1 Billion TV-Centric Connected Devices Now in Homes

LONDON: The global installed base of TV-centric connected devices exceeded 1 billion units in 2013, and is expected to surpass 2 billion by 2017, driven by smart TV, IP-enabled set top boxes, game consoles, Blu-ray players and low-cost digital-media adapters, according to Futuresource Consulting.

Three years ago, less than 30 percent of people who owned a smart TV actually had it connected to the Internet. Now, that has risen to 68 percent on average. The U.S. is leading with a 79 percent connection rate.

"TV sales account for 70 percent of traditional AV consumer electronics market value, and smart features and connectivity are the latest in a stream of innovations to sustain the industry, drive replacement demand and encourage consumers to upgrade to the next big thing," said Jack Wetherill, the senior market analyst at Futuresource Consulting. "44 percent of the 225 million TVs shipped worldwide in 2013 offered smart features and consumers now increasingly expect these enhancements on mid-range as well as high-end models. By 2017, over 80 percent of all TV sets sold worldwide will be enabled for online connectivity and smart features. As a result, apps are also an opportunity for manufacturers to differentiate with unique features and content."

"As fixed and mobile broadband both continue to evolve in speed and capacity, alternative service-level infrastructures are being created to reach the huge base of IP devices with on-demand and simulcast content at quality close to, or matching, that of broadcast," added Wetherill. "Both TV-centric and mobile multimedia IP devices will drive growth in online content distribution, but it is clear that consumers like the personal nature of second screen, and tablets will elevate multiplatform consumption to a whole new level.

"However, despite the rise of OTT and connected devices, the set top box (STB) market remains robust, sustained by a new generation of EPG-led platforms which integrate DVR functionality with broadcast, cable and IP networks to provide a seamless consumer experience in time-shift, discovery, navigation and on-demand access to content. STB shipments remain high—220 million units in 2013—dominated by pay-TV providers who are upgrading to integrate IP services with broadcast content and on-demand functionality via advanced user interfaces."