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© 2017 IHS Markit. All Rights Reserved.
TV Sets Outlook Paul Gray, Research Director
17 October 2017
© 2017 IHS Markit. All Rights Reserved.
Global TV featuring: Q2 2017
• China leads on all new features: earliest-adopting consumers, buying the largest TVs in the world.
• In all regions, screen size shipped grows by ~1” per year
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Eastern Europe China Asia Pacific Latin America Middle Eastand Africa
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Feature summary: Q2 2017 TV shipments
Source: IHS Markit © 2017 IHS Markit
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© 2017 IHS Markit. All Rights Reserved.
4K TV shipment share by region, Q2 2017
• China leads by far, other regions increasing penetration steadily.
• In 40”+ sizes, 4K is 50%+ of shipped in North America and Europe, and over 66% in China.
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4K TV Penetration Trend
Source: IHS Markit © 2017 IHS Markit
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© 2017 IHS Markit. All Rights Reserved.
UHD Content reinforces new consumption patterns Why was Reed Hastings at MWC?
• Streaming services first to launch UHD content
> Marketing strategy to support premium content positioning.
• Equally encouraging mobile usage.
• UHD featuring like Dolby Vision now on phones: LG G6 (pictured)
• Blurring boundaries between TV and mobile viewing: it’s all long-form video!
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Source: LGE
© 2017 IHS Markit. All Rights Reserved.
Smart TV usage: BBC iPlayer consumption trend
• PC and mobile viewing are gateways to increased TV screen* on-demand viewing.
• Consumers use mobile devices to try new services, transferring viewing to the TV screen for intensive consumption.
> Out-of-home usage does not compete with TV, but a new audience opportunity.
*TV screen viewing by Smart TV, streaming box or games console.
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BBC iPlayer TV content playbacks by device type
Source: IHS Markit © 2017 IHS Markit
© 2017 IHS Markit. All Rights Reserved.
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© 2017 IHS Markit. All Rights Reserved.
TV replacement: towards one big screen...
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• Secondary TVs not being replaced
> Tablets, smartphones for personalised viewing
• Fewer TVs in the home
• TV remains dominant for high-value viewing
• Towards a single, big TV in the living room
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<30" 30-39" 40-49" 50"-59" 60"+
Western Europe MAT shipment share by size
Source: IHS Markit © 2017 IHS Markit
© 2017 IHS Markit. All Rights Reserved.
Smart TV forecast
• Market largely saturated; smart TV penetration strongly linked to services and TV viewing habits.
> Smart featuring will almost always exist in 4K products.
• 4K featuring is driving HEVC decoders: opportunity for Hbb.TV to fill the content gap
• By 2018 all 50”+ will be 4K and 50% of TV shipments 4K in Western Europe
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2016 2017 2018 2019 2020 2021
W Europe 15.636 17.345 17.833 18.809 19.973 20.173
E Europe 6.527 6.380 6.816 6.642 6.945 7.214
W Europe % 52% 59% 60% 62% 64% 65%
E Europe % 45% 48% 49% 50% 51% 53%
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W Europe E EuropeW Europe % E Europe %
Smart TV forecast by region
Source: IHS Markit © 2017 IHS Markit
© 2017 IHS Markit. All Rights Reserved.
Interactivity: away from screens towards natural language
Buttons and sliders
Pointing devices
Touch and Gesture
Network-based intelligence
© 2017 IHS Markit. All Rights Reserved.
Voice assistants: new gateways… and gatekeepers
• Voice assistants (Google assistant, Amazon Alexa, Siri) bring new gatekeepers.
• CE brands have no control over search outcomes or revenue shares.
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Other / ProprietaryApple SiriGoogle AssistantAmazon AlexaSonos
Smart speaker forecast by platform (worldwide)
Source: IHS Markit © 2017 IHS Markit
© 2017 IHS Markit. All Rights Reserved.
Summary
• Consumers bringing streaming habits back to the TV.
• 4K TV supply push is a big opportunity for Hbb 2.0 services.
•New gatekeepers to control the TV screen emerging.
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© 2017 IHS Markit. All Rights Reserved. © 2017 IHS Markit. All Rights Reserved.
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Thank you! Questions?
Paul Gray, [email protected]
+44 7810 854646
