There will be more than 8-billion connected video devices installed by 2017.
This is an enormous number in the absolute, but more interestingly, it implies that every human on the planet will possess more than one connected device by this time, on average.
This is according to Merrick Kingston, broadband analyst at IHS Electronics & Media, who writes:
“Globally, the installed base of video-enabled devices that are connected to the internet – such as tablets, smart TVs, games consoles, smartphones, connected set-top boxes, Blu-ray players, and PCs – will grow from 4,3-billion today to nearly 8,2-billion by 2017. Relative to the total universe of connectable devices – 9,6-billion by 2017 – we’re approaching an average, global connection rate of 84%.
“While the number of connected devices in North America and Western Europe will grow at a relatively modest rate of 10% on average, Asia-Pacific is the standout here.
Driven largely by Chinese demand, Asia-Pacific will add 1,9-billion connected devices to the global installed base between 2013 and 2017. On the other end of the regional spectrum, sub-Saharan Africa will contribute to the global, connected device installed base with 145-million net additions over the next four years.
“We’re quickly approaching a world where the average broadband household contains 10 connected, video-enabled devices. In practice, this means that for every TV set installed in the home, three devices will comprise the ring of surrounding, connected hardware.
“Per capita, the milestone that we’re nearing is even more extraordinary – as early as 2016, on average, every person in the world will possess one connected video device.
“Be it an HBO, a Microsoft, a DirecTV or a Netflix, media companies from across the operator, broadcast, CE manufacturer and OTT spaces have embraced IP-video distribution en masse. The issue is that using content to wrap consumers into an ecosystem – where switching costs are high, and repeat purchases encouraged – is more difficult than ever before. Back in 2005, PCs comprised 93% of all connected devices.
“By 2017, the distribution of connected devices will flatten hugely – PCs will comprise 23% of the connected installed base, Smart TVs 5%, consoles 2%, and smartphones and tablets collectively 67%. Addressing the full breadth of this device landscape, and recuperating the development cost of doing so, places a number of media firms in a bit of pickle.”