Drastic growth in the number of smart devices and sensors connected to the Internet of Things (IoT) has the potential to change how consumers interact with all networked technology, including their media and entertainment platforms. This represents an opportunity for the entertainment industry to assimilate the growing volume of customer insight that will be constantly generated by IoT technologies throughout the market in order to drive more responsive and interactive offerings.Read full article
Drastic growth in the number of smart devices and sensors connected to the Internet of Things (IoT) has the potential to change how consumers interact with all networked technology, including their media and entertainment platforms. This represents an opportunity for the entertainment industry to assimilate the growing volume of customer insight that will be constantly generated by IoT technologies throughout the market in order to drive more responsive and interactive offerings.
According to a 2014 report from Business Insider’s BI Intelligence unit, the global installed base of IoT devices will explode from 1.9 billion in use today to more than 9 billion in 2018. The report estimates that by the end of that period, the number of IoT devices in use will exceed the combined installed base of smartphones, tablets, and PCs around the world (Fig. 1).
Fig. 1 – BI Intelligence, 2014 don’t get left out of our news and analysis
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IoT will require cloud solutions to enable analysis of the high-volume data that connected devices will be generating. Service providers throughout the entertainment value chain can take advantage of IoT data sources in order to better understand and respond to their customers’ needs. However, they will need advanced tools and resources to handle the large and ongoing influx of IoT data points.
“In essence, IoT-enabled assets will constantly be publishing their status,” says Kurt Jonckheer, General Manager of Virdata, and VP of Strategic Projects at Technicolor.
“In this context, the cloud becomes a very nice aggregation point where all of these different data points can get combined and integrated so that analytics can be run upon them. This is where we believe an IoT platform like Virdata can play a critical role.”
Such a cloud-based platform, he adds, can provide a layer that facilitates the communication and analysis that will allow these systems to generate added-value to the consumers and organizations that own connected devices.
There are three types of analysis capabilities that entertainment providers will need to establish in order to process IoT data into customer insights and marketing opportunities.
By integrating these three types of IoT data analysis into their operations, entertainment providers will have a comprehensive dashboard constantly providing end-to-end insight into their inventory, network infrastructures and customers, providing unprecedented control over delivery channels and the ability to manage revenue streams.
Because of the wide array of IoT data sources that will have to be mined so that analysis and action can take place; much of the information will aggregate into some form of a cloud environment (i.e. public, private or hybrid).
“IoT for us is an almost organic environment that is constantly ingesting and exhaling information…almost like a data pump,” Jonckheer says. “It will circulate data from the field to the cloud for analysis and processing, and then send new data back to the field. It is in the cloud environment that we need to insert a very different kind of data processing layer that operates in real-time to start making immediate sense out of the conditions of devices in their localities.”
The falling cost of adding sensing and communications to consumer products will mean that a typical family home, in a mature affluent market, could contain several hundred smart objects by 2022, according to analysts at Gartner. The smart home will be an area of dramatic evolution over the next decade and will offer many innovative digital business opportunities to those organizations who can adapt their products and services to exploit it.
“We expect that a very wide range of domestic equipment will become ‘smart’ in the sense of gaining some level of sensing and intelligence combined with the ability to communicate, usually wirelessly,” says Nick Jones, vice president and distinguished analyst at Gartner.
“More sophisticated devices will include both sensing and remote control functions. Price will seldom be an inhibitor because the cost of the Internet of Things (IoT) enabling a consumer ‘thing’ will approach $1 in the long term.”
The number of smart objects in the average home will grow slowly for at least a decade because many large domestic appliances are replaced infrequently. However, although a mature smart home won’t exist until the 2020 to 2025 time frame, smart domestic products are already being manufactured and the first digital business opportunities they enable have already emerged.
Smart domestic product categories are manifold and range from media and entertainment, such as consoles and TVs, to appliances, such as cookers and washing machines, to transport technologies, security and environmental controls, and healthcare and fitness equipment.
In order to integrate IoT data and solutions into their offerings, industry participants throughout the entertainment industry will need technology solutions that are both robust and agile enough to accommodate the wealth of customer insight – and marketing opportunity – to be found within IoT data sources operating around the clock.
In a report from Deloitte, “The Internet of Things Ecosystem: Unlocking the Business Value of Connected Devices,” the firm notes that technology providers and industry groups will have to integrate and collaborate within a diverse ecosystem (Fig. 2) of IoT stakeholders in order to fulfill their own IoT strategies.
Fig. 2 – Participants in the IoT Provider Ecosystem, Deloitte, 2014
“To realize the expected impact and potential market for IoT, providers will have to work together within the IoT provider ecosystem of infrastructure, hardware, software, and other vendors to develop solutions that have greater potential to drive significant business value for enterprises,” according to Deloitte researchers.
“Much of the potential value from this technology will come from moving beyond the proprietary technology silos that largely exist today.”
Technicolor at its IoT partners are committed to delivering technology solutions to the entertainment industry that are open, scalable, and secure enough to allow participants throughout the ecosystem to use high-volume IoT data to enhance their offerings and respond to customer preferences in real time.
According to Technicolor’s Jonckheer, the proliferation of connected devices and IoT technologies to support them could redefine the level of interaction between entertainment providers and their customers.
“It can enhance our lives by optimizing our entertainment experiences in an intuitive and automated manner by suggesting movies or music that we are likely to enjoy most based on our mood or situation,” he says.
“In short, IoT and the cloud-based resources that connect devices to powerful real-time analytical engines are rapidly evolving to truly surround each of us to create an immersive environment that will augment a rapidly growing array of our experiences.”Show less