Online TV - why this is only the beginning

Online television has a bright future and we're only at the beginning, according to one of the executives responsible for the launch of the BBC iPlayer.

Speaking at The Intellect Annual Regent Conference 2009 in London, Ashley Highfield, previously BBC head of Future Media and Technology and now managing director and VP of consumer and online for Microsoft UK, said: "Internet viewing is still a very small proportion of television although it is growing exponentially. The growth I think is going to surprise people."

Highfield said online usage is now central to the debate around the future of public service broadcasting. "This is now front and centre stage of the political agenda," he said.

Highfield also outlined the factors driving the growth of online TV, in particular citing the proliferation of low cost netbooks.

But he suggested mobile devices aren't ready for the online TV revolution quite yet. "I think mobile still has a long way to go before it's used by people to watch long form content."

In addition, he said the greater availability of technology to develop online TV platforms - such as Microsoft's Silverlight and Adobe Air - along with effective DRM and the ability to keep content within geographically defined areas (geo IP) have been important.

Highfield said he was confident the UK would embrace online TV due to its history of readily adopting new media formats, such as the Ceefax service in the early 1980s and more recently, the BBC's iPlayer - a service he was largely responsible for.

Another factor in favour of online TV, according to Highfield, is evidence that while consumers might cut back on paid-for TV services they're not doing so with broadband - suggesting it is seen as a viable alternative.

And regarding the recent prohibition of the Kangaroo multibroadcaster online TV service by the Competition Commission - a project Highfield briefly headed - he said: "I think the demise of Kangaroo is a great shame for the UK TV industry."

And Highfield also admitted the BBC didn't get it quite right with iPlayer from the off. "iPlayer only really worked second time around," he said.