TV Apps Gaining in Popularity

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SCOTTSDALE, AZ — Apps aren't just for smartphones and tablets - they're also increasingly integrated into new “smart TVs.” A survey by In-Stat indicates that more than 60 percent of households with connected TVs use a TV app at least once per week.

“As expected, Netflix and YouTube currently dominate the TV application space,” says Keith Nissen, In-Stat's 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:

  • Twenty-two percent of U.S. broadband households already own an HDTV with integrated TV apps.

  • Shipments of connected TVs with integrated TV applications will grow by an average of 36 percent over the next five years.

  • TV apps are not the primary reason for purchasing connected TVs.

  • Adoption of online video streaming services, such as Netflix, does not increase consumers' propensity to purchase online video content.

  • Viewing DVR-recorded TV programming does not lead to the adoption of free VOD services from a pay-TV operator.

  • The proportion of consumers favoring subscriptions to both pay-TV and online video services rose from 18 percent to 30 percent during 2010, contributing to the continued growth of Netflix.

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