The act of watching online video on one’s television should experience a serious boom in the next five years. According to a report from In-Stat, by the year 2014, 57 million U.S. households will be watching full-length online content on their TVs, and the revenue associated with that video will reach $17 billion.
This research is supported by the belief that the number of installed web-enabled video devices will increase to 237 million units over the next five years. In-Stat also believes that in 2014, the the set-top box market will be worth $1.4B, undoubtedly a major part of that potential growth, thanks to the 11 million hybrid boxes enabling that web-to-TV connection.
No specific devices are said to be contributing to this rise in connectivity, but looking at some recent and upcoming product launches points to over-the-top video becoming a major factor in the not-too-distant future.
New set-top boxes like the postponed but imminent Boxee box offer hardware solutions to bringing web content to the big glowing rectangle, along with YouTube’s Leanback UI and Clicker.com’s TV-optimized interface .
Google TV is looking to be revolutionary as well, not just for integrating web content with TV, but also for standardizing the development of apps for viewing content. Those OTT apps, according to our own Michael Wolf, may pull in big bucks sooner than you think.
All of this could contribute to 2014’s $17 billion in revenue — unless, of course, the Mayans were right about 2012.
Related GigaOm Pro Content (subscription required): Three Reasons Over-The-Top TV Apps Will Beat Big-Cable