As viewing habits shift and the consumer electronics market stagnates, what does the AV industry need to do to ensure that the market doesn't falter?
Author:
ContributorPublish date:
Oct 2, 2018
How we watch TV has fundamentally changed in recent years the notion of broadcast is becoming increasingly defunct as people stream shows on Netflix and Amazon, download content or watch videos on YouTube.
TVs are now just one of many screens that people use to watch their favourite shows on. And, when they are viewing, their attention might be also be focused on a smartphone or tablet as they play games or message friends across multiple screens.
TV manufacturers are no longer just competing with each other to impress viewers with screen size and functionality, but also with a host of other screens that people use for viewing. Our recent whitepaper dug into those shifting consumer needs, and analysed the current state of the industry, to assess whether the AV market - but in particular the Smart TV sector - is at a crossroads and, if so, what Smart TV manufacturers can do to ensure that they remain successful.
Shifting consumer needs
The report found that even though smartphone screen time is growing, overall TV consumption remains unaffected, with the average consumer in Europe watching about three hours of TV every day in 2012 a number that stayed consistent through to 2017. This number increases to 5.1 hours per day for Smart TVs. This is partially thanks to digital services such as Netflix, Amazon and Hulu helping to keep total TV consumption stable, despite the decline of linear TV services, particularly in Europe and North America. This shift in viewing means that digital services are quickly becoming essential to the future of TV consumption. And as people spend more time using these services, they increasingly expect to be able access their content seamlessly across all their devices, and so opt for highly integrated systems that promise both great content and device interoperability. Smart TVs are the screen of choice for watching digital video content, with almost 250 million units predicted to be sold globally in 2023. People tend to value the TV as an established device for media consumption, offering a unique value proposition that is not addressed by smartphones. The living room and the bedroom are the top locations for viewing. The report found that people prefer to consume content late into the night, with 43 per cent of viewers opting to watch online videos in the evening. This means that the status of the TV screen in the house remains relatively safe.
Uncertain marketplace
The report also found that the consumer electronics market is shrinking globally, driven by lower sales volumes. For example, the Compound Annual Growth Rate (CAGR) for tablets decreased by 10 per cent between 2012 and 2017; desktop computer CAGR declined by nine per cent and laptops by five per cent. Only selected categories, such as the smartphone, smart speakers and wearables, are still growing.The prices of consumer electronics have seen almost no growth (+2% between 2012 and 2017), and the consumer electronics market is in decline in terms of revenue and shipments, despite economic advances and growing global internet penetration. This impacts revenues for the consumer electronics marketplace, which are declining in certain regions.
Smart TVs under threat
Since 2015, Smart TVs have been the major technology trend for replacing old TV sets, and are now the device standard, edging out competition from the likes of 3D TV. However, some regional markets are now reaching saturation as the overall TV market is shrinking, with CAGR declining by six per cent between 2012 and 2017. Future market growth is also likely to be slower because the majority of TV sales are replacements, with trends in the overall TV market tending towards stagnation.Despite positive future expectations from analysts, there is no clear development path for innovative TV manufacturers. Although analysts predict the return of strong growth rates, historical trends do not suggest such a turn around, so the future remains uncertain.
Ensuring the future of Smart TVs
The key opportunity for Smart TVs to maintain their value proposition and turn around the decline that is affecting the entire TV sector is to strive for constant innovation.These were the major opportunities of growth for the industry that our report revealed:
Blockchain
AI
Smart Home Integration
Taking each in turn, applying Blockchain to content management and financial services has the potential to drive service automation and content delivery for smart TV ecosystems. Worldwide spending on Blockchain solutions is expected to grow by 67 per cent CAGR until 2022, and the Smart TV industry is one of many that could benefit from this.Artificial Intelligence (AI) is becoming increasingly popular in the home thanks to the introduction of Smart Speakers and virtual assistants, such as Alexa, Google Home and Siri. AI can be used in the context of Smart TVs to anticipate media demand for content delivery and consumer interaction. It is already used by the likes of Netflix to adapt trailers for shows to suit people's viewing habits, highlighting aspects of programs that will most appeal to individual viewers. The global market is expected to grow by 51 per cent CAGR until 2022.As more devices in the home become connected and IoT products become more common, the Smart TV is well-placed to become the central hub for people to interact with all their devices and smart home services, and ensure they are working seamlessly together. It is estimated that the global smart home revenue will increase with a CAGR of 25 per cent up to 2022, and Smart TVs stand to benefit from this.
Winning formula
It is vital for the Smart TV market to stimulate future growth by
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
22/07/2026
Among other tweaks to coverage, the broadcaster added announce positions in the ...
22/07/2026
The Australian Sports Technologies Network (ASTN) has reported a sharp acceleration in Australia's sportstech sector, with revenue growth rising from 10% in...
22/07/2026
From a retrofitted broadcast bus to packed Match Day Live! events, Bennett detai...
22/07/2026
TMRW Sports has named Brendan Donohue as President, Flag Football, where he will lead the company's professional flag football business in partnership with ...
