Research: Number of Global UHD TV Homes Passes 200 Million

The number of homes worldwide using an Ultra HD TV has now passed the 200 million mark, according to the latest research from Strategy Analytics’ Connected Home Devices service.

The report, 4K and 8K Ultra HDTV Global Market Forecast, predicts that 222 million homes will own an Ultra HD TV by the end of 2018, an increase of nearly 50% over the past twelve months. The report also forecasts that more than 600 million homes will own an Ultra HD TV by 2023. The vast majority of these homes will have a 4K display — only 3% of Ultra HD TVs in use will be 8K-ready by this time.

Other key findings from the report include:

  • North America will continue to lead in adoption of Ultra HD TVs, with 71% of homes owning one by 2023;
  • The largest market in terms of annual sales of Ultra HD TVs is the Asia Pacific region, where they will reach nearly 46 million units this year;
  • Sales of 8K Ultra HDTVs will reach more than 400,000 units in 2019 and more than 11 million by 2023, which will represent a 6% share of the total Ultra HD TV market; and
  • By 2023 3.9% of Ultra HDTV homes in North America will own 8K displays, compared to 4.1% in Asia Pacific and 1.7% in Western Europe.

“The success of Ultra HDTV has been driven by technology adoption rather than content and services,” said David Mercer, principal analyst and the report’s author, in a statement. “4K video and TV services are now becoming more widely available, meeting the expectations of 4K Ultra HDTV owners for the best quality TV experience. But our expectations for 8K services should be cautious: while Japan has now launched 8K TV in preparation for the 2020 Tokyo Olympics, the rest of the world will be slower to follow suit, given that the number of homes with 8K-ready TVs will remain low until the mid 2020s.”

“Owners of 8K TVs will primarily be watching 4K and HD content, while the TV’s image processors will do a good job of scaling most content to give impressive images,” said David Watkins, director at Strategy Analytics, in a statement. “Amidst the excitement surrounding 8K TVs, it is important to remember that image resolution, whether native or otherwise, is only one element in perceived video quality, and TV vendors and content players alike should not lose focus on other important drivers of consumer satisfaction, such as High Dynamic Range (HDR) and High Frame Rate (HFR).”

Amazon, Google Smart Speaker Market Hold Under Threat by China

Amazon introduced the first voice-activated smart speaker in 2014 with Alexa and Amazon Echo. According to new data from Strategy Analytics, Amazon’s global smart speaker share of shipments fell to 41% in the second quarter (ended June 30) from 44% in Q1 and 76% in Q2 2017.

By contrast, Google increased its share to 28% in Q2, up from 16% during the same period last year. China’s Alibaba finished third with Apple and JD.com rounding out the top five.

David Watkins, director at Strategy Analytics, says Amazon and Google accounted for a 69% share of global smart speaker shipments in Q2, which was down from more than 90% in Q2 2017.

“The drop is not only a reflection of growing competition in the smart speaker market but also Amazon and Google’s inability to break into the fast-growing Chinese market that is dominated by local powerhouse brands such as Alibaba, JD.com and Baidu,” Watkins said in a statement.

Indeed, Strategy Analytics contends China has the potential to become a lucrative market for smart speakers driven by voice-activated software – as underscored by Google’s recent $500 million strategic partnership with Chinese ecommerce giant JD.com.

David Mercer, VP at Strategy Analytics, believes Google and Amazon’s pursuit of volume over margin has made it difficult for third-party entry-level speakers entering the market with similar features.

However, Mercer contends the premium end of the market offers opportunity to vendors such as Roku who can entice consumers with superior build and audio quality.

“Early adopters of low-cost smart speakers such as the Echo Dot or Google Home Mini who are now looking to buy a second device will be a key target demographic for such vendors,” he said. “Apple has established an early lead in the premium smart speaker market, benefiting from a fiercely loyal fan base and strong momentum behind its Apple Music service. However, we expect the higher end smart speaker market to grow and become much more competitive moving forwards as vendors such as Samsung with its Galaxy Home speaker look to capitalize on the growing acceptance of voice as an established control mechanism.”

 

One Billion Internet-Connected TV Devices in Use Globally

It’s a streaming video world. There more than one billion connected TV devices now in use worldwide, according to new data from Strategy Analytics.

Connected TV devices – including Smart TVs, Blu-ray Disc players, video game consoles, streaming media devices – enable users to stream over-the-top video content to the TV.

Smart TVs have been consistently gaining market share and now represent nearly 60% of the total Internet-connected media device installed base.

“The popularity of connected TV, in particular Smart TVs and dedicated media streaming devices such as Roku, Amazon Fire TV and Chromecast, has grown dramatically over the last few years and has led to a fundamental shift in how consumers view and engage with content on the TV set,” David Watkins, director at Strategy Analytics, said in a statement.

Spearheaded by Roku, Strategy Analytics expects more than 55 million streaming media devices to ship globally this year – about a third of 150 million Smart TV market.

“Sony has long been the global leader in connected TV devices in terms of devices installed in homes thanks not only to its strength in TVs and Blu-ray players, but also as a result of its leading position in the global game console market,” added David Mercer, VP at Strategy Analytics.

The report said Samsung now equals Sony at the top of the rankings in terms of overall installed connected TV device units, and the South Korean company is poised to take the lead in the second half of 2018.

“As Smart TVs take an ever-growing share of the overall market, Samsung will replace Sony at the top of the device footprint rankings later this year thanks to its dominant position in the world’s Smart TV market,” said Mercer.

Global Streaming Video Households Top 250 Million

Households worldwide paying for streaming video services exceeds 250 million, according to new data from Strategy Analytics. The firm predicts the number of homes paying for SVOD services such as Netflix and Amazon Prime Video will reach about 300 million by the end of 2018 and more than 450 million by 2022.

Strategy Analytics says average monthly household spending on SVOD increased 5% in 2017 to $9.46, with total number of subs reached 345 million by the end of 2017

Households paying for streaming video used on average 1.39 services, with the United States having the highest penetration of SVOD, including 59% of households using at least one service at the end of 2017.

“Streaming video is rapidly becoming a normal part of people’s entertainment options,” Michael Goodman, director, TV & media strategies, said in a statement. “Usage is already at around half of households in the most mature markets and is likely to reach those levels in many other countries in the near future.”

The London-based data incorporated Netflix, Prime Video, Hotstar, IVI.ru, Hulu, Viu and iFlix. It did not include online TV services such as Sky’s NowTV and DirecTV Now.

“Clearly market leaders like Netflix and Amazon will benefit from this trend, but there are also major opportunities for media companies that currently focus on more traditional pay TV and content development business models,” Goodman said.