Portland, Ore. - Sales of "Connected TVs" - TVs with built-in broadband access to services including YouTube, NetFlix, Tivo, Facebook and others - were up 70 percent from the first quarter to the second quarter of 2009, according to the USA Large Area Display Report released this week by Quixel Research.
The study found that second-quarter Connected TV value of both LCD and plasma TV sets with Internet capabilities rose 40 percent from Q1 2009 to Q2 2009 as unit sales rose up 70 percent in the same time period.
The total value of the Connected TV market was $1.08 billion in Q2 2009, compared with $776 million in Q1 2009, Quixel said.
Volume almost doubled for Internet-capable TVs, with sales reaching 620,000, units compared with 365,000 units in Q1 2009.
"The timing is right for consumer adoption of Connected TVs," stated Tamaryn Pratt, Quixel Research's principal. "The majority of people already have high speed broadband in their homes, and with the increased availability of premium content via the internet, such as movies, UGC, etc., manufacturers are capitalizing on consumers' desire to watch ‘programming' on a much larger screen than their computer monitors." First-half 2009 sales of Connected TVs exceeded total 2008 sales of TVs with these features or topped 985,000."
Connected plasma TVs saw the most significant growth quarter to quarter, rising 202 percent in volume and 163 percent in value. Total revenue for the second quarter was $293 billion, compared with $111 million. Comparatively, connected LCD TV unit sales were up 40 percent quarter to quarter and 20 percent in factory revenue to $795 billion in Q2 2009, Quixel said.
Quixel Research estimated that currently 15 percent to 20 percent of TVs with built-in Internet capabilities are in fact connected to the Internet and projected that rate to increase dramatically by the end of the year.