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Convergence-the Beginning or the End?
Many companies are at the forefront of a revolution which can lead to great new capabilities in the convergence era and also to the death of television
Ganesh Natarajan
Thursday, May 10, 2007
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Kitiyama san, founder of the Japanese company EZA, is an excited man. His company has pioneered cool new technology which enables education and information content from television and video to be streamed onto mobile phones. In a land where NTT Docomo and a host of leading edge players are pushing the envelope of convergence, niche companies like EZA are at the forefront of a revolution which can lead to great new capabilities in the convergence era and also to the death of television.

James Forsyth and Allister Heath, writing in a recent issue of The Business magazine of UK, predict that the television industry will see power wrested from broadcasters and transferred to content providers. In Britain for example, Web-based TV-on-demand is already offered by Sky, Virgin Media and BT Vision while globally, Google's YouTube with its multiple video clips has caught the fancy of an entire generation of users. While both these developments still seem to be just an interesting additional amusement mechanism for the nerds, the promise of video-on-demand and just in time viewing of content on computers and mobile phones may well become the only medium of education, information, and entertainment for the world.

The trends show that early adopters of all the elements of the new convergence era are happy customer

The number of aspirants for leadership in this brave new world is enormous. Two US TV networks, NBC and Fox are set to offer almost all the shows of the combined networks on a number of channels including Yahoo, AOL, MSN and MySpace and will lay claim to being the "largest advertising platform on earth" with its reach exceeding 90% of the American online audiences. Content distribution partnerships of Viacom with Joost and file sharing sites like Kazaa will also start giving a run for their money to Youtube. Finally, the new generation of Internet set-top boxes including Microsoft's new Xbox and potential new products from HP, Sony, and Cisco will enable the much needed flexibility for viewers to develop their own schedules.

Why would convergence in entertainment and information succeed when education online has not exactly set the house on fire? For one, education tends to be a more complex psychological process than entertainment with extraordinary reliance on outstanding faculty quality, participation of peer groups, and a sheltered classroom environment. The poor transition in pedagogy has been the reason why learning effectiveness has shown a serious decline as e-learning courses are introduced.If the quality of the visual medium improves from the occasional jerky and grainy images that one gets today, there is no holding back to the new medium. And, a look at the new content being repurposed in Tokyo was enough to prove that barring some addressable commercial hurdles, the beginning of the end for traditional television may well be very near!

There are many thorns, however on the path to success to the vision when customers can have access to millions of high quality films at the drag-and-click of a button from the comfort of their armchairs. Google which paid hundred times earnings for the $15 mn Youtube has already been received flak from content creators who allege blatant copyright violations, with a billion dollar lawsuit from Viacom which is aggrieved that hundreds of thousands of its show segments have been placed on the site with no copyright filters whatsoever.

What is the time frame in which we can expect all these cataclysmic changes to happen in global broadcasting and content dissemination? The trends show that early adopters of all the elements of the new convergence era are happy customer and are willing to ride over the few potholes and speed breakers because of the tremendous flexibility and cost advantages offered by the new developments. The signs are clear and whether it is the relentless pressure of incumbents like Fox, Microsoft, and Google or the enthusiasm and entrepreneurship of the Kitiyamas of the world, the entire industry will be in the throes of a paradigm shift in the very near future.

The author is deputy chairman & MD of Zensar Technologies and an Executive Council member of NASSCOM for 2007-09.
He can be reached at ganesh@cybermedia.co.in

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