Internet-Video-Capable CE Shipments to Nearly Quintuple by 2013

Wednesday, May 27th, 2009
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Driven by the broadband access boom, global shipments of consumer-electronics devices capable of supporting Internet video are set to rise by nearly a factor of five from 2009 to 2013, according to iSuppli Corp.

By 2013, 376.5 million entertainment-oriented consumer electronics platforms with the capability to support Internet video will be shipped, up from 80.5 million in 2008. These platforms include televisions, Set Top Boxes (STBs), Blu-ray players, video game consoles and dedicated video platforms.

Thousands of Units 2008 2009 2010 2011 2012 2013

“The expansion of broadband Internet access from home computers to other devices including STBs has opened up a world of new possibilities for supporting Internet video via streaming and downloads,” said Sheri Greenspan, senior analyst for consumer electronics at iSuppli. “More importantly, the public is demanding this type of content on a wider variety of platforms. However, they want this content to be easily available, and they want it to be of the same video quality as the programming on their living room televisions.”

OEMs looking for new opportunities to differentiate themselves as well as content providers seeking new channels for distribution now view Internet television as a significant growth opportunity.

“Players across the consumer electronics supply chain are gearing up for the boom in Internet TV, which many consumer-electronics companies view as the next big thing in the digital home,” Greenspan added. “This opportunity spans every segment of the consumer electronics supply chain, from semiconductors, to contract manufacturing, to system OEMs.”

Internet television is here

While there are many Internet-video-capable consumer-electronics platforms on the market today, there are many more coming in the next few years that will begin to form their own ecosystem in the digital home, including televisions, Blu-ray and DVD players, game consoles and PCs.

But just because Internet television is here, it doesn’t mean the market will enjoy a smooth ride. In fact, many hurdles exist that will compel consumer electronics companies to educate consumers and the supply chain on the benefits of Internet video and how it can be implemented.

One major challenge is consumer confusion. With so many options out there, consumers may find themselves in a quandary over which platform, or combination of platforms, to choose. And as Internet TV is an undefined area, consumers may be confused as to how they will receive content or how providers will supply that content.

Another major challenge is bandwidth. While broadband access has expanded worldwide, a majority of consumers still do not have sufficient high-speed access to the Internet. Bandwidth requirements will need to increase if consumers are to enjoy a larger amount of video content that can be played instantly.

Despite these challenges, the future is bright for Internet TV on multiple platforms and the battle for the digital living room is just getting started.

Discover More on the Digital Living Room with the Latest iSuppli Report, More Than 375 Million Consumer Platforms to Support Internet Video by 2013.