5 AUG 2024

USA: 60% Smart TVs are connected to a streaming platform

A research by Hub revealed that half of smart TV viewers turn first to apps when they want to watch TV.

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Hub’s latest “Evolution of the TV Set” study showed that smart TVs significantly impact how viewers are leaning into streaming services and other entertainment apps as traditional linear Pay TV viewing declines. In 2024, 60% of respondents “most-used” TV sets are connected to a streaming platform – up by half since 2020. At the same time, the share of primary TVs connected to cable continues to fall (38% this year, down from 52% in 2020.)

Smart TV operating systems now drive more than half of viewing sessions. These systems are exerting more and more influence over what people watch. 38% of viewers said the first thing they see when they turn on their TV is the apps installed on the home screen of their smart TV. Another 27% said they see the apps on a home screen of an external media player, like a Roku player or Apple TV box. Only 19% see a show in progress from a cable company. The discovery process is becoming one driven by apps and smart TV operating systems.

It’s not just cable that is being disintermediated: the smart TV OS is also taking discovery duties away from individual apps. While half (50%) of viewers said they typically open a specific app (like Netflix) to find something to watch, the other half use capabilities built into the smart TV itself. 26% choose from shows highlighted on their smart TV home screen, and 24% use the universal search function built into their smart TV to search for shows across all their services. This makes the home screen value precious – for both the apps that reside there and how well TV operating systems can deliver on quality universal search across apps.

Smart TVs strongly influence the apps being used to discover shows. In many cases, smart TVs dictate which apps consumers decide to watch in the first place, especially during the setup process. For example, half (51%) of respondents said that they installed a new TV app recommended by their smart TV operating system when they set up their TV for the first time, and nearly half (47%) said that once their TV was set up, they rarely or never add more apps.

This trend is likely to accelerate in the future. 79% said that when buying a new TV, they prefer to buy one with the same operating system as their existing set, only further entrenching that OS in which shows and apps they find out about and ultimately use.

"You can't underestimate the power of what people see first when they turn on the TV," said Jason Platt Zolov, Senior Consultant at Hub. "Smart TVs are clearly becoming home technology hubs, giving programmers and advertisers more opportunity to partner with TV manufacturers in compelling ways that will only deepen engagement with viewers,” he concluded.

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