Smart TV Adoption Growing Rapidly, Market Ripe for Apple iTV

MacRumors · May 3, 2013

According to a new report from media research firm TDG (via GigaOM) 14% of households with broadband internet owned an Apple TV, Roku box, or similar streaming platform during a study in 2012.

While that sounds like an impressive number, Smart TVs have been slowly taking over the connected TV market. 25% of households owned a smart TV that comes equipped with apps, such as those offered by manufacturers like Samsung and LG.

Smart TV adoption grew from 12% in 2011 to 25% in 2012, while connected set top box adoption grew just two percentage points year over year. While not all Smart TV owners use the "smart" capabilities, 69% of users surveyed connected their Smart TVs to the Internet, indicating that roughly two thirds of Smart TV owners take advantage of the TV's functionality.

With Smart TVs positioned as a rapidly growing market, it is unsurprising that rumors of an Apple-branded smart TV have abounded since 2011, when Walter Isaacson's famous biography revealed that Steve Jobs had an interest in revolutionizing the television industry.

The iTV, as it has been dubbed, is rumored to come equipped with app integration and Siri functionality. The latest rumors, which surfaced in March, suggested that Apple is currently working on an "Ultra HD" or "4K" television set with a resolution of 3840 x 2160.

Such a set could launch in late 2013 or early 2014, although a potential launch timeframe has been a moving target for Apple observers over the past several years as the company has apparently yet to make its TV work into a formal project.

Article Link: Smart TV Adoption Growing Rapidly, Market Ripe for Apple iTV

sulpfiction · May 3, 2013

If u dream it, it will come.

HiRez · May 3, 2013

Wake me up when something happens.

keysofanxiety · May 3, 2013

Apple could have already revolutionised the TV industry a good few years ago if they actually worked on improving the Apple TV. TV market isn't going to be blown away by something thinner or lighter; IMHO it's more about the software, content and how everything 'works'.

They would have had a great opportunity to really do something if they opened it up for development. Could have even been part games console for all you know. It's probably a bit too late now

needfx · May 3, 2013

I don't find recent TV sets all that smart

If anything, they're idiotically counter-intuitive

KdParker · May 3, 2013

How many times are we going to hear about this Apple iTV without a credible production date rumor?

Apple fanboy · May 3, 2013

It won't be called iTV if they do. http://www.itv.com

Kohath · May 3, 2013

TV is not interactive

- TV is not interactive. A slick new GUI isn't a reason to pay 2X the going rate for a TV.
- The TV business is ultra competitive (actually to a very unhealthy degree).
- And there are no special content deals available to Apple that aren't available to others. Expect to pay Apple the same or more for a similar service.
- There's no 4k content. Apple doesn't support Blu-ray and 4k movies are 20-100GB in size.

Apple is probably "working on" a TV. But they won't come out with one until something changes or until they can change something about the TV business.

Daze & Confuse · May 3, 2013

Smart TV sales rose because every TV over a few hundred $ is a smart TV - whether you want it or not.

I don't know anybody who chose their last TV because it was 'smart' - or even care whether it is - but they have ended up with smart TVs anyway!

Dan-- · May 3, 2013

So I have a "smart" tv from 2011 and an Apple TV.

The smart TV functions include some mild apps, and access to a variety of internet video. It doesn't get used for 2 reasons. It's a crappy interface, and it doesn't hook up to my sound system. The TV was out before ARC, and the audio out doesn't support full audio capability, so I never bothered running audio wires from the TV to the wall to the receiver, but it does get internet.

So, I'm one of those that's hooked their TV up to the internet, but NEVER use its "smart" functions.

And yet, in some ways it does offer more than ATV, for example Amazon video (which is not a big deal).

But if Apple would just let devs put out apps for the thing, it'd be awesome!

bbeagle · May 3, 2013

Daze & Confuse said:
Smart TV sales rose because every TV over a few hundred $ is a smart TV - whether you want it or not.

I don't know anybody who chose their last TV because it was 'smart' - or even care whether it is - but they have ended up with smart TVs anyway!

Very true.

I, myself, own 2 'smart TVs', but I've never used those features even once.

rmwebs · May 3, 2013

Do the MacRumors editors intentionally keep incorrectly referring to it as 'iTV' to spark up a 10 page argument on why it will never be called that?

Here's the end result of the game: Some idiot with no clue says Apple will buy out ITV. This annoys anyone with half a brain living in the UK as its a stupendously stupid suggestion.

It will never, ever, ever, ever be called the 'iTV'. There's a reason that Apple renamed it to 'Apple TV' before it launched.

JackieTreehorn · May 3, 2013

sulpfiction said:
If u dream it, it will come.

