Growing digital entertainment drives demand for online TV
Editor ©RapidTVNews | 04-05-2012
New research from Global Industry Analysts (GIA) is predicting that the worldwide market for online TV will reach $81.2 billion by 2017, primarily driven by soaring demand for digital media entertainment and growing penetration of high-bandwidth broadband.
According to the analyst’s report, the growth will be further propelled by rapid proliferation of Internet enabled devices such as smart TVs, smartphones, and tablet PCs. GIA states that as Internet TV continues to mature and starts featuring more personalised, interactive and on-demand entertainment, it is “opportunities galore for the market.”
It adds that although still a niche market segment, online TV has now evolved into one of the fastest growing television broadcast mediums in recent times, growing even during the 2007-2009 economic recession. Indeed, just like in its recent report for IPTV, GIA says that demand for cheaper home entertainment against the backdrop of recession induced decline in personal income and household wealth and reduced ability to spend especially proved to be a catalyst for growth in Internet TV market during the period.
Even though GIA suggests that ‘intense’ competition among content developers and service providers is encouraging development of highly creative, entertaining and localised content, it cautions that improvement in quality of service, reduction of deployment times, introduction of innovative service packages and competitive pricing will be critical for Internet TV to gain mass market adoption.