Technology | Media | Telecommunications

Thursday, February 02, 2012

Smart Devices Transform Digital Media Entertainment

In 2011, the global market for household consumer electronics (CE) continued its rapid shift toward connected devices. These are devices that are enabled with digital communications and have the ability to connect directly to the Internet -- or to a home network.

Some of these devices are optimized for the delivery of IP-based streaming video content.

This device category is being driven primarily by the success and adoption of low-cost streaming media players, digital TVs, satellite STBs, video game consoles, and Blu-ray disc players or recorders.

According to the latest market study by NPD In-Stat, they now forecast that the connected device installed base will grow from 256.8 million units in 2011 to 1.34 billion units in 2016.

"CE is no longer about dumb devices that exist at the edge of the network to provide specific functions, but rather about intelligent devices at the edge of the network that can connect consumers to new stores of content and engage them in new digital experiences," says Norm Bogen, VP of Research at NPD In-Stat.

This simple fact is having a profound impact on the development of the digital media and entertainment industry, which previously leveraged broadcast networks and linear channel programming to control the user viewing experience.

In contrast, the forward-thinking business model is all about on-demand video content -- and it's totally user controlled.

Key findings from the latest market study include:
  • The global installed base of smart devices will have a CAGR of 52.6 percent from 2011 to 2016.
  • Video game consoles will lead the market in smart devices rising to 36.7 million units in 2016.
  • The installed base of connected media devices shipped to Eastern Europe will reach 79.2 million devices in 2016.
  • Asia Pacific will account for 37.1 percent of CE devices shipped worldwide over the forecast period.