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Over-the-Top (OTT) content, video delivered on connected devices via the Internet - including services such as YouTube and Netflix, is the most prominent way of accessing video content among 18-34 year-olds with connected TVs, according to the new Connected Intelligence Applications and Convergence Report from The NPD Group. Three quarters (75 percent) use their connected TV to view OTT video compared to 68 percent who use their connected TV to watch programming from their cable, satellite, or telecom TV provider.
“Increasing usage of OTT video services on the TV is opening up new opportunities for networks and pay-TV operators,” said Buffone. “We could see pay-TV operators offering their subscriber services such as Netflix, and Networks’ distribution strategies expanding beyond traditional pay-TV outlets. Increased content access and availability would be a win for the consumer, content owner, and operator.”
Streaming media player owners are the most likely to use a connected TV screen to access OTT video content, 81 percent of owners cite doing so. This is followed by connected Blu-ray Disc player owners (77 percent), connected video game consoles owners (73 percent), and consumers with their TV directly connected to the Internet (66 percent).
“The younger consumer has come to expect a broadband experience from any screen they come in contact with, and their TV is no exception,” said John Buffone, director of devices, NPD Connected Intelligence. “The pendulum is continuing to shift among younger viewers as each quarter we see more homes connecting their TVs to the Internet. The pace by which networks develop their digital services for the TV screen will increasingly drive brand equity, viewership, and subscriptions among the critically important under 35 demographic who has become captivated by the availability of OTT video.”
Not surprisingly, as Netflix continues to post subscriber gains, the service remains the most popular among 18-34 year-old connected TV users. The top services used by this group are a mix of subscription, free, and transactional offerings.
In Q2 2013, more than 5,000 U.S. consumers, aged 18 years or older took part in this online survey which asked questions about their usage of computers, smartphones, tablets, and connected TVs.