Why TV Tuner Inputs are Indispensable

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Why TV Tuner Inputs are Indispensable

posted by Nate Nead on May 18th, 2009 • 7 Comments

There's been a lot of talk lately regarding entry-level digital signage solutions and how to market to mainstream customers. The articles and thoughts have not just shown up here, but I've seen them as a general trend over the last several months across the web. It is only one indication that digital signage is shifting to the total available market. As we transition, there are some features I keep seeing pop-up which will be necessary for companies wishing to target the SMB (small to medium business) sector. In particular, one specific software/hardware feature which will be necessary for the SMB is the TV tuner input card.

Some think of TV tuners as an additional hardware/software cost when doing an initial price analysis for digital signage. While this is true (this usually ups the initial cost of a deployment anywhere from $100 to $500), we also need to "pull our heads out" and look at the larger picture. In many cases, especially in smaller deployments, TV tuners embedded into a digital signage player can actually act as a cost reduction mechanism. Here why: TV tuners eliminate the need for regular content creation and management. For smaller deployments this is a HUGE. Does the local dry cleaner even care about the Content Strategies Summit? Of course not. He wants to push his own content, but needs a way eliminate possible "clerk burn." Those unfamiliar with "clerk burn" need to read Lighting Up the Aisle. "Clerk burn" refers to the annoyance of employees caused by a never changing digital signage loop.

Television tuners not only eliminate "clerk burn" by regularly displaying new and enticing content but they also reduce recurring costs. Some may argue that a TV tuner is a hardware issue, I contend that the TV tuner is a content creation issue. Regular content creation for a digital sign network can be a costly proposition--especially for the SMB. In fact, content creation for the SMB is almost always more costly per unit than it is for large signage networks. Why? The SMB cannot take advantage of economies of scale.

Smaller networks cannot spread the cost of a custom template over a network of 100 screens like Wal-Mart or Target. Lack of scalability for small networks means companies doing dynamic media feed subscriptions like Screenfeed will be important for the SMB in the future. Whether content is pulled from a dynamic media feed or a cable/satellite signal, new and refreshing content must needs to be readily available for the small guys. This is the biggest reason TV tuner cards inputted into digital signage players will play an essential role marketing to the total available market (TAM).

In addition, super simple content creation tools like Helius' MediaAuthor (a PPT to flash converter) and premade templates will be essential in catering digital signage to the SMB. So, if you are still developing your software and haven't yet given consideration to making a live television feed or dynamic media feeds a feature, think again. It may cause a faster death of your product than you had originally feared.

posted on May 18th, 2009 • 7 Comments

dweinfeld

Hey Nate,

I agree that integrating live TV into digital signage networks provides ample benefits in the "right" environments (with small businesses like laundromats and dry cleaners as ideal examples). But, it does bring up the question of the legal ramifications of altering a network television feed. As the following excerpt from the Digital Signage Association's "Best Practices on Content" states, a license agreement is necessary before TV content can be altered:

We have seen some commercial applications where the on screen commercial ad was replaced by a digital signage ad. Clearly this is in violation of copyright laws and in fact alters the content coming from
the cable or network channel. Altering the broadcast in any way, including putting it in one zone and using a banner ad or ticker, is illegal unless the rights are granted.

Fines are hefty and can range from $750 to $150,000 per nfringement.

The bottom line is this: if you did not create it, then you need an agreement to use it.

I'm curious to hear your thoughts on this.

May 18th, 2009 11:28 am ⋅ Reply ⋅ Quote and Reply ⋅ Top

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bargainbuysben

Nate, I agree with Dweinfeld. Even thought the chances are small that a network would go after a small laundry-mat for clipping up a live TV feed with their own digital signage content it seems to reason that the networks WOULD go after any digital signage solution providers who make it easily accessible for their clients to be able to do such. I do agree with your statements, however, that fresh content is needed to avoid "clerk burn"... one possible solution would be for the signage solution provider to open up a often changed video feed of their own... one that shows public domain video like that found here: http://www.pdcomedy.com/

