180m Smart TVs by 2016

IMS Research confirms a trend we have been reporting for several years: smart TVs will become the primary device for consumers to access OTT video.

“We expect yearly shipments of connected TVs to reach 180 million units worldwide in 2016, and for yearly shipments of connected TVs to begin outnumbering shipments of all other consumer OTT video devices combined by 2015. Pay-TV operators, application developers, content providers, and OTT service providers such as Netflix should all strategically be planning for a future where the most common OTT video device is the television.”

The worldwide installed base of connected TVs is expected to surpass game consoles by the end of this year, IMS said.

IMS says that despite the proliferation of connected devices such as Blu-ray players, smart adapters and game consoles, smart TVs are overtaking the market. We have reported that many consumers are buying smart TVs without realizing their OTT capabilities.

OTT video functionality is becoming a standard in affordable TV, it said, increasing the size of their installed base. IMS said smart TVs will become the most popular and most used for watching OTT videos.

“Televisions, despite their higher price point compared to Blu-ray disc players and game consoles, tend to be more mainstream devices that are purchased in greater numbers and are more universally present in a larger number of households worldwide,” said Paul Erickson, senior analyst at IMS Research. “As broadband penetration increases worldwide and OTT functionality becomes commonplace in all but the lowest-end TVs within the next two years, it sets the stage for connected TVs to be the most globally-significant OTT video device over time.”

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