4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

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IE Market Research Corporation 4Q.2014 Global Connected TV, Gaming Console, and Computing Devices for Home Digital Entertainment Forecast Presentation, 2011-2018

description

IEMR’s Global Connected TV, Gaming Console and Computing Devices Forecast provides a comprehensive forecast of global, regional, and country-specific acquisition and possession of TV, gaming consoles and computing devices among consumers in 18 countries and 7 regions. For each country, region, and globally, we provide annual historical data (2011 – 2013) and annual forecasts (2014 - 2018) for sales, households and installed base of 19 different technology segments in the home entertainment sector. IEMR’s estimates are based on both demand-side on-line consumer surveys and supply-side on-line interviews with executives. On the demand side, we undertake detailed on-line surveys at the country level in the "IEMR 50" list of countries where we undertake primary field surveys based on our quarterly Global Consumer Telecommunications Survey.

Transcript of 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Page 1: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

IE Market Research Corporation

4Q.2014 Global Connected TV, Gaming Console, and Computing Devices for Home Digital Entertainment Forecast Presentation, 2011-2018

Page 2: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

November 2014

4Q.2014 Global Connected TV, Gaming Console, and Computing Devices for Home Digital Entertainment Forecast Presentation, 2011-2018

IE Market Research Corporation

Page 3: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Table of Contents

Subscriber Connections

3

Introduction: Forecast Methodology & Coverage 4

Global Market Review 11

Regional Overview: 19

North America 20

Latin America 23

Western Europe 26

Eastern Europe 29

Asia-Pacific 32

Middle East 35

Africa 38

Disclaimers and Disclosures

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Introduction: Forecast Methodology & Coverage

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This report provides IE Market Research Corporation's (IEMR) quantitative historical estimates and future forecasts for the Connected TV, Gaming Console, and Computing Devices for Home Digital Entertainment market.

Unlike other research firms that base their estimates essentially on complicated models and Analyst assumptions, IEMR’s estimates are based on both demand-side on-line consumer surveys and supply-side on-line enterprise interviews with executives that we undertake for any given ecosystem.

Demand Side

On the demand side, we undertake detailed on-line surveys at the country level in the "IEMR 50" list of countries where we conduct primary on-line field surveys based on our quarterly Global Consumer Telecommunications Panel. Please see the exact survey questionnaire administered to our Consumer Panel in the "Consumer Survey Questionnaire" Tab and the Sample Demographics for each country in the "Consumer Survey Demographics" Tab of this report. For the Global Connected TV, Gaming Console, and Computing Devices for Home Digital Entertainment report, we undertook an online survey of 33,489 consumers in 18 countries and 7 regions.. Conducted in quarterly waves, IEMR's Global Consumer Telecommunications Survey measures trends in fixed and mobile telecoms and digital media usage among consumers in these 18 countries and is the most comprehensive survey of its kind in the world.

Supply Side

These demand side surveys are “conditioned” by supply side interviews that we conduct with leading companies in any given ecosystem. We provide these companies with our global and regional estimates and ask them standard questions about their thoughts on past estimates at the global and regional levels and their insights on the future growth rates both globally and in any given market. These supply side interviews are done after the demand side estimates are produced and may change the demand side estimates established by IEMR.

In this sense, our estimates and forecasts are not “Analyst” estimates but can be construed as being “Market” estimates since we include both demand and supply-side considerations in our methodology and actually interview consumers and confirm their views with enterprises.

© 2014 IE Market Research Corp.

All rights reserved.

Introduction: Forecast Methodology & Coverage

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Series Definitions

© 2014 IE Market Research Corp.

All rights reserved.

Introduction: Forecast Methodology & Coverage

6

HouseholdsWe define "households" as one or more people who live in the same physical dwelling structure and also share at meals or living accommodation, and may consist of a single family or some other grouping of people. A single dwelling will be considered to contain multiple households if either meals or living space are not shared, for example basement suites where living space may be rented to a completely different social unit. This metric is based on our Consumer Survey Questionnaire.

Installed BaseWe define installed base as the total number of devices that are actually in households and used on a regular basis (at lease once per quarter). This metric is based on our Consumer Survey Questionnaire.

Unit SalesWe define historical unit sales as the number of devices purchased by households in a given country in a given year. We define forecast unit sales as the number of devices that households are expected to purchase (either new devices or replacement devices) every year over the next 4 - 5 years. This metric is based on our Consumer Survey Questionnaire.

