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Global Market is Primed for Connected TV App Stores

During 2010, there was significant growth of new consumer electronics (CE) devices with networking and web content presentation capabilities. Network-enabled CE devices have the ability to connect directly to the Internet or to a home network.

Web-enabled or Smart devices deliver IP-based video content for viewing either on the device itself or on a separate screen, such as a connected TV set. Both types of devices are expected to grow exponentially over the next five years.

According to the latest market study by In-Stat, by 2015 there will be 1 billion web-enabled, stationary CE devices in operation worldwide.

"Smart TVs and Blu-ray players (that support online apps) will constitute over 50 percent of all web-enabled CE device shipments worldwide in 2015," says Keith Nissen, Principal Analyst at In-Stat.

North America and Europe will remain the primary regional markets for web-enabled, stationary CE devices. Over the next five years, both the North American and European markets will exhibit a 23 percent CAGR and will account for nearly 70 percent of the global market.

In-Stat's recent market study findings include:

- The popularity of over-the-top (OTT) video is creating interest in enhancing the IP video capabilities of cable, satellite, and IPTV set top boxes (STBs). This is creating a growing market for hybrid STBs -- for those vendors that are able to enter the window of opportunity with CE-like devices.

- The vast majority of Blu-ray disc players and recorders shipped will be both network-enabled and web-enabled devices.

- The Asia-Pacific region will favor mobile CE devices over stationary devices but will still show a 20 percent CAGR in web-enabled stationary devices over the forecast period.

- There are many different TV application platforms. Yahoo! Widgets is the major TV app platform in the industry, though Sony, Samsung, and others have developed their own proprietary platforms. Look for the Google TV App store and the Apple TV Apps store to create new momentum.

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