NPD: Connected TV in Half of U.S. Internet Homes

According to the NPD Group, the consumer electronics industry reached a milestone in the second quarter with half of U.S. Internet ...

Connected TV use spurs digital video purchases, rentals
Connected TV use spurs digital video purchases, rentals
According to the NPD Group, the consumer electronics industry reached a milestone in the second quarter with half of U.S. Internet homes now owning a connected TV device. The figure 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 (NASDAQ:NFLX) and Hulu. The total number of homes that have a connected TV device is up to 46 million, an increase of 4 million from Q2 of last year.

A primary driver of the growth has been the success of the smart TV industry. NPD says 45% of TV sets sold in the United States during Q2 supported apps, up from 34% last year and 24% two years ago. As more app-ready TVs enter homes, the rate of consumers actually connecting the displays to the Internet also increased. In Q2, 69% of all installed Internet-capable TVs were connected, up from 61% last year and 45% two years ago.

As of Q2 2015, Netflix remained the most commonly used video service among homes with connected TVs, followed by YouTube, Amazon (NASDAQ:AMZN) 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 (OTT) footprint with their GO and NOW platforms resulted in them being the first TV network to reach the top five ranking, displacing Crackle.

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