Ericsson: TV market to see 10-12% annual growth

The fragmented TV market will have a compound annual growth rate of 10-12% between 2014 and 2018, driven by internet technology, according to Ericsson.

In its 2015 Annual Report, which was published today, Ericsson said that IP technology, networks and the vast amount of video-enabled connected devices are driving the transformation of the TV and media market – particularly the delivery and consumption of TV content.

“Video traffic in mobile networks is expected by Ericsson to grow by around 55% annually through 2021, and by 2021 around 70% of all mobile traffic is expected by Ericsson to be video,” according to the report.

Ericsson said that mobile data traffic volume is estimated to increase by around six times in the period 2015–2020, while fixed internet traffic is estimated to increase twice over, but from a much larger base.

The report also said that smartphone traffic is tipped to grow by around six times, and video traffic by around eight times, in the period of 2015–2020.

Ericsson said that it wants to be the “transformation partner of choice” for content owners, broadcasters and TV service providers as the TV and media industry undergoes a major change, caused by the emergence of the ‘Networked Society’.

The company pointed to “significant investments” in the TV and media space, including its recent acquisition of cloud DVR and video storage provider Fabrix Systems, and its October buyout of video processing firm Envivio.

Overall in 2015 Ericsson said that net sales increased 8% to SEK246.9 billion and that operating income increased to SEK 21.8, compared to SEK16.8 billion a year earlier. Net income came in at SEK 13.7 billion, up from SEK11.1 billion a year earlier.