Advanced GatewaysWe define an advanced gateway as a device connecting home entertainment devices in household consumer premises to a broadband delivery network. Advanced gateways allow for such functionality as application downloads, home automation and multi-screen deployment of entertainment on various types of devices. Please see our Consumer Survey Questionnaire for the specific question related to advanced gateways.

Blu-ray Player We define a Blu-ray Player as a media playing device that primarily plays Blu-ray discs (BD) capable of storing high-definition video resolution (1080p) programs.

Digital Video Recorder (DVR)

A set top box connected to a television that allows an individual to record various programs. A DVR can record video in a digital format to a disk drive, USB flash drive, SD memory card, SSD or other local or networked mass storage devices.

DVD PlayerA DVD player is a device connected to a TV that plays discs produced under both the DVD-Video and DVD-Audio technical standards. DVD players will also play audio CDs. DVD players are connected to a television to watch the DVD content, which could be a movie, a recorded TV show, or other content.

Gaming ConsolesWe define gaming consoles as devices with the primary purpose of playing digital video games either locally (without an internet connection) or video games that require a connection to the interent.

Gaming Consoles: 7th Generation

We define 7th Generation Gaming Consoles as consoles that support new disc formats (such as Blu-ray Disc or HD DVD), motion as input, Infrared tracking, wireless controls, touch screens, and cameras.

Gaming Consoles: 8th Generation

In addition to 7th Generation features, we define 8th Generation Gaming Consoles as consoles that integrate with other media and have increased connectivity and may have additional features such as 3D, augmented reality, and sharing of video game content between devices.

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© 2014 IE Market Research Corp.

All rights reserved.

Introduction: Forecast Methodology & Coverage

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Laptops We define laptop computers as portable computers that a consumer can take with him / her and use in different environments.

Media Streaming Devices

We define a media streaming device as a device that can connect a TV to the Internet so users can watch Over-the-Top TV on the bigger screen.

Multi-room DVRs We define Multiroom DVRs as digital video recorders that allow TV customers to watch recorded programs on multiple TVs in any room in the house.

Desktop Personal Computers

We define a Desktop Personal Computer as a computer that has a separate keyboard, monitor, and CPU housing unit used by consumers to connect to the internet.

Set top Box (STB)We define a set-top box as any electronic device designed to produce output on a televesion set and connected to some other communications channels such as telephone, ISDN, optical fibre, cable, or satellite. The STB usually runs software to allow the user to interact with the programmes shown on the television in some way. This content is received primarily via a traditional broadcast signal (i.e., satellite, cable, DTT, or IPTV).

Smart Blu-ray Player

We define a Smart Blu-ray Player as a Blu-ray player that can also connect to the Internet and access online services and locally-shared content from other devices in the home.

Smart TVWe define a Smart TV that provides the traditional functions of television sets and set-top boxes provided through traditional broadcasting media and internet connectivity that allow these devices to also provide online interactive media, Internet TV, over-the-top content, as well as on-demand streaming media, and home networking access.

Standard Definition (SD) DVRs

We define a Standard Definition (SD) DVRs as DVRs capable of recording content from standard-definition televisions usually have 480p/i/576p/i while HDTV is usually in 720p/1080i.

Standard Definition (SD) STBs

We define a Standard Definition (SD) set-top box as any electronic device designed to produce output on a standard-definition television usually with a resolution of 480p/i/576p/i.

Thin Client STBsWe define a Thin Client STB as a set top box that is stripped of most of its components and functionality (such as tuning, chanelling, etc.) and instead relies on either a multi-room STB for functionality or streams functionality from the cloud.

TVWe define a TV as a large-screened device that is capable of receiving Standard Definition or High Definition broadcast signals (i.e., satellite, cable, DTT, or IPTV).

Series Definitions

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IEMR’s Global Consumer Telecommunications Survey

IEMR's Global Consumer Telecommunications Survey is a quarterly on-line survey of telecommunications usage of 50,000 consumer panelists in "IEMR-50" list of countries where we undertake primary field surveys. This is the largest survey of its kind in the world. Given that the Global Consumer Telecommunications Survey is an on-line survey, clients are asked to keep the following considerations in mind when interpreting IEMR's data:

1. For developed markets in North America, Western Europe, and Asia-Pacific, the representativeness of the results is broadly valid. Given that on-line penetration in these markets is extensive, the demographic and psychographic information as well as trend information we put forward in our forecasts should be broadly representative of the demand-side trends in these markets.

