Technology | Media | Telecommunications

Monday, October 13, 2008

Wi-Fi in TVs Will Fuel Over-the-Top Video

Shipments of consumer electronics (CE) devices with Wi-Fi wireless LAN technology built-in will reach almost one billion by 2012.

Because of its large installed base in mobile PCs and home networks, flexibility, and a mature ecosystem, Wi-Fi is a valued universal technology for the CE market -- according to the latest market study by In-Stat.

Based on the assessment from the high-tech market research firm, "digital TV will be the second largest category of CE stationary devices shipping with Wi-Fi," says Victoria Fodale, In-Stat analyst.

"The sheer volume of digital TV shipments will make it a strong market, despite a relatively low Wi-Fi attach rate."

I believe that digital TVs equipped with Wi-Fi connectivity will add even more fuel to the amazing growth of over-the-top video distribution services. Over time, the fragmentation of the video entertainment market will surely destabilize the traditional pay-TV industry.

In-Stat's market study found the following:

- More than 294 million CE devices with Wi-Fi shipped in 2007.

- Compound annual growth rate for CE Wi-Fi devices through 2012 will be 26 percent.

- By 2011, cellular/Wi-Fi handsets will surpass mobile PCs as the large category of Wi-Fi devices.