LONDON Ė Chinaís 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.