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Smart TV sales to exceed 50 million worldwide yet many remain unconvinced (and unconnected)

Given the sharp rise in technological innovation within the household devices sector, it’s no wonder that the demand for Smart TVs has been increasing globally.  In fact, Andrew Ladbrook of Informa Telecoms & Media believes that 31% of households worldwide will own a minimum of one Smart TV in five years time. Strong sales in North America and Western Europe, particularly in the UK and France, will contribute significantly to overall demand.

There are, however, real constraints on demand.  

For example, due to durability and cost, TVs tend to experience longer replacement cycles than other consumer electronics.  As a class they tend to lag behind other household devices in terms of technology and digitalization.  Now with devices such as smartphones, tablets, set-top boxes, media streamers and games consoles becoming commonplace components of the digital home experience, Smart TVs remain one of the final jigsaw pieces to slot into place.

Manufacturers have a very real role to play in shaping demand for Smart TVs. There’s evidence that some may be holding back on production in order to maintain market share for competing jewels in their (electronics) crown, while others are investing in significant upgrades to keep their products at the forefront of consumer demand. The latter tactic seems to be the direction taken at Samsung.  Ethan Rasiel, spokesman for Samsung Electronics America reported that the TV maker “improved the user interface” for its 2012 models. "The Smart Hub interface [now] has a cleaner, more intuitive UI (User Interface)," said Rasiel.

Despite better UI, general software design features are believed to be impacting demand as well.  Increasingly consumers seem reluctant to navigate the ever-bewildering array of apps which have come to define the Smart TV experience.  

On this, Paul Gagnon, NPD DisplaySearch director of North American TV research, has noted, "social apps are interesting, but with the usage of these apps effectively interrupting the TV view experience — a big problem if more than one person is watching TV — I think most consumers will stick to a preference for streaming video apps on the TV. For now, at least."

Sadly manufacturers stand the chance of falling even further behind the demand curve -- there is concern that even by 2015 many will not possess the ability to deliver the essential processing power and pivotal hardware required, or at least, not up to the necessary standard. As a result, consumers continuing to purchase such “undercharged” TV models will be deprived of newly launched services and will lack the strong incentive needed to adopt more socially interactive viewing behaviours.  To that point, Ladbrook says that, “Informa estimates that in 2017 more than half of the 800 million Smart TV sets by that time will only be used as dumb screens.”

Nonetheless, analysts predict that by 2017 a further 220 million Smart TV sets will have been sold globally. Ladbrook says there should be more emphasis on online video services in-order to boost the programme variety available on Smart TVs. Functionalities such as a more attractive user interface, fluid motion and gesture control, two-way communication with other smart devices and voice command technology are still needed to create a true Smart TV experience. This opens a huge opportunity for TV manufacturing giants such as LG, Sony and Samsung to gain a dominant position in TV market.

However, given recent moves in technology, all it takes is one software behemoth or a scrappy startup to leapfrog the Smart TV concept entirely and deliver the real promise of socially interactive TV.  

As we see it, it’s all to watch and play for.


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Elexu™ (pronounced: elects you!) is a media company headquartered in London which is launching a new worldwide Social Interactive TV platform. Our bespoke technology merges existing formats of online social networking with television to create the first truly interactive social TV experience. 

Elexu gives aspiring young creatives, entrepreneurs and activists the opportunity to showcase their talents, grow their fan base, raise funds for projects they care about, as well as monetise their online content, viewership and community-building activities.  Moreover, Elexu members can vie for valuable endowments in high-profile, brand-sponsored competitions.  The best of these competitions are serialised for broader IPTV distribution as interactive reality programming.  

In addition, Elexu offers brand, charity and agency partners the unique opportunity to produce and distribute high-quality, entertaining, interactive content at a fraction of the cost, time and resources normally associated with broadcast.  This critical step change, coupled with Elexu's ability to deliver unparalleled insight into customer preference, sentiment and behaviour, makes Elexu the ideal partner for brands seeking innovation in their social media, customer engagement, experiential marketing, e-commerce and R&D activities. 

Visit elexu.com/invite for a VIP invitation to our Beta community.

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