Light Reading

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
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.
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Cyber Security Expert Warns: You're Doing It Wrong
Sarah Thomas, Editorial Operations Director, 2/23/2015
10 Weirdly Useful IoT Devices
Eryn Leavens, Copy Desk Editor, 2/24/2015
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
FCC Adopts Title II Rules
Alan Breznick, Cable/Video Practice Leader, 2/26/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.