Connected TV to give TV manufacturers a lifeline
Joseph O'Halloran | 04-10-2012
With the leading TV manufacturers currently in the doldrums and indeed reporting huge losses, a booming smart TV and connected services market may energise the whole sector according to new GII research.
The analyst firm predicts that the global market for services on connected TVs will reach $3.23 billion in 2016, representing 16.8% of the over the top (OTT) video market and about 1% of the global fixed video services market. Worldwide paid services are likely to represent 59% of the market for video services on connected TV. The US is set to remain the largest market for connected TV services, harbouring up to 61% of the total market.
GII believes that the TV sector as a whole is facing a profound restructuring, as players from formerly disparate sectors, such as TV, Internet and equipment vendors converge on the market. It also suggests that the market is nearing the end of cord-cutting and cord-shaving.
Despite the optimism, the analyst cautions that the market will not really take off until 2015 when the right market conditions will be in place. That will mean sluggish growth for 2012 and the soft term at best.