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Quixel Research: Connected TV Revenues Top $1B in Q2 2009 and Close in on 1M Units (19/8/2009)

While not the majority of unit or dollar sales in Q2 2009, the growth of TVs with built-in internet capabilities enabling content such as UTube, Netflix, Tivo, Facebook etc, or ‘Connected TVs’ was up significantly in both units and value compared to the prior quarter. Quixel Research’s newly launched USA Large Area Display Report revealed that second quarter Connected TV value, including both LCD and Plasma TV models with internet capabilities rose 40 percent from Q1 2009 to Q2 2009. Connected TV unit sales were up 70 percent for the same time period. The total value of the Connected TV market was $1.08B in Q2 2009 compared to $776M in Q1 2009.

Volume almost doubled for internet capable TVs, with sales reaching 620K compared to 365K units in Q1 2009. “The timing is right for consumer adoption of Connected TVs,” states Tamaryn Pratt, Quixel Research’s principal. “The majority of people already have high speed broadband in their homes, and with the increased availability of premium content via the internet, such as movies, UGC, etc., manufacturers are capitalizing on consumers’ desire to watch ‘programming’ on a much larger screen than their computer monitors.” First half 2009 sales of Connected TVs exceeded total 2008 sales of TVs with these features or topped 985K.

The Plasma Connected TVs segment saw the most significant growth quarter-to-quarter, or grew 202 percent in volume and 163 percent in value. Total revenues for the second quarter were $293M compared to $111M. LCDTV Connected unit sales were up 40 percent quarter-to-quarter and dollars were up 20 percent or rose to $795B in Q2 2009.

Quixel Research estimates that currently 15 to 20 percent of TVs with built-in internet capabilities are in fact connected to the internet and projects that rate to increase dramatically by the end of the year.

www.quixelresearch.com