Technology

Services market on connected TVs to be $3.23 bn in 2016

MUMBAI: With the big three TV manufacturers (Sony, Panasonic, and Sharp) reporting billions in losses in FY 2011, TV manufacturers need a lifeline if they‘re going to stay in business. Smart TVs and connected services may provide such a rescue.


The global market of services on connected TVs will reach $3.23 billion in 2016. This market will represent 16.8% of the OTT video market and about one per cent of the global fixed video services market. These figures correspond to overall analysis of the deployment of connected TV services, which concluded that the right conditions for rolling out new services were not yet entirely there in early 2012, so researchers do not expect to see the market really take off until 2015.


New market research by Global Information, Inc, a markets research portal, anticipates that paid services will play a leading role in the development of connected TV services. Worldwide paid services will represent 59% of the market for video services on connected TV.


World Television Market: The television sector is facing a profound restructuring, as players from formerly disparate sectors, such as TV, Internet and equipment vendors converge on the market. We are indeed currently nearing the end of a double phenomenon known as cordcutting (in which consumers will combine free access to linear television via digital terrestrial and satellite with a fee-consumption via OTT services) and cord-shaving (in which consumers will scrap their paid cable and IPTV plans for low cost OTT offers or a limited consumption of VOD services). Given the pioneer position of the US with respect to attractive OTT service offerings, IDate believes that they will remain the largest market for connected TV services, harboring up to 61 per cent of the total market.


The global FPD (Flat Panel Display) TV industry is to concentrate on promotional sales toward year-end 2012. With growth in major regional markets slowing down and 3D TV fad diminishing, branded vendors are eyeing on smart TV products in 2012 to sustain prices of end-market products through software applications and services amid the fixed hardware costs. This report provides an insight into the global and Taiwanese smart TV market and product developments in 2012 and beyond and examines product strategies of major smart TV branded vendors.

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