Report: TV Makers Should Focus on Connectivity, not 3D Jan 25, 2010

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The newly released IMS Research report, Market Opportunities for Internet Video to the TV - 2010 edition, reveals that global revenues of connected TVs will reach $29.3 billion in 2011, accounting for 58% of global revenues for Internet TV equipment in 2011.

Rebecca Kurlak, author of the report, states “At CES 2010, CE companies appeared to be largely pushing the 3D concept as a feature in their display offerings. However, a larger part of the picture that wasn’t as heavily addressed is still the growing opportunity to provide consumers with access to more content, and in this case, OTT content.”

Kurlak continues, “Although many of the TV manufacturers have committed to manufacturing at least 25%-30% of their TV product lines with connectivity in 2010, IMS Research forecasts that 12.5% of 2010 global TVs shipped will have connectivity.”

Kurlak believes this is mainly due to two factors:
1) TV manufacturers that were interviewed for the study stated that their first half of 2010 sales would largely influence the second half of 2010’s production schedules
2) The economy is still in recovery mode, and TV manufacturers may be more optimistic regarding 2010 production schedules than they should be. In fact, IMS believes that 2011 connected TVs shipped will hit the 30%, a year later than expected by TV manufacturers.

Since Blu-ray manufacturers have been quick to incorporate content libraries into their offerings, IMS believes that TV manufacturers will follow suit and address content partnerships this year. Before 3D viewing becomes a necessity, IMS Research anticipates that consumers will demand access to other avenues of content. By 2015, the research firm believers more than 463 million households will have the ability to view Internet video on their TVs.

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