TV apps market to hit $1.9B by 2015
TV applications, aka widgets, may be a novelty now, likely to generate a modest total revenue of about $10 million in 2010, but by one estimate that could grow to $1.9 billion by 2015.
GigaOM Pro calculates that by 2015, six of 10 TVs shipped worldwide will have a network connection (Ethernet, Wi-Fi or both), and 70 percent of those will come with an embedded app platform and app store.
Embedded app stores will be the method for bringing apps to the TV, but other approaches include video-optimized browsers such as Boxee, Kylo and Oregan Network’s Onyx Media Browser. MSOs and IPTV service providers are also rolling out their own network-based apps platforms by leveraging industry-standard technologies like EBIF and tru2way.
In some cases, service providers are also embedding third-party software, such as ActiveVideo Networks’ Cloud TV platform leased with set-top boxes to enable greater app functionality.
Cablevision is a notable ActiveVideo customer and is said to be generating tens of apps a month.
The most widely distributed embedded app platforms in 2010 include Yahoo’s Widget Channel, as well as those from Vudu (recently acquired by Wal-Mart) and DivX. But major mobile app platform providers Apple, Google and Microsoft are all eying connected TVs as fertile ground for extending their mobile franchises, GigaOM Pro reports.
Meanwhile, Google recently began work with Sony and Intel on an Android-powered Google TV platform, though no date of introduction has been announced, the report notes. Apple’s iPad is fueling rapid development of media-related apps for its iTunes App Store platform that could eventually become the foundation for a revamped Apple TV strategy.
The report is available at GigaOM Pro’s website.