IHS: Netflix to Reach 500 Million Connected Devices Globally by 20193 Sep, 2015 By: Erik Gruenwedel
Proliferation of online video entertainment suggests there will be five Internet-connected devices in households worldwide by 2019, according to new data from IHS. Connected devices include smart TVs, Blu-ray Disc players, smartphones, tablets, video game consoles and streaming media players.
Due to its first-mover status as creator of the subscription streaming business model and subsequent partnerships with consumer electronics manufacturers, Netflix’s red direct-access button on myriad CE devices underscores the service’s burgeoning presence.
In the United States, Netflix oversees an addressable market of nearly 300 million connected devices, which accounts for 31% of the country’s total install base. IHS projects Netflix’s addressable media device market will reach 500 million devices by 2019.
Among streaming media players, Apple TV remained the single-largest platform at the end of 2014 with 25 million units installed. Roku, Google Chromecast and Amazon’s Fire TV trailed with 13 million, 10 million and 5 million units installed, respectively.
Meanwhile, screened media devices comprised more than 60% of the connected device market at the end of 2014. By 2019, this share will rise to almost 75%. North America will remain the world’s most mature hardware market, with Americans having more than 10 CE devices per household, according to IHS.
The research firm attributes the growth in connected devices to the smartphone. The device’s base is projected to more than double from 2.6 billion units in 2014 to 5.9 billion by 2019.
“The smartphone is the only media-enabled device that is capable of contributing such [growth] volume to the market, and precipitating such change in the mix of screened to non-screened hardware,” IHS said.