38% of all US households now have at least one TV set connected to the internet via a video game system, a Blu-ray player, and Apple TV or Roku set-top box, and/or the TV set itself, up 21% from 30% in 2011, and almost 60% from 24% in 2010, details Leichtman Research Group (LRG) in an April 2012 report. The key devices for connected TVs appear to be video game systems, with 28% of all households owning a system connected to the Internet. By contrast, only 4% of all households are connected solely through an internet-enabled TV set, while Apple TV or Roku set-tops are the only connected devices in 1% of households.
Online Video Grows in Popularity
Overall, the proportion of adults watching video from the internet via a connected device at least weekly has grown to 13%, up 30% from 10% last year, and almost triple the 5% from 2010. Those using connected devices to watch online video appear to be mostly Netflix subscribers: 35% of Netflix subscribers reported watching video from the internet via a connected device weekly, compared to 5% for non-subscribers.
Netflix Contribution to Cord-Cutting Minimal
Although April 2012 data from the Convergence Consulting Group reveals that the percentage of American pay TV subscribers cutting the cord is gradually rising, Netflix may not be a prime contributor to this trend. In fact, according to the LRG survey, non-Netflix-subscribers were almost twice as likely as Netflix subscribers to say they would probably switch from their multi-channel video provider in the next 6 months (12% vs. 7%). Netflix may not be a key driver of cord slicing, either: only 13% of subscribers said they would consider reducing spending on their multi-channel video service because of Netflix, down significantly from 21% who felt that way last year.
Overall, 1.6% of households in the sample said they paid to subscribe to a multi-channel video service in the past year but do not currently subscribe. However, just 0.1% dropped service in the past year, do not plan to subscribe again in the next 6 months, and attribute their lack of subscription due to Netflix or the ability to watch all they want on the internet or in other ways.
Half of Netflix subscribers are satisfied with the service, while 11% are likely to stop subscribing in the next 6 months.
16% of all adults watch full length TV shows online at least weekly, up 33% from 12% last year, and 60% from 10% in 2009. According to an Arbitron and Edison Research report [download page] released in April, 41% of consumers aged 12-34 have watched TV in the last month by streaming or downloading shows to be viewed on a TV, cell phone, desktop, laptop, or tablet.
LRG results indicate that among mobile phone owners, 19% watch video on their phones weekly, up from 15% last year and 6% in 2009. This strong growth was also reported by Nielsen in February 2012. According to that report, the proportion of mobile subscribers watching video online in Q3 2011 jumped 37% year-over-year and 5% quarter-over-quarter to reach more than 10% of the population. In fact, this represented growth of 205.7% in users since Nielsen first launched its report in Q3 2008.
The LRG data indicates that 9% of all adults watch video on an iPad or tablet on a weekly basis, up from 2% last year.
About the Data: The LRG findings are based on a survey of 1,251 households nationwide conducted primarily in February 2012.