In a move welcomed by Internet media firms, Intel and Yahoo! said that the Widget Channel will allow consumers to enjoy rich Internet applications while watching their favourite TV shows.

The Widget Channel will be powered by Yahoo!’s Widget Engine platform, enabling TV interaction and a set of ‘TV Widgets’ – small Internet applications designed to bring content, information and community features available from the Web onto the TV, the companies said. Developers can also get involved using Javascript, XML, html and Adobe Flash technologies to write applications for the Widget Channel.

Eric Kim, Intel’s senior vice president and general manager of the company’s Digital Home Group, said that consumers can now watch video, track stocks and weather updates, and follow their favourite sports teams on the Widget Channel.

“TV will fundamentally change how we talk about, imagine and experience the Internet,” he said. “Intel and Yahoo! are proposing a way where the TV and Internet are as interactive, and seamless, as possible.”

Personal Touch

Yahoo!’s Marco Boerries promised “the Internet benefits of open user choice, community and personalisation...to transfer traditional TV into something bigger, better and more exciting than ever before.”

It is these personalisation capabilities that are getting online advertising firms very excited. With Internet advertising spend hitting £2.8 million in 2007, according to Ofcom, media such as the Widget Channel will enable advertisers to look at new ways to reach audiences.

Donald Hamilton, UK managing director of behavioural targeting technology provider, Wunderloop, told NMK: “"The Widget Channel is good news for the TV industry and, more importantly, for consumers. Despite the hype around the death of the 30-second spot, TV remains a much loved medium and advertising on it will never stop. However, as we’ve recently seen - especially with ITV - the industry did get left behind with the advent of the Internet and media fragmentation. Now the technology is available that will help the broadcasters readjust their business models and tap into market opportunities previously only available to online advertisers.”

Hamilton concluded that the ongoing credit crunch would mean that advertising budgets will continue to be scrutinised during 2009 and the ability of behavioural targeting technology to significantly reduce wastage will become of increasing interest to advertisers.

Positive outlook

Richard Baker, executive vice president of Sales and Marketing at digital media client software developer, ANT Software, believes that Intel’s input could kick-start the industry.

“[Widget Channel] is a significant development as it adds further weight to a scenario the broadcasting industry has been talking about for quite some time,” he said. “For a while, we have seen interest from service providers in developing PC-style widgets, or applications, for the TV. The emergence of large high definition (HD) and widescreen TVs has helped these types of services become a reality. As the price of these consumer electronic goods fall, these types of services and applications will become much more attractive to a wider audience.”

ANT’s own research has shown that applications based on RSS feeds, such as news, weather and trading information all lend themselves to this type of service, Baker added. He cited the development of an application that enables the consumer to set their home and work locations into the TV set and plot their travel route to work, enabling them to check for delays while eating breakfast.

“It’s important to remember that these applications won’t be interacted with in the same way as a PC or laptop. New media content providers have a great opportunity to tie the widget, or application, more closely to the content,” he concluded. “We see this as just one example of a TV-related, Web-connected device. This same technology can be extended to multiple devices from games consoles, to set-top boxes and mobile phones, and now TV manufacturers. All of them can use the power of the Internet to offer additional value and services.”

Intel’s Kim told delegates at the Intel Developer Forum in San Francisco that Sony, Toshiba, Samsung and Motorola had all shown interest its chipset – code-named Canmore – which is being specifically developed for the Web-connected consumer electronics market.