TV and Blu-ray Devices Accessing Internet Emerged in Europe During 2009

The first TV and Blu-ray devices capable of accessing content directly from the Internet emerged in Europe during 2009 and will start to gain ground fast, with more than 20% of flat panel TVs shipped in the region next year able to connect to the Internet, according to a new report from Futuresource Consulting.

"In Europe, four of the major brands have already launched connected TV products that go beyond basic home networking functionality and allow delivery of over-the-top web services," says David Watkins, Research Consultant at Futuresource. "This includes basic weather and news pages, social networking, video streaming and catch-up TV. Although initially limited to high-end and mid-range products, we’re going to see web connectivity feature on an increasing number of products next year, becoming standard within two to three years. We expect content to be the next battleground and a key driver for connection and usage, particularly through interaction with social networking sites and access to recently released movies."

By the end of 2010, the installed base of connected TVs will swell to 15m devices, representing nearly 10% of the total number of flat panel TVs in use. The next step for manufacturers will be to add more compelling video services, including paid for movie streaming that will create revenue sharing opportunities with content owners, aggregators and application developers.

Futuresource expects sophisticated services to be launched early in 2010, including major catch-up TV services and VoD services, which will offer stiffer competition to the premium subscriptions offered by Pay TV operators.

Connected TV & Blu-ray Market Status: Western Europe is a 60-page strategic report focusing on the market potential for connected TVs and Blu-ray players within the Western European market.