In the second quarter of 2021, 86% of US broadband households had at least one internet-connected TV (CTV). However, the penetration of CTV in US households appears to be leveling off, per data from The Diffusion Group (TDG).
The data shows that the share of US broadband households with CTVs has grown by just a single percentage point from last year (85%). This comes after several years of growth that has seen penetration rise by leaps and bounds from 2013, when only half of US broadband households had at least one CTV.
TDG’s data supports previous findings from Leichtman Research Group which also found that CTV penetration has stalled, increasing from 80% in 2020 to 82% in 2021. Analysts tie the slowing in the uptake of CTV to that of households with high-speed internet, which has also more or less plateaued over the past few years. After hitting near-saturation, TDG’s analyst explains that “the market becomes a zero-sum game in which one operator’s gains are actually the losses of another.”
The difference between CTV and broadband penetration in households can add to the number of CTV devices they have, expanding where in the house these devices are used. This growth is already happening. Some 83% of CTV households have one in their family or living room, up from 77% in 2020. However, the biggest growth is seen among those who have a CTV in their master bedroom (50% in 2021 vs. 41% in 2020). There has also been a noticeable growth in the share of CTV households with a connected TV in their second bedroom (28% vs. 22%), while modest growth is seen in other rooms such as a third or additional bedroom (10% vs. 8%), home office (5% vs. 4%) and kitchen (3% vs. 2%).
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About the Data: Findings for 2021 are based on a survey of 2,000 household decision-makers who subscribe to a residential broadband service, 86% of whom report owning at least one connected TV.