Press Releases

Port Washington, NY, March 29, 2016 –As consumer preferences and habits for smartphone usage continue to shift, Millennials are driving the increased usage of video calling as a preferred application among smartphone users. In fact, according to The NPD Group’s Connected Intelligence Application and Convergence Report, more than half (52%) of smartphone users age 18-34 say they now use their smartphones to conduct video calls, representing an increase of 10 points year-over-year.

In addition to video calling, smartphone users in the 18-34 age range also cited using their device for music and shopping as well as posting and viewing videos. In fact, many of these behaviors increased in prevalence among this user segment during the prior year, too.  

 “Video calling, posting and watching video are more common among Millennial smartphone users than among any other age group,” noted John Buffone, Executive Director, Industry Analyst, Connected Intelligence. “And as smartphones increase in size, Millennials are leading increases in activity, thus also leading the migration towards larger data plans.”

Meanwhile, Millennials are using computers less often, and their behavior shifts are impacting more than just entertainment. Fewer Millennials reported using their computer for web browsing, email, shopping, Facebook, music, posting pictures or videos, navigation and Twitter. 

 The NPD Group’s Connected Intelligence Application and Convergence Report analyzes consumers’ use of the connected TV, tablet, and smartphone; examining which content resonates on which device and how these devices are drawing consumers away from their computers. The report covers use of devices that deliver content over the Internet via fixed or cellular networks, tracking usage of services such as Netflix, Facebook, and Pandora across connected TVs, video game consoles, Blu-ray Disc players, streaming media players, tablets, smartphones and computers.

Home Automation Sales Up 41 Percent Year-over-Year in 2015

 Port Washington, NY, March 22, 2016 – As the desire to create intuitive home spaces continues to increase, so too do the opportunities for devices and technologies to gain share in the smart home market. According to The NPD Group Connected Intelligence Connected Home Automation Report, nearly two-thirds (64 percent) of smart home product owners used a smartphone to control or monitor their home automation devices. Additionally, 73 percent of smart home owners already use voice commands, with 61 percent of those consumers expressing an interest in wanting to use voice to control more products in their homes.

“This reliance on smartphones to control and monitor the smart home is due, in part, to app compatibility, as nearly all home automation devices have an iPhone or Android app,” said John Buffone, executive director, Connected Intelligence. “As apps and devices become more intuitive, voice recognition – and thus, voice control – will begin to play a more prominent role in the further development of the smart home.”

In line with the momentum to automate and control the smart home, The NPD Group’s Retail Tracking Service has also recorded that Home Automation sales are up 41 percent year-over-year in 2015 versus 2014. This tracking service’s metrics incorporate not only systems controllers such as thermostats, but also the broad range of smart capabilities across technologies such as power, sensors, lighting, security/monitoring, locks, and kits.

In addition to wanting compatibility, consumers also desire convenience, evidenced by the increased usage of voice commands in the smart home market; and that number is only expected to increase as the majority of smart home product owners have indicated their desire to better integrate speech recognition technology throughout their homes. Rising to meet consumer demand is a new product set that showcases the functionality of voice command technology, such as the Amazon Echo, which leverages voice controls to turn on a Phillips Hue bulb or change the temperature settings on an Ecobee thermostat.

Methodology:
The results of The NPD Group Connected Intelligence Connected Home Automation Report are based on an online survey conducted from late October through early November 2015 to a sample of 7,168 individuals that indicated they were the head of their household. All data is reflective of the U.S. Internet homes.

Press Contact

David Riley
917-543-5465
david.riley@npd.com

The NPD Group, Inc.
900 West Shore Road
Port Washington, NY 11050

Video Content Consumption Driven by Younger Consumers

Port Washington, NY, March 21, 2016 – Eighty-one percent of all U.S. smartphone users now stream video on their devices, according to recently released data from The NPD Group’s Connected Intelligence Smartphone and Tablet Usage Report. This usage is being driven primarily by users who are 25 and younger, who spend twice as much time watching video content on YouTube and Netflix mobile apps compared to users who are over the age of 25.

As a result of this uptick in video consumption, users who are 25 and younger outperform older age groups in terms of cellular and Wi-Fi data consumption levels generated by video applications. These users consume, on average, 6,2 GB of data (cellular and Wi-Fi combined) for video streaming purposes each month, versus older smartphone users who use an average of 4,9 GB of data for video streaming monthly.