2. For emerging markets, because on-line penetration is limited to urban areas and to middle- and upper-income families in these areas, our estimates are representative of these demographics in emerging markets. In our demand-side estimates, IEMR does not make any adjustments to extrapolate to national figures from survey figures. For example, if our survey shows that 10% of urban Chinese have downloaded paid music over mobile networks, our national estimate extrapolates to the urban China market rather than the national China market. Further, in most emerging markets (except China), the survey was conducted in English and not the native tongue of the overall population, further re-enforcing our methodology not to extrapolate the results to the overall market in these markets.

In the "Survey Demographics" Tab, we provide more information on IEMR's Global Telecommunications Survey, including country-specific sample sizes, margins of error, languages in which the survey was conducted and key demographic statistics for each country.

© 2014 IE Market Research Corp.

All rights reserved.

Introduction: Forecast Methodology & Coverage

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IEMR’s Global Enterprise Telecommunications Survey IEMR's Global Enterprise Telecommunications Survey is a quarterly on-line survey of 10,000+ executives that work in the telecommunications value chain. IEMR divides this value chain into four distinct components-- operators, infrastructure vendors, device vendors, and service providers. For each of these verticals and in each sub-vertical, IEMR conducts specific interviews with strategy executives, product managers, project managers, network architects, CIOs, CTOs etc. on trends in their vertical and sub-verticals. These form the basis of supply-side guidance provided to us by the ecosystem and condition the global / regional / and country-specific estimates provided by IEMR.

For this Global Mobile Entertainment Forecast, we have interviewed executives from the following companies: Rhapsody, Verizon Wireless, Google, T-Mobile USA, Digicel, ROK Global, Grupo.Mobi, Telefonica, Research in Motion (BlackBerry), Movistar, MTS, Bharti Airtel, China Mobile, DeNa, NTT DoCoMo, and KDDI.

© 2014 IE Market Research Corp.

All rights reserved.

Introduction: Forecast Methodology & Coverage

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Source: IE Market Research Corporation

Country Coverage

South and Central America:BrazilMexico Rest of Latin America

Western Europe:France, Germany, Italy, Spain, UK, Rest of Western Europe

Eastern Europe:Russia, Rest of Eastern Europe

Asia-Pacific:JapanSouth KoreaRest of developed AsiaChinaIndiaIndonesiaRest of developing Asia

Middle East and Africa:Nigeria, South Africa, Rest of Africa, Saudi Arabia, Rest of Middle East

North America:CanadaUnited States

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Global Market Review

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Global View 4Q.2014 Overall Dashboard: Sales in millions of units

TV

Smart TV

DVR

Standard Definition DVR

Media Streaming

Multi-room DVR

Gaming Consoles

8th Generation Consoles

7th Generation Consoles

Advanced Gateway

PC

Laptop

Media Players

DVD

Thin Client

Blu-ray

Smart Blu-ray

STB

Standard Definition STB

2013 2018 CAGR

256.3 306.0 3.6%

2013 2018 CAGR

97.2 268.4 22.5%

2013 2018 CAGR

65.7 96.8 8.1%

2013 2018 CAGR

56.0 60.9 1.7%

2013 2018 CAGR

9.5 16.3 11.4%

2013 2018 CAGR

19.4 61.4 25.9%

2013 2018 CAGR

28.9 24.7 -3.1%

2013 2018 CAGR

8.2 20.5 20.1%

2013 2018 CAGR

20.9 0.8 -47.9%

2013 2018 CAGR

0.4 5.2 67.0

2013 2018 CAGR

206.1 242.7 3.3%

2013 2018 CAGR

152.7 207.7 6.3%

2013 2018 CAGR

138.2 186.7 6.2%

2013 2018 CAGR

67.3 2.2 -49.5%

2013 2018 CAGR

2.6 27.5 60.3%

2013 2018 CAGR

51.2 100.2 14.4%

2013 2018 CAGR

40.1 88.8 17.2

2013 2018 CAGR

97.2 268.4 22.5%

2013 2018 CAGR

146.4 56.2 -17.4%

In this Study: 19 Device Segments(All data in millions)

