June 24, 2020
It’s an over-the-top video world. So, it’s not a surprise that new data from Parks Associates June 24 finds more than 50% of U.S. broadband households own at least one smart TV, making the Internet-connected TV the primary platform for video streaming services at a time when content consumption is increasing dramatically.
Dallas-based Parks found that from Q1 2019 to Q1 2020, more than six million domestic broadband households cut the cord on their traditional pay-TV service, primarily transitioning to OTT services or broadcast TV via antennas for video content.
The COVID-19 crisis further changed how households consume video from both a device and service perspective, and its impacts will continue even as states lift shelter-in-place orders, according to Parks. U.S. broadband households are consuming on average more than 20 hours of video content weekly on the TV, an increase of nearly 40% from 2017.
“Nearly one-third of U.S. broadband households cite a smart TV as their primary streaming video device, nearly double the rate of streaming media players and computers,” research director Steve Nason said in a statement. “When looking specifically at online video content, the smart TV is the only measured device seeing a year-over-year increase as the primary streaming video device,” Nason said.
The analyst said smart TV continues to improve its perceived value to consumers across a variety of key features and technologies.
[The units] are steadily improving their scores in ease of navigation and ability to find content or discover new apps, supplanting other video devices in the house to become the main source for video content,” he said.
Parks said improved user features come at an important market inflection point, where consumers are watching more video at home while also cutting the cord on pay-TV, leaving them to search for content on their own, across multiple services.
“We’ve seen broadcasters incorporate smart TVs and connected devices more and more into their app strategy, and those that have are seeing a huge uptick in overall consumption and user engagement,” said Jonathan Laor, co-founder/CEO, Applicaster, which assisted Parks with the research. “Over the past few months we’ve also seen end users going to their mobile devices for subscribing to new services, and a dramatic increase in their consumption on TVs, making TVs the new champions of viewer retention.”