And while the majority of video streaming occurs over Wi-Fi networks, smartphone users now rely on cellular data more than ever. According to the NPD Smartmeter*, an opt-in metering application that tracks live smartphone and tablet usage behavior, the average U.S. smartphone user consumes close to 3 GB of cellular data per month, with video streaming serving as the top application driving that data consumption.

NPD Connected Intelligence Mobility practice research director Brad Akyuz noted, “Users are spending more time watching videos on their smartphones than ever before, as the adoption of smartphones that boast larger displays increases. This mobile streaming behavior is further bolstered by the new offerings of wireless operators, such as T-Mobile’s Binge On and Verizon Wireless’ go90, which run on free sponsored data.”  

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

Press Contact

David Riley
917-543-5465
david.riley@npd.com

The NPD Group, Inc.
900 West Shore Road
Port Washington, NY 11050

As Streaming Video Content Surges, U.S. Connected TV Household Penetration Increases 14% Year-Over-Year

Port Washington, NY, March 7, 2016 – More than half (52%) of all U.S. Internet homes have at least one TV connected to the Internet, representing an increase of six million homes over the past year, according to The NPD Group Connected Intelligence Connected Home Entertainment Report.

While the types of devices being used to connect these televisions to the Internet are varied (video game consoles, streaming media players, Blu-ray disc players, and the TVs themselves), the average connected TV home had nearly three (2.9) devices installed that they could use for programming from apps on their televisions.

These numbers are in lock-step with the macro-level rise in the number of connected devices* Americans own. In examining the entire connected device landscape, there are now 734 million in use within U.S. Internet homes, averaging 7.8 connected devices per home. This represents an increase of 64 million installed and Internet-connected devices over the past year. This momentum is, in part, being driven by the increased adoption of Internet-enabled televisions and streaming media players as well as the increased availability of streaming video content.

“Ownership of connected televisions and streaming media players is accelerating while the availability of streaming content is simultaneously expanding. These combined forces will continue to drive increased adoption of connected devices within U.S. households,” stated John Buffone, executive director, Connected Intelligence. “At the same time, as the number of households that have access to apps on TVs rises, so too do the business opportunities for content owners and distributors.”

Methodology:

More than 5,000 U.S. consumers, ages 18 and older, were surveyed during Q4 2015. Connected TV, streaming media player, and tablet ownership survey results were calibrated to life-to-date unit sales from the NPD Retail Tracking Service.

*Total connected devices include laptops, desktops, smartphones, tablets, connected TVs, video game consoles, Blu-ray disc players, streaming media players, and iPod Touch. The number of installed and Internet-connected devices includes those that deliver broadband applications and must actually be connected to the Internet.

About The NPD Group, Inc.

The NPD Group provides market information and business solutions that drive better decision-making and better results. The world’s leading brands rely on us to help them get the right products in the right places for the right people. Practice areas include apparel, appliances, automotive, beauty, consumer electronics, diamonds, e-commerce, entertainment, fashion accessories, food consumption, foodservice, footwear, home, mobile, office supplies, retail, sports, technology, toys, video games, and watches / jewelry. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup.

Contact:

David Riley
david.riley@npd.com
(917) 543-5465

Growth driven primarily by connected TV and streaming media players

Port Washington, NY, November 9, 2015 – By the end of 2018, 231 million installed devices are expected to be connected to the Internet and able to deliver apps to TVs, representing 82 percent growth from 2014 to 2018, according to the Connected Home Entertainment Forecast report from global information company The NPD Group.

“The two largest drivers of growth will be the increased acceptance of connected televisions in the homes of U.S. consumers, as well as the continued adoption of streaming media players such as those offered by Google, Apple, Roku, and Amazon,” said John Buffone, Executive Director, Industry Analyst, Connected Intelligence, The NPD Group. 

Connected TVs—inclusive of Internet-capable 4K TVs—are projected to drive 37 percent of the growth during the four-year period, and streaming media players are projected to drive 33 percent of the growth during that same time period.

