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Netflix, Hulu Drive U.S. Household Connected TV Penetration

18 Oct, 2011 By: Erik Gruenwedel

Popular subscription video-on-demand platforms contribute to 20% of U.S. respondents watching Web-based content on the TV, compared with 10% in Europe

As expected, Netflix, Hulu and Hulu Plus have spurred nearly twice as many connected users in the United States to watch content on the television from the Internet, compared with connected users in Europe, according to a new report.

Boston-based Strategy Analytics said 20% of U.S. respondents in a survey watched Web-based content on their TV in the past month, compared with 10% among European respondents. The July survey of 4,800 respondents is part of Strategy Analytics’ report “Multiscreen Connected TV: Assessing Device Usage and Ownership.”

The report found that the difference between U.S. and European connected users reflected the relative strength of digital services such as Netflix and Hulu in the U.S. market.

The report found that 42 million homes in the United States and Europe now regularly watch Web-based content on the TV — the majority in the United States doing so via a video game console, followed by home networks and connected Blu-ray Disc players.

In Europe, the preferred conduit linking the Internet to the TV is the PC.

Personal devices such as tablets and smartphones are less popular, although tablets are likely to become more important as the market continues to grow rapidly, according to the report.

“These findings have important implications for content providers, device manufacturers and network operators,” said David Mercer, principal analyst and the report’s author. “They demonstrate that television viewers are prepared to go to significant lengths to watch their preferred television shows or movies on the big screen. In spite of the technical challenges, many people want to be freed from the constraints of traditional, managed television services if their choice of content is not available when they want, where they want and at a price they are willing to pay.”

About the Author: Erik Gruenwedel

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