SmartTVs becoming choice for Entertainment options
By James DeRuvo (doddleNEWS)
Convergence is the one thing that Hollywood and Technology can actually agree on. It?s the moment where the computer met the TV and they had a love child that not only watches TV, but also gets information from the web. And as most people who surf the net around dinner time can attest, Netflix has made convergence even closer than ever. And now, studies show that for the first time, cable cutters are watching streaming video more from their TV sets, than from their computers. Convergence is almost here.
NPD?s recent ?Digital Video Outlook? report reveals that home installation of millions of Internet-connected TVs is changing the way that consumers access and view streaming video. ? NPD Press release
The study, known as the ?Digital Video Outlook? report, was conducted by the NPD Group.? It found that 45% of Americans choose video streaming from the web and watch it with TVs being their primary screen for viewing.? Thirty-one percent are watching services like Netflix, Hulu and YouTube on their personal computers, and the rest are likely viewing using a mobile device like a tablet or mobile phone.? The results are a mirror image of 2011, which found that nearly fifty percent of viewers were steaming video directly to their PCs.? This is the tipping point for the lean back vs. lean forward style of video.
?The growth in connected TVs is another sign that online video is maturing,? said Russ Crupnick, senior vice president of industry analysis for The NPD Group. ?Streaming video has moved from the dorm room to the living room; and, as more households obtain and connect TVs to the Web, we predict increased trial and engagement for video distribution services.?
The survey also found that Netflix is the preferred choice for streaming video, with 40 percent watching the subscription service, 12 percent choosing HuluPlus, and 4 % for Vudu, making it a distant third.
The results of the survey is good news for companies like Apple, which is working to make AppleTV the central entertainment hub for all online streaming, as well as broadcast television.? As more users look to the web and cut their cables, Apple is working to convince content providers that having an App living in the Apple ecosystem will do for television what the iPod did for music ? save it from itself, and from the rapidly evolving technology which is supplanting their outdated business models.
But Apple has met with some resistance from cable and satellite providers, who see Apple?s business model as one that requires a piece of the pie go to Cupertino, and could end up cutting them out of the deal altogether as content creators bypass the middle man and go straight to the audience.??? And it?s something that causes concern the other way as well, as companies like DISH are offering ways to completely omit commercial breaks from television broadcasts in an attempt to keep viewers from cutting their cords.? And the result is going to be the usual round of legal action, followed by either hampering of emerging technologies in a Faustian bargain, or providers will go the way of buggy operators.? Either way, the future looks bright for convergence.
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Press Release
NPD Group: TVs Overtake PCs as the Primary Screen for Home Viewing of Online Video
PORT WASHINGTON, NEW YORK, September 26, 2012?? According to?The NPD Group, a leading market research company, over the past year, the number of consumers reporting that the TV is their primary screen for viewing paid and free video streamed from the Web has risen from 33 percent to 45 percent. During the same period, consumers who used a PC as the primary screen for viewing over-the-top (OTT) streamed-video content declined from 48 percent to 31 percent. This shift not only reflects a strong consumer preference for watching TV and movies on big screen TVs, but also coincides with the rapid adoption of Internet-connectible TVs.
NPD?s recent ?Digital Video Outlook? report reveals that home installation of millions of Internet-connected TVs is changing the way that consumers access and view streaming video. As of the second quarter (Q2) of 2012, 12 percent of the installed base of consumer TVs in the U.S. were connected TVs, totaling more than 29 million devices. Approximately 10 percent of U.S. consumer households currently own at least one connected TV. NPD research conducted over the past year has found that 43 percent of connected TV users accessed online entertainment directly from their TVs, including online video, music, and cloud services.
?The growth in connected TVs is another sign that online video is maturing,? said Russ Crupnick, senior vice president of industry analysis for The NPD Group. ?Streaming video has moved from the dorm room to the living room; and, as more households obtain and connect TVs to the Web, we predict increased trial and engagement for video distribution services.?
Netflix Watch Instantly is the dominant application for Web-to-TV video. Of those viewing online video on the TV, 40 percent use their connected TVs to stream video via Netflix, 12 percent access HuluPlus, and 4 percent connect to Vudu. Connected TVs, which offer direct access to these and other popular online video services via TV apps, represent a convenient alternative to PCs, or the use of other Internet-connected peripheral devices.
NPD?s study also found that nearly one in five connected-TV installations resulted in consumers no longer using peripheral devices, such as streaming media players, video game consoles, and Blu-ray Disc players, to access streaming video on the TV. This decline in usage could impact the usage models and utility of peripheral devices.
Data note: NPD?s ?Digital Video Outlook? report is based on data collected from multiple sources, including two electronic surveys. The quarterly survey includes approximately 1,200 U.S. broadband households. Survey data was weighted to represent U.S. population (age 13 and older) and tested for statistical significance at the 95 percent confidence level. The semi-annual survey includes approximately 10,000 respondents. Data from this survey has a 97% level of confidence, with a +/- 0.7% margin of error.
Hat Tip ? BGR
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