Story image

Smart TV sales to smash 50 million in 2012

29 Nov 12

Smart TV sales are set to reach 54 million by the end of the year, with worldwide sales expected to reach 220 million by 2017.

That is according to Informa Telecoms & Media’s latest Smart TV device forecasts, which predicts 31% of households worldwide will own at least one Smart TV in five years time.

But while Smart TV connection rates are rising, Informa says they will continue to lag the connection rates of games consoles and media streaming devices such as Apple TV and Roku.

With their long lifecycles, TVs are simply not the right device to be the hub of the digital home according to the report.

Consequently devices are regularly replaced, including smartphones, tablets, set-top boxes, media streamers and games consoles.

Smartphones in particular, with their short lifecycles and rapidly increasing processor power, will continue to define what ‘Smart’ means according to the company.

“Informa estimates that in 2017 more than half of the 800 million Smart TV sets will only be used as dumb screens,” says Andrew Ladbrook, senior analyst, Informa.

“Moreover, while any ‘smart’ TV bought in 2011 or 2012 can be used for streaming online video services for a few years, they lack the processing power and the necessary hardware to perform those smart TV functions that will be standard in 2015.

"Simply put, any smart TV purchased in 2012 will be effectively obsolete by 2015.”

Manufacturer’s short term support for their Smart TV products will also hinder the device according to the report.

New services will continue to only be launched solely on the latest Smart TV models - HBO Go, Skype, Onlive, BBC’s Sport app - which means that users who bought last year’s device are excluded.

Labrook believes the fragmentation of platforms and standards continues to plague the Smart TV market, with apps not easily released across multiple devices, since each Smart TV platform demands bespoke development.

But the situation benefits the current market leaders Samsung and LG who can attract top services first due to their strong positions, and while Informa believes that Google TV or Android will come to be the default Smart TV OS for Smart TVs, that is still some years away.

“If TVs are going to be truly smart they must do more than offer a wide variety of online video services,” Ladbrook says.

“Instead they must add advanced functionality including voice control, motion control, advanced advertising, attractive user interfaces and two-way communications with other smart devices – so-called ‘second screens’ – allowing these devices both to send video to the TV and know what is being watched.

"Manufacturers should focus less on adding more content and more on improving how users can interact with that content.”

Do you own a Smart TV? Tell us why below

IDC: NZ IT services market will near $4B in 2023
As cloud adoption grows with every company seeking the competitive advantage it can provide, the opportunities in IT services are expanding in kind.
HPE invests in services with new A/NZ execs 
With IT services spend growing in Australia and New Zealand, HPE is appointing execs for software and technology services in the South Pacific.
NZ’s $3.45bil IT services market fueled by competitive advantage
"With regards to cloud adoption, organisations are prioritising innovation and security over cost and scalability.”
Avaya expands AI offerings with new partnerships
The additions to the ecosystem will enable Avaya to add prioritisation and natural language processing to its UC solutions.
Hillstone CTO's 2019 security predictions
Hillstone Networks CTO Tim Liu shares what key developments could be expected in the areas of security compliance, cloud, security, AI and IoT.
Kiwis make waves in IoT World Cup
A New Zealand company, KotahiNet, has been named as a finalist in the IoT World Cup for its River Pollution Monitoring solution.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
Oracle Java Card update boosts security for IoT devices
"Java Card 3.1 is very significant to the Internet of Things, bringing interoperability, security and flexibility to a fast-growing market currently lacking high-security and flexible edge security solutions."