected to the Internet, and support communication as well as media consumption. There will be growth in triggers to watch video content, received over those communication channels (such as friends sending you email, IM, or messages from Twitter or Facebook), and given a desire for immediate gratification, people will not want to wait for a shared device to become free, so will watch the video content on their personal devices, even if the quality of experience is less.
I don’t think shared video devices, like the expensive LCD or Plasma set that takes pride of place on the wall, will ever become completely redundant. They will simply evolve to niche uses when it is more convenient or appropriate to use a shared device, such as when hosting a video / games party with friends, or displaying a loop of video to display in the background.