tve@3108_news 01/09/2015 10:19 Page 4
Connected TV set boom continues
he number of TV sets
connected to the
Internet will reach
876m by 2020, up from
105m at end-2010 and the
415m expected at end-2015,
according to a new report
from Digital TV Research.
Covering 51 countries, the
Connected TV Forecasts report
states that the proportion of TV
sets connected to the Internet
will rocket to 29.9% by 2020, up
from only 4.5% at end-2010 and
the 15.5% expected by end-2015.
By 2020, South Korea (55.0%)
will have the highest proportion.
At the other end of the scale, the
proportion will only be 11.4% in
India.
The US will supply 184m
connected sets by 2020, up from
112m in 2014. China will take
second place in 2020, with 144m
– up from only 21m in 2014.
From the 538m additional TV
sets connected to the Internet
between 2014 and 2020, China
will supply a massive 123m,
followed by the US (72m), India
(29m), Brazil (30m) and Japan
(26m). Asia Pacific will become
the largest region in 2017.
According to Simon Murray,
principal analyst at Digital TV
Research, the connected TV
sector has shifted considerably
since the report's previous
edition a year ago: “This includes
fundamentals such as a revision
downwards of TV set growth due
mainly to greater competition
from mobile devices.
Furthermore, the gulf between
rich and poor nations is not
going to be breached as rapidly
as we previously thought.
Therefore, connected TV set
forecasts for most developing
countries, especially China and
splash than previously expected.”
The global total of connected
TV sets via streaming/retail settop boxes such as Chromecast
and Apple TV will reach 207m in
2020 (with 42m in the US and
39m in China), up from fewer
than 4m in 2010. The expected
58m total by end-2015 is up from
37m a year earlier.
The number of installed
Smart TV sets overtook
30% will abandon poor
video quality
experience
smartphone and tablet
devices, paid-for services
must be able to emulate
traditional Pay TV on large
screens (as well as
smartphone or tablet) or risk
losing paying customers.
Eighty-four per cent of
respondents said they would
give a poor quality service at
best a minute before moving
on to the next thing.
Respondents were vocal
about the importance of this
over the content of the
programme - three out of 10
viewers will abandon a poor
quality experience
immediately, regardless of
the content of the
programme.
Other key findings of the
survey include:
l High willingness to pay 6 out of 10 viewers pay for
a subscription VoD service
l PC is king – 79% of OTT
TV Viewers prefer watching
on a PC, despite the
increasing move towards
smart phone and tablet
viewing
l Choice is a defining
factor for success - once a
service is selected, 3 out of
10 subscribers look at the
breadth of the content
library as the key reason to
stay or churn
Hui Zhang, CEO of Conviva
said: “The stakes have never
been higher. It’s clear that,
while consumers are flocking
to OTT video, they don’t want
T
Viewers are looking for a
TV-like experience and will
quickly abandon their show
if the spell is broken and
they are reminded they are
online, according to the
findings of a UK consumer
report from OTT video
experience optimisation
specialist Conviva, with one
third of respondents
singling this out as the
most important factor when
choosing a service.
This is especially true
when it comes to
subscription-based services –
despite the proliferation of
India, are a lot lower. Retail OTT
devices such as Chromecast and
Apple TV have made more of a
connected games consoles in
2013. Smart TV sets will account
for 36% of the 2020 total
connected sets, with 320m (of
which 56m will be in the US and
64m in China).
There were only 31m
connected Smart TV sets by end2010, but this total will quintuple
to 150m by end-2015. As a
proportion of total TV sets, this
percentage will climb from 1.3%
in 2010 to 5.6% in 2015 and onto
10.9% by 2020. By 2020, this
proportion will be higher than
10% of TV sets in 34 countries.
“In the last edition, we
expected that ninth-generation
games consoles would
launch in 2016 or 2017.
However, 2019 now seems
more likely. This means
that games consoles will
have a lower impact on
connected TV. There is also
much lower confidence in
connected Blu-ray players
continuing to make more of an
impact on the sector.”
The number of connected
games consoles will rise to 169m
by 2020; up from 107m in 2014.
The US will provide 43m of the
2020 total, followed by Japan
“The proportion of TV sets connected to the
Internet will rocket to 29.9% by 2020.”
(17m) and China (16m).
to be reminded they are
watching online. Slow start
times, interruptions, poor
picture quality – all have
conside Ʌ