Digital DNA

I was reading NewTeeVee’s quarterly review – it highlights two main facts: (i) we are buying more and more “living room” devices that are capable of playing online video (e.g. set top boxes, games consoles) – projections are for 57 million devices to be sold in 2009 in the US, and (ii) cable operators are sensing a threat and responding with their own authenticated services – e.g. Time Warner and Comcast with TV Everywhere.

This all translates to a healthy and active sector in terms of investment and opportunity. Which is refreshing in the current climate.

I can back this trend up with what we have been experiencing at The Filter over the last few months. Demand for our video recommendations and relevance technologies is at an all time high: whether from content owners, distributors or aggregators, they all have a pressing business need to find intelligent ways of connecting more of their content to their customers. Editorial and popularity-based suggestions are better than nothing, but our experience is that it is only when companies start using consumption data and sophisticated and matured algorithms that they get seriously exciting results in terms of increases in dwell time, video streams per visit and visits.