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% growth from 2014 to 2018, according to a new report from The NPD Group.
“The two largest drivers of growth will be the increased acceptance of connected televisions in the homes of US consumers, as well as the continued adoption of streaming media players such as those offered by Google, Apple, Roku, and Amazon,” comments John Buffone, Executive Director, Industry Analyst, Connected Intelligence, The NPD Group.
Connected TVs—inclusive of Internet-capable 4K TVs—are projected to drive 37% of the growth during the four-year period, and streaming media players are projected to drive 33% of the growth during that same time period.
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% of US Internet homes subscribed to at least one of these over-the-top streaming content services, and that rate rises to 7% 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.