One in Five U.S. Households Have Embraced Connected TV

SCOTTSDALE: Around 27 million U.S. households, accounting for 21 percent, either have an Internet-ready TV, game console, Blu-ray player or set-top box connected in their home, according to ABI Research.

The game console is the most-used device for connectivity, reaching more than 80 percent of these connected households. Internet-connected televisions account for 27 percent, followed by standalone Blu-ray players at 24 percent and smart set-top boxes at 13 percent.

Nearly half of U.S. households have at least one current-generation game console, while nearly 16 percent has an Internet-ready TV. The base is similar for standalone Blu-ray players, though smart set-top boxes come in under 5 percent.

This means that a relatively large number of consumers have not yet connected some of these devices to the networks, most notably Internet-ready TVs. The penetration rates are expected to exceed 60 percent for game consoles, TVs and Blu-ray players by 2017. However, not all of these devices will be connected, as only 48.5 percent of consumers with a home network currently have one of these devices connected to the Internet.

“Game consoles got an early lead in the connectivity space when Microsoft’s Xbox 360 launched in late 2005,” said Michael Inouye, ABI senior analyst. “Multiplayer gaming, along with the attention devoted to features outside of gaming from all three key console manufacturers, Microsoft and Sony in particular, have helped catapult the game console to the top of the connected CE space.”

Inouye added, “As CE manufacturers increase the value proposition by adding new services and features to these connected devices, the connect rate will certainly climb. This in turn will lead to an increased amount of time spent on these devices, but currently ABI Research does not anticipate a significant shift away from traditional pay-TV services, although it is possible these devices will contribute to limiting pay TV’s growth potential.”