Smart TV Market Continues to Grow: NPD

By Nathan Eddy  |  Print this article Print

Two driving forces in the market are pushing the adoption and use of connected TV devices--streaming media players and the TV itself.

There will be 202 million Internet-capable TV devices in U.S homes in 2015, a 44 percent increase from the 140 million at the start of 2013, according to the Connected Home Forecast report from NPD Connected Intelligence.

Two driving forces in the market are pushing the adoption and use of connected TV devices--streaming media players and the TV itself.

Smart TVs have a strong focus on elements such as online interactivity, Internet television, home networking, over-the-top content and on-demand video streaming—capabilities not present in older television sets.

Similar to how a smartphone integrates the handset’s operating system with a multitude of applications, smart TVs allow the convergence of the Internet with televisions.

At the same time, the introduction of devices, such as Chromecast, are likely to help drive the number of installed and connected media players to 31 million by 2015 and outpace connected Blu-ray players by mid-2014, the report said.

Among those devices, 65 percent will end up being connected to the Internet by consumers in 2015 compared to just 56 percent currently connected. Meanwhile, more connected TVs are being produced, purchased, installed and ultimately connected to the Internet, and by 2015 there will be 23 million installed and connected.

"As consumers connect TVs to the Internet, they are not only using streaming services such as Netflix, they also switch from linear and on-demand TV programming to TV network apps such as HBO GO or WatchESPN," John Buffone, executive director of industry analyst for NPD Connected Intelligence, said in a statement. "This change in behavior emphasizes the importance of developing strong watch apps and ensuring they are available on all the devices viewers use to connect their TVs."

The report noted connected TVs, once just a middleman for connected devices, are becoming a much more prominent piece of the living-room experience.

However, while TVs and streaming media players are expected to see the most growth, video-game consoles, such as the recently released Microsoft Xbox One and Sony’s PlayStation 4, will remain the most-connected device to the TV.

The bad news for the television market is that nearly three-quarters of U.S. consumers are not interested in buying a smart TV during the next 12 months, according to the results of an October survey conducted by the TV Systems Intelligence Service at IT research firm IHS.

Among consumers not aware of smart TVs, purchase intention for this type of television was just 7 percent. However, more than 30 percent of consumers who said they were aware of smart TVs indicated they intend to purchase this type of set during the next 12 months.

The survey also revealed 75 percent of smart TV owners possess a smartphone, and 65 percent have a tablet, which creates an opportunity for secondary-screen applications, including content discovery, content sharing or mirroring and remote control.

Originally published on www.eweek.com.