Over 60 per cent of Connected TV Households Use TV Apps at Least Once per Week

written by: Richard Kastelein

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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. A new In-Stat (www.in-stat.com) research survey, 2Q’11 US Digital Entertainment Database (#IN1104891CM), 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
    easily understand.
  • 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.

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