47% of home entertainment devices in the U.S. are currently connected and used, and the way they are used online by consumers varies significantly. Home entertainment devices include internet-capable TVs, Blu-ray disc players, video game consoles and streaming media devices. While these devices are currently connected and being used for their online capabilities, the degree to which these devices are used online varies significantly, according to global information company The NPD Group’s Connected Intelligence Connected Home report.
Internet capable TVs and Blu-ray disc players are the least likely to actually be connected to the Internet and used for their online features, while streaming media players and video game consoles are connected and used the most.
This inflection point will help drive over-the-top content adoption, as the new generation of streaming media devices are optimized for content delivery, providing a more compelling interface that will aid in consumer discovery of new services, especially when compared to Blu-ray disc players.
According to the Connected Intelligence Application & Convergence report, 40 percent of TVs connected to the Internet, either through the TV itself or through another device, are used to watch Netflix streaming. Nearly 1-in-5 are used for YouTube video and 1-in-10 to watch video on Hulu’s ad-supported or Hulu Plus service. Within the top three services, the usage numbers drop precipitously from 40 percent down to 11%.
“Content usage remains dominated by Netflix and YouTube,” said Buffone. “An opportunity for digital distribution lies in enticing consumers to plug in to the Internet and download the apps available on devices they already own.”