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Global View

256.3

97.2

138.2

51.240.1

19.4

67.3

214.7

65.7

2.6

146.4

9.50.4

56.0

8.220.9 28.9

206.1

152.7

306.0

268.4

186.7

100.288.8

61.4

2.2

215.3

96.8

27.5

56.2

16.35.2

60.9

20.5

0.8

24.7

242.7

207.7

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4Q.2014 Relative View:Sales in millions of units

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Global View 4Q.2014 Sales in millions of units

TV & Smart TV

Source: IE Market Research

Media Streaming

Gaming Consoles PC & Laptop

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TV Sales Smart TV Sales

CAGR 25.9%

PC CAGR 3.3%Laptop CAGR 6.3%

CAGR -3.1%

TV CAGR 3.6%Smart TV CAGR 22.5%

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Global View

TV & Smart TV

Source: IE Market Research

Media Streaming

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4Q.2014 Households and Installed Base in millions of units

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Our survey data indicates that Smart TV sales

are growing fast, with total sales expected to

reach 268 million in 2018, at a CAGR of 22.5%

from 2013 to 2018.

In 2018, 40.2% of all Smart TVs sales will take

place in the Asian market. The second largest

market will be Western Europe, with a share of

19.5% of all Smart TVs sales.

With a CAGR of about 18%, Smart TV sales

will see a steady increase in developed

markets like North America and Western

Europe. However, developing markets like

Eastern Europe and Latin America will

experience fast growth during the forecast

period, with CAGRs of around 30%, with Africa

at a high of 82%.

The high growth rates of Smart TV sales will

come at lower regular TV sales growth. While

the total amount of sales are still higher those

of Smart TVs, the CAGR is limited to 3.6%.

We forecast 306 million regular TV sales in

2018 leading to an installed base of 2.8 billion

in 1.6 billion households. In contrast, we

expect an installed base of 838 million Smart

TVs in 268 million households in 2018.

© 2014 IE Market Research Corp.

All rights reserved.

IEMR expects a rapid increase in Smart TV sales at at a CAGR of 22.5% from 2013 to 2018

Chart 1: Global Smart TV sales by Region, 2011-2018

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Source: IE Market Research Corporation

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According to our survey data, we expect

the number of households using media

streaming devices to grow fast in

developed markets, reaching 135.9

million in 2018.

Three quarters of these households will

be either in Asia (55.9 million) or in North

America (47.8 million).

We forecast the total installed base of

media streaming devices to reach 218.4

million in 2018.

Latin America has not yet entered this

market but we expect that to happen in

2015. In 2018, the installed base will be

12.6 million devices, distributed over 4.7

million households in Latin America.

We don’t expect developing markets in

Asia, Africa or Eastern Europe to be

ready for media streaming devices by

2018.

© 2014 IE Market Research Corp.

All rights reserved.

Chart 2: Global Media Streaming Households by Region, 2011-2018

IEMR forecasts the total number of households with Media Streaming devices to reach 136 million by 2018

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Source: IE Market Research Corporation

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DVD player sales

Blu Ray player sales

Smart Blu Ray player sales

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Blu Ray player sales will be higher than

DVD player sales in 2015, for the first time

since its official release 9 years ago.

According to our survey data and

interviews with executives in this space,

with a CAGR of 14.4%, we are expecting

Blu Ray player sales to increase rapidly

over the next five years, in contrast to

DVD player sales, which crash at a CAGR

of -49.5%.

2018 will see, for the first time, more than

100 million Blu Ray players sold,

compared to only 2.2 million DVD players.

Smart Blu Ray player sales remain lower

than Blu Ray player sales, but grow

comparably fast. We forecast them to

reach 89 million in 2018.

© 2014 IE Market Research Corp.

All rights reserved.

Chart 3: Global Blu Ray Sales vs DVD Sales, 2011-2018

IEMR expects Blu Ray player sales to finally exceed DVD player sales in 2015, increasing at a CAGR of 14.4%

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Source: IE Market Research Corporation

Page 19: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Regional Overview

Page 20: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

North America

TV & Smart TV

Source: IE Market Research

Media Streaming

Gaming Consoles PC & Laptop

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TV Sales Smart TV Sales

CAGR 17.7%

PC CAGR -11.9%Laptop CAGR -8.7%

CAGR -12.5%

TV CAGR 1.1%Smart TV CAGR 14.1%

4Q.2014 Sales in millions of units

Page 21: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

North America

TV & Smart TV

Source: IE Market Research

Media Streaming

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4Q.2014 Households and Installed Base in millions of units

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PC Sales

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IEMR expects a trend consistent to the one

over the previous years in the forecast

period: PC and Laptop sales in North

America are experiencing a gradual decline

with an increasing device focus on

mobility, Tablets, and BYOD.

