Connected TVs to dominate OTT market
15.57 Europe/London, October 6, 2011 By Robert Briel

Connected TVs are definitely taken over the market of connected devices according to IMS Research.

As Over-the-Top (OTT) video functionality becomes standard in progressively more affordable TVs, the connected TV installed base will inherently continue to grow regardless of whether consumers are specifically seeking OTT capabilities or not. As consumers gradually connect TVs to the internet over time, connected TVs will likely become not only the most popular OTT device, but also the most-utilised.

“Televisions, despite their higher price point compared to Blu-ray Disc players and game consoles, tend to be more mainstream devices that are purchased in greater numbers and are more universally present in a larger number of households worldwide,” said Paul Erickson, senior analyst at IMS Research.

“As broadband penetration increases worldwide and OTT functionality becomes commonplace in all but the lowest-end TVs within the next two years, it sets the stage for connected TVs to be the most globally-significant OTT video device over time.”

Although certain devices such as game consoles may have higher rates of connection to the internet in the present day, a faster-growing installed base and rising consumer OTT awareness are expected to quickly propel connected TVs ahead of game consoles in OTT usage within the next few years.

According to IMS Research, the worldwide installed base of connected TVs is already expected to surpass that of high definition game consoles by the end of this year.

“We expect yearly shipments of connected TVs to reach 180 million units worldwide in 2016, and for yearly shipments of connected TVs to begin outnumbering shipments of all other consumer OTT video devices combined by 2015. Pay-TV operators, application developers, content providers, and OTT service providers such as Netflix should all strategically be planning for a future where the most common OTT video device is the television.”