The evolution of Connected TV

Connected TV (CTV) is a term that refers to the integration of traditional television sets with internet connectivity, enabling access to digital content and streaming services. The evolution of CTV has been rapid in recent years, fueled by advancements in technology and changes in consumer behavior.

The trend of cord-cutting, which refers to the act of canceling cable or satellite TV subscriptions in favor of streaming services, has been on the rise in recent years. This shift in consumer behavior is fueled by the increasing popularity of over-the-top (OTT) services, which allow users to stream video content over the internet without a traditional cable or satellite TV subscription.

The digital revolution in the country has had a significant impact on content consumption patterns. With the rise of streaming services, more and more people are opting to watch TV through internet-connected devices. This shift in behavior has also been driven by the convenience of on-demand viewing, the cost savings associated with cord-cutting, and the ability to customize viewing preferences.

The popularity of streaming services like Netflix, Amazon Prime Video, and Disney+ has only furthered the growth of connected TV. These services have become major players in the entertainment industry, offering original content and access to popular TV shows and movies. Traditional TV networks have also recognized the importance of the streaming market and are increasingly offering their content through CTV platforms.

In addition to the growth of streaming services, the increasing availability of high-speed internet has made it easier for consumers to access digital content through CTV. The proliferation of smart TVs and other internet-connected devices has also made it more convenient for viewers to access streaming content.

Here are some details about the evolution of connected TV:

1. Market Size: According to a report by Grand View Research, the global connected TV market size was valued at $167.7 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 21.0% from 2021 to 2028.
2. User Base: In the United States alone, the number of connected TV users is expected to reach 202.1 million by 2022, according to eMarketer. That’s nearly two-thirds of the population.
3. Smart TV Market Share: As of Q2 2021, Samsung has the largest share of the smart TV market, with 18.6%, followed by LG with 13.3% and Sony with 9.3%, according to Statista.
4. Streaming Services: Netflix remains the most popular streaming service, with over 209 million subscribers worldwide as of Q3 2021. Amazon Prime Video comes in second with over 200 million subscribers, while Disney+ has surpassed 100 million subscribers as of March 2021.
5. Advertising Revenue: According to eMarketer, connected TV advertising in the US is expected to reach $11.36 billion in 2021, a 38.3% increase from 2020. By 2025, it is projected to reach $18.29 billion.
6. Viewing Habits: In a survey conducted by the Interactive Advertising Bureau (IAB), 56% of US adults said they were streaming more connected TV than they did a year ago. The same survey found that 63% of viewers watched free ad-supported streaming TV services.
7. Innovation: With the evolution of CTV, we are seeing new innovations in the space, such as the integration of voice assistants, artificial intelligence, and augmented reality. For example, LG recently introduced a new TV with an AI-powered panel that can display virtual sports crowds during live events.

The current state of connected TV (CTV) is one of rapid growth and increasing importance to the entertainment industry. As traditional TV viewership declines, CTV has become the primary platform for streaming content, and the market is expected to continue expanding in the future.

Here are some key details on the current state and future of CTV:

1. Market Size: The global CTV market size was valued at $167.7 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 21.0% from 2021 to 2028, according to a report by Grand View Research.
2. User Base: The number of CTV users is expected to reach 202.1 million in the United States alone by 2022, according to eMarketer.
3. Content: Streaming services like Netflix, Amazon Prime Video, and Disney+ have become major players in the CTV market, with millions of subscribers worldwide. In addition, traditional TV networks are increasingly offering their content through CTV platforms.
4. Advertising: The CTV advertising market is growing rapidly, with spending in the United States expected to reach $11.36 billion in 2021, a 38.3% increase from 2020, according to eMarketer.
5. Innovation: As the CTV market continues to grow, we can expect to see continued innovation in the space. This includes the integration of voice assistants, artificial intelligence, and augmented reality, as well as new ad formats and targeting capabilities.

Looking to the future, here are some predictions for the direction of the CTV market:

1. Continued Growth: The CTV market is expected to continue growing as more consumers switch from traditional TV to streaming platforms. This growth will likely be driven by new streaming services and an increasing amount of original content.
2. Ad Innovation: Advertisers will continue to invest in CTV as a primary advertising platform, and we can expect to see continued innovation in ad formats and targeting capabilities.
3. Integration with Other Devices: CTV will increasingly be integrated with other smart devices, such as smartphones and smart speakers. This will enable consumers to control their viewing experience across multiple devices and provide new opportunities for advertising.
4. Increased Competition: As the CTV market grows, we can expect to see increased competition among streaming services, which may lead to consolidation and the emergence of dominant players in the market.

Overall, the future of connected TV looks bright, with continued growth, innovation, and new opportunities for content creators and advertisers.