Smart TVs to drive internet-connected TV growth

Published June 29th, 2017

By the end of 2020 there are forecast to be 260 million installed devices attached to the Internet and able to deliver apps to TVs, according to the latest NPD Connected Intelligence forecast.

This represents 31% growth in TV-connected devices over the forecast period, led by smart TVs and streaming media players. In fact, smart TVs will drive nearly half (48%) of installed Internet-connected TV device growth through 2020, while streaming media players will contribute 31 percent of ownership growth.

The TV-Connected Device Forecast looks to shed light on how new generation smart TVs and evolved streaming media boxes and sticks will shape home entertainment. According to the forecast, by 2018, and through the end of the forecast period, household penetration of smart TVs will achieve relative parity with streaming media players as platforms delivering apps to TVs.

“Sales of smart TVs and continued growth in streaming video will contribute to the increase of installed internet-connected TVs,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence.

“Additionally, 4K mass market adoption plays an important role, as nearly all 4K TVs are internet capable.”

The rate of attaching connectable-TV devices to the internet is projected to increase from 73% in 2016 to 81% of installed units by 2020. This will eventually lead consumers to choose a preferred device and result in a diminished use of other devices. From January 2013 through January 2017, usage of installed internet capable TVs to access online content increased from 30 to 55%, demonstrating growing consumer interest in streaming video. As such, streaming media player original equipment manufacturers (OEMs), including Google, Roku and Amazon, continue to partner with TV OEMs to integrate their operating systems directly into displays.

“All trends point to smart TVs and streaming media players driving the majority of growth in TV-connected devices. When you compound the increased usage for streaming video, it points to further dominance of these platforms, as they provide the premium content and ease of use consumers demand,” noted Buffone.

Source: BroadbandTV News 

European OTT / VOD Providers Leverage Population Diversity and Changing Subscriber Preferences to Expand Installed Base

There is a high level of activity in the European over-the-top (OTT) / Video-on-Demand (VOD) services market in terms of financial investments, new features, and service launches. The fragmented ecosystem, with over 450+ unique video on demand service providers in the region, is transforming as partnerships between various stakeholders in the value chain increase to capture market share. About EUR150 million was invested in 2016 in content and technology firms to drive expansion of connected video services. However, intense competition, price sensitivity among consumers, regulatory uncertainty due to Brexit policies, and the digital single market strategy of the European commission, are some of the challenges that could restrain the growth of the market in the near term. Content personalization and customization strategies are crucial for growth, finds Frost & Sullivan's Digital Transformation team "Various events in the media industry in 2016 and early 2017 reflect that the OTT video industry in Europe is undergoing major transformation," states Frost & Sullivan Digital Transformation Analysts Vidya S Nath and Swetha R K. "Despite being a highly fragmented market, there have been several new launches with innovative features and services." "Despite intense competition, a fragmented structure and regulatory pressure, the diversity of the population and changing subscriber preferences ensures that there is still space for everyone," notes Swetha R K. "Strong content strategy and technological innovation will be the key to differentiation." Key factors fuelling growth in the European OTT market include: • OTT/ VOD services being offered by the entire ecosystem of media companies including, Pay TV providers, broadcast  networks, OTT portals, and social media companies • Expanding Internet penetration levels and demand for travel-friendly options to watch TV that promote online multimedia consumption; • Innovation in the form of several advanced value-added features and novel business models; • Diverse international and local content and attractive bundling offers from TV providers that fuel OTT service adoption among a tech-savvy population; • Low penetration in Central and Eastern Europe, where demand for local content is booming; and • Need for an assortment of service providers for different requirements of an OTT video operator, including compression, streaming, real-time video analytics, user experience, and payment options. "While the next 12 months hold a promising market outlook for OTT growth, the key to survival and sustenance of growth will depend on how various service providers are able to drive personalization and customization while differentiating their service value proposition, " reveals Nath. Nordic TV Summit – exploring Content personalization and customization strategies According to the new research from Frost & Sullivan, content personalization and customization strategies are crucial for growth. At the annual Nordic TV Summit in Copenhagen, Sept. 28th, we’ll talk more about the need for content personalization and customization strategies, get insight from industry pioneers, share best practice and much more. Visit www.nordictvsummit.com for more details about this must attend event. Source: Newswire