How TV Remotes Shape The Video Landscape
In more ways than you think
Welcome back to Streaming Made Easy (SME). I’m Marion & this is your 5-min read to get a European take on the Global Streaming Video Business.
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Enjoy today’s read.
Show me your TV remote and I’ll tell you who you are.
TV remotes say a lot about one’s strategy and where the global video landscape is heading to.
Whether you are a platform like Samsung, Roku or a streamer like Netflix, Prime Video, you chase opportunities to generate more eyeballs and more revenues.
TV remotes are one of these opportunities.
Today at a glance:
A Quick History Of TV Remotes
Introducing Branded Buttons
TV Remotes Trends
Why TV Remotes Matter
A Quick History Of TV Remotes
The TV itself tends to get all the light when it comes to the industry’s coverage and research (CES 2024 was no exception).
It makes sense as the end game for buyers is getting a TV. Now, a TV doesn’t magically switch on (unless you have a knack for high-tech homes unlike I do) so that’s where TV remotes come in.
When we look back at their evolution through the years, we can see that innovation in the space came from 3 main angles:
#1 - The will to make our lives easier
→ "Lazy Bones" so we don't need to get out of our couch
→ Universal remotes because we have too many
#2 - The need to adapt to viewing habits' changes
→ "Blab off" with a volume control & a mute switch for ads
→ TV remote apps because our phones never leave our hands
#3 - Technological breakthroughs
→ Voice controls
→ Flashmatic & Space Command: no more string, time for ultra sound technology & later infra-red light.
Today, a remote strives to do one thing: bring simplicity to the end user so it can enjoy what the platform has to offer as often and as long as possible.
As a platform and as a streamer, you therefore need a strategy which encompasses voice controls and TV remotes. How will viewers access and navigate my platform? Find my streaming service?
Introducing Branded Buttons
I’ve written at length about the shift happening in the CTV ecosystem from a hardware driven business to a software driven one.
Why this shift?
Because the hardware business is a low margin business.
The total cost of the materials and components used to make the product is called a BOM (Bill Of Materials) cost. The BOM cost of a 55-inch UHD Smart TV selling for 1000$ is approx. 800$. The costs varies for different sizes and technologies. The operating margin sits at approx. 20% which includes the manufacturer’s and retailer’s share. Costs relating to firmware updates, support come on top.
This is why manufacturers don’t want to be in the hardware business only and want to get a piece of the software action too.
In a previous piece, I detailed the different monetisation opportunities and deep dived into how TVs were turning into ad billboards. Another monetisation opportunity lies in TV remotes.
Every year, TV manufacturers release new hardware. The remotes’ design doesn’t change much but one part does: the line up of branded buttons.
A year before the next cycle of TVs, discussions are held between manufacturers and partners to see who will take a button where. Netflix is almost always up there. The latest Spring cycle saw new players getting a button like TF1+ with Hisense Vidaa or Canal+ Group with Titan OS.
Manufacturers make UK-only remotes, then region-wide remotes (although some are able / willing to do local SKUs i.e. local versions of the remotes as evidenced above by Titan). This means that to be eligible for a button, you often need to be a pan-regional or global player.
Now, let’s look at how CTV players actually implement branded buttons.
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TV Remote Trends
Let’s look at the 3 main approaches when it comes to remotes:
#1 - Simplicity
How They Do It: These remotes have one thing in common: they dropped the numerical keyboard. No more 1, 2, 3, 4 etc. You have a limited number of buttons: on/off, volume up/down, channel up/down, voice, home, branded buttons etc.
The remotes are simple and slick in design.
#2 - Optionality
How They Do It: The remotes here kept the numerical keyboard but have added branded buttons through the years. They answer any viewing habit you have, pressing 1 to watch TF1 in France, going straight to Netflix.
#3 - Universality
How They Do It: Now you have the branded remote sold with your TV but you can also buy your own remote. There’s plenty of options when it comes to universal remotes compatibles with TVs. These remotes are either branded or white-labelled.
In Europe, one of our champions is Ruwido, an Austrian-based remote maker. They make remotes under their brand but also power remotes for others including telecom operators like Bouygues or Orange Spain (both stayed clear of branded buttons).
N.B: I couldn’t go exhaustive here so if you are a TV manufacturer / TV OS, a remote manufacturer or a streamer and you want to share your thoughts on this topic, send me an email at contact@thelocalact.com.
Why TV Remotes Matter
You could look at remotes and think it’s just a design and technology thing. To me, it’s so much more.
From the platform’s perspective:
When I look at the Apple remote, yes design matters (more than anywhere else) but it also embodies the Apple fortress: you are in our ecosystem, here’s what you can do, don’t go anywhere else.
When Google, Samsung, Amazon or Hisense mix 3rd-party buttons with theirs (YouTube, Samsung TV+, Prime, Vidaa Free), they forego potential revenues so it shows how strategic growing their own service is (😉 the Samsung TV+ button).
A remote with fewer buttons also shows that streaming comes 1st, plugging a 3rd-party device or watching Broadcast TV from an antenna comes 2nd (hence why local broadcasters have been lobbying to resist the trend).
From the streamer’s perspective:
When I look at brands featured (YouTube, Prime, Netflix, Disney+, Samsung TV+, Rakuten, Spotify, Apple TV+), it’s one more asset in their toolbox to boost their prominence and give immediate access to their services.
A button indeed brings them:
Brand building: repetition helps and the remote is in our hands daily.
Direct shortcut to your app: accelerate time to content, boost app visits. After that, the platform works to keep users engaged.
Now at a time where accessibility & discoverability are everything, how can content services stay top of mind:
→ when channel numbers are sort of gone?
→ when remotes feature only 4-8 branded buttons?
Should you invest in a branded button? If you have a regional or global footprint and deep pockets (223M TVs were sold in 2023), go for it. Otherwise, invest in on platform advertising opportunities, universal search, app improvements, whatever it takes to reach viewers on the big screen.
That’s it for today but before you go:
Enjoy your weekend and see you next Friday for another edition of Streaming Made Easy!
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thanks for the info above. I recommend you evaluate LG's motion remote control instead of the dpad ID remote for above.