& cplSiteName &

Connected TVs Will Rule US by 2017 – Study

Alan Breznick
6/20/2014
50%
50%

No matter whether their TV sets are smart or dumb, more than half of US consumers will be regularly accessing the Internet through some kind of connected TV gadget by 2017, according to new research.

The latest study from eMarketer Inc. predicts that about 54% of Americans will use a connected TV at least once a month to reach the web by 2017, more than double the estimated 26% who did so last year and the estimated 36% doing so today.

In contrast to some other research firms, eMarketer defines connected TVs as more just smart TVs with native web links. It also sees the category encompassing TV sets hooked up to the Internet through any other means, including online media streaming boxes like Roku and Apple TV, video-game consoles like Xbox, and HDMI streaming sticks such as the Google Chromecast.

Further, eMarketer forecasts that two-thirds (67%) of US Internet users will access the web regularly through some kind of connected TV link by 2017, up from the estimated 45% who can do so now. With the numbers growing rapidly, the research firm expects more than half of Internet users will be accessing the web through their TV sets by sometime next year.

Thanks to such growth trends, eMarketer believes that more than 190 million Americans will be tuning into the web regularly through their TV sets by 2018. That's more than double the 84 million Americans who could do that last year and up notably from the estimated 113 million who could do so now.

Smart TVs will drive part of this growth. eMarketer predicts that the number of US smart TV users will climb from about 38 million last year to nearly 50 million this year, and almost 80 million in 2018, as more set models hit the retail market and the prices of the sets keep dropping.

But smart set owners will account for a smaller portion of the connected TV user population over the rest of the decade, due to the even stronger growth of such "third-party devices" as set-tops, game consoles, streaming sticks, and the like. eMarketer forecasts that the portion of connected TV users without smart TVs will rise to almost 59% by 2018, up from about 54% last year and 56% next year.

In a separate study, eMarketer predicts that digital video ad spending will continue to rise dramatically this year, reaching nearly $6 billion. That represents a growth rate of almost 42% from $4.2 billion in 2013, as advertisers pour more money into both desktop computer-based ads and ads oriented towards users of smartphones, tablets, and other mobile devices. eMarketer then sees this number more than doubling to $12.7 billion by 2018.

However, the firm notes that TV ad spending will continue to generate stronger growth in terms of actual money spent, reaching a total of $68.5 billion this year. While TV ad spending will rise just 3.3% from $66.4 billion last year, it will still go up by $2.2 billion, more than the $1.8 billion increase in digital video ad spending. eMarketer predicts that TV ad spending will continue to maintain its dominance well into the foreseeable future, reaching a total of $78.6 billion by 2018.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(8)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
6/27/2014 | 2:30:48 PM
Smart TVs vs. set-top boxes
Smart TVs are a dead end. The technology changes too quickly -- your smart TV will be obsolete as an Internet device long before it ceases to be useful as a TV. Set-top boxes are the future, at least for the next few years. 
smkinoshita
50%
50%
smkinoshita,
User Rank: Light Sabre
6/23/2014 | 5:54:24 PM
Re: 3rd Party Main Drive
@danielcawrey:

Just because the advertising options have evolved doesn't mean the advertisers have.  I work in marketing and most of the people I encounter don't have a clue as to how to market effectively using the new technology available.  They use blaring, obtrusive advertising because that's all they know and they're terrified fo trying something new, despite having the tools to provide the feedback required to make advertising better.

The old method of advertising is very similar to brute force hacking or phishing -- make enough attempts and eventually something pays out.  They can't see beyond that mindset of 'eventual payout', because they're not I.T. people and they don't really understand the medium.

 
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
6/23/2014 | 11:53:06 AM
Why Isn't digital broadcast being used more?
Remember digital tv...when those few remaining people with rabbit ears TVs were asked by government to throw them out and buy new ones (or get the coverter box)?

It produces a nice clear image (when I twist the flat panel antenna in the right way).

Why can't it be integrated with say, a computer "fare box" so they could charge money for certain types of content?   

If we have this through the air system it would take traffic off the Internet networks right?
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
6/23/2014 | 9:29:47 AM
Re: 3rd Party Main Drive
Web ad revenue will surely increase but until advertisers are convinced of a good ROI it's likely to be a modest growth. Tv of course if going to be the main recipient of all the ad money and third party deivices will fuel more advertising in prepartation for actual smart tvs will will surely take over after we've all experienced internet connected viewing with the inexpensive add on gadgets.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
6/21/2014 | 9:26:45 AM
Re: 3rd Party Main Drive
The money has to come from somewhere. If content or any other product isn't strong enough to get end users to pay for it directly, then the ad-based revenue model is the consensus way to go.
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
6/20/2014 | 9:59:36 PM
Re: 3rd Party Main Drive
Is anyone else thoroughly annoyed by digital ads? I mean, are they really that effective?

Almost everytime I see one, I cringe. They are especially awful on ESPN's website, as every article one opens brings a new blaring ad. 

