Record growth in the connected TV marketplace
Posted on Nov 16, 2012 by YuMe
More consumers than ever before own and are using internet-enabled connected televisions, according to two recently commissioned reports.
According to research by Rovi and Parks Associates, smart TV ownership is on the rise among all population segments, and its use was found to be especially prevalent among wealthier people. StreamingMedia.com reported that 55 percent of households with an annual income of more than $75,000 have a connected television.
The study also looked at how web-connected TV sets affected consumer viewing habits, finding that people were more likely to use a TV's internet capabilities for general content browsing. The online news source reported that 72 percent of the connected television owners polled said their device makes watching shows more convenient, and 62 percent indicated they like watching TV more now that they can use their set to go online.
"These systems enable advertising to be integrated into device navigation and content search, engaging consumers at a point of high receptivity and enabling them to immerse themselves in a rich brand experience," said Heather Way, senior research analyst for Parks Associates, according to Streaming Media. "As a result, over 50 percent of U.S. connected-TV households surveyed by Rovi consider these ads as content, containing useful and valuable information, and they are much more likely to remember and click on these ads."
Total number of connected TV sets nationwide
By the end of this year some 212 million TV sets will be able to access content via the internet, according to a recent report by Digital TV Research. Over the next five years, that figure is expected to jump to 596 million devices. To put this in perspective, about 104 million television sets connected to the web at the end of 2010, The Hollywood Reporter said.
United States residents are one of the main drivers of the connected TV industry's expected growth, as the Digital TV Research study found that 37 percent of the world's supply of internet-connected sets, 78 million in total, will be in this country by the end of 2012. By this year, there should be an estimated 147 million smart TV sets in the U.S.
Of the myriad ways in which a TV set can be connected to the web, the report showed that video game consoles were the more prevalent way to go online in 2010. However, that should change over the next five years, as smart TV sets with built-in internet capabilities should account for 41 percent of the marketplace, about 243 million devices in total. Researchers predicted consumers will increasingly connect via over-the-top (OTT) devices in the coming years as well.
"Critics complain that connected TV sets provide a clunky experience," said Simon Murray, the report's author, according to The Hollywood Reporter. "Although this is a wake-up call for those involved in the sector, these deficiencies are likely to be addressed reasonably soon as connected TV becomes mainstream. Unsurprisingly, the bulk of online usage via connected TVs is TV-related."
How the UK connected TV market will fare
The domestic marketplace is not the only place where connected television is becoming increasingly commonplace, as a recent study by YouGov found that the technology trend is becoming more widely adopted in the United Kingdom.
The study found that about 11 percent of U.K. residents anticipate purchasing a connected TV set over the next 12 months, and approximately 55 percent of those polled said they have already connected their television to the web at least once. By next year, the country's internet-enabled television marketplace could be worth more than $4 billion, Digital TV Group reported.