Connected TV enters mainstream with 15% global growth

Joseph O'Halloran | 19-10-2012

Analyst NPD DisplaySearch is offering evidence of a move by Smart TV from a novelty to mainstream, with shipments expected to grow 15% worldwide in 2012.

According to the latest Quarterly Smart TV Shipment and Forecast Report, as part of this shift, regional preferences and TV consumption habits are changing as increased accessibility of content and broadcast services have made a critical boost to the development of connected TV. In particular such development has helped propel penetration in Europe and Japan and in China, the availability of attractive free content on the internet has had a similar effect.

Furthermore, the analyst says that Chinese consumers consider a TV to be a prestigious purchase and are prepared to invest more in them.By contrast it says that terrestrial broadcasters’ catch-up services are beginning to dominate in Western Europe where connected TVs are flourishing with open standards like HbbTV rapidly gaining acceptance and evolving with new features.

Smart and connected TV shipments account for a large percentage of TVs in most regions with connected TV shipment shares at 26% in China and 34% in Western Europe respectively in 2011. In 2012, it has grown to more than 40% in both regions. Japan has the highest penetration with more than 55%, but North America seems to be pursuing a different direction with penetration is hovering around 20%, which is the lowest level of any region.

“North American households consume the highest levels of internet video, averaging over 30 GB per household every month according to Cisco, yet they don’t seem attracted to connected TVs,” said Paul Gray, Director, European TV Research. “We find that North America leads by far in paid on-demand services, which tend to be tied to set-top boxes.”