• Connected TVs Now in 56% of U.S. Homes, Up from 24% in 2010

    A new survey from Leichtman Research Group has found that 56% of American homes now have at least one TV connected to the Internet, more than double the 24% level from 2010. 29% of American homes now have TVs connected using multiple devices.

    LRG did not break out the type of connected TV devices used, but last week, FreeWheel's Q1 '15 Video Monetization Report found that Roku has a 43% share, followed by Apple TV (23%), gaming consoles (20%), Chromecast (12%) and Smart TV (2%).

    LRG also found that 29% of adults watch online video on their TVs at least weekly, almost 6x the 5% level in 2010, underscoring how rapidly this has become a mainstream activity. 33% of adults watch video on non-TV devices on a daily basis, with 58% watching on non-TV devices on a weekly basis.

    85% of Netflix subscribers said they watch the SVOD service on a TV, the highest level ever. 43% of pay-TV subscribers take Netflix, vs. 50% of all non-pay-TV subscribers. Overall, LRG found that 52% of American households have an SVOD service and 43% use it at least monthly.

    The LRG data is just the latest to highlight how online video has moved into the living room, with connected devices putting OTT services on a level playing field with traditional pay-TV services. With the quality of long-form content found on inexpensive OTT services rapidly improving and connected TVs proliferating, more people will shift their consumption away from pay-TV. This is why the rate of cord-cutting and cord-nevering is poised to pick up in 2015, as evidenced already in Q1 results.

    All of this is why broadband services are more important than ever for pay-TV operators. Recognizing the rising use of OTT services, more operators will follow the lead of Cablevision and other smaller operators by beginning to offer OTT services via their set-top boxes. Ultimately, pay-TV operators will decide that OTT services are more friend than foe for their larger strategic goals. This will lead to more convergence, rather than divergence, between OTT and pay-TV.

    Note, at the 5th annual VideoNuze Online Video Advertising Summit on Tuesday, June 16th, we'll be digging further into this topic in our session, "Connected TVs and Advertising: A Match Made in the Living Room." Learn more and register now!