Internet TV Growth Propels Revenue for Online VoD and EST to Double by 2015, Says NPD In-Stat

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Internet-enabled TV devices, including Smart TVs, connected Blu-Ray players, game consoles, and streaming media players continue to grow their footprint within consumers’ homes.

“OTT video is continuing to grow, overcoming the barriers of low device connect rates and cumbersome user interfaces,” says Keith Nissen, Research Director, NPD In-Stat.

Internet-enabled TV devices, including Smart TVs, connected Blu-Ray players, game consoles, and streaming media players continue to grow their footprint within consumers’ homes. Already about 17 million US households currently own a connected TV, and ownership of streaming media players has nearly doubled since the end of 2010. Yet only a fraction of consumers that own an Internet-capable TV device actually connects it to the Internet to become over-the-top (OTT) video consumers. Despite this hurdle, the growing base of OTT-Video-capable US households is propelling the revenue for online video-on-demand (VoD) and electronic-sell-through (EST) to double by 2015, according to new NPD In-Stat (http://www.instat.com) research.

“OTT video is continuing to grow, overcoming the barriers of low device connect rates and cumbersome user interfaces,” says Keith Nissen, Research Director. “Even stronger growth of I-VOD and EST video services is possible if device manufacturers and digital retailers can put together a simpler, plug-n-play solution for getting online video to the TV (web-to-TV). The proliferation of tablets is also contributing to OTT growth.”

Some of the other factors affecting the OTT video market:

  •     Streaming video transactions will reach just under 1 billion in 2010.
  •     Netflix and other S-VOD suppliers are shifting to a more TV-centric model and will soon be competing directly with HBO, Showtime, and Starz.
  •     The collaborative and competitive models among physical and digital retailers, content owners, and pay TV operators are shifting rapidly as players in the ecosystem grapple with the evolving mix of physical versus digital channels, EST, pay-TV, OTT, and subscription VoD.

Recent NPD In-Stat research, OTT Video: Content, Devices, Retail, and Pay-TV Collide (#IN1104885CM), examines the current OTT video market, quantifying consumer usage of online services, as well as the impact on content and devices. The evolution of these market segments is analyzed, with the presentation of five-year subscriber, transaction, and revenue forecasts for each segment.

Company and product profiles include: Alphaline, Amazon Prime, Apple iTunes, Blockbuster, CinemaNow, Facebook, Hulu Plus, Netflix, Qriocity, Vudu, and YouTube

About NPD In-Stat
With nearly 30 years of history in research and consulting, NPD In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. The company’s insights are derived from a deep understanding of technology impacts and direct relationships with leading players in each of its core markets. NPD In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform customers to make critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on NPD In-Stat to support critical business, product and technology decisions. For more information on NPD In-Stat, visit http://www.instat.com.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com and http://www.npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.

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Rick Vogelei, Marketing Manager
NPD In-Stat
(480) 483-4476
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Keith Nissen, Research Director
NPD In-Stat
(480) 483-4465
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