Technology | Media | Telecommunications

Monday, January 18, 2010

Blu-ray Players Enabling OTT Video Uptake

Internet video device shipments will experience global growth of 78 percent year-over-year from 2009 to 2010, according to the latest market study by IMS Research.

The Internet-enabled device categories that will see the most significant uptake in the short term are connected TVs and connected Blu-ray players.

Rebecca Kurlak, author of their report, states "With the Blu-ray Disc Association releasing the Blu-ray 3D specification a month ago, and the continued decline in the device category's average selling price, IMS Research expects consumers to welcome Blu-ray players into their homes."

With nearly all Blu-ray players manufactured with IP connectivity enabling access to video on demand (VoD) libraries like Netflix, Amazon, Vudu, and CinemaNow, Blu-ray players are now more compelling for purchase consideration than they have been since their market debut.

Adoption of these new consumer electronics (CE) devices will ultimately increase the use of over-the-top IP video service offerings, both pay-per-view and subscription.

Kurlak says "At the Digital Living Room Conference, it was announced that 10 percent of the 2009 box office sales were attributed to 3-D movies. Our forecast accounts for this growing preference, and we expect global connected Blu-ray shipments to exceed 28 million devices in 2011."

This report builds onto IMS Research's first Internet Video household and device study that was released in December 2008. Equipment forecasts include internet connected equipment such as Blu-ray players, game consoles, media extenders, proprietary equipment, retail DTT+IP set-top boxes and connected TV sets.

While the previous forecast revealed opportunities in this nascent market, the new study incorporates the latest shipment data and industry trends along with splits of pay versus ad-supported IP video content delivery.

This update also extends the forecast period through 2015, at which time households with the ability to view Internet video on the TV are expected to exceed 473 million.