NPD said the figure represented growth of 82% between 2014 and 2018. Connected TVs are expected to deliver 37% of the growth over that four-year period, with streaming media players likely to contribute 33%.
While Netflix, YouTube, Amazon, Hulu, and HBO Go remain the top five streaming video services used on connected TVs and attached content devices, NPD says that growth is being boosted by 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.
“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.
“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.”