According to a recent NPD Connected Intelligence forecast, by the end of 2020, there will be 260 million installed devices attached to the Internet and which will be capable of delivering apps to TVs. If this prediction is correct, this would represent a 31% growth in TV connected devices and is being led by smart TVs and streaming media players.
In the press release, it is anticipated that smart TVs will drive 48% of installed Internet-connected TV device growth during this period while streaming media players will contribute 31% of ownership growth. The forecast shows how the latest generation of smart TVs and streaming media boxes and sticks will continue to shape home entertainment. Apparently, by 2018 and through to 2020, household penetration of smart TVs will be relatively equal with streaming media players as platforms for delivering apps to TVs.
John Buffone, executive director, industry analyst, NPD Connected Intelligence said “Sales of smart TVs and continued growth in streaming video will contribute to the increase of installed Internet-connected TVs. Additionally, 4K mass-market adoption plays an important role, as nearly all 4K TVs are Internet capable.”
Is anticipated that the rate of attaching connectable TV devices to the Internet will increase from 73% this year to 81% by 2020, eventually leading to consumers choosing a preferred device. This will result in the diminished use of other devices. From January 2013 until January of this year, usage of installed Internet-capable TVs to access online content increased from 30% to 55%. Streaming media player original equipment manufacturers including Amazon and Google are continuing to partner with TV OEMs to integrate their operating systems directly into displays.
Buffone went on to say “All trends point to smart TVs and streaming media players driving the majority of growth in TV connected devices. When you compound the increased usage for streaming video, it points to further dominance of these platforms, as they provide the premium content and ease-of-use consumers demand.”