Rise in Over-the-Top Streaming Content Services

Netflix, YouTube, Amazon, Hulu, and HBO GO remain the top five streaming video services used on connected TVs and attached content devices.  But, a new video distribution channel is surfacing through the proliferation of streaming services from television networks that no longer require viewers to subscribe to a pay TV channel bundle.  As of July 2015, 5 percent of U.S. Internet homes subscribed to at least one of these over-the-top streaming content services, and that rate rises to 7 percent of homes with a connected TV or attached content device. Current over-the-top programming includes HBO NOW, Showtime, CBS All Access, WWE Network, Sesame Street Go, Noggin, Lifetime Movie Club, and Shudder. 

“Direct streaming subscriptions to network programming allows broadband providers an opportunity to generate revenue from services above and beyond their broadband offerings, while also further increasing the utility of connected TVs,” added Buffone. “As anticipated, we are already seeing uptake of these services by millennials at levels two times the norm. And, this trend is expected to continue as more networks make unauthenticated apps available to viewers.”

The NPD Group’s quarterly Connected Home Forecast report takes an in-depth look at the landscape of device connectivity in the United States, estimating how many connectable devices will be installed in consumers' homes and how many of those consumers will ultimately connect these devices to the Internet.

About The NPD Group, Inc.

The NPD Group provides market information and business solutions that drive better decision-making and better results. The world’s leading brands rely on us to help them get the right products in the right places for the right people. Practice areas include apparel, appliances, automotive, beauty, consumer electronics, diamonds, e-commerce, entertainment, fashion accessories, food consumption, foodservice, footwear, home, mobile, office supplies, retail, sports, technology, toys, video games, and watches / jewelry. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup

Contact:
David Riley
david.riley@npd.com
(917) 543-5465

The CE industry reached a milestone in the second quarter with half of U.S. Internet homes now owning a Connected TV device.  This includes connected TVs, video game consoles, streaming media players, and Blu-ray Disc players that consumers connected to the Internet allowing them access to apps such as Netflix and Hulu. The total number of homes that have a Connected TV device is up to 46 million, a four million home increase from Q2 of last year, according to The NPD Group Connected Intelligence Connected Home Entertainment Report.

A primary driver of this growth has been the success of the SMART TV industry. According to NPD’s Retail Tracking Service, 45 percent of TVs sold in the U.S. during Q2 supported apps, up from 34 percent last year and 24 percent two years ago. As more app-ready TVs enter homes, the rate of consumers actually connecting these displays to the Internet also increased. In Q2, 69 percent of all installed Internet capable TVs were connected, up from 61 percent last year and 45 percent two years ago.

“The increase in the number of homes that use a TV with apps is the result of three very important factors,” said John Buffone, executive director, Connected Intelligence. “Sales of TVs with apps have skyrocketed, their user interfaces have improved and there has been a surge in available premium services and programming.”

As of Q2 2015, Netflix remained the most commonly used video service among homes with connected TVs, followed by YouTube, Amazon Prime/Instant Video, Hulu and HBO GO/NOW. Compared to Q2 2014, more connected TV users reported using each of these services. HBO’s commitment to an over-the-top footprint with their GO and NOW platforms resulted in them being the first TV network to reach the top five ranking, displacing Crackle.  

“We’re living in the Golden Age of TV where significant investments are being made in developing original series. This is being enabled by growth in online services such as Hulu and Amazon Video as well as industry leading TV networks benefiting from the large pay TV subscriber base and fast developing over-the-top audience that uses apps on TV. The collaboration between TV manufacturers and content providers is imperative to keeping the connected TV ecosystem growing, both through devices and content.”  

Methodology

Connected Home Entertainment Report

More than 5,000 U.S. consumers, age 18 and older were surveyed through the second quarter of 2015. 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.

Millennials are on the road to building smarter homes. According to The NPD Group Connected Intelligence Home Automation Advisory Service, Millennials are twice as likely as the total population to have a smart home product installed in their residence.

The array of smart home products evaluated include network connected security and monitoring devices, sensors, system controllers, smart lighting, power, and appliances. One-in-four Millennials (23 percent) already installed at least one of these products in their homes, compared to 12 percent of the total population. Millennials will continue to drive the growth in this market as four-in-ten (41 percent) of this age group are already aware of and interested in owning smart home products.

A key factor that is driving this early growth is that the smart home market is no longer just for home owners. Renters are as likely as home owners to have smart home products installed, and are three times more likely to be part of the millennial age group.  More than a third of renters are between the ages of 18-34.