If you will it, Dude - it is no dream.
Theodor Herzel

CaptHenryMorgan · May 3, 2013

Just give me an AppleTV sized box that can drive a 4K display and has Hulu, Netflix, iTunes, and HBOGo with remote control via iPhone. That's all I need. I'll buy my own 4K display

camnchar · May 3, 2013

I will be more impressed with 4k when there's content to match.

Antares · May 3, 2013

Are people really buying smart tvs for the smart tv features or they simply buying a new tv that simply has smart tv functions included. Thats what I would like to know and what would incentivize people to buy an Apple branded television. If people dont really care about smart tv functions, would people want to buy an Apple TV with those functions as a selling point?

thejadedmonkey · May 3, 2013

Daze & Confuse said:
Smart TV sales rose because every TV over a few hundred $ is a smart TV - whether you want it or not.

I don't know anybody who chose their last TV because it was 'smart' - or even care whether it is - but they have ended up with smart TVs anyway!

This, I don't know why this wasn't brought up in the article. Anyone buying a TV that's a few hundred bucks is going to get wifi and netflix/pandora integration. And no one cares because they just connect their xbox/wii/apple TV up to their TV and ignore all of the smart features anyway.

inkswamp · May 3, 2013

keysofanxiety said:
Apple could have already revolutionised the TV industry a good few years ago if they actually worked on improving the Apple TV. TV market isn't going to be blown away by something thinner or lighter; IMHO it's more about the software, content and how everything 'works'.

They would have had a great opportunity to really do something if they opened it up for development. Could have even been part games console for all you know. It's probably a bit too late now

Apple has never once been first to a market despite thriving in them so how you come to the conclusion that they've missed an opportunity is a great mystery to me. They weren't first with computers, music players, music downloads, movie downloads, smart phones, mobile apps, tablets, etc. They've done well by bringing something completely unexpected to the game that changes things for everyone and reorients everyone's thinking about what the product should be. The "smart TV" market could go on for years and still be vulnerable to a game-changing idea.

extricated · May 3, 2013

If you're in the market for a TV and almost all of your choices these days are "smart" TVs, you'll probably end up buying a Smart TV. Hence, strong adoption of smart TV's in 2012.
I wouldn't say "smart" is a strong selling point (yet).

rdlink · May 3, 2013

needfx said:
I don't find recent TV sets all that smart

If anything, they're idiotically counter-intuitive

Thanks for the very accurate insight. I'll add pretty darn kludgy, also. I've owned 2 different Samsung "Smart" TVs, and installed and configured a third. They're not smart or nice. Pretty aggravating, actually. Love the display, and the thin form factor. But I wish I could remove the software.

Apple has an opportunity here to make Smart TVs actually be smart.

jimmer-uk · May 3, 2013

Daze & Confuse said:
Smart TV sales rose because every TV over a few hundred $ is a smart TV - whether you want it or not.

I don't know anybody who chose their last TV because it was 'smart' - or even care whether it is - but they have ended up with smart TVs anyway!

Just what I was thinking. To that end the percentage figure of the Apple TV and roku boxes are much more interesting, I have a smart tv but don't use the function, it's crap but I do use the Apple TV.

Nightarchaon · May 3, 2013

i dont buy a TV because of its, never to be used, SMART status, i buy a TV, (and will shortly be buying a new TV) based on two things, Price (I want to spend as little as possible) compared against the quality of the image the screen produces (the trade off we all make, price vs quality, i mean if i wanted real quality i could drop $100,000 + on a TV).

I dont care about the so called smart features because i will be hooking up several set top boxes, (PS3, Apple TV, Cable box) that have all those smart features already, usually in a better more accessible form...and, as an added bonus, by replacing the set-top boxes, (shortly PS3 gets joined by a PS4) i can add and upgrade what my TV can do, without having to buy a new one until 4K gets here as a standard..

im not sure Apple, who rely on bringing out new products and leaving features off the software upgrades for the older models to get people to buy the same device again every year will cope in a market where 99% of the population only purchase the product once a decade or less.

to me the best Apple TV apple have, is the one they are already selling, they just need to expand it to allow an App Store, and maybe start producing there own shows to sell over iTunes (Kind of like netflix and amazon, but obviously at a price per episode/season pass)

apolloa · May 3, 2013

Smart TV sales growing rapidly..........

Yeah because more and more of the TVs available are smart and the buying consumer actually has little choice if they buy a 'smart TV. Or not.

Kinda scewing the facts and sales figures to suit the story if you ask me.

jimmer-uk · May 3, 2013

Oh and of course it's growing rapidly. Smart Tv's are nearly all you can buy now..

ndpitch · May 3, 2013

As we move towards internet driven TV, I wonder how Comcast and Verizon will maintain their choke hold on the household TV market. Make stand alone internet service cost 175 bucks a month?

Smart TV Adoption Growing Rapidly, Market Ripe for Apple iTV

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