Published on Friday, 21 May 2010 11:09
report "Market Opportunities for Internet Video to the TV- 2010 Edition
" states that 2010 will be the turning point at which devices supporting Internet video on the TV will see a marked increase in unit shipments and the point at which access to IP-based content will become an extension of both subsidized and stand-alone (proprietary) device supported video packages.
The report has a focus on the following device categories:
- Game consoles;
- Media extenders;
- TV sets with IP connectivity;
- Retail DTT+IP STBs;
- Blu-ray players and
- Proprietary equipment.
By having researched these device categories the report gives a holistic overview of the current state of the market.
The challenge is to materialize revenue streams which are founded on Internet Video, because the market is nascent, this yet has to happen.
Key findings from the report are:
- Game console manufacturers are evolving their respective market strategies by incorporating connectivity, Blu-ray functionality and access to content libraries, which has experienced significant in-roads into TV households in 2009. The US is expected to comprise nearly 25% of global game console shipments in 2015.
- Media extenders shipments will remain stable throughout the forecast period. With the exit of two major media extender manufacturers (HP and Linksys), IMS Research believes that shipments will continue to decline beyond the forecast time frame as Blu-ray players and game consoles begin to increasingly offer the same functionality and features.
- TV manufacturers indicated that 30-35% of manufactured TVs will have connectivity in 2010, as most leading manufacturers see this feature as a key differentiator. IMS Research expects that over the forecast period, connected TVs will become more common in smaller panel sizes, and will include the 30” to 39” inch panels.
- Although Blu-Ray players have seen slow growth since their launch in 2008, discussions with manufacturers indicated that the majority of Blu-ray devices shipped in 2009 had Internet connectivity, allowing consumers to access Amazon Video, Netflix, Roxio CinemaNow, VUDU and YouTube. With the new accessibility of VOD libraries and the average price of a Blu-Ray dropping to $175, manufacturers began to see an uptake in Q4 2009. Blu-ray players will grow 165% between 2010 and 2013 in the Americas.
- Proprietary devices' global revenues are anticipated to peak in 2014. In regard to overall shipments, the forecast from the 2008 edition of “Market Opportunities of Internet Video to the TV” has been reduced significantly due to the incorporation of proprietary VOD libraries available on both game consoles and Blu-ray players. In addition, interviewees noted that consumers are not interested in a device that serves one function, but prefer to purchase devices that provide multiple functionalities. In 2010, the US will account for 93% of proprietary equipment shipments in the Americas region.
- Pay-TV operators will increasingly make OTT offerings a part of subscription packages in 2010 and 2011 in order to reduce churn and increase value-add services. Today, Internet video portals serve as a bridge to additional content as operators continue to replace their installed base with next-generation connected STBs.
- By the end of 2015, 463 million households worldwide will be viewing Internet video on the television. The EMEA region alone will comprise 36% of these households.
- Nearly 125 million devices will support Internet video viewing onto the TV in 2010. Connected TVs and Blu-ray players will comprise 43% of these worldwide shipments.
Most of the questions -in any article and report- boil down to one key challenge: what are the new business models for current players (device manufacturers, operators and content providers) and new entrants and how will business models be influenced by these changing relations?
Will it be ad-support, subscription or a new model where consumers have one Paypal-ish
overarching account that will focus much more on tCommerce opportunities and revenue streams are divided amongst the involved players?