Rethinking Convergence

In the world of broadcast we have been on the verge of convergence for many a year, the past five of those have bought into sharp focus the products that work and the products that do not. A previous blog entry by our CTO, Steve Plunkett, discussed the evolution of some of those once distant prophecies.

Sure, convergence of technologies provides us with opportunity aplenty to re-imagine our own personal relationship with broadcast content. Our box in the corner continues to play merrily for our entertainment, a dumb slave to our mastery of the remote control, providing new ways to enjoy the same old experience. That is convergence, isn’t it?

Well, I prefer to look at convergence from another angle; the convergence of ideas and practice across industries.

It was in 1993 that Sir Terry Leahy first envisioned an idea that would transform his business and his industry. In 1995 the Tesco Clubcard was launched. Over the next 18 years Tesco evolved into one of the most significant companies of our era, or indeed of any era. The premise behind this scheme was simple: learn as much as you can about your customers, store as much information as you can, keep every ounce of data and sell it back to your customers in the form of promotions, offers and targeted deals. Tesco’s customers get a great shopping experience, Tesco cuts its marketing bill, gains customer loyalty and drives up the spend per customer in its stores.

Broadcast media of course has always been different; the relationship with the chap sat in his chair is as remote as the remote, a one way interaction. There is little, if any, data collected. Yet the revolution of technological convergence changes all that.

Earlier this year Tesco announced the trial of Clubcard TV – imagine that, a retailer moving into TV! Yet isn’t this a logical progression for convergence across industries? All that data about what people buy must have relevance to what people watch. After all if it doesn’t, then what is TV advertising for?

Of course the launch came with all the usual comparisons with Netflix, LOVEFiLM and the like. The caveat emptor for all such launches was displayed loud and clear: “success depends upon the quality of the content”. I wonder though whether that is strictly true; in my mind, success will also depend upon the quality of the data.

So our dumb slave sat in the corner, now resplendent with apps, takes on a different meaning. The Clubcard of the broadcast world gives us a greater experience, personalises our viewing and makes us want to watch more. It gives the broadcaster better targeting for its ad slots, better loyalty from its viewers and drives up spend from viewers and advertisers alike. Sounds familiar doesn’t it?

So where are we headed? Will every industry end up looking the same? Perhaps… Amazon is a far cry from being just a book retailer nowadays; the purchase of LOVEFiLM shows its intent and commitment to content. Likewise can we expect to see broadcasters step outside of the broadcast world and offer new services that aren’t just about broadcast – like retail perhaps? Once, of course, they’ve had the time to collect the data?

Lee Cowie, Head of Technology Delivery.
@Lee_Cowie