There are 30 million US broadband households currently viewing some form of online video on the TV.  In addition to downloading digital video, close to 90% of these households also stream online video to the TV.  Over the next five years, analysts at In-Stat expect that the majority of CE devices purchased, including digital TVs, Blu-ray players, and gaming consoles will be web-enabled, with 137 million devices shipping in the US in 2014.

“The future will be a hybrid environment in which consumers will get their digital entertainment from both pay-TV and online sources,” according to Keith Nissen, Principal Analyst.  “Digital entertainment will be viewed on a plethora of web-enabled devices, dictated by content type, source, location, and many other factors.  However, the home big screen TV will continue to be the preferred device for consuming both broadcast as well on-demand video content.
Some of the factors affecting the growth in web-enabled device shipments include:
  1. Within five years, over 11 million operator-provisioned hybrid STBs will be capable of delivering online video content directly to the TV.
  2. By 2014 there will be 57 million US broadband households viewing full-length online video on the TV.
  3. Web-to-TV video content revenue will reach $17 billion by 2014
  4. Among households viewing Internet TV at least once a week, the 45 to 54-year old age group saw the biggest percentage increase from 2009 to 2010.
Recent In-Stat research “Web-to-TV Gaining Momentum in the US”, uses primary research to quantify current web-to-TV consumer behavior, as well as forecasting total US web-enabled device shipments and installed bases. Three alternative web-to-TV models (Overlay, Bundled, and Integrated) are examined in order to assess how OTT video content may be monetized in the future. A five-year forecast for each alternative model is presented and compared.