Skip to main content

Connected TV Apps Transforming Video Entertainment

Software applications (apps) have been the primary focal point in the smartphone and media tablet worlds for some time. Now, with the advent of smart connected TVs, people everywhere are rapidly adopting online video applications that are changing their on-demand viewing experience.

According to the latest market study by In-Stat, their forecast estimates that over 60 percent of these connected households will use a TV app at least once per week. However, these apps won't likely be provided by an incumbent pay-TV service provider. Clearly, other companies are driving this trend.

"As expected, Netflix and YouTube currently dominate the TV application space," says Keith Nissen, Research Director at In-Stat.

But as Netflix competitors become more numerous and as applications are optimized for the big screen, TV apps will become part of the mainstream TV viewing experience. They will transform video entertainment.

Once again, the current dominant entertainment industry players have been passive to disruptive market transitions. How will traditional pay-TV providers react to this latest threat to their core business model?

Why did they not see this transition coming, or why did they ignore the apparent shift away from linear channel viewing? Who is guiding them through these changes? Should the pay-TV STB vendors have already created a developer ecosystem that leverages open APIs and thereby help fuel new service delivery innovation?

There are so many of these troubling questions that have been left unanswered. Meanwhile, the pay-TV service subscriber losses are mounting.

In-Stat's latest market study found the following:
  • Shipments of connected TVs with integrated TV applications will grow by an average 36 percent over the next five years.
  • 22 percent of U.S. broadband households already own an HDTV with integrated TV apps.
  • TV apps are not the primary reason for purchasing connected TVs -- but they're the reason the balance of power is shifting in the marketplace.
  • Adoption of online video streaming services, such as Netflix, does not increase the propensity to purchase online video content.
  • The viewing of DVR recorded TV programming does not lead to the adoption of free VOD services from a pay TV operator.
  • Consumers favoring subscriptions to both pay-TV and online video services rose from 18 percent to 30 percent during 2010, contributing to the continued growth of Netflix.

Popular posts from this blog

Global EV Charging Revenue to Exceed $300B

During 2022, fuel prices increased very quickly, partly due to a number of macroeconomic reasons. In fact, the effects of the global COVID-19 pandemic are still impacting fuel prices, with many oil refineries having reduced capacity due to a prior fall in demand. Those significant events and other trends have created a demand for a growing variety of Electric Vehicles (EVs). While EVs have existed for decades, they really became a viable option for more consumers during the past five years. However, although EVs are suitable for some buyer needs, their usability is constrained by the current availability of battery charging infrastructure. EV Charging Market Development According to the latest worldwide market study by Juniper Research, revenue from electric vehicle charging will exceed $300 billion globally by 2027 -- that's up from $66 billion in 2023. Regardless, the Juniper analysis found that fragmentation in battery charging networks is restricting further EV adoption in some

Human Resource Transformation Enabled by IT

Many senior executives are taking a proactive approach to digital business transformation in order to achieve their strategic goals. Delivering revenue growth and profitability is now imperative for every function, including Human Resources (HR). The top 3 priority HR technologies this year are skills management, learning experience platforms, and internal talent marketplaces, according to the latest worldwide market study by Gartner. "With a tumultuous global economy, HR technology leaders face a balancing act in 2023," said Sam Grinter, director at Gartner . "Leaders must anticipate greater levels of accountability and demand for measurable outcomes to justify new technology investments." HR Transformation Market Development Forty-four percent of HR leaders report driving better business outcomes is their number one strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26 percent) and cost optimization (17 p

How Savvy Pioneers Lead the Future of Work

Hybrid and fully remote work are inevitable in the Global Networked Economy where high-performance talent demands flexibility from employers. To enable these progressive work models, organizations are investing in a wide range of technologies to support more agile types of employment.  According to the latest worldwide market study by International Data Corporation (IDC), leading organizations will spend nearly $1 billion on the Future of Work (FoW) in 2023 -- that's an increase of 18.8 percent over 2022. Future of Work Market Development "Work models continue to evolve, but 37 percent of decision-makers in a recent global survey note that Remote and Hybrid work models will be an embedded part of accepted work practices, supported by a continued shift to the cloud, increasingly instrumented and interconnected physical workplaces, and intelligent digital workspaces," said Holly Muscolino, group vice president at IDC . According to the IDC assessment, organizations must mak