TV Everywhere | Page 5

tve@3108_news 01/09/2015 10:19 Page 4 Connected TV set boom continues he number of TV sets connected to the Internet will reach 876m by 2020, up from 105m at end-2010 and the 415m expected at end-2015, according to a new report from Digital TV Research. Covering 51 countries, the Connected TV Forecasts report states that the proportion of TV sets connected to the Internet will rocket to 29.9% by 2020, up from only 4.5% at end-2010 and the 15.5% expected by end-2015. By 2020, South Korea (55.0%) will have the highest proportion. At the other end of the scale, the proportion will only be 11.4% in India. The US will supply 184m connected sets by 2020, up from 112m in 2014. China will take second place in 2020, with 144m – up from only 21m in 2014. From the 538m additional TV sets connected to the Internet between 2014 and 2020, China will supply a massive 123m, followed by the US (72m), India (29m), Brazil (30m) and Japan (26m). Asia Pacific will become the largest region in 2017. According to Simon Murray, principal analyst at Digital TV Research, the connected TV sector has shifted considerably since the report's previous edition a year ago: “This includes fundamentals such as a revision downwards of TV set growth due mainly to greater competition from mobile devices. Furthermore, the gulf between rich and poor nations is not going to be breached as rapidly as we previously thought. Therefore, connected TV set forecasts for most developing countries, especially China and splash than previously expected.” The global total of connected TV sets via streaming/retail settop boxes such as Chromecast and Apple TV will reach 207m in 2020 (with 42m in the US and 39m in China), up from fewer than 4m in 2010. The expected 58m total by end-2015 is up from 37m a year earlier. The number of installed Smart TV sets overtook 30% will abandon poor video quality experience smartphone and tablet devices, paid-for services must be able to emulate traditional Pay TV on large screens (as well as smartphone or tablet) or risk losing paying customers. Eighty-four per cent of respondents said they would give a poor quality service at best a minute before moving on to the next thing. Respondents were vocal about the importance of this over the content of the programme - three out of 10 viewers will abandon a poor quality experience immediately, regardless of the content of the programme. Other key findings of the survey include: l High willingness to pay 6 out of 10 viewers pay for a subscription VoD service l PC is king – 79% of OTT TV Viewers prefer watching on a PC, despite the increasing move towards smart phone and tablet viewing l Choice is a defining factor for success - once a service is selected, 3 out of 10 subscribers look at the breadth of the content library as the key reason to stay or churn Hui Zhang, CEO of Conviva said: “The stakes have never been higher. It’s clear that, while consumers are flocking to OTT video, they don’t want T Viewers are looking for a TV-like experience and will quickly abandon their show if the spell is broken and they are reminded they are online, according to the findings of a UK consumer report from OTT video experience optimisation specialist Conviva, with one third of respondents singling this out as the most important factor when choosing a service. This is especially true when it comes to subscription-based services – despite the proliferation of India, are a lot lower. Retail OTT devices such as Chromecast and Apple TV have made more of a connected games consoles in 2013. Smart TV sets will account for 36% of the 2020 total connected sets, with 320m (of which 56m will be in the US and 64m in China). There were only 31m connected Smart TV sets by end2010, but this total will quintuple to 150m by end-2015. As a proportion of total TV sets, this percentage will climb from 1.3% in 2010 to 5.6% in 2015 and onto 10.9% by 2020. By 2020, this proportion will be higher than 10% of TV sets in 34 countries. “In the last edition, we expected that ninth-generation games consoles would launch in 2016 or 2017. However, 2019 now seems more likely. This means that games consoles will have a lower impact on connected TV. There is also much lower confidence in connected Blu-ray players continuing to make more of an impact on the sector.” The number of connected games consoles will rise to 169m by 2020; up from 107m in 2014. The US will provide 43m of the 2020 total, followed by Japan “The proportion of TV sets connected to the Internet will rocket to 29.9% by 2020.” (17m) and China (16m). to be reminded they are watching online. Slow start times, interruptions, poor picture quality – all have conside Ʌ