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Forty-seven percent of home entertainment devices (Internet-capable TVs, Blu-ray disc players, video game consoles, and streaming media devices) are currently connected and being used for their online capabilities. But the degree to which these devices are used online varies significantly, according to global information company, The NPD Group (www.npd.com).
Internet capable TVs and Blu-ray disc players are the least likely to actually be connected to the Internet and used for their online features, while streaming media players and video game consoles are connected and used the most.
"While there are more Blu-ray disc players installed and connected to the Internet than streaming media players such as Apple TV and Roku, we expect that to change in the next year," says John Buffone, director, devices, NPD Connected Intelligence. "Streaming media players will exceed the number of installed and Internet connected Blu-ray players in 2014."
This inflection point will help drive over-the-top content adoption, as the new generation of streaming media devices are optimized for content delivery, providing a more compelling interface that will aid in consumer discovery of new services, especially when compared to Blu-ray disc players.
According to the "Connected Intelligence Application & Convergence" report from The NPD Group, 40% of TVs connected to the Internet, either through the TV itself or through another device, are used to watch Netflix streaming. Nearly 1-in-5 are used for YouTube video and 1-in-10 to watch video on Hulu’s ad-supported or Hulu Plus service. Within the top three services, the usage numbers drop precipitously from 40% (Netflix) down to 11% (Hulu).
"Content usage remains dominated by Netflix and YouTube," says Buffone. "An opportunity for digital distribution lies in enticing consumers to plug in to the Internet and download the apps available on devices they already own." More than 4,000 U.S. consumers, age 18 and older were surveyed in the first quarter of 2013 for the "Connected Home and Application & Convergence" study. The number of installed and internet connected devices includes those that deliver broadband applications.