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Over 70% Of US Broadband Homes Have An Internet-Connected Television

Televisions have come a long way since they first appeared on the market. The latest trend has nothing to do with picture quality but rather, like many of today’s devices, about internet connectivity. The internet-of-things (IoT) is changing the way consumers shop and interact with products. A new study shows that the proliferation of internet-connected televisions in American homes has continued to grow, jumping from 50% in a 2013 study, to 74% by the end of 2016, according to a new study published by the Diffusion Group.

It is interesting to look at how the growth rate fluctuated between 2013 and 2016 with a 15% increase between 2013 and 2014, and a mere 4% increase after that. While the drop off may seem alarming for television manufacturers at first, the reality is that a slowed rate of adoption is to be expected. The IoT market can only grow alongside consumer adoption of broadband services, they’re inextricably connected. As the market becomes increasingly saturated with broadband-connected customers, the rate of internet-television sales will naturally slow.

“At 74% penetration, connected TV use is squarely in the Late Mainstream phase of its trajectory,” Michael Greeson, president and director of research at TDG, said in statement. “Barring any major disruption in TV technology or market conditions, growth will slow each year as the solution reaches saturation.”

As an increasing number of consumers find themselves with internet-connected televisions in their home, the market will likely see an increasing number of OTT services emerging. The popularity of OTT services like Netflix and Hulu will only grow as it becomes easier for consumers to access their content. Not only that, but the overhead required to successfully run a OTT service will continue to drop as the market becomes more saturated with internet-connected televisions.

The Diffusion Groups new findings are based on its annual study, Video Behavior in the Age of Quantum Media, which surveyed nearly 2,000 U.S. adult broadband users in early December 2016. It will be interesting to find out how these numbers change over the next year.



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