Research: 71% of U.S. Broadband Households Own a Connected Entertainment Device

Nearly three-fourths of U.S. households (71%) own a connected entertainment device, according to new research from Parks Associates.

The research firm’s white paper, Changing Dynamics of the Smart Home: Opportunities for Service Providers, sponsored by Calix, also found that among consumers who own either a connected entertainment or smart home device, more than 60% have more than one.

“The average U.S. broadband household owns more than ten IoT devices, crossing entertainment, smart home and health use cases,” said Parks VP Denise Ernst in a statement. “These trends, combined with innovations in cloud technologies and service provision, create real opportunities for service providers to enter the smart home space with offerings that provide flexible support options and protections for a household’s data and privacy.”

The whitepaper details consumers’ concerns with data privacy and security, as well as their needs and demands for support services. Additional findings in the report were that 26% of U.S. broadband households own at least one device from a list of common smart home devices and that approximately one-third of connected entertainment device owners and one-half of smart home device owners who set up their devices themselves experience problems.

“In today’s connected lifestyle, consumers value flexibility in their choices,” Ernst said. “A service provider’s ability to address consumers’ problems in the method they prefer is a distinct advantage, particularly in today’s IoT environment.”

One Billion Internet-Connected TV Devices in Use Globally

It’s a streaming video world. There more than one billion connected TV devices now in use worldwide, according to new data from Strategy Analytics.

Connected TV devices – including Smart TVs, Blu-ray Disc players, video game consoles, streaming media devices – enable users to stream over-the-top video content to the TV.

Smart TVs have been consistently gaining market share and now represent nearly 60% of the total Internet-connected media device installed base.

“The popularity of connected TV, in particular Smart TVs and dedicated media streaming devices such as Roku, Amazon Fire TV and Chromecast, has grown dramatically over the last few years and has led to a fundamental shift in how consumers view and engage with content on the TV set,” David Watkins, director at Strategy Analytics, said in a statement.

Spearheaded by Roku, Strategy Analytics expects more than 55 million streaming media devices to ship globally this year – about a third of 150 million Smart TV market.

“Sony has long been the global leader in connected TV devices in terms of devices installed in homes thanks not only to its strength in TVs and Blu-ray players, but also as a result of its leading position in the global game console market,” added David Mercer, VP at Strategy Analytics.

The report said Samsung now equals Sony at the top of the rankings in terms of overall installed connected TV device units, and the South Korean company is poised to take the lead in the second half of 2018.

“As Smart TVs take an ever-growing share of the overall market, Samsung will replace Sony at the top of the device footprint rankings later this year thanks to its dominant position in the world’s Smart TV market,” said Mercer.

Global OTT Video Subs to Top 265 Million by 2022

Spearheaded by Netflix and Amazon Prime Video, the number of global households with an over-the-top video service subscription will exceed 265 million by 2022, according to new data from Parks Associates.

The research firm contends OTT video use is being driven by increasing household adoption of connected media devices such as smart TVs, tablets and smart phones.

“Fifty-three percent of U.S. broadband households own a smart TV, and both smart TVs and streaming media players are continually improving the user experience to accommodate the shifting habits of consumers, including integration with voice-based digital assistant ecosystems,” Kristen Hanich, analyst at Parks, said in a statement. “The rise of these digital assistants is another key trend over the last few years, with Apple Siri, Amazon Alexa, Google Assistant, Microsoft Cortana, and Samsung Bixby, among others, now on the market. Both smart home and connected entertainment developers are working to integrate this functionality into their products.”

Parks contends consumers now own an average of 8.6 connected CE products in their home, an 87% growth in the average volume of devices since 2010. Additional research shows that more than 70% of U.S. broadband households have an Internet-connected entertainment device; 17% own both a smart home device and an internet-connected entertainment device.

Parks estimates over 265 million households worldwide will have a total of more than 400 million OTT video service subscriptions by the end of 2022. Much of it driven by household adoption Internet-connected appliances.

“Consumers prioritize general device interoperability over staying within a specific brand ecosystem when considering a purchase,” said Jennifer Kent, director, research quality & product development. “Three-fourths of consumers find it important to consider any smart home product brand that will work with other products in their home and 49% find this very important.”