Connected streaming devices set to shake up business models by 2017

Michelle Clancy | 08-01-2013

By 2017, connected gaming consoles, Blu-ray players and HDTVs will penetrate 66 million US households, or 54% of the total, according to Forrester Research.
But cord-cutting is not part of the equation: these devices will usually supplement, rather than replace, incumbent devices like PCs, laptops, tablets and smartphones.
People will also connect to the Internet via devices such as set-top boxes, portable media players, eReaders, digital photo frames, and even connected digital cameras all of which makes for a dramatic shift in the TV ecosystem and the opportunities within it.
"Ten years ago, the most common way to connect to the Internet at home was via a PC or a laptop," Forrester analyst Jitender Miglani wrote in a blog. "Now, connectivity at home is increasingly being supplemented by tablets, smartphones and other media devices, although PCs/laptops still dominate. Consumer electronics device manufacturers cashing in on this shift are offering Internet-ready capabilities in many of their devices."
By 2017, the majority of gaming consoles will be connected to an IP connection, allowing users to rent/buy movies and TV shows online, purchase games, watch streaming videos and listen to streaming music.
Meanwhile, consumers' preference for owning fewer optical discs and the availability of streaming services via set-top boxes, game consoles and connected TVs will moderate the standalone Blu-ray player sales growth. Availability of Blu-ray disc playing capability in the game consoles such as Sony PS3 will also decelerate the sales of standalone Blu-ray players, Forrester said.
When it comes to connected TVs, by 2017 more US households will have a connected TV than will have a connected game console or a connected Blu-ray player. The number of connected HDTVs will grow faster due to the availability of an increasing number of movies and TV shows via online streaming services, a shift in consumers' preference for watching more online video content via their TVs, the increasing maturity of TV operating systems and the anticipated large-scale production of OLED TVs starting in 2014.
"With the proliferation of many consumer technology devices that are connected and the rapid rise of social/mobile apps, consumer behaviour is taking on a profound shift in how it consumes media, interacts with brands and people, and where it interacts from," said Miglani. "This shift will challenge the existing business models of media and telecom industries, and will result in newer opportunities for Internet-based businesses."