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Why Are Smart TV Shipments Expected to Jump More than 19 Percent

When introduced initially, Smart TV was much criticized and regarded as doomed for failure, which held true in the first few years of its origin. More recently, the technological baby has aged into a beauty, shifting from being a novelty into the mainstream market and the shift is quite understandable in the current times. Even initially, the reasons of failure were very evident; Internet was not as common in the larger developing markets as it is today and it was more expensive.

Now, when quite a larger part of world population has access to convenient Internet services, there is a growth in the worldwide shipment of Smart TVs. Within the current year of 2012, there was a 15% average increase in the shipments of Smart TV and the market is expected to grow at the rate of 19% annually up till 2017.


Why Smart TVs Are Getting Popular

The most noticeable reason for the widespread use of Smart TVs today is the accessibility to broadcast services and content that propels the use of these systems in most part of China, Europe, Asia, and Japan. The availability of free content at large for the people of China is a major instigator in their purchase of Smart TVs. Also, many of the markets that were previously in their development stages are now more ready to invest in their television sets.


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The shares of Smart TV shipments in both China and Western Europe have increased from 26 and 34 percent respectively, to an astonishing 40 percent in one year.

The most staggering growth of Smart TV market has been in Japan, where the penetration rate for this year surpassed 55 percent. While the Asian markets are still lucrative for Smart TV shipments, they are expected to show more increase in the use of smart phones rather than TVs. In today’s economy, the shipment of Smart TVs makes up a large portion of the total television shipments in almost all regions.

However, there are some regions that are exceptions to this growth. Among those, North America seems to be on the lowest level of market penetration rate when it comes to Smart TVs, hovering somewhere along 20 percent annually. The major reason behind this almost stagnant growth is the difference in their consumption pattern.

North American countries have the highest level of internet video usage but they prefer the use of paid on demand services rather than opting for a connected TV. Despite these facts, it is estimated that approximately 100 million households in North America and Western Europe will own Smart TVs by 2016.

Western Europe households maintain a separate train of thought and are the largest users of freely available content over the Internet. Also, broadcast services are showing a particular interest in getting rid of the unnecessary hardware and rapidly developing features for the Smart and connected TVs.

With this, broadcasters are trying to find a united platform for their services that can be mutually beneficial. International, regional, local and all kinds of programs are now being made to fit the demands of Smart TVs.

What Is New in Smart TVs?

Smart TVs with in-built browsers and the ability to access open Internet are among those gaining popularity most rapidly. With time, the manufacturers are looking for more ways to add functionality to their respective brands in order to capture the growing market. In just the second quarter of this year, around 9.5 million Smart TV sets with open Internet access were sold, while the yearly estimate was somewhere around 43 million and these are just the figures for customer-controlled sets.

As for the more basic sets, their services are estimated to face a sharp downfall in their prices as more brands bring in highly functional features to their Smart TVs. In order to ensure that the basic sets can compete with the new ones, their prices will be reduced to the minimum level, making them a viable choice for those who are concerned about affordability.

With the aggravated  advancement in the market of Smart TVs and the availability of Internet broadcast services far and wide, the growth rate for them will continue to rise in the coming few years, more as the content over Internet gets more accessible and cheaper.

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