Yahoo! Connected TV: The war of Smart TVs just started (1/2)

17 06 2012

Yahoo! Inc, defines itself as a digital media company that generate revenues from three sources: display of graphical advertisements (“display advertising”), the display of textbased links to advertisers’ Websites (“search advertising”), and other sources. Yahoo! offerings to users currently fall into three categories: Communications and Communities; Search and Marketplaces; and Media.

This post is going to focus on Yahoo!’s “Communications and Communities” category and more precisely in giving recommendations for its Yahoo! Connected TV. For this purpose, factors such as Smart TV Market Size, Smart TV Value Chain, key manufacturers and competitors are going to be analyzed.

Yahoo! Connected TV

Launched in 2009, Yahoo! Connected TV is one of the oldest and largest TV platforms with more than 8 million connected TV’s[1] and over 1 million active monthly users in over 135 countries. The platform is embedded on TV’s and other devices from manufacturing companies like Vizio, Samsung, Sony, Toshiba and LG. In addition, is an open-source and highly focused to have an interactive communication and relationship with developers through its YCTV blog, website, Facebook pages, Twitter account and Youtube Channels.

The platform offers more than 120 available TV Apps[2] that range in purpose from fun to functional, including social networking, streaming music, casual games, personalized financial quotes, locally relevant news, weather and sports, and more than 75,000 movies and TV shows on demand.

Yahoo Connected TV big value proposition is it content driven search capabilities and its platform for advertising through a broadcast interactivity system. This new feature – the first of its kind, offers consumers an immersive, real-time experience on the platform that brings people even closer to the programs and brands they love by enabling them to play along while they watch their favorite shows. On the other hand, it offers hyper contextualized, interactive and call to action advertisement. Meanwhile a consumer is watching a TV show, it can have access to information such as the clothes the presenters are wearing, the price and where they can buy it.

The price to access to Yahoo! Connected TV goes from the lowest range of Smart TVs ($200-$400). Its store offers a range of apps that range from $0.99 to $99[3]. In addition, developers get 70% of the apps revenue.

Smart TV Market Size

Smart TVs are defined as television sets that are capable of accessing the Internet that can be used to download and install applications, surf the web and more. Global Smart TV market[4] will grow at a CAGR of 20.6% from 2011-2015 and it is expected to reach $265 billion[5] by 2016 and to reach the 153.2 million units shipped by the same year, from 64 million units shipped in 2011. In addition, paid applications alone are anticipated to generate $1.9 billion by 2015 up from $10 million in 2010[6].

According to NPD DisplaySearch, 27% of the TVs shipped in the first quarter of 2012 offered some type web connectivity. Almost 20 % of all TVs shipped worldwide were actually Smart TVs, with services built right into the set[7]. China, Western Europe, North America and Japan are the markets with the highest penetration rates.

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 Smart TV Value Chain

Key components of the value chain are content creators, aggregators, distributors, and end-users. Smart TV is disrupting the TV value chain in all of its aspects: content creators and manufactures can access directly to consumers, aggregators cannot control the content broadcasted through their channels, operators are not the only content distributor facing a though competition from TV platforms, and last but not least, the consumer will demand a smart TV not to behave as a computer nor as a simple TV, but the best of both worlds.

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[1] Yahoo! Connected TV Developer Event. http://www.yctvblog.com/blog/2012/05/01/yctv-develope-event/- Last accessed 11/06/12.

[2] Your TV Just got smarter: Yahoo! Introduces Dozens of New Connected TV Apps. http://ycorpblog.com/2011/05/05/connectedtv05052011/. Last accessed 11/06/12.

[3] Connected TV. http://connectedtv.yahoo.com/developer/tvstore/. Last accessed: 14/06/12

[4] Global Samrt TV Market 2011-2015. http://www.marketwatch.com/story/global-smart-tv-market-2011-2015-2012-05-16. Last accessed 11/06/12

[5] MarketsandMarkets: Global Smart TV market worth $265 Billion by 2016. http://www.prnewswire.com/news-releases/marketsandmarkets-global-smart-tv-market-worth-265-billion-by-2016-136643728.html. Last accessed 11/06/12

[6] Smart TV Apps- the next big thing in digital. http://digitalmarketinglab.com.au/index.php/2011/12/04/smart-tv-apps-the-next-big-thing-in-digital/. Last accessed: 11/06/12

[7] We’re all connected; Smart TV Market Share surges in 2012. http://www.bigpicturebigsound.com/We-re-All-Connected-Smart-TV-Market-Share-Surges-in-2012.shtml. Last accessed: 11/06/12.

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5 responses

20 02 2013
Maybelle

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21 02 2013
marketrends

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21 03 2013
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22 03 2013
marketrends

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25 05 2013
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