Installed Base of Non-Mobile Web-Enabled CE Devices Expected to Hit 230 Million by 2014
The installed base of Web-enabled stationary CE devices is expected to jump by a factor of six by 2014 to more than 230 million units, according to In-Stat. Analyst Keith Nissen said consumer adoption of online applications through Web-enabled CE devices -- including digital TVs, Blu-ray players, set-top boxes, videogame consoles, DVRs and network storage devices --is driving the growth, especially in the U.S. and Europe, where online video is readily available. He said consumer adoption of apps on Web-enabled TVs will be regional and sometimes country-specific. China, he noted, has “very little licensed video entertainment content available for delivery over the Internet."
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In-Stat differentiates between network-enabled and Web-enabled CE devices. Both product categories involve network connectivity, “even if the network connection is used only for remote software updates,” Nissen said, and Web-enabled TVs are those that support IP packets. He told Consumer Electronics Daily that 70 percent of digital TVs will be network-enabled and roughly 66 percent will be Web-enabled by 2014. “This does not mean that the device will actually be used for acquiring online content,” just that it will have the capability to do so,” Nissen said. Blu-ray players with BD Live, along with hybrid cable and satellite set-top boxes, are considered Web-enabled, he said, and “smart” devices that support applications or widgets including Netflix and Pandora, are a subset of the Web-enabled camp.
Yahoo is the dominant smart TV platform used by CE makers, he said, “but manufacturers are hedging their bets by developing their own proprietary app platforms.” He cited Google TV and the various TVs supporting the Android platform that were introduced at CES.
The popularity of OTT video is creating interest in enhancing the IP video capabilities of cable, satellite and IPTV set top boxes, In-Stat said. And it said the “vast majority” of Blu-ray disc players and recorders shipped will be Web-enabled.
Asked about the effect of Web-enabled TVs and gaming consoles on DVD and Blu-ray sales, Nissen said In-Stat projects DVD player shipments to decline 10 percent annually over the next five years, and “none will be Web-enabled.” By contrast, Blu-ray players will see 33 percent compounded annual growth, while Web-enabled TVs will grow 28 percent and gaming consoles 7 percent, he said. Advanced Blu-ray players, digital TVs and gaming consoles together will make up 70 percent of Web-enabled devices shipped in 2014, he said. In-Stat is forecasting continued strong growth for Blu-ray players, “because consumers are unlikely to give up their preference for storing video content on discs in the near future,” Nissen said. Electronic sell-through is expected to “grow substantially,” he said, “but only if the content is sold online with a physical disc sent separately, regardless of whether content is streamed immediately.” Although most broadband households will own Web-enabled Blu-ray players by 2014, he said, they will be used mainly to play video discs and supplemental content using BD-Live, and they “won’t be the primary devices for acquiring online video content,” he said. He said supplemental video content will be available through other devices as well.