The growing preference for tablets,

smartphones and comparable mobility-

enhancing devices such as tablets is

attributed to this decline. Primary factors

include the ease of replacement, shorter

upgrade purchase spans and the increased

capability of smartphones and tablet to

perform everyday tasks such as browsing

the internet and checking e-mails.

We expect a radically different development

in Media Streaming devices: Sales, total

households and installed base increase

rapidly in North America. As Smart TVs

become preponderant in North America, our

consumer panel members are telling us that

streaming OTT TV will also grow.

We expect 89 million Media Streaming

devices in 2018 distributed over 48 million

North American households and annual

sales of 22.4 million units.© 2014 IE Market Research Corp.

All rights reserved.

Chart 4: PC and Laptop Sales in North America, 2011-2018

IEMR forecasts a continued decline in PC and Laptop sales in North America, as media streaming devices show a strong increase (17.7% CAGR)

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Chart 5: Media Streaming devices: Households, Installed Base and Sales in North America, 2011-2018

22Source: IE Market Research Corporation

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Latin America

TV & Smart TV

Source: IE Market Research

Media Streaming

Gaming Consoles PC & Laptop

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TV Sales Smart TV Sales

PC CAGR 9.4%Laptop CAGR 12.8%

CAGR 12.9%

TV CAGR 7.4%Smart TV CAGR 29.8%

4Q.2014 Sales in millions of units

Page 24: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Latin America

TV & Smart TV

Source: IE Market Research

Media Streaming

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Market

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We expect Set Top Box sales to grow at

a CAGR of 7.3% in the next five years,

leading to an installed base of 131

million in 2018 in Latin America

• As in other developing markets, the total

sales of Set Top Boxes are increasing in

Latin America.

• We do not expect Multi Room DVRs to

be sold into household in the Latin

American market in the next 4 years.

However, Standard Definition DVR sales

will increase rapidly (CAGR: 27.4%).

• We forecast an even higher CAGR for

Blu Ray player sales (36.2%) and for

Smart Blu Ray player sales (62.5%) as

price points for these devices are

declining rapidly in Latin America.

© 2014 IE Market Research Corp.

All rights reserved.

Chart 8: Set Top Box sales and installed base in Latin America, 2011-2018

IEMR expects the Smart Blu Ray players to be the fastest growing segment in Latin America, reaching sales of 10.2 million in 2018

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Chart 9: Bu Ray player and Smart Blu Ray player sales in Latin America, 2011-2018

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Western Europe

TV & Smart TV

Source: IE Market Research

Media Streaming

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TV Sales Smart TV Sales

CAGR 25.6%

PC CAGR -4.5%Laptop CAGR -1.9%

CAGR -3.4%

TV CAGR 0.6%Smart TV CAGR 16.7%

4Q.2014 Sales in millions of units

Page 27: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Western Europe

TV & Smart TV

Source: IE Market Research

Media Streaming

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300

2011 2012 2013 2014 2015 2016 2017 2018

PC installed base Laptop installed base

PC Households Laptop Households

4Q.2014 Households and Installed Base in millions of units

Page 28: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

0

2

4

6

8

10

12

Sa

les in

mili

ion

s

Advanced Gatewayinstalled base

Multi Room DVR InstalledBase

Multi Room DVR Sales

Advanced Gateway Sales

28

IEMR forecasts Advanced Gateways

Multi Room DVRs gaining momentum in

Western Europe, with sales reaching 4

million and 3.9 million by 2018.

We forecast no Advanced Gateway

sales outside of Europe. Hence, Western

Europe will make up the greater part of

Advanced Gateway sales with an

expected installed base of 10.7 million in

2018.

While sales of Multi-room DVRs are on a

decline in North America, they are

forecasted to increase rapidly in Western

Europe.

With the exception of these two

technologies, the Western European

market shows similar trends as

witnessed in the North American market.

According to our survey data, media

streaming device sales increase even

faster, and PC and Laptop sales are on a

slow decline.

© 2014 IE Market Research Corp.

All rights reserved.

