US consumers who own smart TVs are now rapidly adopting online TV applications that are integrated into their connected TVs. A new In-Stat survey estimates that over 60% of these connected households will use a TV app at least once per week.
“As expected, Netflix and YouTube currently dominate the TV application space,” said Keith Nissen, 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: shipments of connected TVs with integrated TV applications will grow by an average 36% over the next five years; 22% of US broadband households already own an HDTV with integrated TV apps.
TV apps are not the primary reason for purchasing connected TVs; adoption of online video streaming services, such as Netflix, does not increase the propensity to purchase online video content.
The viewing of PVR recorded TV programming does not lead to the adoption of free VOD services from a pay TV operator.Consumers favouring subscriptions to both pay-TV and online video services rose from 18% to 30% during 2010, contributing to the continued growth of Netflix.
