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Connected TVs become a rage

Posted: 03 May 2011     Print Version  Bookmark and Share

Keywords:Connected TV  forecast  increase shipment 

According to the Q1 2011 "Quarterly TV Design and Features" report from DisplaySearch, nearly 20 per cent of all TVs shipped in 2010 featured connected TV capabilities. The DisplaySearch report forecasts that at a 30 per cent compound annual growth rate, the connected TV category is forecast to grow to over 12.3 crore shipments in 2014.

The Consumer Electronics Show in January was also abuzz with TV products with essential internet services. Emerging markets will also play a major role in this growth, with Eastern Europe forecast to grow from 25 lakh connected TVs shipped in 2010 to over 1 crore in 2014. In addition, DisplaySearch findings indicate that 33 per cent of flat panel TVs sold in China in 2013 will have internet capability.

TV shipment forecast

Figure 1: DisplaySearch Worldwide Connected TV Forecast (Shipments) Source: DisplaySearch Quarterly TV Design and Features Report.

"The connected TV market is developing beyond mature regions like Western Europe and Japan," said Paul Grey, Director of TV Electronics.

Grey also added that "With some emerging countries having excellent broadband infrastructure, the adoption of connected TV capabilities is a natural next step in TV feature innovation."

In developed regions, connected TV is a second wave following on the heels of digital broadcasting. In China, however, the adoption of connectivity is occurring in advance of digital terrestrial television (DTT) adoption. As a result, TVs shipped into this region can decode video from the internet, but not from terrestrial broadcast. DisplaySearch foresees a surge in China driven by decoder chip costs reaching a tipping point, as the cost for such capability is now low.

DisplaySearch forecasts that the connected TV market will become fragmented and increase in complexity. Basic connected sets carrying enhanced broadcast services such as Hbb.TV or basic video on demand (such as Netflix, Maxdome, Acetrax or VUDU) will appeal to consumers who expect TV to remain a passive experience.

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