Connected TV Penetration to Top 50 Percent By 2017

SCOTTSDALE: ABI Research forecasts that more than 50 percent of television homes in North America and Western Europe will have Internet-connected TV sets by 2017, up from just 10 percent last year, while Blu-ray player penetration is expected to rise to more than 76 percent from about 25 percent.

The report notes that the popularity of connected TV is not limited to developed markets—there have been increasing shipments to China, ABI notes.

Commenting on major players in the connected-device space, senior analyst Michael Inouye noted, “Most CE manufacturers (notably, Samsung and LG) use a common platform for connected TVs and Blu-ray players. Microsoft and Nintendo play only in the game console market, while smart STB [set-top box] leaders Apple and Roku don’t compete in the other connected categories. Sony is unique is its participation in game consoles (PS3), connected TVs, Blu-ray players, and smart STBs. In the TV and Blu-ray space Samsung and LG have been the most proactive at bringing connected features—for example, introducing new user interfaces that parallel the features first made popular by the game consoles.”

Inouye added, “The early connectivity lead enjoyed by the game consoles will continue to wane, but this does not mean these devices will become integrated into the TV. The 8th generation of consoles will offer a boost to the industry, placating core gamers with new hardware while expanding the device’s role as the central media hub through complementary media and services. Game consoles will be de-throned as the most connected CE device, but they may remain the most relevant.”