According to the NPD Connected Intelligence Connected Home Forecast, by the end of 2019, 238 million installed devices are expected to be connected to the internet in the US.
These devices are able to deliver apps to TVs, representing 59% growth from 2015 to 2019. Connected TVs are projected to drive 45% of the growth over the coming four years, while less expensive, content-heavy streaming media players are projected to drive 35% growth.
The rate of connecting these devices is projected to increase from 70% in 2015 to 80% of installed units by the end of 2019, driven primarily by hardware prompting connectivity, an increase in quality app programming from TV networks, and improvements to user interfaces.
“With an ever-increasing number of connectable devices expected to be connected to the Internet, viewers will have the ability to choose their preferred option instead of using the only device they have attached to their TV,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence.
“This shift will inevitably result in diminished usage for some devices.”
Beginning in 2016 and through the remainder of the forecast period (2019) NPD expects streaming media devices will be found in more homes than any other connected TV device. With multiple options available from industry leaders such as Google, Roku, Amazon and Apple, NPD expecta 43% of US internet homes will own at least one streaming media player by the end of 2019.
- However, Roku and (Google) Chromecast have expanded beyond streaming media players to take advantage of the growth in connected TV sales as well. As such, a consolidation of operating systems has begun with more than ten TV manufacturers opting to partner with Roku and Chromecast, as opposed to manage their own app eco-system.
“The integration of streaming media player operating systems into TVs points to the beginning of a consolidation of operating systems that app developers will need to focus on in order to reach their audience,” said Buffone.