June 15, 2009

Report: Game Consoles the Prime Device for Web TV

According to the In-Stat report "Web-to-TV Video Changes Everything," the range of connected consumer electronics devices delivering Web video into the living room is growing. Device types include digital media adapters (DMAs), pay TV set-top boxes, Blu-ray player/recorders, HDTVs and media-center PCs. However, networked video game consoles are currently the most utilized devices for bringing Web video to the TV, and are expected to remain so through 2013. By 2013, more than 10.7 million consoles are expected to be used as Web-to-TV mediation devices in the United States.

While still at the early adoption stages, the impact of bringing Web video to the TV is expected to bring both opportunity and threats to a range of companies in the electronics and TV markets. By 2013, the revenue from Web-to-TV streaming services is forecast to grow to $2.9 billion.

The report also indicates the following:

• Two separate in-home content delivery networks (CDNs) are evolving in the digital home-one for broadcast media services (e.g., cable TV), the other for Internet-based broadband services.

• Within five years, the number of U.S. broadband households viewing Web-to-TV content will grow to 24 million.

• Already, 29 percent of U.S. 25-to-34-year-olds with game consoles use the devices to watch streaming video off the Internet.

• Video content will be optimized for broadcast or Web-to-TV based on content type.