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/ 08.17.2010 1:00PM
Forget 3D, Web-connected TV's the Thing
SCOTTSDALE, ARIZ.: In-Stat says
Web-to-TV video is growing more rapidly than forecasters expected. The market
researchers now say that by 2014, there will be 57 million U.S. broadband
households viewing full-length online video on TV. Revenues associated with the
content are projected to grow from $2 billion to over $17 billion over a
five-year period.
“The over-the-top video market represents a new distribution channel for
digital entertainment,” says Keith Nissen with In-Stat. “Content producers want
to market premium video content directly to the consumer. However, they have
not yet decided the best way to monetize OTT video content and how to manage
the OTT opportunity in context with their legacy distribution partners.”
Factors affecting the related revenue trajectory include the installed base of
Web-enabled consumer video gear--e.g., connected TVs, peripheral streaming devices,
etc. In-Stat projects such devices will grow from 70 million in 2009 to 237
million by 2014. The total number of U.S. broadband households with Web-enabled
video devices will triple by 2014 to 98 million (versus the 57 million viewing full-length online video on TV, presumably).
In-Stat says that 11 million “operator-provisioned hybrid set-top boxes will be
delivering online video content directly to the TV.”
iSuppli, a market research firm in El Segundo, Calif., predicts that global
shipments of Web-enabled TVs will reach 148.3 million by 2014. Again, this does
not include the peripherals and set-tops factored in by In-Stat. Just TVs only.
By comparison, iSuppli pegged global shipments of 3DTVs to be less than half of
that by 2014.
For 2010, iSuppli puts global shipments of 3DTVs at 4.2 million (compared to the
2.1 million units expected to ship in the United States this year, as
prognosticated by the Consumer Electronics Association). iSuppli’s estimate of
Web-connected TV shipments at 27.7 million this year. Richard Kastelien of App
Market obtained iSuppli’s report, which contained this quote from Riddhi
Patel of iSuppli.
“Despite aggressive promotions from the industry and intense consumer interest
generated by the blockbuster Avatar and other titles, the 3-D TV market in 2010
will be limited to a small pool of enthusiastic early adopters. In contrast,
IETV is entering the mainstream in 2010. This is because 3-D is still dealing
with a number of barriers, including cost, content availability and
interoperability, while IETV provides immediate benefits by allowing TV viewers
to access a range of content readily available on the Internet.”
-- Deborah D. McAdams
More fun with numbers...
July 22, 2010: “CEA Now Expects 2.1
million 3DTVs to Ship in 2010”
Shipment of 3D displays is forecast to reach to 2.1 million this year.
Related revenues will top $2.7 billion. The CEA in January predicted 4 million
3DTVs would ship. A month later, the number was revised to 1.05 million,
reflecting that a “3DTV” set had to have HDMI 1.4 capability.
June 29, 2010
: “TV Purchases Expected
to Be 20 Percent 3D in 2013”
Year-over-year shipments are expected to grow 231 percent between 2010 and
2011, resulting in a doubling of the U.S. installed base of units for 3DTVs
from 2010 to 2011.
May 26, 2010
: “U.S. 3DTV
Demand Predicted to ‘Soar’”
In-Stat predicts 2011 shipments of 3DTV sets will increase 142 percent over
this year. 3DTV sets, along with mobile internet devices--MIDs--will be an
adrenaline shot for the consumer electronics industry.
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