Connected TV Nears
20% Of TV Sales
By Greg Tarr On May 2 2011 - 4:01am
Santa Clara, Calif. —
Nearly 20 percent of all TVs
shipped in 2010 featured connected TV capabilities,
according to new research released Monday
The DisplaySearch Q1 2011 Quarterly TV Design
and Features Report, predicts the connected TV category
to grow to over 123 million shipments in 2014
(at a 30 percent compound annual growth rate).
Emerging markets will play a major role in this
growth, the firm said, with Eastern Europe forecast
to grow from 2.5 million connected TVs shipped in
2010 to over 10 million in 2014.
In addition, DisplaySearch findings indicate that
33 percent of flat panel TVs sold in China in 2013
will have internet capability.
“The connected TV market is developing beyond
mature regions like Western Europe and Japan,”
said Paul Gray, DisplaySearch TV electronics director.
“With some emerging countries having excellent
broadband infrastructure, the adoption of
connected TV capabilities is a natural next step in
TV feature innovation.”
In developed regions, connected TV is a second
wave following on the heels of digital broadcasting.
In China, however, the adoption of connectivity is
occurring in advance of digital terrestrial television
As a result, TVs shipped into this region can decode
video from the internet, but not from terrestrial
DisplaySearch said it is expecting a surge in China
driven by decoder chip costs reaching a tipping
point, with current low cost for such capability.
The connected TV market, DisplaySearch said,
will become fragmented and increase in complexity.
“Basic connected sets carrying enhanced broadcast
services such as Hbb.TV or basic video on demand
(such as Netflix, Maxdome, Acetrax or VUDU)
will appeal to consumers who expect TV to remain
a passive experience,” the report said. “For more
adventurous consumers, the smart TV segment will
enjoy configurable apps, sophisticated search and
navigation engines, and advanced user interfaces.”
DisplaySearch defines a smart TV as a TV that
can retrieve content from the internet without the
restrictions of a portal, has intelligent search and
recommendations, is upgradeable by its owner,
and is able to network seamlessly with other devices
in the home.
Gray added, “Smart TVs are adding to what is
already a fast-moving and fiercely competitive battleground,
with competition appearing in all directions,
including mobile PC devices such as tablets
and increasingly powerful set top boxes with services
accessible anytime, anywhere.”
The report compares the connected TV strategies
major TV brands. For example, Panasonic is
opting to locate intelligence in the cloud, while
Samsung is building the capability into the device.
Other new capabilities reviewed in the report
include the RVU standard that allows connected
TVs and set-top boxes to share pay TV content,
and low-power sets that can operate with no power
cord using only an Ethernet cable.
The DisplaySearch Quarterly TV Design and
Features Report is a quarterly update of the issues
and rapid shifts in feature development in TV sets.
To obtain a full copy of the report contact Charles
Camaroto at email@example.com