The on-demand part is only the half of it, The fact that it’s available on anything connected to the internet is the other. So where do Israeli companies fit into this story? Judging by the recent acquisition of 5min media by AOL, Israeli companies are primed to play a key role in unfolding events. Internet company AOL, which itself was spun off of Time Warner Cable, has now purchased a key online video distribution service, not to mentioned the Techcrunch purchase that followed. The connection is simple, Cable companies have finally figured out that in order to stay afloat they need to surf the web and offer content.

According to AOL CEO, Tim Armstrong the company has been “investing in specialized websites to try to reverse falling display ad sales”. With the aid of advanced delivery technologies and the proliferation of networked devices, the TV ecosystem is changing dramatically, and is on the cusp of a Cambrian explosion. So what will our viewing experience look like two, or three years from now?

We will be picking, choosing, sharing and shopping from content custom tailored to our individual tastes and sensibilities. We will also not need to depend on old world infrastructure dependencies such as cables, or a living room; our Flat screen TV, PC, Tablet and smartphone will nonchalantly receive High Definition 3D broadcasts via WiFi. Think about it, no cables dangling under your LCD set, no cable provider to suck you dry for hundreds of channels you never watch!

Streamers are all the rave right now but they’ve already almost crossed the threshold into obsolescence. Smart set top boxes are coming, and they promise to bring with them that custom tailored experience, built in social networking, and the ability to consume all of your digital content on one screen using a remote with one button. Up until now techno-geeks could make something similar using an xBox gaming console and open source software. Next month promises to introduce goodies like this from at least on manufacturer we’ve written about here in the past, and more are very soon to follow.

New technologies are already offering content providers a wealth of new sophisticated tools that allow them to better target their audience, both in terms of content and advertising. These new technologies will introduce many new activities to our networked screen gadgets. Next-generation IPtv gaming experiences that do away with the space chomping consoles are just one such example.

The Israeli tech field seems to be laced with companies filling almost every niche this budding new industry will have to offer. From Hardware set top box manufacturers to IPtv oriented DVB systems, from in-Video interactive advertising platforms to services that locate any clip from any film you like. Multi-device internet TV platforms such as Tvinci’s are paving the way for the next generation of online video content viewers.

The presence of many Israeli firms in such a diverse set of technologies and disciplines more than assures this local industry key involvement in standard-setting future developments. Bloomberg forecasts that “Online-video ad spending is (will) rise to more than $4 billion by 2014 from $1 billion in 2009. This means that we should expect more and more technologies, and services to pop up over the next few years, and the local market here seem raring to go.

The following are just a few representatives of this promising evolving market that are developing technology that will charge the IPtv revolution. You are invited to learn more about them on TheWadi company index.

Boxee.tv - Offering a partially open-source freeware media player software platform and (soon) a set top box that integrate personal locally stored media with Internet streaming media along with social networking features.

Innovid - Technology that converts existing video ads into an interactive dynamic, and targeted experience.

Tvinci – Offering a comprehensive internet TV platform, that delivers and monetizes premium content through subscriptions, Pay Per View and video ads on any internet connected device.

GooMe – provides operators with an advanced entertainment experience by facilitating OTT services coupled with personal TV, web & home media content.

Boxee is a cross-platform freeware for home theater PC (HTPC) program. It has social networking features designed for the living-room TV. Boxee provides APIs that allow you to turn their service into  a media center (read more on TheWadi’s company index).

Vindicia’s CashBox solution will enable Boxee content partners  offer premium content through a wide variety of payment methods and plans, from individual pay-per-view charges to premium subscription models.  Vindicia’s will enable Boxee content partners to price and package their content as they wish, whether it is premium content, content from their existing library, or extras that will never made it “on air.”  Users will be able to purchase this content via credit card, gift card, or PayPal.

This solution, which handles currency exchanges, VAT, and GST automatically, will be available for content providers worldwide.  Vindicia powers online gaming (Blizzard), online stores (deviantArt.com), and subscription software (Symantec).

While Boxee plans to make the payment platform available to content partners for Boxee’s unique TV experience, Vindicia will also makes it possible for Boxee to enable payments on its website and across mobile platforms such as the iPhone, Android and the iPad.  Boxee’s eventual expansion to these platforms will pave the way for universally accessible content no matter where a user is. The Boxee payment platform will be released by the end of the summer.

Here are some new features on Boxee’s platform::

Facebook and Twitter in Boxee feed
In addition to pushing out users recommendations to social networks, you can now also pull in recommendations from your friends on Facebook & Twitter.  Shared videos appear automatically in a users feed with an icon on the right to let him know where they came from.

New and improved RSS
A brand new way to manage, discover and play RSS feeds in Boxee (Check out the new management & discovery console on Boxee’s website).
Search, arrange by category or sort through the most popular, top rated, new, and HD feeds available on Boxee. Then use the RSS feeds app to play back your favorites.

More about Boxee on TheWadi’s company index.

