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Study Shows ’Net-connected TV Gaining Ground

SANTA CLARA, CALIF.: A recent study from DisplaySearch says that “connected TV is reaching new heights” now. The study indicates more than 40 million units for tying television to the Internet are due to ship by the end of this year.

“It’s an exciting time for the connected TV sector,” said Paul Gray, DisplaySearch Director of European TV Research. “It’s a battleground where TV set makers, Internet video companies, free-to-air broadcasters, pay-TV and the IT industry are all rushing to stake their claims. IPTV is moving from being a technology to becoming recognizable service offerings.”

However, the rosy picture presented by the volume of units manufactured is tempered by lack of consumer acceptance. According to the report, only 10 percent of the IP-enabled television receivers sold in Japan have been connected to a network and “expectations for North America have been scaled back as the TV market struggles in the region this year.”

“It has been a long, challenging journey so far, especially with new competitors like Google TV joining the battle,” Gray said. “Set makers will have to acquire new skills such as negotiating content deals in order to succeed. I think most of the TV supply chain senses that this is a seismic shift in the usage of TV that will be far more significant than 3D, which will not alter TV function or usage patterns.”-- from TV Technology