Accedo, a leading Smart TV and IPTV technology provider, has partnered with Australian media group Foxtel to deliver a Smart TV service to viewers across Australia.
Foxtel’s internet TV offering enables owners of compatible Samsung Smart TVs to access Foxtel content without installation, a contract, or a set-top box.
The launch coincided with coverage of the London Olympics, with Foxtel making eight dedicated Olympic channels available to stream for free to users with a minimum 2.0 Mb/s internet connection.
This initiative represents the latest step in the fast-evolving Smart TV and IPTV market and has prompted differing opinions among Australian media analysts.
Chris Coughlan, research director at Telsyte, described the move to Crikey as both “an opportunity and a threat” for Foxtel: it could attract many new customers, but it also raises concerns that the company’s existing pay-TV subscribers might be cannibalised.
Market dynamics and opportunity
There remains significant room for growth in the region. In 2009 only 29% of Australians paid for television services, suggesting that IP-delivered TV could further disrupt traditional pay-TV models—especially after Freeview’s expansion had already weakened conventional pay-TV structures.
Accedo’s vice president for Australia & New Zealand, Matt Kossatz, noted that online video consumption was “exploding at a phenomenal rate,” and that Foxtel’s app is an example of how major TV operators and service providers are launching compelling consumer experiences on connected devices.
“New OTT devices in the living room are becoming the most powerful outlet for video distribution, and consumers are particularly attracted to broadcaster and operator services via these platforms,” Kossatz said, underscoring his confidence in the Smart TV sector.
Research into Smart TV’s impact highlights clear benefits for advertisers and consumers alike. A UK study by Decipher Research found that 68% of adverts on Smart TVs were noticed by viewers, and about half of those viewers clicked through for more information—strong indicators of engagement potential on the platform.
Accedo’s CEO Michael Lantz has also observed the growing link between tablets and television, with companion apps playing a central role in enabling fully interactive TV experiences as tablets become more common in households.
Kossatz echoed this perspective, pointing out that application platforms from game consoles, TV manufacturers, and set-top box providers are becoming more capable with each generation. Accedo is enthusiastic about the accelerating pace of innovation and expects a surge of attractive apps to launch globally in the coming years.
As Smart TV platforms gain compatibility and interactivity, they could exploit gaps in the market and challenge traditional pay-TV business models. Whether this will entirely replace legacy pay-TV remains uncertain, but the trend toward internet-delivered, app-driven television is clear.
For those interested in the future of OTT devices and connected TV platforms, industry events and conferences offer in-depth discussions and analysis of where the market is headed.