Press Releases

Access to nearly all top TV and Streaming Video Apps is Driving Video Usage

PORT WASHINGTON, NEW YORK, DECEMBER 8, 2014 – Tablet ownership among U.S. consumers is on the rise, and growing at a faster rate than that of any other connected device.  According to The NPD Group’s Connected Intelligence, Connected Home Report, as of the third quarter of 2014 (Q3 2014) there were 109 million tablets in use, up 35 million from last year.   

“Now that the tablet market is unmistakably past the early adopter stage we are able to gain visibility into what the user base is still doing with their devices, and in this case it’s often video focused activities,” said John Buffone, executive director, Connected Intelligence.

More than half, 55 percent, of tablet users report leveraging a video feature of their device.  This includes video calling; taking, posting, and uploading videos; as well as watching video from a streaming service or app from a TV channel or pay TV provider. Video feature usage is even more prominent among younger consumers.  Two-thirds (67 percent) of tablet users aged 18-34 use these video features compared to 53 percent of 35-54 year olds, and 45 percent of users age 55 and older. Further, watching video from a streaming service or TV channel app is the most common video focused behavior.

Through tablets, consumers have access to nearly every top TV and streaming video app and this is contributing to utilizing tablets as a TV. According to the new Connected Intelligence TV & Video App Availability Report, 66 of the 70 TV and streaming video apps evaluated are available on tablets. iPads have the most (66), followed by Android tablets (60), Kindle Fire (43) and Windows tablets (32).

 “Consumers are demonstrating their willingness to spend time using tablets for a broad set of video features, including their vast library of TV and streaming video apps,” noted Buffone. “This provides an opportunity for mobile carriers to promote features such as on-the-go video calling, TV viewing and ability to socialize videos as a reason to attach a tablet to their data plan. Promoting these popular activities could help perpetuate the significant growth in tablet data plan connections already experienced this year.”

 

Methodology

Connected Home Report

Nearly 5,000 U.S. consumers, age 18 and older were surveyed in the third quarter of 2014.  Tablet ownership survey results were calibrated to life-to-date unit sales from the NPD Retail Tracking Service.

TV & Video App Availability Report

An extensive search was completed to confirm availability of each app on each device. This included a review of each device, its website, review of each streaming service or TV channel website, and as needed, communication with device manufacturers to confirm app availability on their platform(s). The reported app availability data is current as of the end of October 2014.

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

 

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

 


Fitness Apps Provide Opportunity and Threat to the Devices

PORT WASHINGTON, NEW YORK, NOVEMBER 5, 2014 – In less than a year, awareness of wearable fitness devices among U.S. consumers has doubled, going from 30 percent last November to 70 percent at the end of July, according to new the NPD Connected Intelligence Consumers and Wearables Report. This increased awareness will help shape a strong holiday season.

“Activity trackers are going to be a hot-selling item this holiday season” says Eddie Hold, vice president of Connected Intelligence at The NPD Group. “We expect to see a number of new devices hit the market helping to drive higher demand higher for the category but also price drops on some of the older devices – creating even more appeal for the holiday season.”

Ownership of fitness activity trackers in the U.S. has also doubled, now at 10 percent which has helped propel the use of standalone smartphone fitness apps. Just over 25 percent of U.S. consumers say they have used a fitness app on their smartphone at least once, and many of these do not require a wearable device to work, instead leveraging the sensors in the smartphone.

“It is easy to look at the adoption of standalone fitness apps and declare that the wearable activity tracker is superfluous, and that the smartphone app will ensure that the wearable device has a short-lived run, but it’s too narrow a view of the landscape,” said Hold.  “We expect to see initial use of the smartphone apps drive consumers to adopt wearable technology that is better suited to activity tracking than the smartphone. As such, the smartphone apps help to expand awareness and the need for the activity trackers over time.”

There is, however, a final word of caution with regards to early wearable devices. Just over 40 percent of activity tracker owners no longer wear the device. “This highlights a significant disconnect between what the consumer is hoping to achieve and what the initial products actually deliver,” noted Hold. “As such, the devices need to improve quickly in order to better meet the needs of the consumers.”

How are smartwatches fairing in the wearables market? Find out more in Eddie’s blog.

 

NPD’s new wearables advisory service includes consumer panel-based reporting, qualitative reports, U.S. point-of-sale data, and unique analysis from NPD’s leading industry experts. 

Consumer and Wearables Report

The Connected Intelligence Consumers and Wearables Report is based on results from an online survey of 5,800 U.S. consumers who were surveyed in July 2014. The ownership results are calibrated against NPD’s Retail Tracking Service wearables data, as well as secondary survey sources.

