Technology | Media | Telecommunications

Wednesday, December 09, 2009

Rapid Adoption of IP Video on TVs in 2010

Results from an IMS Research market study shows that by the end of 2010, nearly 55 percent of all TV Households in the Americas will have access to Internet video, with 25 percent of these capable of displaying Internet video onto their TV set.

Rebecca Kurlak, an IMS Research consumer electronics (CE) analyst, says "Now that retailers are actively marketing Internet-enabled devices, we can expect to see mass market adoption. As Blu-ray players have begun to offer price points that fall below $199, this price reduction will create a domino effect on other CE device prices."

This has already been observed by actions taken by the game console market in Q3 2009. IMS currently estimates that by the end of 2010, 35 percent of TV shipments in the Americas will have internet connectivity (Ethernet and/or Wi-Fi) built-in.

It will take about five years for the gap to close between connected TVs and other devices. Consumers continue to select devices that offer ease of use, and it just makes it easier for the user to seamlessly search for content on one device. Plus, there is no additional set-up involved, which continues to be a hurdle for many of the devices on the market.

Game consoles already have the lead in this segment, which can mostly be attributed to gamer demographics. And, console manufacturers have continued to evolve their position in this space. But, it will become more of a necessity that they continue to re-invent their value adds.

Kurlak adds "I think that even gamers will switch to accessing Internet video mostly on the TV in order to have a one-stop access point to the different content libraries. Having one program guide is much easier to navigate then searching independently on different devices."

In addition to TV and broadband household forecasts, the IMS study provides detailed analysis of retail device shipments and revenues. Equipment forecasts include internet connected devices such as Blu-ray players, game consoles, media extenders, proprietary equipment, retail DTT+IP STB and connected TV sets.

A new feature of the their report includes a segmentation of households by pay-TV versus ad-supported services. IMS Research believes that they are the first to incorporate this segmentation in their reporting.