Chart 6: Multi Room DVR and Advanced Gateway Sales in Western Europe, 2011-2018

IEMR forecasts strong sales in new technologies such as Advanced Gateways (67.9% CAGR) and Multi-Room DVRs (57.7% CAGR) in Western Europe

28

Source: IE Market Research Corporation

Page 29: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Eastern Europe

TV & Smart TV

Source: IE Market Research

Thin Clients

Gaming Consoles PC & Laptop

0

5

10

15

20

25

2011 2012 2013 2014 2015 2016 2017 2018

PC Sales Laptop Sales

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2011 2012 2013 2014 2015 2016 2017 2018

Gaming Console Sales

0

5

10

15

20

25

30

2011 2012 2013 2014 2015 2016 2017 2018

TV Sales Smart TV Sales

PC CAGR 4.6%Laptop CAGR 7.4%

CAGR 23.7%

TV CAGR 4.9%Smart TV CAGR 29.1%

4Q.2014 Sales in millions of units

0

1

1

2

2

3

3

2011 2012 2013 2014 2015 2016 2017 2018

Thin Client Sales

CAGR 69.5%

Page 30: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Eastern Europe

TV & Smart TV

Source: IE Market Research

Thin Clients

Gaming Consoles PC & Laptop0

2

4

6

8

10

12

14

2011 2012 2013 2014 2015 2016 2017 2018

Gaming Consoles installed base

Gaming Console Households

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016 2017 2018

TV installed base Smart TV installed base

TV Households Smart TV Households

0

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015 2016 2017 2018

PC installed base Laptop installed base

PC Households Laptop Households

4Q.2014 Households and Installed Base in millions of units

0

1

2

3

4

5

6

7

2011 2012 2013 2014 2015 2016 2017 2018

Thin Clients installed base

Thin Clients Households

Page 31: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

0

10

20

30

40

50

60

70

80

90

100

Insta

lled

ba

se

in

mill

ion

s

Set Top Box installed base

31

Source: IE

Market

Research

Corporation

IEMR’s forecast places Eastern Europe

as the second region in which Thin

Clients will be sold, with sales expected

to increase fast.

We expect thin clients to be sold in

Europe only. Although fewer thin clients

are currently sold in Eastern Europe than

in Western Europe, sales in Eastern

Europe will increase rapidly, reaching 2.8

million in 2018.

As in other developing markets, Set Top

Box sales are increasing in Eastern

Europe. We forecast an installed base of

5.9 million Set Top Boxes in Eastern

Europe in 2018.

IEMR forecasts a faster increase in TV,

Smart TV, Blu Ray players and Smart

Blu Ray player sales in Eastern Europe

than on a world-wide basis.

© 2014 IE Market Research Corp.

All rights reserved.

Chart 11: Set Top Box installed base in Eastern Europe, 2011-2018

IEMR forecasts strong sales of Thin Clients in Eastern Europe, with a CAGR of 69.5% putting it ahead of the global standard

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Sa

les in

mill

ion

s

Thin Clients sales

Chart 10: Thin Client sales in Eastern Europe, 2011-2018

31

Page 32: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Asia

TV & Smart TV

Source: IE Market Research

Media Streaming

Gaming Consoles PC & Laptop

0

20

40

60

80

100

120

140

2011 2012 2013 2014 2015 2016 2017 2018

PC Sales Laptop Sales

0

2

4

6

8

10

2011 2012 2013 2014 2015 2016 2017 2018

Gaming Console Sales

0

5

10

15

20

25

2011 2012 2013 2014 2015 2016 2017 2018

Media Streaming Sales

0

20

40

60

80

100

120

140

2011 2012 2013 2014 2015 2016 2017 2018

TV Sales Smart TV Sales

CAGR 33.2%

PC CAGR 8.3%Laptop CAGR 11.1%

CAGR -1.5%

TV CAGR 3.7%Smart TV CAGR 24.7%

4Q.2014 Sales in millions of units

Page 33: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Asia

TV & Smart TV

Source: IE Market Research

Media Streaming

Gaming Consoles PC & Laptop0

10

20

30

40

50

2011 2012 2013 2014 2015 2016 2017 2018

Gaming Consoles installed base

Gaming Console Households

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016 2017 2018

Media Streaming installed base

Media StreamingHouseholds

0

200

400

600

800

1000

1200

1400

2011 2012 2013 2014 2015 2016 2017 2018

TV installed base Smart TV installed base

TV Households Smart TV Households

0

100

200

300

400

500

600

700

800

2011 2012 2013 2014 2015 2016 2017 2018

PC installed base Laptop installed base

PC Households Laptop Households

4Q.2014 Households and Installed Base in millions of units

Page 34: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

0

20

40

60

80

100

120

140

Sa

les in

mill

ion

s

PC Sales

Laptop Sales

34

Source: IE

Market

Research

Corporation

In contrast to North America and

Western Europe, we expect PC and

Laptop sales to increase quickly in Asia.

