Press Releases

PORT WASHINGTON, N.Y., October 30, 2018 – As TV-connected devices become commonplace in U.S. homes more consumers are choosing to rent and purchase digital movies. As of August 2018, 61 million households in the U.S. had at least one internet-connected TV, video game console, Blu-ray Disc player or streaming media player, representing year over year growth of three million homes, according to The NPD Group. Specifically, households with an internet connected TV increased 20 percent and those with streaming media players grew 17 percent. At the same time, digital movie purchase and rental transactions increased 19 percent in the first half of 2018.

“Growth in digital movie transactions is being driven, in part, by access to TV-connected devices as an increasing number of viewers can simply buy and rent movies right in their living room,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence. “While greater access begets consumption, certain digital movie providers facilitate ownership over renting.”

Among the top five digital movie providers, iTunes users have the highest propensity to buy over rent, because Apple’s movie consumers are more affluent and more apt to collect movies. In the 12-months ending August 2018, nearly one-quarter (24 percent) of iTunes movie transactions were motivated by a desire to build a digital collection, leading to more buying than renting, according to NPD’s VideoWatch Digital service. Vudu customers were also more ownership focused than the average video consumer, as such 20 percent of transactions were motivated by collecting. In contrast collecting movies only drove 13 percent of Amazon Video digital movie transactions, 9 percent of Google Play movie transactions, and 4 percent of Microsoft Store movie transactions.

“It’s long been known that collectability drives ownership and that’s no difference in the digital era,” Ricardo Solar, president of media entertainment for NPD. “Movie fans will always want to own great films, as such, provider agnostic services like Movies Anywhere are critical for enabling digital sales growth.”

Methodology

Information in this press release is based on the results of the NPD Connected Intelligence “Device Ownership Trends & Profile Report,” which surveyed 5,677 U.S. consumers, aged 18 and older from diverse regions and demographical backgrounds. This survey was fielded from July 30th through August 7, 2018. Trend is compared to the August 2017 survey, which fielded during a similar period last year. Additional information comes from NPD’s Videowatch Digital, which covers purchases of new and previously viewed titles, store-based and subscription-based rental, pay-per-view (PPV), video-on-demand (VOD), paid digital downloads, and free video content streaming.

Shopping is among activities shifting from computers and tablets to smartphones, according to the latest NPD Connected Intelligence report

Port Washington, NY, October 15, 2018 – The role of the consumer device is evolving, as content that was once the domain of the computer continues to migrate to smartphones. While activities such as maps/navigation, email, and social media have been steadily transitioning to smartphones, shopping has seen the greatest two-year increase in smartphone usage. Over the past two years shopping gained six percentage points, with 45 percent of smartphone users now reporting they shop online via their device.

According to the latest NPD Connected Intelligence Application & Convergence report, shopping via a tablet is also beginning to decline, down three percentage points over the past year. In fact, only 36 percent of consumers report using a tablet to shop online. As may be expected, these declines are being driven in part by 18-34-year-old users.

While it is clear consumers are increasingly leveraging smartphones for online shopping, computers are still the most commonly used device. Sixty-five percent of respondents indicate they leverage a computer for some online shopping; however, that rate is declining.

“Larger smartphones are better enabling activities such as shopping and more consumers are responding by using their mobile device to make purchases,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence. “The result is a base of over 100 million consumers shopping on smartphones, which is, in part, driving growth in e-commerce sales.”

According to NPD’s Checkout E-commerce data, online consumer technology sales were up 13 percent in the 12 months ending August 2018 versus the year prior, as technology shoppers made nearly one additional consumer electronics (CE) purchase online1. During that time, the percentage of the U.S. adult online buying population that made at least one CE purchase reached 45 percent buyer penetration2, with categories like cell phone accessories, portable audio, and mobile power achieving the highest purchase incidence levels.

“Overall, mobile commerce growth is being driven by an increasing number of transactions,” said Stephen Baker, vice president, industry advisor for The NPD Group. “Consumers are leveraging their smartphones to purchase ‘grab and go’ items, as these purchases can be made conveniently, without investing the time to examine product reviews or visit multiple sites for price comparisons.”

