The increased availability of quality premium content to stream, along with the growing number of services delivering over-the-top content, is fueling rapid growth in the number of broadband households in the United States that have at least one TV connected to the Internet.
NPD Group, in its latest Connected Home Entertainment Report, said connected TV HH penetration was up 14% in the past 12 months, meaning more than 49 million homes have a TV connected to the Internet. That 6-million home increase pushes connected TV HH penetration to 52%.
The researcher said the average connected home has 2.9 devices installed that they could use to access programming from apps on their televisions. When including phones and computers, as well, the average U.S. Internet HH has 7.8 devices, some 734 million in all. That’s a leap of 64 million installed and Internet-connected devices over the past year.
The surge in new households connecting TVs to the Internet – whether by game consoles, streaming devices, or via Smart TVs – shows just how much traction over-the-top video has gained. And, perhaps even more critically, it reflects the dramatic increase in the amount – and the array – of premium content available for streaming.
In 2015, for the first time ever, U.S. consumers said they were more inclined to stream video from an online provider that they are to watch live TV, Deloitte reported in a study released in April.
At the time, more than 42% of American HHs said they used an SVOD service like Netflix or Amazon Prime, with more than half streaming movies and 53% streaming TV shows on a monthly basis. The survey found just 45% prefer to watch TV programs live.
Deloitte said nearly three-quarters (72%) of consumers aged 14-25 regard streaming as one of the most valuable services they pay for, compared to just 58% who cite pay TV.
NDP Group, meanwhile, said it expects U.S. HH adoption of connected devices to continue to see strong growth as the availability of streaming expands.
And, said John Buffone, executive director, Connected Intelligence for NDP Group, those trends also are creating opportunities for content owners and distributors.
The researcher surveyed more than 5,000 U.S. consumers, ages 18 and older, during Q4 2015.
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