TV Everywhere Grows as Next-Gen Tablets Emerge

Manufacturers of tablet PCs could flood the market with four dozen or more new devices before the year is out. And like with most new technology, most will be thinner, more powerful and easier to use than their predecessors.

There are several to keep an eye on, but the competition among Apple, Android and Windows tablets will be the most compelling story of 2012.

We don't know a lot yet about the iPad 3, but most so-called experts are predicting a spring release, which would fall in line with the April 2010 debut of the original iPad and the March 2011 introduction of the iPad 2. The newest version of Apple's iconic device is expected to come with a faster processor than its predecessor, as well as an improved display. Among the most frequently asked questions is whether or not the iPad 3 will run on 4G LTE networks now offered by AT&T and Verizon Wireless. If so, it would be the first Apple product to operate on the new technology; even the iPhone hasn't crossed the LTE threshold yet, but that's expected to change later this year. Apple-philes will also be anxiously waiting to hear if the new iPad supports near-field communications for mobile payments and if Siri – the popular, voice-activated technology that made a splash in the iPhone 4S last year – will be integrated into the new tablet.

While it's still an uphill battle for any single tablet to take on the iPad, which sold more than 15 million of the units in just the fourth quarter of 2011 alone, the Android operating system as an aggregate is starting to make some strides. Stats from researcher Strategy Analytics now put Android's global tablet share – in terms of shipments – at 39 percent, about triple what is was less than a year ago.

There are a few highly anticipated Android-based tablets on the horizon, the biggest of which could be a 10-inch version of Amazon's Kindle Fire, likely to debut in the second half of the year. The 7-inch Fire was a game-changer in 2H 2011, becoming the best-selling Android tablet during the holiday season in part due to its $200 price tag, less than half the price of Apple's least expensive iPad 2. Google is expected to release its own Nexus-branded tablet, possibly before the heat of the summer sun bears down on us – and while details are being kept mostly under wraps, many are speculating that the search giant could offer it for $200, intensifying the price war even more. Look for the Motorola Xoom 2 and another version of the Samsung Galaxy Tab in 2012 as well. While the BlackBerry PlayBook 2 is likely coming in Q2, Research In Motion already seems like an also-ran in this race, particularly after the original PlayBook got off to a slow start, launching last year without a native email application.

Despite the improvement in market share, Android tablets haven't gotten off to as fast of a start as some would have anticipated, especially considering the rapid rise of Android smartphones vs. Apple's iPhone in 2010 and 2011. Will 2012 be the year Google's operating system overtakes iOS in tablets as well? That may depend less on Apple or Android as it does Microsoft. That's right, Microsoft. The Redmond, Wash.-based computer giant will release Windows-based tablets this year, and some in the industry are expecting them to have faster uptake than Android. Warren East, the CEO of ARM, which supplies processors to many smartphone and tablet manufacturers, recently said branding will be a "fundamental difference" for Microsoft in the tablet battle since so many people are familiar with the Microsoft and Windows names from their experience with PCs.

As far as content goes for your tablet, interest in so-called "TV Everywhere" should be one of the biggest stories of the year. TV Everywhere allows service providers' customers to watch television on their mobile devices via a downloadable application. Comcast and Time Warner Cable first announced an initiative to pursue the technology back in 2009, and most major cable, satellite and telco TV providers have followed suit with their own offerings.

Late last year, Time Warner CEO Jeff Bewkes described the uptake of TV Everywhere at his company, telling Financial Times that it's "the fastest digital rollout, faster than DVRs and video on demand."

If you need more evidence, Netflix, the dominant leader in over-the-top content and total hours spent watching online video, told its shareholders last month that TV Everywhere is its biggest threat, far beyond competitors like Hulu:

“As we’ve often said, we see the biggest long term threat as TV Everywhere, and in particular, HBO GO, the leading implementation of TV Everywhere to date. HBO has some great content, particularly their original series, but today for most people it is locked behind a linear interface, or at best, behind a DVR interface and in all cases tethered to a linear subscription plan. As HBO GO grows and becomes the primary way that consumers experience HBO, it will become a much more effective competitor for viewing time."

And the technology seems poised to blow the socks off what's offered now, Netflix said:

"Over the next few years, [user interfaces] will evolve in astounding ways, such as allowing viewers to watch eight simultaneous games on ESPN, color coding where the best action is in a given moment or allowing Olympics fans the ability to control their own slow-motion replays. A decade from now, choosing a linear feed from a broadcast grid of 200 channels will seem like using a rotary dial telephone."

Needham & Co. analyst Laura Martin says TV Everywhere might add $12 billion in revenue per year to the television industry in the U.S. alone. That would be an 8 percent increase over what's already generated in subscriptions and ad dollars. That's another $10 billion per year in advertising for content owners, Martin says. TV Everywhere is a convenience for the customer, but a potential major revenue generator for those who want consumers to rely a little less on those commercial-zapping DVRs.