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 ...
09/10/2026
September 10 2026, 06:00 (PDT) Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026
New Sports Intelligence helps providers better unders...
08/10/2026
Modern venues have come a long way since the tinny, echoing audio of the mid 20t...
08/10/2026
ESPN's first Super Bowl production will stream in English and Spanish on Disney+, while the ESPN App carries the full slate of game, ManningCast, studio, an...
08/10/2026
From high-school videoboards to War Eagle Productions, the Opelika native is learning how to lead shows and capture big moments
The future of live sports produ...
08/10/2026
The Television Academy and Prime Video have announced a six-year agreement making Prime Video the exclusive global home of the Emmy Awards beginning with the 20...
08/10/2026
Techex will exhibit at NAB Show New York 2026 (Booth 623, Javits Center, October...
08/10/2026
X Games has announced the appointment of Steve Rogers as Chief Operating Officer. Rogers previously served as COO of World Supercross and spent nearly a decade ...
08/10/2026
Fonn Group has appointed Trevor Spielmann as Sales Director for Germany, Austria, and Switzerland. Spielmann joins from EVS, where he held sales and business de...
08/10/2026
The flagship program will originate from major PG events with a four-camera production, live distribution across PGTV, social platforms
Perfect Game is bringin...
08/10/2026
Innovation rarely happens in a vacuum. More often, it happens at the point of collision: when worlds that have run on separate tracks begin to converge. That is...
08/10/2026
For decades, the production and broadcast services business has run on a familia...
08/10/2026
Uplynk, Zixi, BroadView Software, and Grass Valley have published The IP Converg...
08/10/2026
The NFL has announced the return of the Big Data Bowl, the league's analytics competition, now in its ninth year and again powered by AWS. Registration is o...
08/10/2026
Eutelsat has renewed its partnership with T l diffusion d'Alg rie (TDA), Algeria's national broadcasting network operator, for continued distribution of...
08/10/2026
Disney will livestream Super Bowl LXI on February 14, 2027, alongside the game's broadcast on ESPN and ABC. All Disney subscribers in the United States wi...
08/10/2026
RHStv and Red House Streaming have announced an expansion of their partnership w...
08/10/2026
Gray Media has announced a distribution agreement with TEGNA and DAZN to simulca...
08/10/2026
SVG readers can save 10% on registration and receive a complimentary Solutions H...
08/10/2026
PROTON Camera Innovations GmbH has been named a recipient of a 2026 Technology a...
08/10/2026
Industry leaders discuss real-world cloud workflows for live game production, pl...
08/10/2026
The next-gen audio technology joins Dolby Vision as part of Apple TV's immersive F1 experience...
08/10/2026
David France, Jesse Short Bull, Mato Wayuhi, N. Bird Runningwater, Jodi Archambau, Jhane Myers, Paul McGuire, Amber Morning Star Byars, Holly Macarro, Nick Tils...
08/10/2026
Dynamic panning plug-ins get an upgrade
Sound Particles have just announced major updates for two of their popular dynamic panning plug-ins. Energy Panner 2...
08/10/2026
New expandable instrument boasts full DMNO engine
UDO Audio have just announced the upcoming release of a new, expandable synth that packs the power of the ...
08/10/2026
Two new subwoofers added to monitoring line-up
ADAM Audio's monitoring range has just been expanded with two new DSP-equipped subwoofers, the Sub8 PRO a...
08/10/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
08/10/2026
Calrec gives broadcasters freedom of choice at NAB Show New York We're looking forward to meeting up with you all at NAB New York on 21st-22nd October.
Cal...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Globecast, a leading provider of broadcast, media and entertainment managed services, will showcase its next generation of media orchestration services at NAB S...
08/10/2026
Clear-Com played a critical role in the production communications infrastructure for Rock in Rio 2026, one of the world's largest and most recognized music...
08/10/2026
Sohonet Launches ClearView Rush: A Leap Forward in Studio Review, Built for Crea...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Ikegami announces a major expansion to its range of broadcast-quality live production cameras. Scheduled for introduction on Ikegami booth 708 at NAB New York, ...
08/10/2026
Calrec will be located at Booth 444.
Freedom to choose
The media landscape is evolving quickly, and the broadcasters best placed for what comes next will be...
08/10/2026
LiveU has announced that CRD Audiovisuel relied on LiveUs LU900Q intelligent production unit, with built-in native LiveU IQ (LIQ ) connectivity, to deliver live...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/10/2026
Marshall Electronics, a globally recognized provider of high-performance video solutions for broadcast, streaming, AV and professional production, will exhibit ...
08/10/2026
14-hour package also includes A Remarkable Place to Die season 2 as well as libr...
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?
