Increasing demand for new video content services such as Netflix, LOVEFiLM and YouTube are providing a commensurate spike in connected TV sales according to a new report from Juniper Research.
The ‘Smart Home Ecosystem: Connected Devices, Service Models & Revenues 2012-2017’ report boldly states that smart TVs are becoming mainstream amongst consumers, similar to smartphones and tablets. It forecasts that the number of residential TVs, connected to the Internet via different platforms such as Blu-ray players, set-top boxes and consoles, and also via built in wireless or Ethernet connectivity, will reach almost 650 million by 2017. By the same time Juniper expects smart home revenues to reach almost $60 billion, rising from $25 billion at the end of 2012.
Even though the replacement cycle of TVs are longer than for, say, smartphones, the report forecasts strong growth over the forecast period and adds that the revenue and profitability of traditional entertainment services within the home has attracted many new players including content aggregators and platform providers such as Apple and Google.
Observed report author Nitin Bhas: “The consumer electronics industry along with key players, such as the content aggregators and platform providers, needs to clearly define this device ecosystem and start working towards driving this phase of growth and turn it into a revenue opportunity.”
Adding further fuel to the rocketing sales will be the fact that as the cost of these connected devices fall over the next five years, the value of connectivity will rise.