NPD: Smart TVs to Rival Streaming Media Devices in Internet-Connected Device Growth28 Jun, 2017 By: Erik Gruenwedel
Driven by “smart TVs,” there will be 260 million installed devices attached to the Internet through 2020, according to new data from The NPD Group. This represents 31% growth in TV-connected devices over the forecast period and includes streaming media players. Smart TVs will drive nearly half (48%) of Internet-connected TV device growth, while streaming devices from Roku, Apple, Google and Amazon will contribute 31% of growth.
According to the forecast, by 2018, and through the end of the forecast period, household penetration of smart TVs will achieve relative parity with streaming media players as platforms delivering apps to TVs.
“Sales of smart TVs and continued growth in streaming video will contribute to the increase of installed internet-connected TVs,” John Buffone, executive director, industry analyst, NPD, said in a statement.
Buffone said growth in 4K UHD TVs will contribute to the growth as nearly all 4K TVs are Internet capable.
The rate of attaching connectable-TV devices to the Internet is projected to increase from 73% in 2016 to 81% of installed units by 2020. This will eventually lead consumers to choose a preferred device, and result in diminished use for other devices.
From January 2013 through January 2017, use of Internet-capable TVs increased from 30% to 55%, underscoring growing consumer interest in streaming video. As such, streaming media device manufacturers Google (Chromecast), Roku and Amazon (Fire TV), continue to partner with TV OEMs to integrate their operating systems directly into displays.
“All trends point to smart TVs and streaming media players driving the majority of growth in TV-connected devices. When you compound the increased usage for streaming video, it points to further dominance of these platforms, as they provide the premium content and ease of use consumers demand,” Buffone said.