The number of internet-connected residential TVs will reach around 650 million by 2017 according to Juniper Research, as consumer demand for on-demand video services continues to grow.

In other words-- customers want the likes of Netflix, LOVEFiLM and Youtube on their home TVs. Also popular are content aggregators and platforms such as Apple and Google TV.

"Consumer demand for connectivity and content has influenced the smart home entertainment segment in a major way along with the integration of social media, multi-screen strategies and applications," Juniper reports.

The internet-connected TV category covers not only sets with built-in connectivity (via either ethernet or wifi) but also TVs connected via platforms such as Blu-ray players, STBs and game consoles.

Juniper says Smart TVs are also becoming mainstream among customers, following a pattern similar to tablet and smartphone adoption despite longer replacement cycles.

Now TV makers need to turn the current growth phase into a revenue opportunity-- joining forces with key players such as the content aggregators and platform providers in order to define the IPTV ecosystem.

Juniper also reports general Smart Home revenues are set to reach $600 billion by 2017, up from $25bn for 2012.

Go Internet Connected TVs to Reach 650m by 2017 (Juniper Research)