TV manufacturers now competing with broadcasters for ad income
A battle is brewing between television manufacturers and broadcasters over the rights to sell ad space in the new era of internet television.
Traditionally the preserve of broadcasters, manufacturers are increasingly angling for a slice of the pie by asserting the right to sell ads against programming.
Phillips is leading the charge on this front with the launch of its own Interactive Programme Guide, an initiative which will allow it to sell adverts direct by overlaying them across the top of the television screen.
Responding to the moves some broadcasters have claimed such ventures infringe their copyright if manufacturers don’t display the full picture – an obstacle manufacturers intend to circumvent by displaying ads on “second screens” such as tablets and smartphones.
These would automatically detect what viewers are watching on TV and automatically display additional content such as clothes featured in a drama which can be bought.
Such technology could allow manufacturers to circumvent laws prohibiting the display of adverts on BBC channels.
Stephen White, president of Sony subsidiary Gracenote, said: “It is very disruptive to have connected television manufacturers becoming players in that ecosystem."
"The television is just a race to zero in terms of manufacturing margins, but the IPG gives the consumer electronics manufacturer - the TV guy - a much better chance to link users to their own set of services and then to take control of advertising. This is the big race at the moment."