Thursday, April 19, 2012

Why More Americans Adopted Connected TV Apps

According to the latest market study by Leichtman Research Group (LRG), 38 percent of all American households now have at least one TV set connected to the Internet via a video game system, a Blu-ray player, a streaming media set-top box, and/or the TV set directly.

The current U.S. connected TV adoption estimate is up from 30 percent last year, and 24 percent two years ago. As a result, watching over-the-top video content has become a mainstream consumer activity, with many more people engaging with online video entertainment applications.

Video game consoles are the primary over-the-top video viewing devices, with 28 percent of all households having them connected to the Internet. Just 4 percent of all households are connected directly via an Internet-enabled TV set, and Apple TV or Roku set-top boxes are the chosen devices in 1 percent of all households.

Overall, 13 percent of all adults watch video from the Internet via a connected device at least weekly, compared to 10 percent last year, and 5 percent two years ago.

Use of connected TV devices is often for accessing the Netflix instant viewing service, with 35 percent of Netflix subscribers watching video from the Internet via a connected device weekly, compared to 5 percent weekly use among all non-Netflix subscribers.

These findings are based on a survey of 1,251 U.S. households nationwide.

Other related findings from the market study include:
  • Overall, 16% of all adults use Netflix's Watch Instantly feature weekly – compared to 12% last year, and 4% two years ago.
  • 79% of Netflix Watch Instantly customers use it to watch movies and television shows on a TV set, and 59% of this group access Netflix via a video game system.
  • 50% of Netflix subscribers are satisfied with the service, and 11% are likely to stop subscribing to Netflix in the next six months.
  • 7% of Netflix subscribers are likely to switch from their multi-channel pay-TV provider in the next six months – compared to 12% of non-Netflix subscribers.
  • 13% of Netflix subscribers would consider reducing spending on their multi-channel pay-TV service because of Netflix – compared to 21% last year.
  • 16% of all adults watch full length TV shows online at least weekly – compared to 12% last year, and 10% three years ago.
  • Among all mobile phone owners, 19% watch video on their phones weekly – compared to 15% last year, and 6% three years ago.
  • 9% of all adults watch video on an media tablet weekly – compared to 2% last year.

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