Report: Internet-Connected TV Adoption to Surge

PARIS: A spike is anticipated in the household penetration of next-generation Internet-connected devices, with web-enabled TVs poised to reach 60 percent of households by 2014, according to a new study from the global consulting firm Bain & Company.

Bain & Company’s survey of 3,000 consumers in France, the U.K., the U.S., China and India suggests that while there is a high degree of enthusiasm among consumers, the profit potential for businesses may be limited unless they develop new innovative ways for experiencing content. Bain finds that the biggest shift in the connected-content experience will come in video. Half of the respondents in the U.S. and the U.K. rely mainly on search engines to find content, while one-third use their network of friends to choose their "must-see TV." In India and China, the latter figure jumps to 45 percent of consumers.

The survey finds that fictional programming lends itself particularly well to such a transition. Between 30 to 45 percent of those surveyed in Western markets expressed interest in viewing webisodes on connected devices, though nearly two-thirds are not willing to pay. In India and China, three-quarters of those surveyed expressed interest in webisodes.

“The permanent media revolution continues,” said Patrick Behar, the head of Bain’s Media & Entertainment Practice in Europe and lead author of the study. “But media and entertainment companies must pursue aggressive content development and diversification strategies to unlock new consumer spending.”

“A majority of consumers expressed an interest in Internet video at the expense of traditional TV channels,” added Laurent Colombani, the head of Bain’s Media & Entertainment Practice in France and co-author of the study.

“Significant change lies ahead for the media and entertainment industry as content platforms, new entrants, and incumbents battle for profits and market share,” concluded Behar.