As demand for connected devices expands, Internet-enabled televisions form a category poised for growth.

According to new forecasts from ABI Research, the estimated 19 percent of flat-panel TVs shipping with Ethernet in 2010 will grow to 46 percent in 2013, and connectivity is expected to become a mainstream feature.

?In terms of mobile devices and the primary screen I would say there are two primary motivations for connecting or linking the two devices,? said Michael Inouye, industry analyst of digital home at ABI Research, Oyster Bay, NY.

?The first reason is simply the sharing of content between devices,? he said.

The other link between mobile devices and the primary screen stems from the various services and applications. This could range from applications that are simply offered on all three devices to highly integrated services that carry a user?s preferences, history and etcetera across all three screens. 

WiFi, why not?
Hypothetically speaking, the connection could be made in several ways, be it physical (e.g. USB) or wirelessly (most likely Wi-Fi). 

The connection via Wi-Fi could go through the home network or LAN or presuming the Wi-Fi Direct technology works as advertised then in a peer-to-peer fashion.
 
What will viewers see and interact with on these connected sets?

?New features will include media guides/browsing, Web browsing and more tightly integrated social and information-based datasets,? Mr. Inouye said.

?This facet of the market will also impact the pay-TV market as well,? he said. ?Naturally the pay-TV operators are well apprised to the growing trend towards online content and social media and they too are making a play to ensure their future role on the primary screen. 

New opportunities for advertising and cross-marketing will flow from these developments too, as well as new roles for the TV manufacturers.

TV makers will not be providing all that content themselves.

Netflix, for instance, has an application available for use with connected TVs.

The tight integration of software and hardware raises difficulties because each manufacturer?s combination of hardware and operating system works in different ways, so applications must be customized for each brand of television.

That has discouraged some application developers, but others are pushing ahead.

?While I do not actively track the mobile market, it is very intriguing because it evolves at a relatively rapid rate ? namely because the lifecycle for these devices is shorter than say an LCD TV,? Mr. Inouye said. ?But I think you are also spot on when you mentioned new marketing opportunities. 

?As TVs get connected, be it directly or through STBs, you create new avenues for targeted advertising,? he said. ?One could easily envision a scenario where through a user profile a company could determine the user has a penchant for golf ? perhaps he or she has surfed golf related Web sites, viewed golf related content or maybe viewed gold related sales material. 

?In any event all three screens could then offer golf related ads to the user ? and with connected TVs you have the immediacy of being able to directly interact with the ad by visiting a Web site (if the TV has a browser) or perhaps viewing the ad in its entirety (assuming it?s a pop-up).? 

There are endless possibilities. But with opportunities, there are also challenges, as the mobile industry knows all too well.

Private parts
Privacy issues may arise, Mr. Inouye said.

For instance is it okay to track what a user does on their connected TV and then use this for advertising purposes? 

These issues will likely evolve over time as the market develops. 

From a hardware and software point of view there are other potential links to mobile devices. 

Google is expected to offer an Android platform optimized for the TV and STBs, which could create a stronger connection to mobile devices and possible application developers ? although the installed base will undoubtedly be smaller and grow at a smaller pace than the mobile market. 

DLNA is also reporting growing support from the mobile market as well, which would help facilitate the flow of content between devices ? DLNA already has a very strong presence in the connected TV space.

?In the end the developments occurring within each respective market are working towards building a more cohesive and connected system,? Mr. Inouye said. ?While this isn?t new, the confluence of the content and services for the three screens are occurring an accelerate rate now and will likely continue to do so as more devices become connected.?