1The NPD Group, Checkout E-commerce, Sept. 2017 – Aug. 2018 vs. Sept. 2016 – Aug. 2017

2Buyer penetration is the percentage of the U.S. adult online buying population that made at least one technology purchase during the indicated timeframe.

 

Methodology

The results of the NPD Group Connected Intelligence Application & Convergence Report are based on consumer panel research that reached 5,420 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. They reported their usage of desktops/laptops, connected TVs, tablets, and smartphones. This survey was fielded from April 26 through May 10, 2018. Trend is compared to the May 2017 and May 2016 surveys, which fielded during a similar period those years.

Port Washington, NY, October 8, 2018 – According to the latest Unlocked Phone Demand Report from NPD Connected Intelligence, the unlocked mobile phone market is continuing to expand with an estimated 38 million consumers owning an unlocked smartphone in the U.S., accounting for 15 percent of the market. This is up from 30 million consumers one year prior (end of Q1 2017), as awareness levels reached an all-time high, 74 percent, due to exposure both in-store and online.

As is the case in the locked market, consumers purchasing unlocked devices are increasingly selecting more expensive options. The installed base of unlocked devices priced at $400 and above increased in share from 29 percent at the end of Q1 2017 to 39 percent at the end of Q1 2018. 

“The upward trajectory of the unlocked smartphone market is being driven by OEMs and retailers that see this channel as an opportunity to differentiate their offerings,” said Brad Akyuz, director, industry analyst, NPD Connected Intelligence. “Traditionally, the unlocked market provided an opportunity for OEMs pressured by Apple and Samsung’s market dominance in the carrier-controlled channels; however, these leaders are growing their share of the market as well.”

Despite increasing purchase prices, unlocked smartphone users are still electing to upgrade more quickly than their locked device counterparts. In fact, 56 percent of locked smartphone users hold onto their device for more than two years, compared to 40 percent of unlocked smartphone users. But while unlocked smartphone customers upgrade more quickly, they are slowly extending their device’s overall lifecycle, mirroring what we’ve seen in the locked market. One year ago, 26 percent of unlocked smartphones users upgraded with 12 months, but this dropped to 22 percent in Q1 2018. 

“Lengthening upgrade cycles will not slow the growth in this segment of the market,” noted Akyuz. “With carriers focusing on Bring Your Own Device (BYOD) discounts and retailers offering expanded device selections, the potential consumer base is expanding, driving further adoption.”

Methodology
The results of the NPD Group Connected Intelligence Unlocked Phone DemandReportare based on consumer panel research of over 1,500 U.S. unlocked smartphone owners, aged 18+ from diverse regions and demographical backgrounds. This survey was fielded in April 2018.

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.

Users on limited data plans rely on Wi-Fi more than unlimited users, according to NPD Connected Intelligence

Port Washington, NY, December 27, 2017 – According to the latest NPD Group Connected Intelligence Smartphone and Tablet Usage report, cellular data usage among consumers with unlimited plans is 67 percent higher than those with limited plans. Limited plan users instead rely more on Wi-Fi access. Over the last three months, limited plan users consumed eight percent more than their unlimited plan counterparts, with a spike of 18 percent more Wi-Fi usage in October. When looking at data and Wi-Fi consumption as it relates to a user’s smartphone operating system, iOS users tend to consume more cellular data, while Android users look to Wi-Fi.

Cellular data and Wi-Fi consumption have been on the rise, as smartphone users increasingly access video content, social media apps, music and more. In fact, the average U.S. smartphone user consumes a total of 31.4 GB of data on a monthly basis (including Wi-Fi and cellular consumption). This is up 25 percent from one year prior, when the total monthly data consumption averaged 25.2 GB per user1.

“Unlimited data plans have become the de facto offering in the market and the significant variance between consumption levels of unlimited plan and limited plan users can be alarming for mobile carriers, as networks become increasingly congested,” said Brad Akyuz, director, industry analyst for NPD’s Connected Intelligence. “When users migrate from limited plans to unlimited plans, their consumption behavior shifts in favor of using cellular data more regularly. Users on unlimited plans don’t regularly seek Wi-Fi connectivity for data-hungry transactions such as video streaming, application updates, and downloads as they are not concerned about data overage fees.”

