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Cable Technology Feature Article

April 08, 2010

DisplaySearch Makes Valuable Forecast about TV Market in Upcoming Years

By Madhubanti Rudra, TMCnet Contributor

When it comes to living room entertainment, the good old television set always plays the role of the lead player. On the other end, the television manufacturers keep on introducing new innovations to keep this craze alive. USB Functionality, Skype (News - Alert) Capability, 3D TVs---you name them and you get an amazing range of TV enhancements that could not be dreamt of only a decade ago.

With a deluge of new product announcements so far this year it is clear that the trend is here to stay. And DisplaySearch Quarterly TV Design and Features Report confirm this. According to the global market research and consulting firm, TV set makers are far from running out of ideas.

The preferences of TV viewers keep on changing at a rapid pace and that is getting reflected through the variety of TV sets that are hitting the market each year. Gone are those days, when quality of a television set was judged only by its audio visual quality. For today's TV buyers, many other enhancements are equally important as the picture and sound quality of the television sets.

"While 3D TVs are all the rage, there has been a surge in the development of other TV enhancements. Incorporating USB connectors in TVs is fast becoming as important as HDMI, and is enabling all kinds of new functionality. Skype is moving into the living room with video calling, and a surge of new connected sets are soon to reach the market in China. Also, Walmart's purchase of VUDU could transform TV features if the retailer decides that any set they sell has to be capable of accessing it," Paul Gray, DisplaySearch Director of TV Electronics Research, noted.

In this context, DisplaySearch makes some valuable forecast regarding the television trends in the upcoming years. According to the research firm, USB connectivity, digital broadcasting and 3D capability are the three areas that will receive maximum attention fro the TV buyers.

DisplaySearch forecasts that almost 100 million connected TVs will be shipped in 2013, up 546% from nearly 15 million in 2009.

Digital broadcasting is also reaching a new phase, with government policy driving rapid adoption in Brazil and China, while 2010 is the year of terrestrial HD for Europe. Despite this, the internet is revolutionizing video delivery and TV set makers are preparing to ride that wave.

DisplaySearch research also indicates that LED backlighting and 240 Hz LCDs will serve as enabling technologies for new feature developments in TV in 2010, specifically 3D, an area of intense interest to broadcasters, movie studios and set makers. DisplaySearch forecasts that 2.5 million 3D-capable TVs will be shipped in 2010, with growth to 27 million sets in 2013.

How the future television industry takes shape in the upcoming years will mostly depend on the customers' response to the new technology and how quickly the industry learns from the customers' experience. Under this situation, the content industry's role will be very crucial.

"We are just seeing the hype turning into real products, but the key issue will be how consumers react, and the industry will learn a great deal as people take 3D sets home and use them. There are many complications in the supply chain, starting with a shortage of content. The content industry probably has the biggest task ahead," Paul Gray observed.

Madhubanti Rudra is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Patrick Barnard