Accedo, the Smart TV and IPTV enabler, has been in partnership with media group Foxtel to provide a Smart TV service to Australian customers.

The internet TV solution promised by Foxtel allows users with Samsung Smart TVs to enjoy their services with no installation, contract or set-top box.

The move is being brought about in conjunction with the London Olympics, with Foxtel’s eight dedicated Olympics channels being freely streamed to those with a 2.0Mb/s internet connection.

This development is the latest innovation in the growing market of Smart and IPTV, yet this development has divided Australian media analysts.

Chris Coughlan, research director at Telsyte, told Crikey that this move was an “opportunity and a threat” for Foxtel because, alongside the opportunity for many more customers, there may be a worry that their current subscriber base could be cannibalised.

Divide and conquer

Yet it could be argued there is plenty of room for manoeuvre in the Pacific area. With only 29% of Australians paying for their TV as of 2009, chances are IPTV could kill the traditional pay-TV structure after the proliferation of Freeview wounded it.

A clear gap in the market is waiting to be exploited, with Accedo vice president Australia & New Zealand Matt Kossatz stating that online video consumption was “exploding at a phenomenal rate”.

“Applications like Foxtel, along with others we’ve developed in Australia, are just some examples of where major innovative TV operators and service providers are launching attractive consumer offerings via connected devices,” he said.

Kossatz reiterated his belief in the future of Smart TV.

“New OTT devices in the living room are becoming the most powerful outlet for video distribution, and consumers are particularly attracted to broadcaster and operator services via these platforms,” he said.

Recent research into Smart TV has shown clear advantages with the platform for both advertisers and consumers.

A UK-centric study from Decipher Research revealed that over two thirds (68%) of adverts on Smart TVs were noticed by viewers, with half of that number clicking through for more information.

Similarly, a recent piece by Accedo CEO Michael Lantz for AppsTech noted the growing correlation between tablets and TV due to the increased ubiquity of tablets in the home, with companion apps being the key to unlock fully interactive TV.

Understandably, this is a view Kossatz also subscribes to.

“Application platforms from game console providers, TV manufacturers and box providers are more powerful for every generation, and we at Accedo are truly excited about the current speed of innovation in the market”, said Kossatz.

“With the current rate of growth we expect numerous attractive apps being launched around the world over the coming years,” he added.

So where do you think this development will go? Alongside the compatibility and interactivity Smart TV will provide, can it exploit a gap in the market and totally kill off the traditional pay-TV format?

Find out more on the future of OTT devices at Telecoms Tech World on 4-5 June in London.