With a CAGR of 8.3% (PC) and 11.1%

(Laptop) increasing sales will lead to an

total installed base of 1.4 billion

computers in 2018 in Asia.

Multi Room DVRs have a similar trend to

Europe, initially slow take-up in 2014/15

and we except the amount of sales to

grow rapidly with a CAGR of 74.1%

beyond 2015.

Apart from this, Asia follows the general

global trend: increasing Smart TV and

Blu Ray sales, slower TV and DVD

sales and a decrease in console sales.

© 2014 IE Market Research Corp.

All rights reserved.

Chart 6: PC and Laptop sales in Asia, 2011-2018

IEMR Forecasts a steady growth in PC and Laptop sales in the APAC region, at CAGRs of 8.3% and 11.1% respectively

0

1

2

3

4

5

6

Sa

les in

mill

ion

s

Multi Room DVR sales

Chart 7: Multi Room DVR sales in Asia, 2011-2018

34

Page 35: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Middle East

TV & Smart TV

Source: IE Market Research

Set Top Box

Gaming Consoles PC & Laptop

0

2

4

6

8

10

2011 2012 2013 2014 2015 2016 2017 2018

PC Sales Laptop Sales

0.0

0.1

0.2

0.3

0.4

0.5

2011 2012 2013 2014 2015 2016 2017 2018

Gaming Console Sales

0

2

4

6

8

10

12

2011 2012 2013 2014 2015 2016 2017 2018

TV Sales Smart TV Sales

PC CAGR 11.7%Laptop CAGR 14.5%

CAGR 24.6%

TV CAGR 7.1%Smart TV CAGR 36.2%

4Q.2014 Sales in millions of units

0.0

2.0

4.0

6.0

8.0

10.0

2011 2012 2013 2014 2015 2016 2017 2018

Set Top Box Sales

CAGR 4.3%

Page 36: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Middle East

TV & Smart TV

Source: IE Market Research

Set Top Box

Gaming Consoles PC & Laptop0.0

0.5

1.0

1.5

2.0

2.5

3.0

2011 2012 2013 2014 2015 2016 2017 2018

Gaming Consoles installed base

Gaming Console Households

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016 2017 2018

TV installed base Smart TV installed base

TV Households Smart TV Households

0

10

20

30

40

50

2011 2012 2013 2014 2015 2016 2017 2018

PC installed base Laptop installed base

PC Households Laptop Households

4Q.2014 Households and Installed Base in millions of units

0.0

10.0

20.0

30.0

40.0

50.0

2011 2012 2013 2014 2015 2016 2017 2018

Set Top Box installed base

Set Top Box Households

Page 37: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

0

1

2

3

4

5

6

7

8

9

10

Sa

les in

mill

ion

s

PC sales

Laptop sales

37

Source: IE

Market

Research

Corporation

We expect a significant growth in Blue

Ray player and Smart Blu Ray player

sales in the Middle East.

Expected sales of 6 million Blu Ray

players and 3.6 million Smart Blu Ray

players lead to CAGRs of 43.1% (Blu

Ray players) and 104.8% (Smart Blu

Ray players).

After a small decrease in sales in 2013,

we expect PCs as well as Laptops to sell

well in the Middle East. Therefore, we

expect an installed base of 13.3 million

PCs and 11.6 million Laptops by 2018.

© 2014 IE Market Research Corp.

All rights reserved.

