Shipments of internet-connected TVs are expected to reach 118 million by 2014, according to a new report for display market researcher DisplaySearch.
This will represent an impressive tripling in three years compared to this year’s anticipated 40 million figure, says the Quarterly TV Design and Feature Report for the third quarter of 2010.
The report finds that at the same time TV set manufacturers are ramping up connected TV deliveries, broadcasters are launching new standards and portals, such as Hbb.TV and YouView, to address this growing segment.
“It’s an exciting time for the connected TV sector,” says DisplaySearch director of European TV research Paul Gray. “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.”
While connected TV shipments are ascending, there are challenges. According to Gray, set makers will have to acquire new skills such as negotiating content deals 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 3-D, which will not alter TV function or usage patterns,” he says.
DisplaySearch also predicts a landscape in which basic connected sets offer enhanced services, such as VuDu, and smart TVs give viewers features equivalent to smart phones, such as configurable apps, access to search engines and advanced user interfaces.
