STBs and dongles boost connected market

The smart set-top box and dongle market will pass 18 million units in 2013 – higher than originally forecast – due to the arrival of Google’s Chromecast device, according to a new study from ABI Research.

The report predicts that overall the market will grow with a 10.8% year-over-year growth rate between now and 2018, with less saturated and developing markets like Asia-Pacific and Latin America helping to drive this growth.

“Despite stiff competition from a range of connected CE devices, the smart set-top box and dongle market offers an equally compelling user experience often at significantly lower price points,” said ABI senior analyst Michael Inouye.

“Google’s Chromecast device in particular sets a new low price bar for the connected CE market and as more applications are added to its library its value to price ratio will continue to grow.”

ABI expects the price of the devices will allow lower tier TV manufacturers to separate the connected TV component, keeping prices lower and enabling customers the option to upgrade the connected platform as desired without replacing the TV.

ABI practice director Sam Rosen added: “If Sony secures the rights to distribute live cable channels from Viacom, partnerships such as this allude to a content future quite different from the one many are accustomed to today.

“Content holders are already forging more direct relationships to viewers and this would be a natural step forward, but the Pay TV operators are likewise evolving and adapting to this changing market environment.

“The amalgamation of Pay TV and OTT will become increasingly important, suggesting Google TV’s vision might have come too early but might grow into this role as a bridge or new entrants like Microsoft’s Xbox One might fully realize this unified vision.”