In its Q2'11 US Digital Entertainment Database report, the analyst fundamentally believes that says that with the advent of smart TVs consumers are now rapidly adopting online TV applications that are integrated into their connected TVs.
In-Stat calculates that nearly a quarter (22%) of US broadband households already own an HDTV with integrated TV apps and predicts that shipments of connected TVs with integrated TV applications will grow by an average 36% over the next five years. It also found that consumers favouring subscriptions to both pay-TV and online video services rose from 18% to 30% during 2010, contributing to the continued growth of Netflix.Yet it adds that adoption of online video streaming services, such as Netflix, does not increase the propensity to purchase online video content and that the viewing of DVR recorded TV programming does not lead to the adoption of free VOD services from a pay-TV operator.
“As expected, Netflix and YouTube currently dominate the TV application space,” commented Keith Nissen, Research Director. “But as Netflix competitors become more numerous and as applications are optimised for the big screen, TV apps will become part of the mainstream TV viewing experience.”