238 Million Installed Internet-Connected TV Devices Expected by 2019, According to NPD Connected Intelligence

Growth continues to be driven by connected TVs and streaming media players

 Port Washington, NY, December 16, 2016 – According to the NPD Connected Intelligence Connected Home Forecast, by the end of 2019, 238 million installed devices are expected to be connected to the Internet and able to deliver apps to TVs, representing 59 percent growth from 2015 to 2019. Connected TVs are projected to drive 45 percent of the growth over the coming four years, while less expensive, content-heavy streaming media players are projected to drive 35 percent growth.

The rate of connecting these devices is projected to increase from 70 percent in 2015 to 80 percent of installed units by the end of 2019, driven primarily by hardware prompting connectivity, an increase in quality app programming from TV networks, and improvements to user interfaces.

 “With an ever-increasing number of connectable devices expected to be connected to the Internet, viewers will have the ability to choose their preferred option instead of using the only device they have attached to their TV,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence. “This shift will inevitably result in diminished usage for some devices.”

Beginning in 2016 and through the remainder of the forecast period (2019) we expect streaming media devices will be found in more homes than any other connected TV device. With multiple options available from industry leaders such as Google, Roku, Amazon and Apple, we expect 43 percent of U.S. Internet homes will own at least one streaming media player by the end of 2019. However, Roku and (Google) Chromecast have expanded beyond streaming media players to take advantage of the growth in connected TV sales as well. As such, a consolidation of operating systems has begun with more than ten TV manufacturers opting to partner with Roku and Chromecast, as opposed to manage their own app eco-system.

“The integration of streaming media player operating systems into TVs points to the beginning of a consolidation of operating systems that app developers will need to focus on in order to reach their audience,” said Buffone.

Methodology
The NPD Group Connected Intelligence Connected Home Forecast draws data from the quarterly Connected Home Survey and Consumer Technology Tracking Service. The Quarterly Connected Home Survey is based on consumer panel research that reaches over 5,000 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. They report on more than 10,000 TVs installed within over 30,000 household rooms.

About Connected Intelligence
Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com.



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Megan Scott
516-625-7516 
megan.scott@npd.com

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