Opportunities for Internet Video on the TV

The IMS Research study "Market Opportunities for Internet Video to the TV" reveals that an estimated 65 million households worldwide had the capability of viewing Internet video on their television set at the end of 2008. This represents growth of 134 per cent over year end 2007.

Households displaying Internet video on the TV set via a game console or proprietary device comprised the vast majority of total Internet TV households in 2007 and 2008. However, it is expected that households using a PC to deliver Internet video to the TV set via a media center PC and a media extender (or digital media adapter), will see an 85 per cent CAGR through 2013 reaching nearly 60 million households by that time.

Shane Walker, research manager and author of the study, states, "Windows Media Centre and media centres in general along with extenders have seen limited uptake, however, their use will increase as prices drop and as more PCs with media centre-like characteristics replace existing PCs. These characteristics include multi-core processing power to increase performance, advanced entertainment management systems capable of delivering content to multiple screens, and support of Internet-ready connectivity throughout the home."

Walker continues, "Demand for media extenders will diminish shortly after 2013 as more advanced Internet TV functionality is delivered via set-top boxes. However, media centres that are connected to the TV from a device other than an extender will most likely continue to grow beyond our forecast period, slowly replacing DVRs as consumers become more accustomed to managing large libraries of digital HD content."

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