Streaming video remains the number one driver of cellular and Wi-Fi data consumption on mobile and fixed networks, accounting for 83 percent of the total data used by smartphone owners.  In Q3 2017, 67 percent of all smartphone users reported accessing video content via an app at least once a month, up from 57 percent in Q2 2017. 

1NPD Connected Intelligence Data Consumption Report, October 2017 vs. October 2016 

Methodology
The NPD Group Connected Intelligence Smartphone and Tablet Usage report provides a quarterly view of consumer smartphone and tablet behavior (Q3 2017). The report leverages an on-device and VPN-based metering solution ("Smart Meter") to provide a view of actual application and data consumption, allowing customers to view usage across a number of different metrics. This ongoing tracking was implemented between July 1, 2017 and September 30, 2017. More than 2,500 consumers with Android and iOS devices opt-in to the SmartMeter panel and are continuously tracked through an app on their devices. Of these consumers, over 50 percent share their data plan information. 

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.

Press Contact

Megan Scott 
516-625-7516  
megan.scott@npd.com

The NPD Group, Inc. 
900 West Shore Road 
Port Washington, NY 11050

Usage of TV-connected devices is also on the rise, as more consumers stream content at home and on the go

Port Washington, NY, October 25, 2017 – According to global information provider, The NPD Group, 57 percent of all U.S. smartphone users access video content via an app at least once a month, with iOS users more likely than Android users to access video content, 66 percent versus 49 percent, respectively. Streaming video is the number one driver of cellular and Wi-Fi data consumption on mobile and fixed networks, accounting for 78 percent of the total data used by smartphone owners, with streaming video apps like YouTube and Netflix driving the greatest data demands.

YouTube is the top ranking video app for both iOS and Android users, with 45 percent of smartphone users accessing the app on a monthly basis, as stated in the latest Smartphone and Tablet Usage report from NPD’s Connected Intelligence. Netflix has the second highest usage rate with 18 percent of users launching the app monthly. Notably, iOS smartphone users are much more likely to access Netflix, with nearly a quarter of them using this app within a given month, compared to only 10 percent of Android users.

“Smartphone penetration is continuing to grow and the battle among mobile carriers to retain current subscribers, as well as grow their base is fierce,” noted Brad Akyuz, director, industry analyst for NPD’s Connected Intelligence. “Access to content is becoming a key differentiator for carriers, in addition to unlimited data plans that allow consumers to watch OTT video at home and on the go with peace of mind. As the installed base of smartphones with large displays grows, we expect mobile video data consumption will do the same.”

In addition to growing mobile video consumption, consumers are also looking to their TV-connected devices to stream content. According to the Application and Convergence report from NPD’s Connected Intelligence, consumers that use TV-connected devices to stream video grew by five percentage points versus the same timeframe a year prior (Q2 2017 vs. Q2 2016). In total, 57 million U.S. households own a TV-connected device, up from 50 million year-ago, which is driving an increase in usage across the top video streaming services.

“Through partnerships with content providers like Netflix and DIRECTV, mobile carriers are extending their reach into the consumer’s living room,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence. “As mobile carriers continue to bundle access to content and remove barriers, such as data limitations, video usage both at home and on the go will continue to thrive.”

1TV-connected devices include streaming media players, video game consoles, Blu-ray Disc Players and connected TVs that are connected to the internet. 

Methodology

The NPD Group Connected Intelligence Smartphone and Tablet Usage report provides a quarterly view of consumer smartphone and tablet behavior (Q2 2017). The report leverages an on-device and VPN-based metering solution ("Smart Meter") to provide a view of actual application and data consumption, allowing customers to view usage across a number of different metrics.

The results of the NPD Group Connected Intelligence Application & Convergence report are based on consumer panel research that reached 5,355 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. They reported on their usage of desktops/laptops, connected TVs, tablets, and smartphones. This survey was fielded from April 28 through May 16, 2017. Trend is compared to the Q2 2016 survey, which fielded during a similar period last year.

Press Contact

Megan Scott 
516-625-7516  
megan.scott@npd.com

The NPD Group, Inc. 
900 West Shore Road 
Port Washington, NY 11050

More than one-third of smart home device owners also own a voice-activated speaker, according to The NPD Group

Port Washington, NY, October 5, 2017 – Fifteen percent of U.S. internet households currently own a home automation device, up from 10 percent in April 2016, according to global information provider, The NPD Group. Year to date, U.S. dollar sales of home automation products have increased 43 percent, with strong growth across all device types1. While security and monitoring continues to hold the largest share of dollar sales in the category, video doorbells2 (+123 percent) and smart lighting (+83 percent) are also quickly growing.

