Nielsen’s newest “Three Screen” report, which measures video consumption on TV, the Web, and mobile devices, shows that TV-time did indeed drop–slightly, but still a drop–during the last three months. Read more…

Nielsen 3 Screens Report

No “it’s coming” or “find out more".”  Just a banner that says I can watch Netflix on PS3 now (once my DVD arrives).  And this just after I start seeing those great PS3 commercials showing how it is also about the Playstation Network and not just games.  So if both the PS3 and XBox offer Netflix, and the Wii by Christmas, what does this do for the console, cable and broadband TV industry?  Possibly everything.

If people start seeing Netflix as a service they can get via video game console boxes, then they start seeing their console boxes as a broadband replacement for cable boxes.  This can potentially change how consumers view the whole TV experience and start redirecting TV viewing habits from live to TV to greater increases in TV on demand.

And if this strikes anyone as crazy, and some will scream about it, just think of Netflix, ESPN360 and cable.  Netflix started with a subscription video offering (rolled into their DVD rental subscription), and now offers streaming video on demand to the large screen through Tivo, XBox 360 and other TV connected devices (and expect to see it built into broadband connected TVs this year).  Basic cable is a package of video channels with commercials.  And ESPN360 is only offered through broadband providers with which it has an agreement.

The cable executives continue to communicate the general business message that this is a workable. Comcast CEO Brian Roberts supports the "TV Everywhere" authentication approach (Comcast calls is OnDemand Online) put out by Time Warner CEO Jeff Bewkes.   And Jon Miller, head of digital at News Corp was reported by AOL’s Daily Finance blog as saying Hulu could be placed behind a pay wall.   Will Richmond at VideoNuze makes some good points as to why Hulu may one day go subscription (or at least, freemium and premium).

Will it work?  Content producers, like any business, need a certain amount of revenue to survive and thrive.  As we’ve seen with TV and print (radio, until satellite, didn’t have many good options), the best content can command subscription revenues with higher profits, even at the cost of traffic, should owners choose.

If the model moves in a direction of premium content arriving via subscription models, we may also see more mass marketing of these premium broadband “channels.”  This could change the nature of Web properties resulting in top properties being those cable companies decide to push (similar to TV today).   While this is all just theory today, the talk of executives and the need for the Hulu’s of the world to prove themselves as solid financial models mean that the future may be just around the corner.

(disclosure: the author does work with Web video companies)

"I’ve been asking the crucial question: how can interactive entertainment become as approachable as other forms of entertainment? The vast majority of people are just too intimidated to pick up a video game controller…Despite the size of (the video game) industry, still 60 percent of households do not own a video game console…The only way to bring interactive entertainment to everybody is to make it invisible."

The implications of Project Natal go beyond entertainment.  TV manufacturers are already looking at building motion sensing and voice detection technology into TVs.  This means you can not only control your TV with voice and motion, but interact with all types of content – training programs, commercials, remote physical therapy and more.

For a quick look at how this works, watch this demo video.

Rumors are starting to  run rampant that the XBox will beat the Wii’s casual gamer friendly motion sensing game controller by simply getting rid of the controller.  In what may be an E3 announcement, XBox will use their 3DV acquisition to turn your body into a controller.  The rumored XBox Fluid will use a camera to detect how your body is moving in order to let your body be the controller.  So if you want to play a boxing video game, just box, don’t hold a controller.

But the implications go far beyond video games.  As friends of mine who run Omek Interactive, a developer of motion sensing software for games and other applicaton, points at as that as the cameras become more precise, your body motions can become tools for a range of controls from controlling the TV (no more looking for a remote) to precise fitness training.  A while back they showed me a boxing demo that was able to detect the accuracy and speed (read: knock) of a punch.  That ability can be used for remote physical therapy, remote training (golf at home), and, yes, better video games.

As Connected TV’s become commonplace, this type of technology can allow people to work remotely with training professionals and play physical games such as tennis without being on the same court.

(Shameless plug – check them out at http://www.omekinteractive.com/)

Here’s a decent demo video of the technology.

But the implications go far beyond video games.  As friends of mine who run Omek Interactive, a developer of motion sensing software for games and other applicaton, points at as that as the cameras become more precise, your body motions can become tools for a range of controls from controlling the TV (no more looking for a remote) to precise fitness training.  A while back they showed me a boxing demo that was able to detect the accuracy and speed (read: knock) of a punch.  That ability can be used for remote physical therapy, remote training (golf at home), and, yes, better video games.

As Connected TV’s become commonplace, this type of technology can allow people to work remotely with training professionals and play physical games such as tennis without being on the same court.

(Shameless plug – check them out at http://www.omekinteractive.com/)

Here’s a decent demo video of the technology.

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=106873

Viewing time across all three screens was up.  This indicates not simply more consumption, but more multi-viewing – watching two screens at once such using a laptop while watching TV.  Other key findings include the following:

• Timeshifted TV was up 37.3% to 8 hours and 13 minutes (still small but climbing)
• Watching video on a mobile phone was up 4.9% to 3 hours and 37 minutes
• Teens watched the most mobile video at 6.5 hours each month
• The most watched mobile categories are weather and comedy
• TV still dominates – it account for 99% of viewing.

http://blog.nielsen.com/nielsenwire/online_mobile/americans-watching-more-tv-than-ever/