TV makers have been betting big on 3D TV with hoards of new models hitting the market this year. The TVs have sold well enough, but the mass migration to 3D TV from many consumers just hasn’t happened due to high cost, the need for glasses, and lack of 3D content at this time.
DisplaySearch claims that 3D TV has captured the interest of consumers, but the industry is beginning to turn towards connected TVs as the next big thing. DisplaySearch predicts that over 40 million connected TVs will ship in 2010. Connected TVs have internet access that allows them to access content typically only viewed on computers and mobile devices. Many connected TVs offer access to streaming content services like Netflix, YouTube and many more.
DisplaySearch estimates that by 2014, 118 million connected TVs will ship each year. The shipment of connected TVs will increase as new service offerings come online like Hbb.tv and YouView.
“It’s an exciting time for the connected TV sector,” said 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 recognizable service offerings.”
DisplaySearch expects to see the connected TV market split with basic connected sets offering services like Hbb.tv, YouView, and VuDu. A higher-end smart TV segment will offer configurable apps, search capabilities, and navigation engines. These sets are likely to be offerings like the new Google TV service.
Gray also stated, "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. I think most of the TV supply chain senses that this is a seismic shift in the usage of TV that will be far more significant than 3D, which will not alter TV function or usage patterns."