iPad, iNavigate, iWatch

The Apple iPad and the other tablet PC developments swirling around it have started to shake up the mobile device sector, providing an alternative to both mobile broadband-enabled laptops and smaller-screen smartphones. Yet, that may be nothing compared to what the iPad and its brethren have in store for TV service providers.

“The emergence of devices like iPad is one of the things we're pointing to as a key enabler for people to cut off pay TV services completely,” said Vince Vittore, senior analyst with Yankee Group.

The iPad launched with the expectation that it would be a media-driven device with greater video -iewing capability than a video-capable smartphone, mostly thanks to its 9.7-inch screen. The early inclusion of the ABC Player, Netflix and TV Guide iPad apps at the Apple app store hinted at another target — the evolving online TV and over-the-top video sectors — in its sights. Though the number of video entertainment apps for the iPad is still fairly low, the implication could be that if it continues to sell at a healthy rate (about 3 million have been sold so far), more online video players will embrace the device platform as another destination, in addition to desktops PCs, laptops and to a lesser extent mobile phones, where video viewers are headed when they turn away from their living room TVs.

Since the iPad’s launch, Apple has not itself attempted to tie the device to subscription TV services, but a rumored reconfiguring of its Apple TV product and brand may yet explore that territory.

Either understanding the possibility of tablet PCs as a competitive video threat or just recognizing their potential utility in relation to current TV and video viewing paradigms — or maybe both — several TV service providers have quickly moved to craft their own iPad-friendly video strategies:

--At the Cable Show in May, Comcast CEO Brian Roberts demonstrated how the iPad could be used as a Xfinity video remote control. Though it was an unexpected and welcome exhibition of how a TV service provider might deploy the iPad, Comcast notably did not speculate on how a tablet could be deployed for TV Everywhere-style video viewing.

--Verizon and its Android device partner, Motorola, reportedly are exploring development of their own tablet PC to be used in connection with Verizon's FiOS TV platform. The Financial Times reported that it could be a TV-viewing device, though neither company has yet offered greater detail.

--Satellite TV provider DirecTV announced earlier this month that it was making a new NFL Sunday Ticket To-Go plan available for viewing on the iPad and other mobile devices.

--Fellow satellite player Dish Network announced its own plan to make programming available over the iPad and other mobile devices at no extra charge when they are tied into a set-top box like Dish’s SlingBox.

--Time Warner Cable said it is developing its own app in which the iPad can be used for TV navigation. Unlike some other service providers, TWC openly speculated that the tablet PC could evolve to play a role in its TV Everywhere strategy, become an open development tool for third parties and even be used to share content across social networks.

--Summing up, The Wall Street Journal reported just today that “at least seven of the 10 largest subscription TV providers in the U.S.” are busy creating tablet PC apps that tie into their TV services in some way.

What may be most surprising about the abundance of service provider iPad/tablet TV activity thus far is that it is not being led by AT&T, the telco that has been Apple’s closest partner in the telecom industry and helped launch the iPad back in April with ground-breaking service contract flexibility. AT&T did recently announce the capability to download and view TV content on the iPhone, a significant announcement in its own right, but one that was notable in its lack of mentioning how the iPad could be used in the same way. Though, one can expect that converting the app for the iPad is in AT&T’s plans.

Vittore argued that AT&T actually has been aggressive overall in terms of exploiting its iPad exclusivity, much as it was with the iPhone. Some of the announcements mentioned above are really trial balloons at this point, and Vittore said service providers could and should be working more aggressively to figure out the iPad’s role as a content-viewing device in TV offerings.

“You can't deny that consumers want these devices, and operators should be leveraging that demand,” he said. “The cable operators getting into this is an encouraging sign. It's a recognition that they can't necessarily control what consumers use to view video and that they're even willing to potentially throw money to a competitor in order to retain their core value.”

Still, the job of negotiating content rights for another device might be part of what’s keeping them fairly quiet about such strategies for now.

While some service providers seem to be focusing on the iPad for TV navigation, these efforts would come after many of those carriers have already rolled out DVR management capabilities for cell phones and in particular the iPhone. It’s an area where now well-established, increasingly used smartphones may have a leg up against the newly arriving tablet PCs. “I see more demand for consumers to use their smartphones as navigation devices as opposed to iPads,” Vittore said. “The form factor just doesn't lend itself particularly well to a navigation device in front of the TV.”