Samsung – Schoolboy errors

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Blunders reveal just how much Samsung has to learn.

• Samsung is making elementary blunders with the user experience on its devices that show that it still has a long way to go to realise any of its ambitions to differentiate itself using software.
• In the last two days Samsung has twice been forced onto the defensive as users have complained about unexpected adverts showing up on their screens and about having their private conversations recorded and sent to third parties.
• In Samsung’s defence neither of these two issues were deliberate but they highlight just how much Samsung has to learn when it comes to doing anything more than selling hardware to customers.
• The first issue involves the insertion of a Pepsi advertisement into the video streams of content being streamed from home servers or network based services.
• This has turned out to be an accident on the part of Samsung and it has removed the function and stated that it has no plans to introduce that type of advertising into the market in question (Australia).
• However, it does not say that Samsung is not planning on introducing this into other markets and this could be an early glimpse of a strategy that Samsung intends to employ to earn revenues in other markets.
• I believe that nothing will enrage users more than having their own media (which they have paid for) being interrupted by advertisements and this could have a detrimental effect on user willingness to purchase Samsung televisions.
• I can see a possibility where the user gets the TV for free or access to a service on the basis of viewing advertisements but this will have to be made clear to the user well in advance of any purchase.
• If the advertisements can be made relevant to the user based on his preferences and Digital Life activities then this could even represent a good deal on both sides.
• However, Samsung will have to tread very carefully and do everything it can to keep users happy as loyalty to TV brands is notoriously fickle meaning that users are more than happy to switch given a good reason.
• The second error was to be found in in the privacy statement that relates to the voice recognition on its Smart TVs.
• In effect it said that “anything you say be it personal or sensitive will be captured and sent to a third party”.
• Following a fuss, the statement has been lengthened and clarified as to how it works and most importantly when it works.
• This was clearly a storm in a teacup but it shows that Samsung is very green when it comes to having a long term relationship with its customers.
• Samsung has an opportunity to enhance the user experience by making all of its devices work together seamlessly thereby giving the user a reason to stick with Samsung when buying all manner of consumer electronics.
• However, success or failure will be determined by its prowess in software and how well it looks after its users.
• The last two days have shown that there remains a massive hill to climb and the likes of Microsoft, Apple and Google have also realised the value of this proposition.
• Samsung appears to have stabilised the ship for now but I still prefer the prospects of Microsoft, Google and even Apple over Samsung for 2015.