 

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci. 

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

 

PORT WASHINGTON, NEW YORK – SEPTEMBER 23, 2014The NPD Group announced today the launch of its new wearables advisory service.  Eddie Hold, Vice President of NPD’s Connected Intelligence group, is leading the business.

NPD’s new business solutions for the wearables market include consumer panel-based reporting, qualitative reports, U.S. point-of-sale data, and unique analysis from NPD’s leading industry experts.  NPD’s U.S. wearables research will be complemented by Canadian consumer-based reports and later this year point-of-sale data, and global shipment data and analysis from NPD DisplaySearch.

The new wearables reports include a view of the device landscape, tracking of key events as they occur, consumer adoption and use of these devices and the related applications, and a deep-dive market analysis.

“With information covering the complete business cycle, NPD is uniquely positioned to help our clients understand and profit from the opportunities presented by this rapidly growing market,” said Karyn Schoenbart, president and COO at NPD. “Our information covers what is shipping, what is selling, who is buying it, and what consumers are doing with these products to give retailers, manufacturers, and developers a better understanding of the market and the core consumers.”

NPD has also hired Wes Henderek, a veteran mobility analyst, to cover wearable device ownership, usage, and connectivity.  Wes will join other NPD industry analysts to provide a unique and holistic view of the wearables market; they include – Ben Arnold, NPD’s Executive Director, Industry Analyst who covers U.S. consumer wearables purchasing and retail, and Eddie Hold who focuses on the U.S. wearables market overall. Paul Gray, Director of European research for NPD DisplaySearch will provide a global view of wearable shipments and forecasting and Mark Haar, Director, Consumer Electronics will focus on Canadian wearables sell-through and consumer trends. 

“NPD’s industry expertise is what sets us apart from the rest,” said Eddie Hold, vice president, NPD Connected Intelligence. “Wearables are impacting so many markets – from fashion to sports to technology and more.  Our vertical specializations, along with our team of analysts provide our customers with an understanding of what’s going on in the market now, and what is going to shape the future of the wearables market.”

 

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of adoption are leveraged to view consumer adoption and use of home-based devices, mobile devices and the emerging wearable technology world to provide a comprehensive view of the competitive landscape, how it will evolve and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

About NPD DisplaySearch
NPD DisplaySearch, part of The NPD Group, provides global market research and consulting specializing in the display supply chain, including trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge. NPD DisplaySearch supply chain expertise complements sell-through information from The NPD Group, thereby providing a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information, visit us at www.displaysearch.com. Read our blog at www.displaysearchblog.com and follow us on Twitter at @DisplaySearch.

 

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

 

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

 

PORT WASHINGTON, NEW YORK, SEPTEMBER 5, 2014 – Smartphones with screens 4.7 inches and larger are commanding more shelf and unit share in the U.S. 

According to The NPD Group Connected Intelligence Device Marketplace Report, U.S. nationwide carriers devoted about a third of their shelf space to devices with a 4.7 inch or larger screen in the second quarter (Q2) of this year, up from just 4 percent in Q2 2012. Sales growth has lagged, however, behind product availability. U. S. sales of smartphones with 4.7 inch or larger screens now account for more than a quarter of sales, up from 2 percent in Q2 2012 according to NPD Mobile Phone Track.

Cellular data consumption is growing as smartphones get bigger. According to the Connected Intelligence SmartMeter, consumers with smartphones that have 4.7-inch and larger screens use about 4GB of data a month, twice that of consumers who own smartphones with smaller screens, and video is the top application driving this data consumption growth.

“Larger screens mean a much richer content experience for smartphone users,” said Brad Akyuz, director, NPD Connected Intelligence. “The increase in video consumption driven by large-display smartphones is a tremendous revenue opportunity for network operators, as consumers will need more data to enjoy content on-the-go”.

“While interest among U.S. consumers in larger screen smartphones is growing, sales growth has been relatively disappointing over the past two years due to Apple’s dominance of the market,” said Stephen Baker, vice president, industry analysis, NPDAll the demand, channel and usage pieces are in place for larger smartphone sales and share to increase.  If Apple releases a bigger iPhone it will be the final catalyst for explosive growth in the 4.7”+ market.”

Larger smartphones have been more of a supplier push than a consumer pull, and suppliers plan to continue the increase supply. According to NPD DisplaySearch, North American shipments of 4.7-inch and larger smartphones are forecast to reach 120 million in 2014 and grow to 179 million by 2018.

