Research: Internet connected TVs the trend for 2009
9 August, 2009
Internet enabled TV sales are growing rapidly according to reports from Quixel Research (US data). Meaning TV sets that have inbuilt network connectivity via WiFi or network cable. Of course, this means you could be Twittering from your TV set :) Other features range from the ability to display simple RSS feeds and dedicated services to advanced on-screen Widgets for access to Weather, Stock quotes, Youtube etc. The TV sets usually are able to play video files that sit on a Media Center PC or Home Server in the home network as well.
Rapid increase in sales and revenue
In the second quarter of 2009, the revenue from televisions that have built in Internet capabilities grew 40% to over 1 billion US dollars. In terms of unit sales, shipments rose 70% to 620,000 units, compared to 365,000 units in the previous quarter, Quixel said. Unit sales in the first half of 2009 exceeded the total for 2008, which was 985,000 units.
Analysts confirm trend.
“The timing is right for consumer adoption of connected TVs,” Quixel analyst Tamaryn Pratt said in a statement. “The majority of people already have high-speed broadband in their homes, and with the increased availability of premium content via the Internet… manufacturers are capitalizing on consumers’ desire to watch programming on a much larger screen than their computer monitors.”
Yahoo: first out of the gate
The Quixel figures show that consumers are hungry for internet content on their HDTV screens. Philips has shipped the first sets in their Philips Net TV series, but Yahoo Connected TV seems to have the advantage at the moment, with exclusive deals in place with Sony, Samsung and LG. None of these initiatives are aimed at just “putting the internet on a TV set”. The Philips internet functionality closely resembles the walled gardens we know from cable access providers’ set-top boxes. The Yahoo Widget based sets have a more modular, open approach, allowing integration with social network sites and other internet features while the traditional TV image is resized or covered with an interactive overlay.
Plasma still in the lead.
Quixel has estimated around 15-20% of TVs with built in internet capabilities are actually connected to the web in households. However this percentage is expected to grow rapidly by the end of 2009. Internet connected plasma televisions in the second quarter showed the largest quarterly growth rate at 202% in terms of unit sales and 163% in revenue, which rose to $293 million from $111 million. Unit sales of connected LCD TVs rose by 40% and and revenue was up 20% to $795 million.
More content coming soon.
Interestingly, the rising trend in accessing Web based content on large screen TV’s is increasing the amount of content supplied by Internet companies. In the US, big pay TV players have all announced additional TV and movie content from major entertainment studios. It won’t be long before the majority of TV sets sold will come internet enabled, further growing the internet TV sector. The real accelerator would be the availability of services like Hulu and Netflix on these devices - and hopefully not just for the U.S. this time…
Copypaste this story
Mail to a friend - Copypaste to del.icio.us
The most interesting question here is obviously how the viewing time and the content are going to migrate from the CATV carrier to the IP network. As this happens the broadcasters and CATV operators business models will be profoundly challenged. Exciting times!
Comment by Jeroen Doucet — Aug 10, 2009 @ 12:28