By Calvin Hsieh, Research Director

At IFA 2008, the idea of a “Widget Channel” designed for TV was introduced by Intel and Yahoo. Samsung has taken advantage of widgets in its latest add-on function named Info Live, available for their A7, A8 and A9 series LCD TVs. The Widget Channel concept is not very surprising if you are familiar with Windows Vista, which has a side bar that lets you select various widgets for information and utilities.

The design does not occupy your entire screen and Windows desktop like a conventional internet web browser; instead, it is possible to concentrate on information from the widget and your application program. Of course, the information provided by the widget is concise, not as intensive as a web page.

Figure: Widget Channel’s Screen and Application

More than ten years ago, some hardware suppliers such as Web TV developed set-top-box systems including a keyboard and trackball, which allowed consumers to browse the internet on the TV. These approaches failed, as consumers were not as open to using the internet in the living room and the poor resolution of CRT TVs made reading text-based web pages difficult. So why are these companies trying to bring Widget Channel to TV now?

There are several possible reasons:

• LCD TVs are prevalent and can support and display high resolution information.
• Consumers now rely on the internet as a critical information source in addition to broadcasting.
• Broadband household penetration has passed 80% in some countries.
• Information on the internet now takes varied forms—such as RSS and Flash—not just web pages.
• Name brands need features to drive replacement cycles and compel consumers to a new TV.

After many failed efforts, including attempts to get users to bring their PCs into the living room, companies have learned that converting the TV into another PC in the living room violates consumers’ habits; Intel’s Viiv and Windows Media Center are examples of past failures. This time, they are trying to keep it low profile: no PC!

As with teletext and information provided by cable or satellite service operators, the Widget Channel allows consumers to watch broadcast programs while information is provided at the bottom of the screen. It does not interfere with consumer habits, and brings additional information. The difference with existing services is that the information comes from the open internet, not operators.

The space is already occupied to some extent, however. MHEG-5 and MHP content in DVB services are examples. In many ways, the widget covers the gap in data services in ATSC broadcast standards, itself a legacy of NTSC. Such a gap was unthinkable in PAL countries with their mature teletext businesses.

Widgets compete directly with broadcast services and will create an interesting tension. Broadcasters need to tie in internet delivery of content (for example preview or rebroadcast offerings) and will need to have some TV set makers (with ethernet-capable TVs) as allies, or develop a STB platform. Broadcasters are typically uncomfortable with platforms outside their quality control, and they may attempt to restrict widgets to their on-demand services. The success of the standoff will vary by country, depending on the relative power of the broadcaster.

For Yahoo, Widget Channel could establish a new content or advertising business model on TV. For Intel, this application could lead downstream companies to develop products via their new SoC designed for consumer electronics, CE3100. Meanwhile, Samsung is exploring a new market to counter the maturity of TV markets in developed countries. If consumers at last connect their broadband to both PC and TV, their information consumption, which moved to the PC over the past several years because of internet may shift back to TV. So, the Widget Channel is like a kind of “Trojan Horse” to attract the consumer and win the battle of the living room. In this scenario, the TV will be more versatile, being used for information and entertainment, while the desktop PC will be more productivity-centric. Let’s wait and see if it works.