4K-UHD-TCL-Roku-TV-Angle

Nearly three-quarters of broadband-connected homes now have a TV connected to the internet.  The adoption of internet-connected TVs has mirrored the adoption of broadband in the US, but has slowed recently as more homes were connected.

According to new research from The Diffusion Group (TDG), the penetration of Internet-connected TVs among US broadband households has increased nearly 50% since 2013.  By year-end of 2016, the number stands at 74%.

If you take Statistica’s latest estimates of 102 million broadband homes in the U.S., it would mean more than 75 million homes have internet-connected TV sets.  No doubt the 47 million U.S. Netflix subscribers have helped fuel that growth.

chart

Connected-TV penetration grew 22% between 2013 and 2014, and another 15% between 2014 and 2015.

Of late, however, growth has slowed to only 4%, a significant but not unexpected turn, according to Michael Greeson, TDG President and Director of Research.

As TDG first noted in 2004, the diffusion of connected TVs would closely follow broadband uptake, and as broadband growth begins to slow, so too does the number of new connected-TV users. TDG’s latest research validates this insight.

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

That said, pervasive access brings with it a wide range of opportunities, especially when it comes to video services.

“Broadband pay-TV services are particularly well positioned to leverage this utility, which permits scale at much lower costs,” said Greeson.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s