Log in

Parks Associates: Network-Connected TVs To Triple In 2010

27 Aug, 2009 By: Chris Tribbey

The number of Internet-connected TVs used as networked devices in American homes will nearly triple in 2010, from 2.4 million in 2009 to more than 7 million, according to research presented Aug. 27 by Parks Associates. Consumers will use those connected TVs to access VOD, rent movies and access content on their home PCs.

However, next-generation gaming systems such as the PlayStation 3 and Xbox 360 will remain the No. 1 Internet-connected networked devices in households with 27.6 million. “Cloud” media devices — devices such as Vudu that bring content from off-site servers — will number 10.5 million in 2010, while connected Blu-ray Disc players used as networked devices will weigh in at only 1.1 million. A majority of owners using Blu-ray players as network devices do so to access VOD content, such as Netflix via LG Blu-ray players or Blockbuster via Samsung Blu-ray players.

Still, while most people will use these devices to connect to shared files from PCs and view online videos, widespread acceptance of networked consumer electronics will take time, as content owners still mull copy protection and consumers learn what their broadband connections can handle, the firm said.

“The online video services are not compelling enough to convince consumers to cancel their pay TV services,” said Kurt Scherf, VP and principal analyst for Parks Associates. “There hasn’t been a compelling reason to connect more devices to home networks.”

He added that premium Web video from companies such as CinemaNow, Netflix, Blockbuster and Amazon VOD is “significantly” on the rise, as those companies allow their content to be distributed on more devices.

“One of the challenges facing online video efforts … is windowing,” Scherf said. “It still gives the edge to traditional media.”

Add Comment