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NPD: TV Now Dominating Video Streaming

26 Sep, 2012 By: Chris Tribbey

In just the past year, the TV has become the primary screen for viewing of both paid and free video streamed over the Internet, according to a new report from The NPD Group.

The percentage of consumers reporting that the TV is their first choice for streaming video rose from 33% to 45% as of the second quarter of 2012, according to the report, while the percentage of consumers using a PC as their primary viewing screen dropped from 48% to 31%.

“The growth in connected TVs is another sign that online video is maturing,” said Russ Crupnick, SVP of industry analysis for The NPD Group. “Streaming video has moved from the dorm room to the living room; and, as more households obtain and connect TVs to the Web, we predict increased trial and engagement for video distribution services.”

NPD’s research shows that at the halfway point of 2012, 12% of the installed base of home TVs in the United States — or 29 million devices — were connected to the Internet, with 10% of all American households owning at least one connected TV. Approximately 43% of connected-TV owners access online entertainment with the device.

Netflix is the most dominate application for those users, with 40% saying they access that service. Hulu Plus was accessed by 12% of connected-TV owners, while 4% accessed Vudu.

Because of the connected-TV experience, NPD found that nearly one in five owners stopped using peripherals, including streaming media players, gaming consoles and Blu-ray Disc players, to access streaming video.

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