First it was crisps, chocolate and fizzy drinks, now the humble
vending machine could boost revenue growth for video-on-demand
(VOD) with the number of DVDs distributed this way set to double,
according to Deloitte's technology, media and telecommunications
(TMT) practice.
The web has become the most efficient means of distributing
short form content but drivers such as price (the cost can be as
little as 60p per night) and convenience will increase the
popularity of vending machine rentals.
Vending machines are also future proofed for the migration to
high definition DVDs, which can reach 25 GB in size.
The only obstacle facing the vending machine is the prospect of
content owners delaying supply to vending machines until after the
initial release to protect their own sales revenues.
Chris Robertson, partner in Deloitte's TMT practice in
Birmingham, said: "The concept of DVD vending machines may seem
unusual but they are already proving very popular, particularly as
people are currently opting for cheap home entertainment instead of
more pricey nights out."
Mr Robertson said that melding web content with television
programmes should also become more common this year as concurrent
use of the web and TV takes off.
"Don't expect a surge in internet-enabled television sales or an
explosion in the use of television widgets - converged web and
television consumption is likely to be more pragmatic," he
said.
"It will be based on existing televisions and devices, with
'convergence' being user-driven, given the mismatch between the
swelling consumer demand for concurrent web and TV usage and the
typical ten-year renewal cycle for televisions."
Users will combine existing sets with standalone browser-enabled
devices, most WiFi enabled laptops and Netbooks, smart phones, MP4
players, and portable game consoles. As simultaneous web and
television use gains popularity, television producers will be
encouraged to create websites that feed off viewers' eagerness to
react to what they are watching.
Many have hailed 2010 as the beginning of the end for the linear
broadcast schedule but according to Deloitte the gap between linear
and non-linear usage will remain substantial.
"Despite the growing range of non-linear options, most content
will continue to be consumed according to broadcasters' programming
schedules, with more than 90 per cent of television and 80 per cent
of audio, respectively, being consumed in this manner," said Mr
Robertson.
In terms of IT, 2010 will be the year of the NetTab, the
connected portable device which is smaller than a notebook but
bigger than a smartphone. According to Deloitte's research, tens of
millions of people will buy NetTabs this year.
"These devices have an advantage over smartphones, which are
relatively small for watching videos or web browsing," said Mr
Robertson.
"They also have the edge over notebooks, netbooks, and
ultra-thin PCs, which are heavy and expensive."
The likes of Apple and Microsoft are likely to launch their
products early this year and custom-designed tablets are also
likely to be released by start-ups, existing phone and PC makers,
netbook leaders, and various smaller manufacturers.
Since NetTabs are designed to connect wirelessly over WiFi,
wireless carriers are likely to try to push users off cellular
networks and onto WiFi as much as possible. NetTabs are also more
expensive than most smartphones, and consumers are likely to demand
big upfront subsidies.
However, there could be problems ahead as with nearly 600
million mobile broadband connections, 2010 could see the wireless
equivalent of gridlock.
But according to Mr Robertson, this will present an opportunity
for telecommunication technologies that can make existing wireless
networks perform better.
"We believe hardware and software producers will benefit from
addressing the congestion problem," he said.
"Handset-makers, specifically of smartphones, that adopt
technologies to reduce network usage relative to competitors will
also have an advantage."