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.