• Boxee is tapping onto the iPad release and is looking for a lead iPad and iPhone developer for its New York office. More details here. Read about Boxee at The Wadi index.
• Panorama’s Israeli HQ seeks a new talent, for PreSales, Postsales, Sales, technical writers and .Net developers. Send applications here. More about Panorama.
• Taykey is growing and is searching for a Software Engineer / Web Developer as well as a Systems Expert and QA Engineer for its offices in Herzliya Pituach, Israel. More details here. More about Taykey.
• 888holdings are looking for a web infrastructure manager, a data analyst, a program manager and many more jobs. All the details are here. See more about 888Holdings.
• Qoof is looking for a Flash/ActionScript/.Net developer in its Bet Shemesh offices. Details. More about Qoof.
• ClickTale is searching for an Enterprise Sales executive. Details. More about ClickTale.
• MyBrandz is looking for an experienced developer, expert in PHP. More about MyBrandz in The Wadi Index.

Have more jobs that might be relevant? We’d love to hear about them. Contact us!

Twilio provides a web-service API for businesses to build scalable, reliable communication apps. Boxee is a cross-platform freeware for home theater PC (HTPC) program. It has social networking features designed for the living-room TV. Boxee provides APIs that allow you to turn their service into what you’ve always dreamed of for a media center (read more on TheWadi’s company index).

The clock starts ticking now on a joint Boxee & Twilio dev contest. The mission for developers is to unite the telephone and the television in an awesome way using Twilio and Boxee. The contest is open until April 12th at midnight PDT

In our opinion it is not a question of “if” the Internet represents the future of TV it is a question of “when” (answer below). Here is why Internet on TV is inevitable:

• Everything is connected – We consume video and entertainment in general on multiple devices (mobile, computer, tablet, etc.). We will want to access Internet content, apps and games on our TVs as well. It does not make sense that our biggest screen should remain disconnected.
• 
  
• We are all passionate about something – One of the greatest things about the Internet is that you can dive as deep as you like into almost any subject whether it is cricket,anime, or music videos. Each one of us has a different set of interests and passions and for the first time we have a medium that’s personalized. The existing approach (and architecture) of a curated list of channels designed by a sole provider doesn’t address this basic human need.
• Less control = more innovation – There is a reason TV is lagging behind so many computers and mobile devices. TV is an oligopolistic environment with tight controls. Developers and entrepreneurs are attracted to open platforms with critical mass.  We’re not there, yet, but when you read that 27.5% of TVs sold in the US in January were connected to the Internet you know this day is getting closer.
• CE manufactures are already on it – They are watching consumer demand rise and are building Internet connectivity into their entire product line. TVs, BluRay players, and game consoles are now all being connected to the Internet. Even if the set-top box is not connected the users will use some other way to get their TVs connected.
• Content owners follow the audience – If you are a content owner you have two main concerns… a) getting your content in front of as many consumers as possible and b) getting paid for it. There is already a critical mass of users who are online and want to watch premium content (26% of online users watch TV shows online more than once a week), yet most mainstream TV content is still not available online. It is a huge missed opportunity.
• Broadband is the #1 priority for many – Younger generations see broadband as vital and PayTV as an accessory.  This generation is willing to pay for content, but likely to do so online. Making them pay for traditional TV, just so they can watch their shows online does not make sense.

People want Internet on their TVs, the CE companies want to address that need, the content owners see the opportunity and now the FCC’s plan indicates that the government also would like to see it happen. It is safe to assume that within the next 3-5 years Internet connected TVs will be a mainstream phenomenon and we will have more and better entertainment options on our TVs.

TV as we know it today offers a reliable and familiar experience for consumers, and a proven business model for content owners and distributors. There is great concern about the what TV content delivered over the Internet will mean for the industry (the fear of analog dollars turning into digital cents). There are the examples of the music industry (resisted the move towards digital and is now in search of a business model) and the newspapers industry (embraced the Internet and is now in search of a business model), which point to a damned if you do and damned if you don’t scenario.

But the talk and fear of cord-cutting is overzealous by both the media and the industry. Not only are their fears unnecessary, the focus on the negative impacts takes away the attention from the great opportunities that are opening up.  We believe the time for content owners to embrace the Internet is now, and that the parallels to the music and newspapers industries are not entriely appropriate, here is why:

• Unlike newspapers, video content is not easily commoditized –  You can read about last night’s political scandal from hundreds of sources, but there is only one company making American Idol, Lost, or Heroes.  When you have a unique product, it’s more likely people will pay for it.
• Unlike music, pirating video is still a hassle – Downloading a pirated version of a newly released movie is still a cumbersome experience. It can take a long time, the quality is sometimes terrible, it could be hard to find, you may catch a virus, etc.  However, this is not a long-term advantage because piracy will become much easier.  Right now, the industry has the time to make a pre-emptive strike by making content available online and making it easy to find and enjoy.
• Freemium is easier to offer for video than for news or music – Once a music album is out it is hard to create a premium offering around it.  In the case of video however, content owners can create premium value in multiple ways: HD quality, access to additional content, live broadcast, windowing of releases and more.
• Unlike music and newspapers there is a clear path for subscription revenues – There are already examples of successful online subscription services like Netflix and MLB, so it is not farfetched to imagine people subscribing to shows, channels or bundles based on their personal interests.

The users and the technology are ready, it is time for the industry to step up.

This post was first published on Boxee blog.

Read more about Boxee on TheWadi’s Israeli tech companies index.