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3D TV makes noise; connected TV makes money

Despite what has been a tsunami of hype surrounding the next big thing that many say 3D TV, connected TV has been quietly racking up deals and real business over the last twelve months and, according to analyst Display Search, global connected TV shipments will boom over the next five years.

As highlighted in the DisplaySearch Q3 Quarterly TV Design and Features Report, connected TV will rack up 40 million shipments by the end of 2001. If that were not impressive enough, the survey calculates that this figure will reach 118 million units by 2014.

The expects most of the TV supply chain senses that connected TV represents a seismic shift in the usage of TV that will be far more  significant than 3D, which, it suggests will not alter TV function or usage patterns.

Display Search believes that a key driver will be set makers developing new service platforms to offer a variety of new formats for TV viewing, with broadcasters launching their own standards and portals such as Hbb.TV and YouView. Looking at the research data it is clear that no one company will dominate and no one region will be the home to connected TV with Europe, North America and Asia all coming on strong as the technology matures.

Yet the analyst expects the connected TV market to split, with basic connected sets carrying enhanced services such as Hbb.TV, YouView and VuDu, while the smart TV segment will encompass configurable apps, sophisticated search and navigation engines, and advanced user interfaces. DisplaySearch defines a smart TV as one that can retrieve content from beyond walled gardens, has intelligent search and recommendation, is upgradeable by its owner, and is able to network seamlessly with other devices in the home.

“It’s an exciting time for the connected TV sector,” commented Paul Gray, DisplaySearch Director of European TV Research. “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 recognisable service offerings.

“It has been a long, challenging journey so far, especially with new competitors like Google TV joining the battle. Set makers will have to acquire new skills such as negotiating content deals in order to succeed.”

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  • This is not surprising. Internet-connected TV provides substantial value that does not diminish over time. 3D effects are great, but many people will never use it as an everyday thing under current circumstances.

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