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.
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.
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.
About the Data: The LRG findings are based on a survey of 1,251 households nationwide conducted primarily in February 2012.
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