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Online entertainment service revenues forecast to soar --
Wed, 19 Feb 2014 11:06
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According to a report by Juniper Research, smart home service revenues are expected to reach $71bn by 2018, with 80% being generated by home entertainment services.
Faster connection speeds, availability of greater volumes of content and increased delivery convenience have spurred the projected growth figures, as well as the emergence of video subscription and streaming services such as Netflix, LOVEFiLM and Amazon Instant Video.
Although set-top boxes are still a popular viewer choice, allowing users to access the internet through their televisions and make use of subscription services as well as pay-per-view, download-to-own and rentals, the smart television market is on the rise.
In South Africa available products have not yet reached a mainstream market and appeal to only a small percentage of consumers who are able to afford the high-cost devices. As with the emergence of flat screen televisions, which have fast become the standard, according to the report, these products will become more affordable and relevant to a broader audience.
Due to the number and variety of home devices becoming available, it is anticipated that no single operator will be able to dominate this arena, but stakeholders in smart television will need to constantly ensure that their networks are modernised and uniquely appealing to consumers in order to remain a viable player in the market.
With the expansion of smart home devices, a new opportunity exists for service providers to develop security and control services around these technologies, which could potentially reach $12bn by 2018.
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