American organization CTA (Association of consumer technology) predicts strong growth in Connected TV market in 2019 and 2020 — contribute to brisk sales of smart TVs and streaming media players (SMP).
According to calculations of the CTA, the sale of smart TVs will grow by 5% this year and 4% next, their sales in the USA will be $27.9 million and $29 million respectively. In 2020 three 75% sold TV devices will be equipped with smart technology.
It is expected that this year the US will be sold 19.9 million SMP — 9% more than in 2018. Sales will continue to grow (by 4%) in 2020, the number of sold SMP will reach 20.7 million units. By the end of this year, more than half of American homes will have at least one device of the SMP format.
Why smart TVs in the United States buy more than SMP, given that the latter are much cheaper? At CTA believe that the consumer is more interesting devices which do not require complex integration with home media system, but an explanation for this statistics may be more simple: the main factors when buying a modern TV remain price, quality, image, brand and screen size and no smart features (it’s an important factor, but not decisive).
As for image quality, an important engine of growth of sales of smart TVs right now is the popularity of Ultra HD (UHD) in 2020 almost half of units sold will support UHD (by the way, almost all TVs that support this format, features and functionality of a smart TV).
Why did the CTA experts predict an increase in sales of SMP in 2020 — when smart TVs, as it turned out, is more popular with Americans? The main reason is that many SVOD providers prefer integration with the streaming players deploy its content in the built-in apps for smart TVs. For example, at the time of startup, the service Disney+ will be available to users of Roku, Apple TV and Chromecast, and models of smart TV platform will only support devices running on Android TV, and Roku.
In addition, manufacturers of smart TVs, as a rule, at some point stop supporting older models — and at this point users often buy cheap SMP to continue to use streaming services. However, this situation is beginning to change: for example, Roku (on the OS which operates one-third of smart TVs sold in the US) is not going to stop supporting compatible devices, until they finally “grow old” — the more audience, the more money is made from advertising on The Roku Channel. The same policy apparently took the and in Google is developing its own smart OS Android TV.
If suppliers smart TVs decided to equip all sold models of some popular machines such as Roku, the sale of SMP, of course, would go down — but this is unlikely to happen in the foreseeable future. Brands such as Samsung and LG continue to advance its own OS — Tizen and WebOS. This situation may begin to change closer to launch Disney+ — when buyers start looking for smart devices that support this service.
But before coming to the disney market platform giant smart TVs and SMP are not interfering with each other, harmoniously and effectively spur development of the market of smart TVs.
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