LONDON – China’s web-enabled TV market started in 2009, with over 2 million web TV set shipments and about 250,000 web-TV set top box (STB) shipments, according to market research company In-Stat.
The fast development of the web TV market is driven by competition between the domestic TV vendors and the low incremental cost for web TV functionality, helping drive wider user acceptance. As a result, In-Stat forecasts web-enabled TV shipments to exceed 15 million units by 2014.
The web TV STB market does face challenges associated with its limited sales channel and high retail pricing. Some telecom operators are deploying web TV STBs coupled with subscriptions to their high bandwidth Internet access, but they do so while keeping a low profile due to regulation concerns.
The penetration rate of web TV is likely to increase from 8 percent to 50 percent in next five years and in the U.S. market over 137 million web-enabled CE devices are expected to ship in 2014.
The Web TV is not just connected to the indvidual interests of consumers. The sales and the demand will be increased only with the development of complete eco system that includes a very good infrastructure for the high speed internet distribution. India have a large scope but the current level infrastructure is really bad considering the internet speed and the quality of service offered by the service providers here. But china definitely may be a good place for all the companies to sell their products considering chinese are more connected to the internet and the infrastructure is in continuous improvement in china.
China and India are the hotcakes for selling consumer products but in this case Chinese cheaper technologies is also one of the factor in the increased sale. This will surely still increase many folds due to new web-tv techniques flooding the market.
i guess low incremental cost for webtv as mentioned in the article may be the reason. May be the user has to pay little extra that wont hurt his pocket and would get web on his tv so he will go for it.
The thrive of WebTV requires reasonable bandwidth from the infrastructure. In addition, the content has to be cheaper and better. Or, simply the content from the web can't be found from the other media. What's the actual driving factors of WebTV market in China? Any comments will be appreciated.