“The growth we are seeing in the number of owner homes is an indication that a broader field of available products, wider distribution, and greater awareness are actually adding users,” noted Ben Arnold executive director, industry analyst for The NPD Group. “Voice-enabled speakers have also played a key role in catalyzing interest in the smart home.”

According to the new Digital Voice Assistants: Ownership & Applications Report from NPD’s Connected Intelligence, ownership of voice-activated wireless speakers has more than tripled in a year's time, now totaling 10 percent of U.S. internet households. Of Amazon Echo and Google Home owners, 48 percent and 57 percent, respectively, reported buying their first home automation product after owning a voice-enabled speaker. In fact, 36 percent of existing smart home device owners also own a voice-activated speaker, and 65 percent of smart home device owners are interested in using voice commands to control other devices in their home.

As is often the case in emerging markets, younger consumers, aged 18-34, are the most likely to own a voice-activated wireless speaker, as well as a home automation device; but noticeable growth is also occurring in other age groups. Eleven percent of consumers aged 35-54 report owning a voice-enabled speaker, up from seven percent the prior year, while consumers 55+ grew to six percent from one percent. Similarly, 16 percent of consumers aged 35-54 report owning a home automation device, up from 11 percent the prior year, while consumers 55+ grew to eight percent from seven percent.

“The voice-enabled speaker market is expanding quickly, with a number of high-profile products expected to hit shelves in Q4 2017, and into 2018. As sales of these devices continue to grow, and more voice-enabled applications are developed, the use case for intelligent voice speakers, particularly as it relates to home automation devices, will continue to expand,” said Arnold.

1Source: The NPD Group/Retail Tracking Service, Home Automation, Jan.- Aug. 2017
2Source: The NPD Group/Retail Tracking Service, Smart Entry, Video Doorbells, Jan.- Aug. 2017 

Methodology
The results of the NPD Group Connected Intelligence Digital Voice Assistants: Ownership & Applications Report draws data from the semi-annual Connected Home Automation Survey. The survey is based on consumer panel research that reached over 5,600 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. The resulting base was over 2,600 consumers that have used voice commands to operate a consumer electronics device. They reported on their experience with digital voice assistants, ownership of voice-activated speakers, and what will drive or impede their adoption. This survey was fielded from April 7-21, 2017. Trended results are compared to a study fielded from April 11-25, 2016.

Press Contact

Megan Scott 
516-625-7516 
megan.scott@npd.com

The NPD Group, Inc. 
900 West Shore Road 
Port Washington, NY 11050

Expanding use cases, new products, and advances in operating systems refresh smartwatch excitement

Port Washington, NY, August 17, 2017 – With the introduction of new devices, new features, and updates to hardware and operating systems alike, 2017 has brought a number of changes to the smartwatch market. As of June 2017, nearly nine percent of U.S. consumers aged 18+ owned a smartwatch, up almost 1.5 percentage points from the six months prior. Additionally, according to latest WEAR Report Industry Overview and Forecast from NPD’s Connected Intelligence, growth in the category will continue, with a nearly 60 percent ownership growth expected from Q2 2017 through Q4 2018, driven in large part by anticipated new product introductions from market leaders. This forecasted growth will result in nearly 15 percent of U.S. consumers aged 18+ owning a smartwatch by 2019.

Increasing features and capabilities are key differentiators for smartwatches, which will further contribute to their growth over the forecast period. While use cases such as receiving notifications/texts, activity tracking, and news updates are still the most highly reported among smartwatch owners; use cases such as controlling music, using as a device to control pictures and video, and home automation are growing. In fact, 15 to 21 percent of smartwatch owners are already utilizing their devices for those types of activities daily.

Percentage of Smartwatch Owners that Use Each Function Daily

Source: NPD Connected Intelligence/WEAR. June, 2017.