 

Methodology

Connected Intelligence Device Marketplace Report

The Devices Marketplace Report leverages data from the NPD Connected Intelligence's monthly deployed retail store surveys conducted at direct and indirect retail channels. The report tracks the retail pricing and availability of mobile phones (feature phones and smartphones) and various other mobile broadband device categories including tablets, mobile hotspots and USB modems. Tracked service operators include AT&T, Boost Mobile, MetroPCS, Net10, Sprint, Straight Talk, T-Mobile, Verizon Wireless and Virgin Mobile.

Connected Intelligence SmartMeter

The Connected Intelligence SmartMeter is an opt-in on metering solution that resides on consumers’ smartphones and tablets.

NPD Mobile Phone Track

The NPD Mobile Phone Track reports on the activities of U.S. consumers, age 18 and older, who reported purchasing a mobile phone or smartphone. NPD does not track corporate/enterprise mobile phone purchases.

 

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

 

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

 

About NPD DisplaySearch
NPD DisplaySearch, part of The NPD Group, provides global market research and consulting specializing in the display supply chain, including trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge. NPD DisplaySearch supply chain expertise complements sell-through information from The NPD Group, thereby providing a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information, visit us at www.displaysearch.com. Read our blog at www.displaysearchblog.com and follow us on Twitter at @DisplaySearch.

 

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

 

More brands, apps, and lower prices heavily influence market’s future

PORT WASHINGTON, NEW YORK, SEPTEMBER 3, 2014 – Streaming media players were added to 6 million U.S. homes over the past year, increasing ownership penetration to 17 percent of U.S. Internet households in the second quarter (Q2) of 2014, according to the Connected Intelligence Connected Home Report from The NPD Group.  Streaming media player ownership is expected to increase to 39 percent of U.S. Internet households by the beginning of 2017.

The current, and future, penetration increases are being driven by three main factors; more brands in the market, more apps, and lower device prices.  

“In its infancy, the streaming media player market had two major players driving growth; Apple and Roku – now we have four relevant hardware manufacturers with the addition of Amazon’s Fire TV and Google’s Chromecast,” said John Buffone, executive director, NPD Connected Intelligence. “Content is what’s going to bring these devices to the next level.  It’s not just necessary to be able to stream popular video services such as Netflix and Hulu.  Device manufacturers must also have the ability to attract a wide array of content owners and developers to build apps for their platforms – which is the direction Apple, Roku, Google, and Amazon are taking with their devices.” 

Even with all of the upgrades to these devices, prices are coming down, making them more attractive to consumers.  The average price of a streaming media player dropped from $88 in 2012 to $61 in the first half of 2014, according to NPD’s Retail Tracking Service.

“The decline in price was initiated by Google with its $35 Chromecast, and it wasn’t long before others, like Roku, responded competitively with solutions such as its HDMI streaming stick for $49,” said Buffone.  “Affordability can drive impulse buying, rapid increases in ownership, and in turn it is increasing the number of homes with access to apps on TV. It’s quickly becoming a great new channel content owners can use to grow the audience for popular TV shows, movies and more.”

 

Methodology

Connected Home Report

More than 5,000 U.S. consumers, age 18 and older were surveyed in the second quarter of 2014.  Streaming media player brand share survey results are calibrated to life-to-date unit sales from the NPD Retail Tracking Service.

 

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

 

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

 

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

 

PORT WASHINGTON, NEW YORK – JULY 21, 2014 – By 2017 there will be 204 million connected TV devices linked to the Internet and able to deliver apps to viewers, more than double the projected number of U.S. Internet households.  These devices include video game consoles, streaming media players, Blu-ray Disc players, and TVs.  According to the latest NPD Connected Intelligence Connected Home Forecast, ownership of connected TV devices is expected to grow 100 percent by 2017.

Two driving forces in the market are pushing the adoption and use of connected TV devices; streaming media players and the TVs itself.  These devices are expected to represent the majority of the growth in installed and Internet connected units over the next three years.

As more of these connected devices are installed, the rate at which consumers connect Internet capable TV devices is expected to increase from 60 percent in 2014 to 76 percent of installed units by 2017.  The increased connectivity will be bolstered by hardware upgrades that prompt consumers to connect, increased app programming from TV networks, and improvements to user interfaces.

“The evolution of hardware and digital content distribution is constantly changing the TV viewing experience,” said John Buffone, executive director, NPD Connected Intelligence. “Over the coming years, the consumer’s preferred device for apps on TV will be shaped by the next generation of video game consoles, Smart TVs, and a new wave of streaming media players.”

