Smart TVs in a Pay-TV World

Introduction

Abstract

This report examines the phenomenon of smart TV diffusion on video delivery and consumption. It specifically analyzes the technology and business implications for delivering managed and over-the-top video services into a smart TV. It provides an overview of content delivery models, examines the role of pay-TV operators, and provides global forecasts.

"The proliferation of smart TVs and other connected consumer electronics is both an opportunity and a threat for pay-TV providers," said Pietro Macchiarella, Research Analyst, Parks Associates. "They offer the intriguing possibility for the expansion of pay-TV services beyond the set-top box, but they also offer other players such as broadcasters and over-the-top video providers a toehold into the living room."

Table of Contents

Table of Contents

Data Points

The Bottom Line

Smart TVs in a Pay-TV World Dashboard

1.0 Report Summary

• 1.1 Purpose and Scope of Report
• 1.2 Data Sources

2.0 Market Status

• 2.1 Catalysts to Bring Pay-TV Services to the Smart TV
  • 2.1.1 Consumers' Changing Habits
  • 2.1.2 Pay-TV Providers' Desire to Lower CAPEX
• 2.2 Previous Attempts to Bridge Pay-TV and Connected CE
  • 2.2.1 CableCARD
  • 2.2.2 Tru2way/OpenCable
  • 2.2.3 AllVid
• 2.3 Smart TV Opportunities for Pay-TV Providers
  • 2.3.1 TV Everywhere
  • 2.3.2 Transactional or Subscription VOD Revenues
  • 2.3.3 Augmenting or Replacing Set-top Boxes
  • 2.3.4 Whole-home DVR Configurations
  • 2.3.5 Virtual MSO Receivers
• 2.4 Smart TV Risks for Pay-TV Providers

3.0 Key Technologies

• 3.1 Video Delivery Solutions
  • 3.1.1 Video Delivery Platforms
  • 3.1.2 Systems Integrators
  • 3.1.3 Content Delivery Networks (CDNs)
  • 3.1.4 Delivery via Residential Gateway or Primary Set-Top Box
• 3.2 Content Protection/Security
• 3.3 Smart TV Apps
  • 3.3.1 Apps Platforms
  • 3.3.2 Video Apps
• 3.4 User Interfaces
  • 3.4.1 Electronic Program Guides
  • 3.4.2 User Interface Innovations

4.0 Forecasts

5.0 Conclusions and Recommendations

• 5.1 For Pay-TV Providers
• 5.2 For Consumer Electronics Manufacturers
• 5.3 For Technology Vendors
• 5.4 For Content Owners

6.0 Glossary and Index

Figures

• Companies Briefed for the Report
• Worldwide Pay-TV Subscribers
• Monthly Use of Connected Smart TVs for Online Video
• Frequency of Using Connected Smart TVs for Online Video
• Ideal On-Demand Programming Option - YouTube Video
• For What Applications Has Smart TV Use Grown the Most Since 2010?
• Pay-TV Content Available on Connected Consumer Electronics
• Panasonic Smart TV Used for as a Whole-home DVR Receiver
• Notable Video Delivery Platforms
• System Integrators
• Transcoding within the Residential Gateway
• DLNA CertifiedR TVs and Set-top Boxes
• Smart TV Development Ecosystem
• Smart TV Third-party Apps Platforms
• Smart TV OEM Apps Platforms
• Smart TV Independent Platforms
• Online Video Providers and Smart TV Availability: U.S.
• Online Video Providers and Smart TV Availability: Europe
• Smart TV Sales Forecast Methodology
• Unit Sales of Smart TVs
• Smart TV Households Using Product as a Pay-TV Receiver

Smart TVs in a Pay-TV World published by Parks Associates in July 25, 2012. This report consists of 53 Pages and the price starts from US $ 3200.

Press Release

50% of HDTVs Shipped in 2012 will be Internet Ready

Global Information Inc. would like to present a new market research report, "Smart TVs in a Pay-TV World" by Parks Associates.

New market research from Parks Associates finds the percentages of U.S. smart-TV owners who use this Internet-connected device to watch online video increased by over 30% in six months.

"The percentage of smart-TV owners connecting the device to the Internet has steadily increased, from approximately 40% in 2010 to 56% today," said Pietro Macchiarella, Research Analyst, Parks Associates. "This device, when connected, offers a toehold to a variety of players, including broadcasters, over-the-top video providers, and pay-TV providers."

The new research, Smart TVs in a Pay-TV World, shows the number of Internet-connectable TVs shipped will jump from less than 1% in 2008 to over 45% in 2012. The report also shows:

• 75% of U.S. smart-TV owners who connect their set to the Internet watch on-demand online movies at least monthly, versus 57% in 2011
• 71% watch online TV shows at least monthly, versus 51% in 2011
• On a near-daily basis, 30% watch movies and 32% watch TV shows

The report analyzes the implications of this increased penetration of smart TVs for manufacturers, content owners, and pay-TV providers.

"Smart TVs have the potential to be both a threat and an opportunity for pay-TV providers," said Brett Sappington, Director, Research, Parks Associates. "Smart TVs provide consumers another way to access over-the-top services like Netflix on the TV, providing a new distribution channel that all players can leverage to deliver content to consumers. However, by integrating the smart TV into their distribution model, pay-TV providers can leverage their strengths in content costs, customer relationships, bundling, and other areas to play a more substantial role in OTT. In addition, pay-TV providers can potentially use smart TVs to lower subscriber CPE costs, an important consideration in a highly competitive market."

Parks Associates Smart TVs in a Pay-TV World analyzes the technology and business implications for delivering managed and over-the-top video services into a smart TV. It provides an overview of content delivery models, examines the role of pay-TV operators, and provides global forecasts.