Will widgets redefine the television business?
While it’s inherently problematic to forecast whether a nascent technology will be integrated into the daily lives of consumers, our research findings illustrate strong demand for TV widgets. 
Developed by Intel and Yahoo!, TV widgets deliver information, entertainment and social networking capabilities right to your very own TV screen — much like computer icons or iPhone applications. With the basic functionality of your TV remote you can accesses the Web via a wireless or broadband connection.
The question is; will TV widgets redefine the entire experience of internet-enabled television? Perhaps, but when applications launch over the next year and consumer adoption ramps up advertising, players will need to develop new provisioning capabilities across platforms, forge new channel partnerships and package content and advertising in innovative and engaging new ways — and that’s just for starters.
So, how can companies respond to consumers’ needs and ensure interactive TV applications (e.g. TV widgets) are successful? We offer some insight.
10 success factors critical for TV widgets to enter and achieve widespread adoption:
1. Create a viable business model.2. Manage channel conflicts: TV affiliate agreements restrict the window and markets for first-run content. In addition, content available on premium services can only be accessed by service subscribers. Success will be more likely if these contractual limitations are managedcontent and cable operators ensure is available to each household TV, regardless of the distribution channel.
3. Bring TV widgets to market that provide users with a compelling experience.
4. Mitigate impact on core ad sales.
5. Liaison well with TV programming operators; they will be critical to the application's success.
6. Introduce widget applications that feature a user-friendly interface and address an inherent need or interest of the consumer.
7. TV widgets should complement the television's independent identity within the home by offering an integrated TV experience and not try to mimic the experience of the computer.
8. Avoid potential regulation issues (licenses, issues with legislators, etc.)
9. Develop operational capabilities in order maximize the return on the investment.
10. Each content owner must evaluate the viability of its own available content and widget design with a focus on giving the consumer “what they want when they want it.”
If the timing for web-enabled television is here, content companies must ask themselves if they are truly prepared for the redefinition and reinvention of the entire television business.
For further insights on how this innovative media platform will impact consumers, broadcasters, content providers, advertisers and government regulators in the near future, download your copy of “Will widgets work? Web-enabled TV in search of a killer app (pdf, 4mb) .”
