This report examines the market around the new medium of Connected TV. It
looks at the role of established TV broadcasters, Internet companies, TV and
set top box makers, and niche players in the new industry aiming to take
market share from the incumbents. It examines the birth pangs of Connected TV
and includes detailed analyses of each of the main players' strategies for
gaining market share.
Features and benefits
Understand why the Internet TV market is about to become the biggest new
entertainment medium since the advent of broadcast TV.
Identify the key players in the market and how they are positioned to take
full commercial advantage of Connected TV.
Establish successful monetization strategies to take advantage of the new
medium.
Analyze the current and future state of the Internet TV market, focusing
on Connected TV.
Examine the way in which social networking, 3DTV and other innovations are
set to accelerate the adoption of Internet TV.
Highlights
Global Connected TV shipments are set to see huge growth over the coming
years, at a CAGR of 58.3% between 2009-14. The Asia-Pacific region is the
driving force, with CAGR of over 60% and representing almost half of global
shipments by 2014. Although still a small market, the Middle East and Africa
will see the fastest growth over the period.
Global total set top box shipments (including DTT, IPTV, Cable, and Satellite
connections) are set to grow from around 177m in 2009 to over 207m in 2014.
Global IPTV set top box shipments are expected to grow from 19.4m to 57.5m
between 2009-14.
The battle to win a big slice of the global connected TV pie has already
attracted companies which are not traditionally associated with living room
TV. Google TV, Yahoo Connected TV, Apple TV and even Microsoft are now all
hotly competing for TV viewers in the era of Connected TV.
Your key questions answered
What is the scale of the Connected TV and set top box market?
Will Internet TV replace traditional broadcasting?
Who will be the winners and losers in the Connected TV market?
What technologies/services/content will come to dominate the new medium?
How will the new medium develop over the next five years?
Table of Contents
Tony Glover
Disclaimer
EXECUTIVE SUMMARY
Introduction to Connected TV
Market dynamics
The main players - changing competitive landscape
New players - changing competitive landscape
Developments in the set top box market
Opportunities and challenges in 3D Connected TV
The Future of Connected TV
Introduction
Scope and interested parties
Methodology
Primary research
Secondary research
Glossary/Abbreviations
Introduction to Connected TV
Summary
Introduction
The battle for market share
Microsoft already connects to millions of TVs
New impetus for connected TV at CES 2011
Market dynamics
Summary
Introduction
Monetization strategies
Potential revenue sources:
The ‘Walled Garden’
Future growth
Connected TV shipment growth
Global growth drivers
Global growth inhibitors
Growth in online video
Industry forecasts
Widening the TV broadband pipe
Global broadband adoption
UK broadband adoption
Cutting the cord
Gaming, shopping and adult content to drive revenues
Gaming and retailing
Adult viewing
‘Picks and shovels’
Stakeholders further down the value chain make the most of Connected TV
European software developers
The main players - changing competitive landscape
Summary
Introduction
Major players
Sky versus BT - a dispute over content
BT enters the social networking arena
Sky improves existing service
Sky 3D
Sky SWOT analysis
BT SWOT analysis
Virgin territory
Virgin Media SWOT analysis
Google TV versus Yahoo Connected TV
Yahoo Connected TV to monetize its offering
Yahoo Connected TV SWOT analysis
Facebook weighs in
Facebook SWOT analysis
New competitors - changing competitive landscape
Summary
Introduction
Google gets tough
Clampdown on search results for potentially illegal content
File sharers fight back
BitTorrent versus Google
Google blocks BitTorrent, but BitTorrent has governmental seal of
approval
Google' s ban is strategic, not altruistic
BitTorrent' s position depends on the outcome of the net neutrality debate
BitTorrent exclusive Q&A - becoming a central pillar of connected TV
BitTorrent SWOT analysis
Google SWOT analysis
New competitor SWOT analyses
YouView SWOT analysis
Netflix SWOT analysis
Hulu SWOT analysis
Developments in the set top box market
Summary
Introduction
Advantages over connected TV sets
Set top box market growth
Total shipments
Connected set top box shipments
Console shipments
Microsoft sell more set top boxes than Apple
Apple TV
Apple SWOT analysis
Microsoft SWOT analysis
Beyond Apple and Microsoft
Pace shows strong growth
Mobile convergence encourages competition
Rivals such as Roku and Boxee benefit from Apple TV' s publicity
The set top box middleware market
Microsoft leads the market but competitors form partnerships to fight
back
Low cost Asian developers threaten western incumbents
Opportunities and challenges in 3D Connected TV
Summary
Introduction
New 3D TVs in 2011
New 3D TVs rolled out but uncertain to make an impression
Consumer attention, equipment, cost and content all provide challenges
Walled garden approach counteracts piracy
Health fears
Drivers and inhibitors to investing in 3D TV
Drivers
Inhibitors
The future of Connected TV
Summary
The shape of things to come
Social networking and interaction with content
Mobile services combine with the TV to create disruption
Increasingly interactive services
Consumer meta-themes driving adoption of Connected TV
Convergence
Personalization
Social networking
Conclusion
TABLES
Table: IPTV subscriber share by region, 2010
Table: Connected TV shipments by region (m), 2009-2013
Table: Internet video users by region (m), 2009-2014
Table: Top 10 broadband countries by fixed lines (m), Q3' 09-Q3' 10
Table: Global broadband technology market share (%), Q3' 10
Table: Global total set top box shipments (m), 2009-14
Table: Global connected set top box shipments (m), 2009-14
Table: Global connected set top box shipments as % of total, 2009-14
Table: Global fixed console shipments (m), 2009-14
FIGURES
Figure: IPTV subscriber share by region, 2010
Figure: Connected TV shipments by region (m), 2009-2013
Figure: Internet video users by region (m), 2009-2014
Figure: Top 10 broadband countries by fixed lines (m), Q3' 09-Q3' 10
Figure: Global broadband technology market share (%), Q3' 10
Figure: Global total set top box shipments (m), 2009-14
Figure: Global connected set top box shipments (m), 2009-14
Figure: Global connected set top box shipments as % of total, 2009-14
Figure: Global fixed console shipments (m), 2009-14
Figure: Consumer meta-themes shaping the Connected TV market
