60 Percent of U.S. Internet Homes Have at Least One TV Connected to the Internet

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Streaming media players have become the most commonly installed and internet connected TV device, according to the latest NPD Connected Intelligence report

As consumers decide which devices to use and apps to leverage for content, original and exclusive programming are likely to be key drivers.

Year over year, the number of homes with an installed connected TV device increased by six million, now totaling 60 percent of U.S. internet homes, according to the NPD Connected Intelligence Connected Home Entertainment report. As the number of connected TV homes continues to grow, the devices used to make those connections have shifted. In January 2017, streaming media players were the most commonly installed internet-connected TV device. Thirty-five percent of U.S. internet homes now have a streaming media player, up from 29 percent last year.

“The average connected home has three devices installed and able to deliver apps to their TVs, but the mix of those devices continues to change,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence. “Shifts are also occurring in the industry as TV manufacturers migrate to operating systems from Roku, Amazon and Google. This benefits content owners, as they can reach a larger audience through distribution on fewer platforms, and viewers, as they’ll be able to find more of the programming they want in a single location.”

Streaming media players also generated the highest incidence of usage for most of the top video apps including Netflix, Amazon Prime, and Hulu. According to the latest Application & Convergence report, while all of the top subscription video services saw increased incidence of usage on connected TVs and attached devices, Prime Video experienced increased usage among all demographics and on all connected TV platforms from January 2016 to January 2017. In the same timeframe, Hulu’s incidence of use on a connected TV device saw the highest percentage of growth when compared to other services.

“As consumers decide which devices to use and apps to leverage for content, original and exclusive programming are likely to be key drivers,” stated Buffone. “Industry leaders, like Amazon, Netflix and others will continue to put increased investments into these programs in order to drive demand and viewer engagement.”

Methodology
The results of the NPD Group Connected Intelligence Connected Home Entertainment and Application & Convergence Reports are based on consumer panel research that reached 5,350 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. They reported on over 12,000 TVs installed within 34,000 household rooms. This survey was fielded from January 26 through February 9, 2017. Trend is compared to the Q1 2016 survey, which fielded during a similar period last year.

About Connected Intelligence
Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com.

About The NPD Group, Inc.
The NPD Group provides market information and business solutions that drive better decision-making and better results. The world’s leading brands rely on us to help them get the right products in the right places for the right people. Practice areas include apparel, appliances, automotive, beauty, consumer electronics, diamonds, e-commerce, entertainment, fashion accessories, food consumption, foodservice, footwear, home, mobile, office supplies, retail, sports, technology, toys, video games, and watches / jewelry. For more information, visit npd.com. Follow us on Twitter: @npdgroup

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