22/07/2026
Stephen Arnold Music (SAM) designed and produced soundtracks for nine projection...
22/07/2026
Harmonic has announced a $25,000 donation to Global Empowerment Mission (GEM) fo...
22/07/2026
Telemundo has announced it has acquired from UC3 exclusive U.S. Spanish-language...
22/07/2026
The Rest Is Football, hosted by Gary Lineker, Alan Shearer, and Micah Richards, ...
22/07/2026
Sports Studio has announced a partnership with TheSoul Group to distribute Free ...
22/07/2026
Daktronics has concluded its 2026 High School Video Summit, a two-day hybrid event combining virtual sessions with hands-on host school visits across the countr...
22/07/2026
FOR-A America will exhibit at the MMCA Show in Pensacola, Florida (July 21-24), marking the company's first appearance at the house of worship AV event. FOR...
22/07/2026
The New York Yankees have selected Lumen Technologies (NYSE: LUMN) to connect Ya...
22/07/2026
Calrec will exhibit at IBC 2026 (Stand 8.C47) with demonstrations of its IP-native audio ecosystem built around the Argo console range, and will announce two ne...
22/07/2026
Solid State Logic has announced the appointment of Algam EKO as its distributor for SSL large format consoles in Italy, covering the Live, Broadcast, and Studio...
22/07/2026
FloSports has announced the launch of the FloSports Channel, a free ad-supported streaming channel premiering on Prime Video in the U.S. on July 21. The channel...
22/07/2026
Banana Ball TV (BTV), the broadcast operation of the Savannah Bananas, has insta...
22/07/2026
SiriusXM and Audacy have announced an agreement bringing 42 Audacy sports, news, and talk stations from 29 U.S. markets to SiriusXM. Twenty-three Audacy sports ...
22/07/2026
The collaboration produced more than 500 short-form videos across four cities th...
22/07/2026
At 2,600 sq. ft., the new home of digital content houses a main studio, podcast space, and an auxiliary control room
NFL franchises are accelerating their prod...
22/07/2026
Library now available in Engine Player
Another of Eduardo Tarilonte's popular sample libraries has just been moved over to Engine Audio's Engine Pla...
22/07/2026
All-in-one mic & DSP interface overhauled
Cloudvocal have just refreshed the design of their all-in-one mic, audio interface and DSP processor, introducing ...
22/07/2026
The final boss of the lost dual-op-amp circuit
Electro-Harmonix have just introduced the Deluxe Big Muff Pi 2, which they say offers their latest take on t...
22/07/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
22/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/07/2026
Proven managed IP solution helps broadcasters confidently navigate the future of broadcast distribution
LTN announces it has completed successful satellite-to-...
22/07/2026
Today, Chaos announced V-Ray 7, update 4, eliminating the need for asset conversions and tool switching, which slow down media and entertainment pipelines. Arti...
22/07/2026
An AI playground for the Project Indigo camera app
Marc Levoy July 22, 2026
0 Comments
At left is the user interface of our Playground, running on an ...
22/07/2026
Custom Consoles announces the completion of a large technical furniture project for Radio T l vision Suisse (RTS) at the networks recently inaugurated productio...
22/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/07/2026
Culver City, CA, July 21, 2026 3D streaming infrastructure provider Miris today announced glTF intake, including the binary .glb form, to its spatial streamin...
22/07/2026
Documentary Lo Invisible Captured with Blackmagic PYXIS 6K
Brie Clayton July 21, 2026
0 Comments
Camera's versatile design allowed filmmakers to c...
22/07/2026
AAF Bridge converts AAF and XML Timelines to Ableton Live - and back
Jerome Gardier July 21, 2026
0 Comments
A two-way converter for macOS and Windows...
22/07/2026
From Class to Concert: Explore a Student-Led Production of David Bowies Work Thr...
22/07/2026
A poisoned spy, a secret war, and a small English city contaminated by a deadly chemical weapon. Available on Sky Documentaries from 4 AugustWednesday 22 July 2...
22/07/2026
Audio at Parity: Comscore Launches Transcript-Level Targeting and Measurement wi...
22/07/2026
Arvato Systems and Lobster Enter into a Partnership and Combine the Integration Platform and Managed Services
Flexible integration solutions for cloud, hybrid...
22/07/2026
RT REPORTS NET SURPLUS OF 22.5 MILLION IN 2025...
22/07/2026
In the Opinion of the Censor airs Monday 27 July at 9.35pm on RT One and RT Player
In the Opinion of the Censor looks at how films for theatrical release wer...
22/07/2026
Before a healthcare robot can be useful in the real world, it has to learn how the physical world pushes back. Anatomy varies. Instruments bend, press, slip and...
21/07/2026
New research involving a cross-section of Mongolias independent media landscape finds enthusiasm for AI as a tool to improve efficiency, sustainability and resi...
21/07/2026
With winners Spain having already paraded the World Cup trophy through Madrid in front of millions of fans and the dust now settling on an epic tournament of th...
As viewing habits shift and the consumer electronics market stagnates, what does the AV industry need to do to ensure that the market doesn't falter?
