In-Stat: Consumers Buy Internet-Connected Devices, But Not Many Use Them

  • Online Video
SCOTTSDALE, AZ — Demand for Internet-enabled TV devices, including smart TVs, connected Blu-Ray players, game consoles and streaming media players continues to grow, according to new research from NPD In-Stat. About 17 million U.S. households currently own connected TVs, and ownership of streaming media players has nearly doubled since the end of 2010.

Only a small minority of consumers who own Internet-capable TV devices actually connect them to the Internet and become over-the-top (OTT) video consumers. Still, the growing base of OTT-video-capable U.S. households is propelling revenue for online VoD, and electronic-sell-through is set to double by 2015.

“OTT video is continuing to grow, overcoming the barriers of low device connect rates and cumbersome user interfaces,” says Keith Nissen, research director of NPD In-Stat. “Even stronger growth of I-VOD and EST video services is possible if device manufacturers and digital retailers can put together a simpler, plug-n-play solution for getting online video to the TV. The proliferation of tablets is also contributing to OTT growth.”

Some other factors affecting the OTT video market:

- Streaming video transactions will reach just under 1 billion in 2010.
- Netflix and other S-VOD suppliers are shifting to a more TV-centric model and will soon be competing directly with HBO, Showtime, and Starz.
- Collaboration and competition among physical and digital retailers, content owners and pay-TV operators are shifting rapidly as players grapple with the evolving mix of physical versus digital channels, electronic sell-through, pay TV, OTT and subscription VoD.


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