Internet-Connect TV Soars, Clicks With Mainstream Audience

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Internet-connected television sets have been growing fast, and by the end of the year -- for the first time -- there will be more connected TVs than video game consoles. 

By the end of 2011, some 52 million connected TV sets will be sold globally -- from Samsung, LG and Sony versus 37 game consoles in the market from Microsoft, Nintendo and Sony --Xbox, PlayStation and Wii respectively. This is according to U.K.-base Informa Telecoms & Media.

"Until now, many online video services were launched primarily with the game console in mind, mainly because console users innately understand how to connect these devices and demand interactive video services from them," stated Andrew Ladbrook, analyst at Informa Telecoms & Media.

He said this trend is changing as "connected TVs bring these services to a mainstream audience."

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Informa projects that in five years -- 2016 -- there will be 1.8 billion in-home video devices -- including tablets -- that will be sold, an 800% increase. That means 70% of all in-home video devices sold will be able to connect to the Internet. But connected TVs might have to undergo a change by then. Informa says new TV set makers will need to build and support platforms that works across both the latest and legacy video devices.

Which company could lose out here? Informa says Apple could lose ground in the connected TV space if it does not launch a dedicated Internet-enabled TV instead of relying upon a stand-alone box to stream video.

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