“Today’s smart home products no longer require professional installation and ongoing subscriptions, many are now plug-and-play options,” said John Buffone, executive director, Connected Intelligence.  “The product mix such as smart cameras, lights, and plugs, fits the lifestyle of both home owners and renters which opens up a larger, younger and more tech-savvy consumer market.”

“The mix of home automation products and services, their ease of use, and affordability makes some form of integration a reality for the majority of U.S. consumers,” said Buffone.  “The single biggest hurdle to further adoption is educating consumers on the wide array of new smart home products and services that are rapidly becoming available.”

Methodology

The results are based on an online survey conducted in March 2015 to a sample of 5,559 individuals that indicated they were the head of their household.  All data is reflective of the U.S. Internet homes.

By the end of 2014, there were 18.3 million actively connected tablets in the U.S., a 90 percent increase from 2013, according to The NPD Group Connected Intelligence Mobile Broadband Market Share and Forecast Report.  Aggressive promotions that heavily discounted or gave away tablets, carrier subsidies, and simplified service plans helped add more than 8.7 million new cellular tablet customers last year.

Over the next couple of years, however, the growth in active cellular tablet subscriptions is expected to slow down.  According to the report, the tablet activation growth will slow down to 30 percent in 2015 and then to 10 percent in 2016, compared to the 90 percent growth in 2014. However, cellular connected tablets will still continue to be an important factor in boosting active connection base for U.S. wireless carriers.

“One of the major reasons we expect to see the cellular tablet connection growth slow down over the next couple of years is the cannibalization by larger smartphone screens,” said Brad Akyuz, Director, Connected Intelligence. “As demand for smartphones boasting a large (5.0-inch plus) screen continue to increase, the value proposition of the tablet serving as a second screen diminishes. The new growth opportunities for the carriers will be in the wearables space as cellular embedded wearable devices are poised to be widely available by the end of 2016.”

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.

Smartwatch ownership in the U.S. is forecast to reach 9 percent of the U.S. adult population by 2016, closing in on activity trackers.  According to The NPD Group Connected Intelligence Wearables Forecast, as smartwatch penetration grows, activity tracker penetration will begin to plateau.   By the end of 2016 activity tracker ownership will have peaked at 32 million after growing significantly for four years. 

“The smartwatch will clearly begin to take a bite out of the activity tracker market moving forward,” said Eddie Hold, vice president, Connected Intelligence. “The fact that the health and fitness apps on smartwatches are a key marketing focus will help draw consumers away from the simpler trackers.”

The activity tracker, however, is not just under threat from the smartwatch but actually from itself as well. Counting the number of steps taken on a daily basis is only a small part of the activity trackers’ appeal, therefore limiting the addressable market size for these devices. In fact, 40 percent of activity tracker owners stop using the device within six months.

“The good news for activity trackers is that we are seeing a clear opportunity at the more sports-focused end of the landscape,” continues Hold. “There is demand for a more sophisticated class of activity tracker that supports GPS and heart rate monitoring, while also being a little more rugged and waterproof. And while we see the simpler fitness trackers potentially hitting a wall, these advanced devices will continue to drive adoption.”

But more than simply devices, both the smartwatch and the activity tracker markets will be defined by the available apps over the coming year. Third party activity apps will be key to both the growth of the sport-related activity tracker market, and to the long-term stickiness of the smartwatch use.

“While all of these new products will definitely help drive demand, the real test will be the apps for the smartwatches,” said Hold. “There will definitely be a demand for these devices and the use-case will follow, but smartwatch manufacturers and app developers need to make these products become ‘need to haves’ rather than ‘nice to haves’.”

Methodology

Connected Intelligence Wearables Forecast

Five thousand U.S. consumers, aged 18+ responded to an online survey in Q1.  The consumers reported their awareness of, ownership of, and intent to own wearable devices.  In addition, several questions in the report were fielded using Civic Science. Civic Science provides the leading intelligent polling and real-time insights platform, partnering with hundreds of premier websites to survey millions of people daily. Its proprietary technology rapidly analyzes consumer opinions, discovers real-time trends, and accurately predicts market outcomes. This service is used to examine consumer attitudes towards activity trackers and smart watches, as well as emerging wearable technology.