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Connected TV shipments to reach US$ 117bn in 2016

The proportion of TV sets shipped worldwide with Internet-ready connections will rise sharply from 25% in 2011 to 70% in 2016, generating revenues of over US$ 117bn, according to a new report from IMS Research.

“Internet connectivity is becoming a standard on high-end TV sets, and it’s increasingly being added to mid-end televisions,” said Veronica Thayer, Market Analyst at IMS Research, and author of the report. “TV set manufacturers’ product launch plans are expected to drive the majority of the growth for connected TV sets during the forecast period.”

The study also predicts that proprietary operating systems will remain the main type used by manufacturers in the next five years, although Android OS will start gaining presence, and is expected to reach a “significant” share of the market by 2014.

IMS Research’s forecast shows that during 2016, more than 80 percent of the connected TV sets shipped worldwide will have built-in Wi-Fi, and close to 30 percent will have advanced user interface features such as motion, gesture or voice.

“Connected TV sets will help boost sales of flat panel TVs as the awareness and the demand for Smart TV features increases,” added Ms. Thayer. “However, the impact that Internet-connectivity will have on total TV set growth will be diminished by the availability of other internet-connected devices such as Apple TV, Roku and game consoles.”

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