Smart TVs: The Facts to Drive Your Growth

By Susan Pechman
Published on: July 8, 2017

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By the end of 2020 there are forecast to be 260 million installed devices attached to the internet and able to deliver apps to TVs, according to our latest NPD Connected Intelligence forecast. I sat down with John Buffone, executive director, industry analyst, NPD Connected Intelligence, for more details.

Susan Pechman: The TV-Connected Device Forecast looks to shed light on how new generation smart TVs and evolved streaming media boxes and sticks will shape home entertainment. Can you expand on that?

John Buffone: Our forecast represents 31 % growth in TV-connected devices over the forecast period, led by smart TVs and streaming media players. In fact, smart TVs will drive nearly half (48 %) of installed internet-connected TV device growth through 2020, while streaming media players will contribute 31 % of ownership growth. According to the forecastby 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.

SP: What about 4K and streaming media OEM’s?

JB: 4K mass market adoption plays an important role, as nearly all 4K TVs are internet capable. Sales of smart TVs and continued growth in streaming video will contribute to the increase of installed internet-connected TVs. 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, usage of installed internet capable TVs to access online content increased from 30 to 55 %, demonstrating growing consumer interest in streaming video. As such, streaming media player original equipment manufacturers (OEMs), including Google, Roku and Amazon, continue to partner with TV OEMs to integrate their operating systems directly into displays.

JB: 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.

Susan Pechman

Susan Pechman

Susan has served as chief marketing officer of The NPD Group, a leading global provider of market information and business solutions, since 2001. Previously she was founder and general manager of Cone Interactive in NYC, a highly regarded marketing and public relations practice in Silicon Alley.

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