The number of TVs connected to the Internet is definitely on the rise, and by 2017 that number is expected to hit a whopping 650 million.
According to a new report from Juniper Research, the number of television that connect to the Internet in some fashion will reach 650 million by 2017. This isn't to say the number is exclusive to TV sets with Ethernet and Wi-Fi built-in, mind you, but also includes those that have Internet enabled devices such as Blu-ray players, set-top boxes and consoles.
While the report doesn't give any specifics to the current number of connected TVs, it does tell us that currently the market is generating about $25 billion sales, and that is expected to soar to $60 billion by 2017.
While all this is well and good, it is yet another thing to connect to your home router and draw more bandwidth from your account. With Internet Service Providers putting in more and more bandwidth caps, they may be quaking in their collective boots at the thought of how much more this is going to consume. If anything can stifle this market from growing, that may be it.
Internet Connected TVs to Reach 650m by 2017, Driven by Smart Home Entertainment Services
Hampshire, UK – 1st August 2012: A new report from Juniper Research forecasts that the number of residential TVs, connected to the Internet via different platforms such as Blu-ray players, set-top boxes and consoles, and also via built in wireless or Ethernet connectivity, will reach almost 650 million by 2017.
The report finds that Smart TVs are becoming mainstream amongst consumers, similar to smartphone and tablet adoption. Even though the replacement cycle of TVs are longer than for, say smartphones, the report forecasts strong growth over the forecast period.
The Demand for Online Content
The report 'Smart Home Ecosystem: Connected Devices, Service Models & Revenues 2012-2017' finds that there is an increasing demand from consumers for new video content services from so called OTT providers Netflix, LOVEFiLM and YouTube. The revenue and profitability of traditional entertainment services within the home has attracted many new players including content aggregators and platform providers such as Apple and Google.
This consumer demand for connectivity and content has influenced the smart home entertainment segment in a major way along with the – integration of social media, multi-screen strategies and applications.
Increasing Number of Connected Home Devices
Report author Nitin Bhas noted that as the cost of these connected devices fall over the period of forecast, the value of connectivity will rise.
"The consumer electronics industry along with key players, such as the content aggregators and platform providers, needs to clearly define this device ecosystem and start working towards driving this phase of growth and turn it into a revenue opportunity", Bhas added.
Other key findings include:
- Indian Subcontinent will account for the lowest proportion of connected TV sets throughout the forecast period, due to the lack of fixed broadband connections
- Smart Home Revenues to reach almost $60bn by 2017, rising from $25 billion this year