The rise of Internet-connected devices is arguably the most significant step forward in content management and delivery since the commoditization of broadband. Connectivity has entered not just retail-oriented products such as game consoles, TVs, and Blu-ray players but also set-top boxes from pay-TV operators and hybrid terrestrial services.
Today, approximately 17% of all U.S. broadband households own at least one Internet-connected device, with game consoles accounting for the lion's share of these products. Also, these devices are beginning to show their potential in household entertainment. Approximately 30% U.S. of households with an Internet-connected CE (about 5% of all U.S. broadband households) used the device to rent at least one movie in the past month.
The CE industry is taking its cues from the experience of connected console developers. Expect to see deployments of feature-specific apps on a growing number of smart televisions and other products, as manufacturers open their developer communities to a growing number of content creators. Of course, as the hack of the Sony PlayStation Network demonstrated, companies need to account for user security, particularly as the migration from personally owned media to cloud distribution continues.
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