Connected TVs poised to topple games consoles for online video usage

While games consoles such as the Xbox 360 and PlayStation 3 have converted many consumers into avid fans of online video on the television, their penetration will be overtaken by other devices such as connected TVs and Blu-ray players by 2017, according to new figures from ABI Research.

Connected TV penetration in North America and Western Europe is predicted to surge from just over 10% in 2011 to over 50% by 2017, whilst Blu-ray penetration is expected to have a similar progression, increasing from about 25% in Western Europe and North America in 2011 to over 76% by 2017.

Meanwhile, game console penetration rates by 2017 are only expected to pass 61% and 46% in North America and Western Europe respectively, with rates significantly lower in other regions.

Michael Inouye, senior analyst at ABI Research, comments: “Most CE manufacturers (notably, Samsung and LG) use a common platform for connected TVs and Blu-ray players. Microsoft and Nintendo play only in the game console market, while Smart STB leaders Apple and Roku don’t compete in the other connected categories.

“Sony is unique is its participation in game consoles (PS3), connected TVs, Blu-ray players, and Smart STBs. In the TV and Blu-ray space Samsung and LG have been the most proactive at bringing connected features – for example, introducing new user interfaces that parallel the features first made popular by the game consoles.”

The spread of connectivity is not thought to be unique to mature markets, as original equipment manufacturers in China, such as Skyworth and TCL, have also reported growing shipments of connected TVs.

The US research firm believes that in many regards, the TV is the most natural device to access connected services and content – there is no need, for instance, to change the video input when accessing online content.

In primary survey studies, consumers have also placed the connected TV as the most desired device to receive Internet content on the main screen. Despite this growth, however, one device type will not command the market, placing greater emphasis on the overall ecosystem.

Mr. Inouye added: “The early connectivity lead enjoyed by the game consoles will continue to wane, but this does not mean these devices will become integrated into the TV. The 8th generation of consoles will offer a boost to the industry, placating core gamers with new hardware while expanding the device’s role as the central media hub through complementary media and services. Game consoles will be de-throned as the most connected CE device, but they may remain the most relevant.”

We welcome reader discussion and request that you please comment using an authentic name. Comments will appear on the live site as soon as they are approved by the moderator (within 24 hours). Spam, promotional and derogatory comments will not be approved

Post your comment

Facebook, Instagram and Sky case study: Game of Thrones

BT at IBC: 'unlocking the power of fibre IPTV'

IP&TV News tries out 4G Broadcast at the FA Cup Final

Thomas Riedl: “Google TV has evolved into Android TV”

Tesco and blinkbox: what went wrong?

Reed Hastings and 2030: is he right?