By 2018 the connected TV device market will begin to reach saturation.  The average U.S. home has three TVs, and by 2018 a majority of homes that want apps on their TV will have a connected device on their primary and secondary displays.  A large portion of the connected TV device market will move from being for first-time connected TV households to consumers entering a device upgrade cycle.

“Due to the rapid growth of connected TV devices, now is the time to establish consumer loyalty,” said Buffone. “Millions of viewers are trying new devices and apps, deciding which, if any, will become an indispensable part of their TV time.” 

Connected Home Forecast Methodology

The Connected Home forecast is based on NPDs quarterly Connected Home surveys conducted among more than 5,000 U.S. consumers, age 18 and older.  Using the NPD Consumer and Retail Tracking services, historical installed base reporting is mapped to sales trends for each device category. Coupled with internet connection rates, these data are used to project a view of the connectable and connected device installed base. 

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

 

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

 

PORT WASHINGTON, NEW YORK, JUNE 23, 2014 – Tablets, especially for younger owners, are an extension of the TV viewing experience.  According to the new Connected TV App Discovery Report from NPD Connected Intelligence while watching TV, 56 percent of U.S. tablet owners age 18-34 use their tablet for activities related to the TV program they are watching or for other programming related activities.  This compares to just 41 percent among all tablet owners age 18 and older. 

The top three TV-related tablet activities among Millennials are; searching for programing to watch (34 percent), social media engagement related to a TV program (31 percent) and learning more about the program they are viewing (30 percent). Even more tablet owners age 18-34 say they want to use their device in conjunction with TV viewing in the future and social media is a driving factor.  Among Millennial tablet owners, 44 percent said they would consider using their device in the future for social media activity related to a TV program making it the number one way this age group wants to engage while watching TV.

 “Millennials are advocates for TV apps,” said John Buffone, executive director, NPD Connected Intelligence. “They seek out programming in this manner and hopefully leverage it to draw in friends and family members.” 

Tablets are being used as a TV companion in U.S. Internet homes where viewers are more likely to watch children’s, family, music, and premium cable networks.  The networks with the greatest over-index of tablet usage as a TV companion span across these categories and are led by Nick at Nite, MTV, and Showtime.

Top 10 Networks More Likely to be Viewed in Homes Where a Tablet is Used as a TV Companion

  1. Nick at Nite
  2. MTV
  3. Showtime
  4. Cinemax
  5. HBO
  6. Nickelodeon, Nick Jr. or Teen Nick
  7. Cartoon Network
  8. Starz
  9. Disney Channel or Disney Jr.
  10. ABC Family

Base: Perform TV-related Activity on Tablet While Watching TV. Ranking is based on an index of households that use a tablet in conjunction with TV viewing vs. all viewing households. Source: The NPD Group/Connected Intelligence, Connected TV App Discovery Report


“With the proper integration tablets can be an effective tool for increasing viewer engagement among Millennials and their broader social network,” said Buffone.  “Social networking is a key strategic element in the evolution of the high-profile networks this generation is viewing. Children’s, family, music, and premium cable networks should invest in social media strategies that complements their programming and encourages viewers’ to spread the word about shows they are watching.”

Methodology

In Q1 2014, more than 3,800 U.S. consumers, aged 18-years or older took part in this online survey which asked questions about the usage of mobile devices in conjunction with TV viewing as well as the ways in which viewers discover apps and content on connected TV devices. 

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci. 

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

 

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com


PORT WASHINGTON, NEW YORK, MAY 15, 2014 – During the first quarter (Q1) of 2014 there were 42 million U.S. households with a TV connected to the Internet, either via a video game console, Blu-ray disc player, streaming media player or the TV itself. According to the NPD Connected Intelligence Connected Home Report, between Q1 2013 and Q1 2014 the number of homes with a TV connected to the Internet grew by 6 million. The vast majority of this increase was driven by growth in the number of homes with Connected TVs and streaming media players.

For the first time, there are now more U.S. households with streaming media players than Blu-ray disc players connected to the Internet. As a result, the streaming media player platform now reaches a larger digital audience than the app-related content on Blu-ray disc players.

“Consumers want devices that can deliver high-quality content to their TVs,” said John Buffone, executive director, Connected Intelligence. “The increase in Connected TV and streaming media player penetration is proof that consumers are investing in solutions that can provide app-related content in the simplest, most effective way.”

