Applications have dominated the news in the smartphone and tablet worlds for some time but with the advent of “smart TVs” consumers are now rapidly adopting online TV applications that are integrated into their connected TVs. A new In-Stat research survey (The NPD Group) estimates that over 60% of these connected households will use a TV app at least once per week.
“As expected, Netflix and YouTube currently dominate the TV application space,” says Keith Nissen, Research Director, in the press release. “But as Netflix competitors become more numerous and as applications are optimized for the big screen, TV apps will become part of the mainstream TV viewing experience.”
Updated research found the following:
• Shipments of connected TVs with integrated TV applications will grow by an average 36% over the next five years.
• 22% of US BB households already own an HDTV with integrated TV apps.
• TV apps are not the primary reason for purchasing connected TVs.
• Adoption of online video streaming services, such as Netflix, does not increase the propensity to purchase online video content.
• The viewing of DVR recorded TV programming does not lead to the adoption of free VOD services from a pay TV operator.
• Consumers favoring subscriptions to both pay-TV and online video services rose from 18% to 30% during 2010, contributing to the continued growth of Netflix.
Recent In-Stat research, Q2’11 US Digital Entertainment Database (#IN1104891CM), connects the dots in ways no other research report can. This quarterly update also features the following updates:
• Shipments and subscriber installed base forecasts were updated for cable, satellite, and IPTV set top boxes, as well as for streaming media players.
• Previously tracked network-enabled and web-enabled TV nomenclature was changed to HDTVs with and without integrated TV applications. HDTVs with integrated TV apps are also referred to as connected TVs. The new nomenclature was designed to match terminology that consumers can easily understand.
• Broadband and pay-TV market shares for major service providers were added to provide more granularity to the annual subscriber forecast.
More info here.
Source: The NPD Group, Inc.
• 22% of US BB households already own an HDTV with integrated TV apps…..what does BB stand for?
broadband?
I discontinued my subscription to uverse tv last month. I’ve been using my tv and br player apps. They SUCK!
I have a new AppleTV in my front room.
In my office at home i wanted netflix on my 32″ LCD, so i grabbed a cheap Blu Ray player with netflix.
I WANT to buy another AppleTV for the office now… the Blu Ray player’s netflix app is crap. It works… but barely. and SLOW….
That is why I do not currently favor integrating these functions with an HDTV or a Blu-ray player. The Netflix functionality on my Sony Blu-ray player is terrible.
It is much better to use an AppleTV and/or Roku XDS box to access online functionality. Independence from the TV vendors is a big advantage, in my opinion, and I can also upgrade the networked device fairly inexpensively, as needed. I would rather maintain separate boxes and remotes for the TV and networked device than to integrate them and place myself under the control of Sony, Panasonic, etc.
My Samsung TV has apps, but they are so slow, I haven’t bothered to try using them again after the first week of getting the TV. What a waste.
I’m a Netflix holdout.
I’m waiting for Apple to build the better mousetrap.