Game Consoles to Remain Preeminent Device for Web Video on TV in the U.S.

Monday, June 15th, 2009 
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SCOTTSDALE, Ariz. — The range of connected consumer electronics devices delivering web video into the living room is growing. Device types include digital media adapters (DMAs), pay TV set top boxes, Blu-ray player/recorders, HDTVs and media-center PCs. However, networked video game consoles are currently the most utilized devices for bringing web video to the TV and will remain so through 2013. By 2013, over 10.7 million consoles will be used as Web-to-TV mediation devices in the US, reports In-Stat.

While still at the early adoption stages, the impact of bringing web video to the TV will bring both opportunity and threats to a range of companies in the electronics and TV markets. By 2013, the revenue from Web-to-TV streaming services will grow to $2.9 billion.

“Currently Web video is largely additive to traditional TV revenue streams,” says Keith Nissen, In-Stat analyst. “However, ultimately web video to the TV will force a complete restructuring of today’s video distribution ecosystem.”

Recent research by In-Stat found the following:

  • Two separate in-home content delivery networks (CDNs) are evolving in the digital home–one for broadcast media services (e.g., cable TV), the other for Internet-based broadband services.
  • Within five years, the number of US broadband households viewing Web-to-TV content will grow to 24 million.
  • Already, 29% of US 25 to 34 year olds with game consoles use the devices to watch streaming video off the Internet.
  • Video content will be optimized for broadcast or Web-to-TV based on content type.

Recent In-Stat research, Web-To-TV Video Changes Everything (#IN0904404CM), covers the US market for Web-to-TV video. It includes:

  • Forecasts of devices used for video streaming, downloading and rental services.
  • Forecasts of total households using Web-to-TV video and the resulting subscription revenue generated, through 2013.
  • Analysis of the factors driving Web-to-TV video in the US.
  • Extensive consumer survey research characterizing usage, intent, device ownership, and demographic analysis.
  • Comparison of advertising effectiveness across multiple media, including TV, newspaper, online and mobile.