Chart 13: PC and Laptop sales in Middle East, 2011-2018

IEMR forecasts a boom in Blu Ray player sales in the Middle East, with sales to reach 6 million units in 2018 at a CAGR of 43.1%

0

1

2

3

4

5

6

7

Sa

les in

mill

ion

s

Blu Ray player sales

Smart Blu Ray player sales

Chart 12:Blu Ray player and Smart Blu Ray player sales in Middle East, 2011-2018

37

Page 38: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Africa

TV & Smart TV

Source: IE Market Research

(Smart) Blu Ray

Gaming Consoles PC & Laptop

0

2

4

6

8

10

12

14

2011 2012 2013 2014 2015 2016 2017 2018

PC Sales Laptop Sales

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2011 2012 2013 2014 2015 2016 2017 2018

Gaming Console Sales

0

2

4

6

8

10

12

2011 2012 2013 2014 2015 2016 2017 2018

TV Sales Smart TV Sales

PC CAGR 11.8%Laptop CAGR 21.4%

CAGR 24.6%

TV CAGR 7.9%Smart TV CAGR 82.1%

4Q.2014 Sales in millions of units

0

1

2

3

4

5

6

7

2011 2012 2013 2014 2015 2016 2017 2018

Blu Ray player Sales Smart Blu Ray player sales

Blu Ray CAGR 43.1%Smart BR CAGR 104.8%

Page 39: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Africa 4Q.2014 Households and Installed Base in millions of units

TV & Smart TV

Source: IE Market Research

(Smart) Blu Ray

Gaming Consoles PC & Laptop0.0

0.5

1.0

1.5

2.0

2011 2012 2013 2014 2015 2016 2017 2018

Gaming Consoles installed base

Gaming Console Households

0

20

40

60

80

100

120

2011 2012 2013 2014 2015 2016 2017 2018

TV installed base Smart TV installed base

TV Households Smart TV Households

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016 2017 2018

PC installed base Laptop installed base

PC Households Laptop Households

0

5

10

15

20

25

2011 2012 2013 2014 2015 2016 2017 2018

Blu Ray player installed base Smart Blu Ray player installed base

Blu Ray player Households Smart Blu Ray player Households

Page 40: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

05

101520253035404550

Sa

les a

nd

in

sta

lled

ba

se

in

mill

ions

Laptop installed base

Laptop sales

40

Source: IE

Market

Research

Corporation

Only 0.3 million Smart TVs were sold in

Africa in 2014, but we expect this

segment to increase gradually. By 2018,

the number of sold Smart TVs will have

increased to 4 million units.

With a CAGR of 82.1%, Smart TV sales

will grow rapidly compared to regular TV

sales, which have a Compound Annual

Growth Rate of 7.9%

Africa is the region with the fastest-

growing Laptop sales, at a CAGR of

21.4%

We expect Laptop sales to increase to

11.6 million in 2018, resulting in an

installed base of 46.6 million Laptops.

Furthermore, Digital Video Recorder

sales will grow significantly faster in this

region than in other regions globally.

© 2014 IE Market Research Corp.

All rights reserved.

Chart 15: Laptop installed base and sales in Middle East, 2011-2018

IEMR forecasts rapid growth in Smart TV sales in Africa (82.1% CAGR), after relatively stagnant sales of 0.3 million Smart TVs in 2014

0

2

4

6

8

10

12

Sa

les in

mill

ion

s

TV sales

Smart TV sales

Chart 14: TV and Smart TV sales in Africa, 2011-2018

40

Page 41: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

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Page 42: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

Disclaimers and Disclosures

Page 43: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

The opinions expressed in this report are the true opinions of the analyst(s) and IE Market Research Corp. (IEMR) about the firm(s) and/or industry appearing in this report. Any “forward looking statements” are the best estimates and opinions of the analyst(s) and IEMR based upon information that is publicly available and that the analyst(s) and IEMR believes to be correct. There is no guarantee that forecasts appearing in this report will materialize.

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Forward Looking Statements

This report contains forward looking statements. Forward looking statements regarding firm(s) inherently involve risks and uncertainties that could cause actual results to differ from such forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, continued acceptance of the firm(s)’ products/services in the marketplace; acceptance in the marketplace of the firm(s)’ new products/services; competitive factors; new products/services introductions by others; technological changes; dependence on suppliers; mergers and acquisitions; systematic risks and other risks discussed in the firm(s)’ periodic report filings, including interim reports, annual reports, and annual information forms filed with the appropriate securities regulators. By making these forward looking statements, the analyst(s) and IEMR undertake no obligation to update these statements for revisions or changes after the date of this report.

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All rights reserved.

Page 44: 4Q 2014 Global Connected TV Gaming Console and Computing Devices Forecast 2011-2018

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