Smart TVs Lead U.S. Household Penetration of Connected TVs, NPD Says

Half of U.S. Internet households own a connected TV device, an NPD Group report said Wednesday. The total number of homes with a device that connects a TV to the Internet -- smart TV, videogame console, streaming media player or Blu-ray player -- was 46 million in Q2, up 4 million from the year-ago quarter. Smart TVs are largely responsible for the growth, with 45 percent of TVs sold in the U.S. in Q2 supporting apps, up from 34 percent in the year-ago quarter and 24 percent in Q2 2013, NPD said. The connect rate is also increasing, NPD said, with 69 percent of all installed Internet-capable TVs connected in Q2, up from 61 percent in 2014 and 45 percent in 2013. The increase is due to skyrocketing sales of smart TVs, improved user interfaces and a surge in premium services and programming, analyst John Buffone said. Netflix remained the most-used video service among homes with connected TVs, followed by YouTube, Amazon Prime/Instant Video, Hulu and HBO Go/Now, NPD said. Due to the Go and Now platforms, HBO became the first TV network to reach the over-the-top top five, replacing Crackle, it said. Buffone referred to a “Golden Age of TV where significant investments are being made in developing original series.” Video and TV networks are benefiting from the large pay-TV subscriber base and the “fast-developing over-the-top audience that uses apps on TV,” he said. Collaboration between TV manufacturers and content providers is essential to keep the connected TV ecosystem growing on the device and content sides, he said. NPD surveyed more than 5,000 U.S. consumers age 18 and older during Q2.