40 Million Connected TVs to Ship in 2010 - Broadcasting & Cable

40 Million Connected TVs to Ship in 2010

DisplaySearch forecasts 118 million worldwide connected TV shipments by 2014
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While
the industry has been focusing much of its attention on 3D TV set
sales, DisplaySearch is predicting that over 40 million TV sets that can
be connected to the internet will be shipped worldwide in 2010 and that
this number will grow to 118 million global shipments by 2014, a trend
that will likely heat up the competition between over-the top internet
providers of video and traditional broadcasters and multichannel
providers.

In contrast, DisplaySearch is
predicting that only 3.2 million 3D TV sets will be sold worldwide this
year, about 2% of all flat panel TV shipments.

"It's
an exciting time for the connected TV sector," noted DisplaySearch
Director of European TV Research Paul Gray in a statement. "It's a
battleground where TV set makers, internet video companies, free-to-air
broadcasts, pay-TV and the IT industry are all rushing to stake their
claim."

"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," he added.

Although the trend will
encourage programmers to find new ways to deliver video to these sets,
DisplaySearch analysts cautioned that consumers around the world
remained confused about the technology. A recent DisplaySearch report
found, for example, that only 10% of the connected TVs sold in Japan-a
market with a long history of consumers embracing advanced
technologies--have actually been hooked up to a network.

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

The Santa Clara-based
research company is also predicting that the market will split between
more basic connected units and so-called "smart TVs" that will have
configurable apps, sophisticated search and navigation engines and
advance user interfaces.

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