i3 - September/October 2017 - 20

STRE AM ING
IS AT THE
F O REF RO NT
OF HI GH
QUAL IT Y
4K HD R
CO N TEN T.

Annual Sales (and Projections)
of LCD TVs with Smart TV Features

$26,492

$29,015

$28,082
YEAROVER-YEAR
(YOY) GROWTH

YOY
GROWTH

2016

2017

YOY
GROWTH

3

6%

2018

SOURCE: CTA Market Research
20

SEPTEMBER/OCTOBER 2017

YOY
GROWTH

2

2019

$30,422

$30,121

$29,552

YOY
GROWTH

1

2

2020

2021

streaming media boxes accounting for 31
percent of the growth. In its new
TV-Connected Device Forecast, NPD also
expects that the original equipment manufacturers (OEMs) such as Roku, Amazon
and Google, "will continue to partner with
TV OEMs to integrate their operating systems directly into displays."

ATTRACTING USERS,
ADDING FEATURES

The growing array of online video sources
has played a major role in spurring viewers
to activate the core feature of smart TVs. In
the early years barely half of owners actually tuned into streaming video via the
apps on the devices. "Today, the picture is
vastly different, with 82 percent of smart
TV owners connecting the device to the
internet," says Hower of Parks Associates.
"The increased adoption and rising connectivity rates have transformed the TV's role
in the home," he continues. "Smart TVs are
now a source of entertainment independent of the set-top box and other connected
streaming media devices. In 2017, smart
TVs overtook both streaming media players and gaming consoles as the most commonly used devices to access streaming
video on the TV set."
Hower acknowledges that consumers
spend "double the amount [of time]
monthly on streaming content on gaming
consoles than they do on Smart TVs." But
he cited Parks' research showing that "59
percent of those who prefer to use a smart
TV versus their other connected entertainment devices do so because the device is
"easier to use" than other devices."
"Smart TV makers should put a greater
emphasis on OTT subscriptions," Hower
adds. "They also could benefit from communicating compelling reasons why
a smart TV should be the streaming
device of choice with a premium user
experience, given the relatively longer
replacement cycle for TVs."
As smart TVs establish their stalwart
role in the digital ecosystem, their capabilities are becoming integrated with
other evolving TV attributes. For example,
Parks Associates calculates that 94 percent of 4K/UHD sets are equipped with
smart TV features and the owners know
it. The latest CTA biannual U.S. Consumer
Technology Sales and Forecasts breaks
out popular features of digital TV
IT IS INNOVATION

Brain on Previous spread by Adam Voorhes/Gallery Stock

having the most entertainment options available on their TV, on demand," says Evan Young,
senior director, Smart TV Platform at Samsung
Electronics America. "Services and channels like
music (which originated on phones), or cable
networks (which have on-demand apps on
smart TVs) that make their offerings available
on smart TV platforms do well because consumers want to access them on their TV sets."
At Vizio, Lily Knowles, senior vice president of
marketing, found that early adopters of smart
TVs liked the ability to integrate a variety of features. She rattles off the "key features important
for a seamless experience" that attracted early
adopters of smart TV technology.
"Having Wi-Fi built into the TV instead of
relying on Ethernet, having a simple onscreen
setup guide and a user interface integrated
with the TV watching experience with minimal
or no disruption to linear programming" are
the top features, Knowles says. She also cites
the value of "a remote control with a built-in
keyboard to reduce the burden of typing in
search keywords for content and logging into
various subscription services."
Matt Durgin, director of North American Smart TV Content Partnerships
at LG Electronics, also points to lessons learned about what smart TV viewers
want, citing the operating system at the heart of his company's devices. "This
year LG webOS launched LG Channel Plus, which provides viewers with a
simple option to channel-flip through streaming content," Durgin explains.
"More than 100 channels of streaming content from sources such as Fox Sports,
PBS Digital, People, Fail Army, Time and CBS News are available without
installing an application."
The collective perceptions of set makers reflects a number of independent
analyses about market growth. NPD Connected Intelligence, a market research
firm, predicts that by 2020, more than 260 million media devices will be connected to the internet, with smart TVs driving 48 percent of the increase and


http://www.samsung.com http://www.samsung.com http://www.Vizio.com http://www.lg.com http://www.CTA.tech/research http://www.CTA.tech/research

i3 - September/October 2017

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