Wednesday, August 1, 2012

Internet Connected TVs to Reach 650 Million by 2017

The number of residential TVs connected to the Internet using Blu-ray players, set-top boxes and consoles or using native TV connections, will reach almost 650 million by 2017, Juniper Research argues. 


That is among the underlying changes that will eventually help change the attitude of content owners about many forms of "Internet direct" content distribution, as potentially unsettling as that prospect now appears. 


In fact, some might even argue that Internet-connected TV sets will be only the second most important change in consumption habits. There is an argument to be made that tablets could emerge as an even bigger enabler. 


Though the ability to view desired content on a TV will remain a mainstay of the professional entertainment video business, the ability to consume video on tablets already is clear.


In fact, if one assumes that user experience with video consumption on smart phones, PCs and tablets is becoming widespread, and in some instances a preferred consumption mode, then Internet connected TVs might be only one mode among many.


Forrester Research, for example, estimates there will be two billion PCs in use by 2016, excluding tablets


Forrester expects total tablets sales will growfrom 56 million in 2011 to 375 million in 2016. Given that a majority of tablets will be retired within three years of purchase, Forrester forecasts that there will be 760 million tablets in use globally by 2016. One-third of these tablets will be purchased by businesses, and emerging markets will drive about 40 percent of sales.


In other words, if a supplier wanted to reach Internet-connected users with a video entertainment product, it will make as much sense to focus on tablets, PCs and smart phones as it does to include TV set viewing, as users of those non-traditional TV screens will vastly outnumber users of traditional TV sets. 

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