Streaming Devices and Smart TVs Increase Internet Connections
Year after year the number of internet-connected devices is increasing; to be precise, Smart TVs and streaming devices.
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.
The numbers for the end of 2020 are more generous, according to the new NPD Connected Intelligence report: the forecast is 260 million installed devices attached to the internet and able to deliver apps to TVs.
“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,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence.
From January 2013 through January 2017, the interest in streaming video has increased. The usage of internet capable TVs to access online content went from 30 to 55 percent. And the forecast predicts that in 2020 the number of connectable-TV devices to the internet will increase by 81%.
Although it’s estimated that Smart TVs will be responsible for 48% growth of installed Internet-connected until 2020, and streaming media players 31%, the same report states that both Smart TVs and streaming media players will achieve relative parity; proving that new generation smart TVs and evolved streaming media boxes and sticks will shape home entertainment.
“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,” noted John Buffone.
That’s why the market of TV streaming box is becoming one of the most competitive. Some manufacturers (OEMs) are partnering with TV OEMs to integrate their operating systems directly into displays, as Google, Amazon, and Roku are doing.
This is a natural progression, as we saw in the mobile market. At the beginning, most of the brands had exclusive operating systems, but now the mobile market is divided into two strong contenders (iOS and Android). Why? Production effectiveness and costs. It’s easier and cheaper to produce software for two platforms than for a great variety.
This conclusion is shared by Buffone, of The NPD Group: “Shifts are also occurring in the industry as TV manufacturers migrate to operating systems from Roku, Amazon and Google. This benefits content owners, as they can reach a larger audience through distribution on fewer platforms, and viewers, as they’ll be able to find more of the programming they want in a single location”.