ABI: One in Five in U.S. Have Connected TV

1 May, 2012 By: Chris Tribbey

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More than one in five American households have a connected TV, either via an Internet-ready TV, gaming consoles, Blu-ray Disc player or connected set-top box, according to new report from ABI Research.

Gaming consoles are by far the most-used device in the category, reaching 80% of connected homes, with Internet TVs at 27%, Blu-ray players at 24% and set-tops at 13%.

“Game consoles got an early lead in the connectivity space when Microsoft’s Xbox 360 launched in late 2005,” said senior analyst Michael Inouye. “Multiplayer gaming, along with the attention devoted to features outside of gaming from all three key console manufacturers, Microsoft and Sony in particular, have helped catapult the game console to the top of the connected CE space.”

Half of all U.S. households currently have at least one current gaming console. By 2017 ABI forecasts that penetration rates will hit 60% for gaming consoles, TVs and Blu-ray players.

“As consumer electronics manufacturers increase the value proposition by adding new services and features to these connected devices, the connect rate will certainly climb,” Inouye said. “This in turn will lead to an increased amount of time spent on these devices, but currently ABI Research does not anticipate a significant shift away from traditional pay-TV services, although it is possible these devices will contribute to limiting pay-TV’s growth potential.”

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