NPD: 238 Million Internet-Connected TV Devices by 2019

The trend toward Internet video delivery continues. According to the NPD Group, by the end of 2019, 238 million installed devices are ...

Connected TV use spurs digital video purchases, rentals
Connected TV use spurs digital video purchases, rentals

The trend toward Internet video delivery continues. According to the NPD Group, by the end of 2019, 238 million installed devices are expected to be connected to the Internet and able to deliver apps to TVs, representing 59% growth from 2015 to 2019. Connected TVs are projected to drive 45% of the growth over the coming four years, while less expensive, content-heavy streaming media players are projected to drive 35% growth.

The rate of connecting these devices is projected to increase from 70% in 2015 to 80% of installed units by the end of 2019, driven primarily by hardware prompting connectivity, an increase in quality app programming from TV networks, and improvements to user interfaces.

"With an ever-increasing number of connectable devices expected to be connected to the Internet, viewers will have the ability to choose their preferred option instead of using the only device they have attached to their TV," said John Buffone, executive director, industry analyst, NPD Connected Intelligence. "This shift will inevitably result in diminished usage for some devices."

Beginning in 2016 and through the remainder of the forecast period (2019), NPD expects streaming media devices will be found in more homes than any other connected TV device. With multiple options available from providers such as Google, Roku, Amazon and Apple, the research house expects 43% of U.S. Internet homes will own at least one streaming media player by the end of 2019. However, Roku and (Google) Chromecast have expanded beyond streaming media players to take advantage of the growth in connected TV sales as well. As such, a consolidation of operating systems has begun with more than 10 TV manufacturers opting to partner with Roku and Chromecast, as opposed to manage their own app eco-system.

"The integration of streaming media player operating systems into TVs points to the beginning of a consolidation of operating systems that app developers will need to focus on in order to reach their audience," said Buffone.

The forecast draws data from NPD's quarterly Connected Home Survey and Consumer Technology Tracking Service. The Quarterly Connected Home Survey is based on consumer panel research that reaches more than 5,000 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds.

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