“Rumors of the smartwatch’s demise have been greatly exaggerated and we expect to see stronger growth in the next 18 months, compared to 2016,” said Weston Henderek, director, Connected Intelligence. “Many of the early growth projections for the smartwatch were, simply put, unrealistic. But in reality, a nine percent ownership level is a pretty healthy start for the market after just a couple of years. We expect the next round of product upgrades will lead to more first-time smartwatch purchases, as well as upgrades for those with existing devices.”

Currently, smartwatch ownership is controlled by the millennial generation, which has 13 percent ownership penetration, compared to just less than nine percent for the overall market. However, as use cases broaden, shifts in smartwatch ownership will follow. In fact, the male/female split in the category is now the lowest it has ever been at 60 percent male – indicating a more mainstream audience. Additionally, despite higher pricing than activity trackers, smartwatch ownership is highest among the lowest income category (less than $45,000 per year), with 34 percent of smartwatch ownership penetration.

“While strong ownership in the lowest income category may seem counter intuitive, it is likely driven by a large number of buyers in the service industry who need a device to check incoming notifications when they can't reach for their phone,” noted Henderek. “Overall, increased features and functionality was the number one reason respondents chose a smartwatch over an activity tracker. Some of what we are seeing demonstrates a natural evolution of the device as a home control hub on the wrist, for one, and continued evolution of product capabilities will be key to winning over consumers.”

Methodology
The results of the NPD Group Connected Intelligence Wearables Survey are based on consumer panel research that reached 5,000+ U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. They reported on awareness, ownership, and intent to own various wearable devices. Additionally, consumers with awareness were asked follow up details including the features and functions that they expect to see in these devices. This survey was completed in June, 2017.

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.

Press Contact

Megan Scott 
516-625-7516  
megan.scott@npd.com

The NPD Group, Inc. 
900 West Shore Road 
Port Washington, NY 11050

Port Washington, NY, June 28, 2017 – By the end of 2020 there are forecast to be 260 million installed devices attached to the internet and able to deliver apps to TVs, according to the latest NPD Connected Intelligence forecast. This represents 31 percent growth in TV-connected devices over the forecast period, led by smart TVs and streaming media players. In fact, smart TVs will drive nearly half (48 percent) of installed internet-connected TV device growth through 2020, while streaming media players will contribute 31 percent of ownership growth.

The TV-Connected Device Forecast looks to shed light on how new generation smart TVs and evolved streaming media boxes and sticks will shape home entertainment. According to the forecastby 2018, and through the end of the forecast period, household penetration of smart TVs will achieve relative parity with streaming media players as platforms delivering apps to TVs.

“Sales of smart TVs and continued growth in streaming video will contribute to the increase of installed internet-connected TVs,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence. “Additionally, 4K mass market adoption plays an important role, as nearly all 4K TVs are internet capable.”

The rate of attaching connectable-TV devices to the internet is projected to increase from 73 percent in 2016 to 81 percent of installed units by 2020. This will eventually lead consumers to choose a preferred device, and result in diminished use for other devices. From January 2013 through January 2017, usage of installed internet capable TVs to access online content increased from 30 to 55 percent, demonstrating growing consumer interest in streaming video. As such, streaming media player original equipment manufacturers (OEMs), including Google, Roku and Amazon, continue to partner with TV OEMs to integrate their operating systems directly into displays.

“All trends point to smart TVs and streaming media players driving the majority of growth in TV-connected devices. When you compound the increased usage for streaming video, it points to further dominance of these platforms, as they provide the premium content and ease of use consumers demand,” noted Buffone.

Methodology

The NPD Group Connected Intelligence TV-Connected Device Forecast draws data from the quarterly Connected Home Survey and Consumer Technology Tracking Service. The Quarterly Connected Home Survey is based on consumer panel research that reaches over 5,000 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. They report on more than 12,000 TVs installed within over 34,000 household rooms.

Press Contact

Megan Scott 
516-625-7516  
megan.scott@npd.com

The NPD Group, Inc. 
900 West Shore Road 
 Port Washington, NY 11050

Port Washington, NY, June 13, 2017 – The unlocked mobile phone market has reached approximately 30 million consumers in the U.S, which currently accounts for 12.5 percent of the market, according to global information company, The NPD Group. As the unlocked phone market continues to grow, the latest Unlocked Phone Demand Report 2.0 from NPD Connected Intelligence compares consumers who purchased unlocked phones, to the larger base of consumers who purchased standard, locked phones from their carriers. Among the findings, the report revealed that consumers with unlocked phones are less loyal to both carriers and device brands than those with locked phones.

