Over 60% of these connected households will use a TV app at least once per week, a new survey said.
The new In-Stat survey said applications have dominated the news in the smartphone and tablet worlds for some time but with the advent of “smart TVs” consumers are now rapidly adopting online TV applications that are integrated into their connected TVs.
“As expected, Netflix and YouTube currently dominate the TV application space,” said Keith Nissen, Research Director. “But as Netflix competitors become more numerous and as applications are optimized for the big screen, TV apps will become part of the mainstream TV viewing experience.”
The report also said shipments of connected TVs with integrated TV applications will grow by an average 36% over the next five years and that 22% of US BB households already own an HDTV with integrated TV apps.
Further, TV apps are not the primary reason for purchasing connected TVs and that adoption of online video streaming services, such as Netflix, does not increase the propensity to purchase online video content.
The viewing of DVR recorded TV programming does not lead to the adoption of free VOD services from a pay TV operator. Consumers favoring subscriptions to both pay-TV and online video services rose from 18% to 30% during 2010, contributing to the continued growth of Netflix, the report said.