Monday, 16 July 2012

It’s good to share as the connected device market prepares for growth spurt

A report by the analyst group IDATE reveals connected TVs will account for 63% of the new over-the-top services market by 2020. In addition to that, the global TV services market will amount to €355 billion by 2020, up from €233 billion in 2011. On average, over the next eight years, it means the market is set to grow by 4.7% annually. When you consider the wider economic climate, that’s an ambitious target to reach.

The driving force behind this however will be what the report calls the 'rest of the world' countries, including China, India, Russia and Brazil. These countries will increase their share of the global TV services market from 20% in 2011, to 42% in 2020.

One of the reasons for this growth is the development of on-demand-video services. IDATE’s deputy chief executive, Gilles Fontaine, believes "new on-demand services will increase their share of the global video market from 3% in 2011 to 12% in 2020.”

China and the Asian markets will be of particular interest as they continue to develop. Burgeoning middle classes in China and the modernisation of other economies in the region means there is, in every sense, a whole new market to explore.

We’ve said in the past that we expect to see a sharp curve on the adoption cycle of connected TVs. Consumer take-up stagnated in the early years, partly because the consumer education piece didn’t run parallel to the technology innovation. This is now being addressed and the benefits of connected TVs are already starting to light up living rooms. It’s now up to the industry to continue to develop additional, relevant, TV services to meet the forecasted demand.

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