Research: More Than 52% of Broadband Households Report Watching Internet Video on a Connected TV

A majority (52%) of U.S. broadband households are watching online video on a TV that is connected to the internet, according to research from Parks Associates.

The study, 360 View: Digital Media and Connected Consumers, also finds that watching TV or movies at home is the most popular leisure activity among U.S. broadband households, with 55% selecting this among their top two favorite leisure activities.

“While the total number of hours consuming videos has declined, consumers are watching more internet video on the largest screen available,” said Billy Nayden, research analyst with Parks Associates, in a statement. “The number of hours consumers report watching video on a TV increased for the first time since 2014, with connected devices enabling internet video services on TV and shifting consumers away from PC and mobile viewing. As OTT competition becomes a battle for the living room, the challenge for device makers and content producers is finding the correct product mix to maximize both profit and utility.”

The study found subscriptions are the dominant business model for OTT services.

As more services emerge, many stakeholders fear an impending subscription overload in U.S. households, according to Parks.

“As consumers’ taste for OTT experimentation wanes, they will start to resist the push to add another monthly subscription to their households,” Nayden said in a statement. “Many providers are starting to lead with freemium and ad-based models, in anticipation of this pushback.”

Other findings were:

  • 19% of consumers subscribe to either Netflix, Hulu or Amazon Prime Video and another OTT service, compared to 13% in 2017;
  • Consumers watched 25.7 hours of video per week in 2018, down from 29.5 hours per week in 2016;
  • Local broadcast/channels and programs are the most enjoyed type of programming.

Amazon Eyeing Branded TVs

Move over, Roku. Amazon reportedly is looking to enter the smart TV market.

The e-commerce behemoth’s connected TVs would be similar to Roku’s line of Chinese-made televisions featuring a proprietary operating system, voice-activated remote and embedded apps for over-the-top video.

While nothing official has been announced, the Amazon TV is being tested by DTG, a British product testing services used by manufacturers to demonstrate conformance to a variety of U.K. broadcast standards, according to a report by The Telegraph.

The media outlet – citing multiple sources – said Amazon is pursuing branded TVs after attempts to bring the BBC and major U.K. pay-TV operators into the Amazon Channels ecosystem failed.

Amazon, of course, already markets myriad branded streaming media devices, including Fire TV, Fire TV Cube, Fire TV Stick and Fire TV with 4K Ultra HD, among others.

Roku launched its first branded TVs in 2014 with line of units manufactured by Chinese vendors such as TCL, Insignia, Hisense and Element, in addition to mainstream Japanese manufacturers such as Sharp, Hitachi, Philips, Sanyo and RCA.

The TVs – like the streaming media devices – offer myriad third-party apps such as Netflix, CBS All Access, HBO Now, PBS Kids, ESPN, Hulu, ABC TV, and Amazon Prime Video, in addition to an ad-supported Roku Channel, and easy access to over-the-air digital TV signals, cable, satellite and telecom connections.