Study says 200mn non-set-top box devices will feed TV sets in 2012

November 14, 2007 - IMS Research is predicting that in 2012, 200mn non-set-top box Consumer Electronics devices will be shipped that can deliver digital video content to the television set.

This includes a growing number of IP-enabled consoles, SlingCatcher and Apple TV type devices. Given the growth of ‘over-the-top’ services like Joost, this presents a challenge to existing television providers.  Anna Hunt, Research Director and author of the study, notes:  “Integration of digital receiver technology into DVD and blue-laser products and into TV sets, as well as IP-enabling of many CE devices such as game consoles, is becoming much more popular. This trend illustrates that in the future, many CE devices, beyond the STB (set-top box), will deliver digital video content to the TV set.

“With services such as Joost and Xbox LIVE Marketplace, as well as content providers’ initiatives to deliver content directly to consumers, traditional cable and satellite TV operators will continue to face challenges relating to the integration of new concepts and technologies into their service and content strategies in order to remain competitive.” 

IMS Research estimates that this year, about 30.7 million IP-enabled consoles will ship worldwide as well as over 6 million devices such as digital media adapters, SlingCatcher, Apple TV, and Media Center PCs. The figures are contained in the recent study: ‘Hybrid Set-top Box Developments and the Impact of Other Hybrid Equipment’.

The UK, Texas and Shanghai based research company says relationships that are being formed among CE suppliers and Internet companies, such as the one between LG Electronics and Google, are a promising sign of convergence of traditional linear and new IP-delivered content within the TV set. It also predicts that advances in security technologies, such as DRM and watermarking, are likely to enable richer features and expanded usage models versus historically being viewed as limiting factors.

The report also concludes that user interface, installation and usability have yet to attain the level of seamless simplicity needed for mass-market adoption of devices such as A/V networked Media Center PCs and digital media adapters.