The CE industry reached a milestone in the second quarter with half of U.S. Internet homes now owning a Connected TV device. This includes connected TVs, video game consoles, streaming media players, and Blu-ray Disc players that consumers connected to the Internet allowing them access to apps such as Netflix and Hulu. The total number of homes that have a Connected TV device is up to 46 million, a four million home increase from Q2 of last year, according to The NPD Group Connected Intelligence Connected Home Entertainment Report.
A primary driver of this growth has been the success of the SMART TV industry. According to NPD’s Retail Tracking Service, 45 percent of TVs sold in the U.S. during Q2 supported apps, up from 34 percent last year and 24 percent two years ago. As more app-ready TVs enter homes, the rate of consumers actually connecting these displays to the Internet also increased. In Q2, 69 percent of all installed Internet capable TVs were connected, up from 61 percent last year and 45 percent two years ago.
“The increase in the number of homes that use a TV with apps is the result of three very important factors,” said John Buffone, executive director, Connected Intelligence. “Sales of TVs with apps have skyrocketed, their user interfaces have improved and there has been a surge in available premium services and programming.”
As of Q2 2015, Netflix remained the most commonly used video service among homes with connected TVs, followed by YouTube, Amazon Prime/Instant Video, Hulu and HBO GO/NOW. Compared to Q2 2014, more connected TV users reported using each of these services. HBO’s commitment to an over-the-top footprint with their GO and NOW platforms resulted in them being the first TV network to reach the top five ranking, displacing Crackle.
“We’re living in the Golden Age of TV where significant investments are being made in developing original series. This is being enabled by growth in online services such as Hulu and Amazon Video as well as industry leading TV networks benefiting from the large pay TV subscriber base and fast developing over-the-top audience that uses apps on TV. The collaboration between TV manufacturers and content providers is imperative to keeping the connected TV ecosystem growing, both through devices and content.”
Methodology
Connected Home Entertainment Report
More than 5,000 U.S. consumers, age 18 and older were surveyed through the second quarter of 2015. The number of installed and internet connected devices includes those that deliver broadband applications and must actually be connected to the Internet. Connected TV and streaming media player ownership survey results were calibrated to life-to-date unit sales from the NPD Retail Tracking Service.