Over 60% of Connected TV Households Use TV Apps at Least Once per Week, Says In-Stat

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...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.

Scottsdale, Ariz. (PRWEB) July 26, 2011

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 with . A new In-Stat (http://www.in-stat.com) research survey 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. “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.

The 2Q’11 US Digital Entertainment Database (#IN1104891CM) delivers a consolidated view of the US digital entertainment market, covering devices, services, content, consumer behavior metrics, and forecasts. Most importantly, it answers the question: Who will be viewing what on which devices? In addition, the US Digital Entertainment Database is an invaluable and trusted resource for market statistics and analysis. It 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

•     Broadband and pay-TV market shares for major service providers were added to provide more granularity to the annual subscriber forecast.
•     The Content section was not updated. These tables/charts will be updated in the Q3’11 release.
•     A more detailed examination of consumer usage behavior is presented. The data examines the correlation (or lack thereof) between related activities, such as whether or not frequent video disc rentals lead to frequent online video rentals.
•     The Content Management section tables and charts were updated.
•     The Market Assessment section was not updated. These tables/charts will be updated in the Q3’11 release.

About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on In-Stat to support critical business, product and technology decisions.

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.

Contact:

Keith Nissen, Research Director
Email: knissen(at)in-stat(dot)com; Phone: (480) 483-4465

Rick Vogelei, Marketing Manager
Email: rvogelei(at)in-stat(dot)com; Phone: (480) 483-4476

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