May 18th, 2009 2:09 pm ⋅ Reply ⋅ Quote and Reply ⋅ Top

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nate

Thanks for the comments guys. I have had two different discussions regarding this very topic and I’m sorry I forgot to bring it up. Interestingly, the legal ramifications currently fall on the content manager, not the hardware/software company. Although it is highly unlikely that NBC or CBS will go after a small dry cleaner, at this point—at least to my knowledge—it would be the local content manager responsible for the content on the screen. I know we wish to have “best practices” in the industry, but it’s difficult to compete with other companies when there is so much demand for tuner inputs. It is somewhat like Napster in the late 90s and torrent sites today: agreements must be entered into where the responsibility is passed to the user. However, the precedents have already been set there. For instance, if a large record label can go after an individual for illegally downloading some music from the Internet, what do you think they will do to a small business throwing someone else’s content into a zone on one segment of the screen. Will the responsibility pass to the software/hardware provider? Based on the precedents I would say no, but my gut tells me we might be getting into some risky territory here. So, I guess as long as your hardware/software customers agree to use the TV tuner within the established “legal” limits, you’re off the hook. But then you may be getting into a moral dilemma. I know it will be rare for persons to follow the “legal” guidelines. Anyone else have any further thoughts?

May 18th, 2009 3:37 pm ⋅ Reply ⋅ Quote and Reply ⋅ Top

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signagelive

Nate, I totally agree with your article, TV overlay, Digital TV and Satellite receivers are all very important ingredients when it comed to the AV Reseller sector for Corporate, Education and Goverment sectors.

With Freeview Digital TV growing at pace in the UK and anologue TV being phased out totally over the next 2/3 years, Digital Signage customers are looking to make use of the dozens of channels available.

On the legal front, the current precedent in the UK is that as long as you do not encroach on the full image of the content when shown ( e.g. try and overlay a channel ident) then you are ok. However, I am aware of several parties looking to switch to stored ads instead of the broadcasters ads during programme content and this is defintely dodgy ground and an area we are not going to be treading.

May 18th, 2009 4:16 pm ⋅ Reply ⋅ Quote and Reply ⋅ Top

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nate

You bring up another issue there. What's good for the goose may not always be good for the gander. What stands as completely illegit in the United States may run Kosher in many other countries. And with the global market and the global target, not having ALL the possible options for countries more lax in their copyright laws, may prove detrimental--especially if you wish to target such customers. If not, you may wish to stay far away from any type of implementation in this regard. I would like to hear other thoughts on this question and as such, I'll most likely be posting more on this later (how much later is TBD cause business keeps me tied sometimes).

May 19th, 2009 8:41 am ⋅ Reply ⋅ Quote and Reply ⋅ Top

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kengoldberg

For what it is worth, the value of digital signage is in the concept of narrowcasting, i.e. delivery of targeted, dynamic content at specific sites/times. TV tuners are all about broadcasting: the same content to all receivers in range. Hardly targeted. Legal issues aside for a moment, to call the old "L frame" (ticker and sidebar) around a cable feed "digital signage" is a real stretch. Yes, you can use digital signage tools to make it happen, but you can also shoot a mouse with a bazooka. We have most often heard this request from people who want to deploy in bars. What I always offer them in return are two observations. First, if someone comes to a bar to watch the big game, use the whole screen and show them the game, they will buy more beer that way and maybe come back. Second, if ESPN is showing a Budweiser commercial, and you are presenting a Coors commercial, you have two upset brewers and one confused viewer. How do you sell that value to Coors? You make a valid point about the "free" nature of TV content. If the free content is any good, then whatever you frame it with won't get noticed. If the free content is bad, then noone will watch the screen. Where is the win in going back to the future? I think one place for TV may be in non-ad supported environments, such as corporate environments, where news might be a good filler between corporate announcements and updates.

May 19th, 2009 1:22 pm ⋅ Reply ⋅ Quote and Reply ⋅ Top

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nate

Great insight Ken. Completely agree. However, there are many applications (like the bar) where having digital signage as a “channel” is quite beneficial. Not necessarily during game time, but after the game when clients are simply milling around. When you are talking about digital signage, you’re talking about giving control back to the advertiser. So in the case of separate inputs to a display, the venue owner may wish to switch the signage screen immediately back to display his own content as soon as the game is over. In this case, a scheduled TV tuner is much more beneficial than a simple changing the input. Besides who has the time or wherewithal the change the input when you’ve got a business to run. There are other applications we have worked on as well for both digital signage as a form of security and digital signage for displaying live performance, along with interspersed advertising. Again, the implications are a bit more broad and my post was obviously not as all encompassing as it should have been. I’m glad these points have been raised here. I very much like the idea of a non-ad supported environments, such as corporate environments, wherein tuners could be used as well. What other applications could benefit from a TV tuner?

May 19th, 2009 4:07 pm ⋅ Reply ⋅ Quote and Reply ⋅ Top

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