Smart TVs and their ability to connect to the Internet will provide a "lifeline" to TV manufacturers, rescuing them from a stagnant market and possibly stemming billions of dollars in losses, research developed and released by Global Information Inc. (GII) suggests. Without these new applications running on TVs--and the availability of content to take advantage of them--TV set makers like Sony (NYSE: SNE), Panasonic (NYSE: PC) and Sharp could be in deep trouble, the "World Television Market" report said.
"TV manufacturers need a lifeline if they're going to stay in business. Smart TVs and connected services may provide such a rescue," the research firm said in a news release, noting that the global market on services on connected TVs should reach $3.23 billion in 2016, representing 16.8 percent of the OTT video market and "about 1 percent of the global fixed video services market."
The GII report estimated that worldwide paid services could represent 59 percent of the market for video services on connected TVs.
According to the research, the timing wasn't yet right for a wider rollout of new services that linked TVs with the Internet in 2012, so the market is not expected to really take off until 2015. In the meantime, the television manufacturing space needs some help.
"We are indeed currently nearing the end of a double phenomenon known as cord-cutting… and cord-shaving," the news release said. The report also concludes that because of its ability to generate new attractive OTT services, the U.S. will be the biggest market for connected TV services, with up to 61 percent of worldwide market share.
The world television market "is expected to experience a steady decline in growth up to 2016," said a report summary.
Beyond TVs, there will also be a growing market for "connected devices" such as Blu-ray players and 3D TVs.
For more:
- Global Information Inc. issued this news release
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