That's the future of connected, or 'smart' television. Blaring, obtrusive advertising. 
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
6/20/2014 | 4:52:00 PM
Re: 3rd Party Main Drive
@smkinoshita, agreed - I believe devices and access through numerous entertainment devices will drive the markets.  The possibility of "smart TV" combinations may also be a driver; just as smartphones gave another market cycle boost to mobile phones.

It certainly makes sense that the access to the internet will more effectively utilize TV's and enhance the networks.  Just as we access the internet in some many ways now, beyond PC's, I think connected TV will follow.
smkinoshita
50%
50%
smkinoshita,
User Rank: Light Sabre
6/20/2014 | 2:00:27 PM
3rd Party Main Drive
Personally I see 3rd party devices as the primary drive for connected TV's.  I think the gaming market is the primary driver as consoles don't just want an Internet connection, but they're wanting more control over the viewing station as a whole.  (Just look at the original plans for the latest XBox)

Even the PC platform has options for it, with Steam's Big Picture mode, which was designed for TV-sized screens.
From The Founder
The time has come for a telecom app store to save the industry.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
Service Provider Panel: Partnering in the Digital Era

5|22|17   |     |   (0) comments


Coopetition has always been part of telecom, but the ecosphere now includes data centers, vendors, apps developers, cloud service providers and Internet content providers. This BCE 2017 panel explores the new attitudes among network operators as to the value and variety of ...
LRTV Interviews
Site Demo: AT&T's IoT Flow Platform

5|19|17   |   04:25   |   (0) comments


At AT&T's R&D center in Tel Aviv, Israel, project leader Eyal Segev talks about the operator's Flow platform and how it helps to prototype IoT applications.
LRTV Documentaries
Agent of Change: A Q&A With AT&T's John Donovan

5|18|17   |     |   (0) comments


Carol Wilson talks with the man leading AT&T's transformation efforts about the challenge of change.
LRTV Documentaries
BCE Service Provider Panel: The New Business Realities

5|18|17   |     |   (0) comments


For virtualization to happen, the telecom industry first has to grapple with key functional aspects of SDN and NFV that need to be universal, such as onboarding of virtualized network functions and federation of software-defined networks.
LRTV Interviews
BCE Service Provider Keynote: CenturyLink

5|16|17   |   22:32   |   (0) comments


Aamir Hussain leads the Product Development and Technology organization at CenturyLink, which includes the company's information technology function. He is an experienced senior technology executive with more than 25 years of proven success in the implementation of global technology operations, operationalization of complex technology, infrastructures and business ...
LRTV Interviews
CenturyLink CTO on Transformation

5|16|17   |   7:43   |   (0) comments


The 50-year-old telco has already gone through several transformations, including every time it made an acquisition, but its purchase of Level 3 coupled with changes in technology and customer expectations necessitates its biggest transformation yet.
LRTV Documentaries
Light Reading Hall of Fame 2017

5|15|17   |   5:05   |   (1) comment


Find out who made it into Light Reading's Hall of Fame this year.
LRTV Interviews
Site Visit: AT&T's Tel Aviv R&D Center

5|15|17   |   09:58   |   (1) comment


Nir Shalom, general manager and VP of application development at AT&T Israel, talks about the key service developments undertaken at the AT&T R&D facility in Tel Aviv and how the team there has adopted new ways of working.
Telecom Innovators Video Showcase
Act on Your Intelligence With Amdocs aia!

5|15|17   |     |   (0) comments


Amdocs CMO Gary Miles explains how communications service providers can seize the AI opportunity with Amdocs real-time digital intelligence platform.
LRTV Interviews
Logtel CEO: Making Sense of IoT

5|15|17   |   09:48   |   (0) comments


Jacques Bensimon, founder and CEO of Tel Aviv-based training and consultancy Logtel, talks about the need to make IoT more than just a buzzword.
LRTV Huawei Video Resource Center
The Challenges of Mobile Banking Implementation

5|12|17   |     |   (0) comments


Kamal Quadir of bKash Limited explains the challenges and needs of implementing mobile banking in the Bangladesh market.
LRTV Interviews
Tel Aviv: A Hub of Innovation

5|10|17   |   07:58   |   (0) comments


Light Reading's Ray Le Maistre and Dan Allen discuss the technology innovation, food and amazing sights they witnessed during a recent trip to Israel.
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
AT&T's Donovan: Women Adapt Faster Than Men
Sarah Thomas, Director, Women in Comms, 5/18/2017
Verizon on M&A: Who Needs a Cableco?
Mari Silbey, Senior Editor, Cable/Video, 5/17/2017
Standardization Needs Room for Innovation
Mitch Wagner, Editor, Enterprise Cloud, 5/17/2017
Fright Wigs & Cocktails: BCE 2017 in Pics
Mitch Wagner, Editor, Enterprise Cloud, 5/19/2017
WiCipedia: LL Awards, Tech Mom Returnships & How The Post Gets the Ladies
Eryn Leavens, Special Features & Copy Editor, 5/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
What Brogrammers Look Like to the Rest of Us Click Here
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.