Having the ability to connect these devices wirelessly is the most important feature for a consumer.  According to the Connected Intelligence Connected TV User Experience Report, 67 percent of Connected TV users said having a device that can connect with Wi-Fi influenced their decision regarding the device they preferred to use for apps on TV.  Ease of use features, whether device-centric or related to searching for content, were four of the top 10 features highlighted by consumers.  These features include an easy to use remote, easy to use home screen, the ease of finding an app or channel the viewer is looking for, and the ease of finding new apps.

“In some ways the TV viewing experience consumers want has not changed, although how they receive it continues to, and an app experience is no different,” said Buffone. “Consumers want easy to find, entertaining programming and a quality picture that does not buffer. While device manufacturers cannot solve all of the challenges inherent in Internet content delivery, they can ensure viewers have an easy to use remote and home screen as well as facilitate content discovery.”

 To learn more about consumer satisfaction with connected TVs read the blog Buffering Killed the Video Star.

Methodology

Connected Home Report
More than 5,000 U.S. consumers, age 18 and older were surveyed through the first quarter of 2014. The number of installed and internet connected devices includes those that deliver broadband applications and must actually be connected to the Internet. 

Connected TV User Experience Report
In Q1 2014, more than 3,800 U.S. consumers, aged 18-years or older took part in this online survey which asked questions about their awareness, usage and interest in connected TV apps.

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

 

 

 

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

 

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

 

Netflix ranks the most important app among connected TV users

PORT WASHINGTON, NEW YORK – APRIL 21, 2014 – Video apps are indispensable for most connected TV users. According to the new NPD Connected Intelligence Connected TV User Experience Report, 75 percent of connected TV app users* say video apps are ‘extremely’ or ‘very important’. Netflix ranks on the top of the list of video and TV everywhere Network apps cited as important to connected TV users.

“The importance of having core video aggregation apps such as Netflix and YouTube, has a lot to do with the convenience that allows consumers to easily access a multitude of programming options in one place,” said John Buffone, executive director, Connected Intelligence.  “The next wave of TV app user, however, is looking for a different experience than earlier adopters and is placing greater emphasis on TV Everywhere apps from their favorite networks.”

While it’s important for consumers to have the ability to access a diverse set of apps on their TV, finding new channels in the app ecosystem is almost equally important.  Among current and prospective connected TV app users, 48 percent said being able to find new apps impacts the device they prefer to use for apps on their TV.

“There’s a large and lucrative developing audience in the TV app market,” said Buffone.  “As new consumers acquire and begin using connected TV devices they are going to be looking for a broader array of Network TV apps. As long as they can find and use new apps easily; we expect network apps to become a destination for viewers looking for their favorite shows.”  

*Connected TV devices include; connected TVs, video game consoles, Blu-ray players, and streaming media boxes.

 

Methodology

In Q1 2014, more than 3,800 U.S. consumers, aged 18-years or older took part in this online survey which asked questions about their awareness, usage and interest in connected TV apps.

 

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

 

 

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

 

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

Tablets Leading the Growth


PORT WASHINGTON, NEW YORK, APRIL 14, 2014 – By the end of 2015, active mobile broadband devices are forecast to reach 34 million, a nearly 50 percent increase from 2013, according to The NPD Group Connected Intelligence Mobile Broadband Market Share and Forecast Report. Two-thirds (66 percent) of those devices will be tablets.

Driven primarily by enterprise demand, USB stick modems were the primary mobile broadband devices until the end of 2012. Standalone mobile hotspots gained popularity in 2011 and 2012, but both devices have seen substantial declines over the year as more consumers are utilizing the hotspot features on their tablets and smartphones. 

Source: The NPD Group/Connected Intelligence Mobile Broadband Market Share and Forecast Report

 

Tablets currently account for 40 percent of mobile broadband connections, and as USB sticks and mobile hotspots decline, carriers will need to boost adoption of the connected tablet.  As this shift occurs the price of embedded cellular tablet should rapidly decline.

 “Tablets are the next subscriber battleground for the carriers,” said Brad Akyuz, director, Connected Intelligence. “The decline in ASPs, coupled with the intensified pricing competition, will further boost connected tablet adoption in the coming years. AT&T currently leads in active tablets connections, but we anticipate Verizon Wireless will surpass AT&T by the end of 2015. While all of this is great news for consumers who want an always-on tablet, it could drive the carrier market back into a subsidized device model just as this is beginning to fade for smartphones.”

 

Methodology

The Mobile Broadband Market Share and Forecast Report is published quarterly and uses a mix of various proprietary sources including NPD’s consumer panel and point-of-sale data, as well as public sources such as U.S. wireless carrier financial and operational KPI data to size the U.S. mobile broadband market by device type, carrier and revenue.

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

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