Press Releases

Connected TVs edged out Blu-ray Disc players to become the third most prominently owned device that delivers apps to TVs in the U.S.

According to The NPD Group Connected Intelligence Connected Home Report, as of the fourth quarter of 2014 there were 22 million connected TVs installed and accessing the Internet, a significant increase from 13 million one year ago. Ownership of Internet connected TVs is now more common than Internet connected Blu-ray Disc players, of which U.S. consumers own 20 million.  Video game consoles and streaming media players, however, are still the most used TV app platforms and rank number one and number two respectively.

Consumers’ transition from disc to digital is impacting adoption of Blu-ray Disc players and along with it their value as a digital distribution platform. This shift in ranking makes TVs a more popular digital distribution platform than Blu-ray Disc Players, although often these devices are built by the same company.

 

The proliferation of connected TVs will be positive for viewers and digital content distributors alike as access to streaming programming will reach more homes and more of the TVs in each home. By 2017, there will be 47 million connected TVs within 30 million U.S. Internet homes delivering content through apps, according to the Connected Intelligence Connected Home Forecast Report.  Increased sales, connectivity, and usage trends led the TV to become a more prominent connected device ahead of forecast.

 

“Going forward the key to success for connected TV and attached content device manufacturers will be the availability of apps from top TV networks,” said John Buffone, executive director, Connected Intelligence.   “This aspect of the app marketplace will become even more critical during 2015 as HBO and Showtime follow CBS and become available without a cable or satellite pay TV subscription."

Methodology

Connected Home Report

More than 5,000 U.S. consumers, age 18 and older were surveyed through the fourth 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 and streaming media player ownership survey results were calibrated to life-to-date unit sales from the NPD Retail Tracking Service.

Connected Home Forecast Report

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. 

As of the fourth quarter of 2014, there were 116 million tablets in use among U.S. consumers. Nearly 16 million of these tablets were actively using a cellular data plan, an increase of 95 percent over the past year.  According to the NPD Connected Intelligence Connected Home Report, cellular activations are more common among more educated and more affluent consumers. 

Tablet owners who connect through cellular data plans possess a very different demographic profile than their Wi-Fi tablet using counterparts.  Among the characteristics, income is the most prominent.  Cellular tablet owners have an average household income of $105,000 versus Wi-Fi tablet owners whose average annual income is $17,000 less.

“Cellular-embedded tablet use is growing rapidly, however, for it to become a mass market product mobile carriers need to appeal to a mass market audience,” said John Buffone, executive director, Connected Intelligence. “While 2014 marked the year consumers activated cellular enabled tablets, 2015 must become the year this technology reaches a broader demographic audience. Access to Wi-Fi at home and work is the primary barrier to adoption, so messaging from carriers must emphasize on-the-go activities. In particular, navigation, email, and posting photos and videos are the primary activities used more frequently when consumers connect their tablet to a data plan.”

Methodology

Connected Home Report

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

Streaming Media Player Penetration to Reach 40 Percent of U.S. Internet Homes by 2017, According to NPD

Increased Penetration Boosts Streaming Video Service Usage

PORT WASHINGTON, NEW YORK, JANUARY 26, 2015 – By Q1 2017, 40 percent of U.S. Internet homes will have a streaming media player, bringing the total number of homes with these devices to 39 million, according to the new NPD Connected Intelligence Connected Home Forecast.  At the beginning of 2014 (Q1) only 16 percent of U.S. Internet homes had a streaming media player. Ownership is on track to climb to nearly one-quarter of homes, 24 percent, by Q1 2015 when consumers report device ownership that takes into account their holiday purchases.

In its infancy, the streaming media player market was driven by growth from Apple and Roku, but over the past year and a half Amazon and Google have made a significant impact. In addition to streaming media players, TVs, video game consoles, and Blu-ray Disc players also deliver apps to viewer’s TVs.  Among these four device platforms, streaming media players are forecast to contribute the most growth, and TVs the second most growth, in installed and Internet connected TV devices over the next two years. This will drive the total number devices delivering apps to TVs up to 211 million by Q1 2017.

Not surprisingly, the increase in streaming media players helped boost the use of streaming video services.  According to the Connected Intelligence Application and Convergence report, usage of Amazon’s Prime Instant Video service saw the greatest percentage point increase, and all of the top five video services benefited from the growing streaming media device market.

 

Q4 2014: Top 5 Video Apps Used on TVs by Streaming Media Player Owners

 

 

  1. Netflix
  2. YouTube
  3. Amazon Prime & Instant Video
  4. Hulu Plus
  5. HBOGO

 

Source: The NPD Group/Connected Intelligence Q4 Application and Convergence Report

Ranking based on % of streaming media player users that report using the video service

If individual owns multiple connected TV devices usage may be sourced from either or both devices

 

“The rapidly growing streaming media player market, coupled with rising ownership of smart TVs and the new generation of game consoles is resulting in significantly more homes getting access to apps such as Amazon Prime Instant Video and HBOGO,” said John Buffone, executive director, Connected Intelligence. “Over the coming years we will continue to see a growing audience of TV viewers for streaming video services, authenticated network apps, and offerings such as CBS All Access that no longer require a pay TV subscription from a cable or satellite provider.”

Methodology

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.

Application & Convergence Report Methodology

In Q4 2014, more than 5,000 U.S. consumers, aged 18-years or older took part in this online survey which asked questions about their usage of computers, smartphones, tablets, and connected TVs.

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.

Las Vegas, Nevada, January 6, 2015 – Age, income, and gender vary greatly among fitness tracker and smartwatch owners, according to the new NPD Connected Intelligence Consumers and Wearables Report.

Fitness trackers, which have a strong presence in the wearables market, have gained a large mainstream following.  According to the report 36 percent of fitness tracker owners in the US are 35-54 years old, 41 percent had an average income of more than $100,000, and 54 percent were women. One-in-ten U.S. adults now own a fitness tracker.

Smartwatches haven’t caught on as quickly, with only two percent penetration, and appeal to a much different segment of the market.  More than two-thirds (69 percent) of smartwatch owners are 18-34 years old, skew mostly towards the male population (71 percent) and nearly half (48 percent) had an income below $45,000.

“There is no ‘average’ consumer for the wearables market; the fitness tracker and smartwatch target consumer are fundamentally different,” said Wes Henderek, director NPD Connected Intelligence. “While we expect smartwatch ownership to grow more rapidly over the next year, there will remain a clear place for the fitness tracker due to its size, battery life, and focus on one specific use case - as opposed to the smartwatch which is trying to be a little bit of everything for everyone.”

 

METHODOLOGY

The Consumers and Wearables report is delivered twice a year as part of the Connected Intelligence WEAR practice. The report is based on a survey of 5,000 U.S. consumers, age 18 and older that was completed in December 2014. This information was then calibrated against life-to-date unit sales of wearable devices from the NPD Retail Tracking Service, as well as Civic Science results relating to wearable device ownership.

 

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 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

 

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

 

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