According to the report, 30 percent of unlocked phone users switched carriers when purchasing a new device, versus 24 percent of locked phone users. In fact, the number one motivator for purchasing an unlocked phone was freedom to choose a future network. Unlocked users were also more likely to cite ‘lowering cost’ as a reason for switching carriers than those with locked devices (45 percent versus 34 percent respectively).

“The market is made up of two distinct consumer bases: price sensitive consumers looking for low-cost devices that deliver value; and high-end, tech focused consumers, looking to differentiate from the standard choices,” said Brad Akyuz, director, industry analyst for NPD’s Connected Intelligence. “Now that smartphone subsidies are nonexistent, for the most part, the unlocked market has become a cost effective option.”

In addition to being more likely to switch carriers, unlocked phone users are also more likely to purchase a different device brand when upgrading. Forty-eight percent of unlocked phone users switched brands when upgrading devices, compared to 37 percent of locked phone users. Among unlocked users brand loyalty increases with price paid.

“Retailers, both in-store and online, have taken this opportunity to increase their unlocked phone selection, as more consumers are open to purchasing alternative brands for a lower price, or even for the same price if the functionality is appealing,” noted Akyuz. “As the unlocked phone market grows, differentiation will be key for original equipment manufacturers. While price is one competitive component, devices will need compelling features/functionality to appeal to consumers and retailers alike.”

Methodology
The results of the NPD Group Connected Intelligence Unlocked Phone Demand Report 2.0 are based on consumer panel research from the Unlocked Smartphone Survey, which reached 1,026 unlocked U.S. smartphone owners. This survey was completed in April 2017. As well as the Broadband Adoption Surveythat reached 4,150 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds.

Press Contact

Megan Scott 
516-625-7516  
megan.scott@npd.com

The NPD Group, Inc. 
900 West Shore Road 
Port Washington, NY 11050

Growth continues to be driven by connected TVs and streaming media players

Port Washington, NY, December 16, 2016 – According to the NPD Connected Intelligence Connected Home Forecast, by the end of 2019, 238 million installed devices are expected to be connected to the Internet and able to deliver apps to TVs, representing 59 percent growth from 2015 to 2019. Connected TVs are projected to drive 45 percent of the growth over the coming four years, while less expensive, content-heavy streaming media players are projected to drive 35 percent growth.

The rate of connecting these devices is projected to increase from 70 percent in 2015 to 80 percent of installed units by the end of 2019, driven primarily by hardware prompting connectivity, an increase in quality app programming from TV networks, and improvements to user interfaces.

 “With an ever-increasing number of connectable devices expected to be connected to the Internet, viewers will have the ability to choose their preferred option instead of using the only device they have attached to their TV,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence. “This shift will inevitably result in diminished usage for some devices.”

Beginning in 2016 and through the remainder of the forecast period (2019) we expect streaming media devices will be found in more homes than any other connected TV device. With multiple options available from industry leaders such as Google, Roku, Amazon and Apple, we expect 43 percent of U.S. Internet homes will own at least one streaming media player by the end of 2019. However, Roku and (Google) Chromecast have expanded beyond streaming media players to take advantage of the growth in connected TV sales as well. As such, a consolidation of operating systems has begun with more than ten TV manufacturers opting to partner with Roku and Chromecast, as opposed to manage their own app eco-system.

“The integration of streaming media player operating systems into TVs points to the beginning of a consolidation of operating systems that app developers will need to focus on in order to reach their audience,” said Buffone.

Methodology 
The NPD Group Connected Intelligence Connected Home Forecast draws data from the quarterly Connected Home Survey and Consumer Technology Tracking Service. The Quarterly Connected Home Survey is based on consumer panel research that reaches over 5,000 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. They report on more than 10,000 TVs installed within over 30,000 household rooms.

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.

Press Contact

Megan Scott 
516-625-7516  
megan.scott@npd.com

The NPD Group, Inc. 
900 West Shore Road 
Port Washington, NY 11050

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