Analyst: "massive boom" for connected TV

Parent Category: News | 09-10-2013

Once the number of connected TVs actually connected to the Internet was a concern, but a new survey from Digital TV Research is predicting a boom in the number of such connectable screens in the next five years.

In its Connected TV Forecasts Report, the analyst predicts that the number of TV sets connected to the Internet in the 40 leading TV nations by 2018 will likely have leapt from 5.1% of screens in 2010, and 12.4% in 2013, to 26.8%. In unit terms this represents a rise to 759 million compared with 115 million at the end of 2010 and the 307 million expected at the end of 2013.

Looking at drivers for the market, Digital TV Research believes that the recently launched Google Chromecast and similar products are likely to have a considerable impact. It calculates that the global total of connected TV sets via streaming/retail set-top boxes will reach 126 million in 2018, up from only four million in 2010, and the 34 million expected by end-2013 is double the 2012 total.

Digital TV Research regards the launch of three next-generation games consoles Wii U, PlayStation 4 and Xbox One as good news for connected TV as they require an Internet connection for users to obtain full access to games. It predicts the number of connected games consoles will rise to 176 million by 2018; double the 2012 total.

However, the analyst expects the number of installed smart TV sets to overtake games consoles connected to the Web during 2013. Smart TV sets are forecast to account for 34% of the 2018 total connected sets, or 259 million. There were 31 million installed smart TV sets by end-2010, and this total will rocket to 110 million by end-2013.

One of the other key trends divined in the report is that connected TV is becoming more international. Even though the US is expected to still command a third of connected TV sets by the end of 2013, its market share is predicted to fall to 23.5% by 2018 while at the same time China's climbs from 6.6% to 16.4% by 2018.

"Connected TV is undergoing the largest upheaval in its short history," commented Simon Murray, principal analyst at Digital TV Research. "The introduction of affordable devices such as Google's Chromecast and Sky's Now TV are shaking up the market, with connected TV set manufacturers already reducing their prices as a reaction to this increased rivalry. The introduction of three next-generation games consoles adds further competition."