22 MAY 2020

67% OF U.S HOUSEHOLDS USE AT LEAST ONE INTERNET-CONNECTED VIDEO DEVICE

A Parks Associates' report examines device and technology platform strategies for large streaming players. Both, OTT streaming and broadcast television figures continue to rise in adoption and usage.

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Parks Associates’s new findings show that 67% of US broadband households own and use at least one internet-connected video device, including a smart TV, streaming media player, internet-connected gaming console, or connected PVR/DVR. The firm’s “Connected Entertainment Ecosystems: Competition & Cooperation” notes that these devices receive a lot of usages, but also have lengthening replacement cycles, which allows manufacturers to explore new strategies, including software and service offerings, exclusive hardware-content bundles, and open ecosystems.

59% of US broadband households own at least one smart TV, 45% of US broadband households own at least one streaming media player, 43% of US broadband households own at least one gaming console, 41% of US broadband households own at least one smart speaker or smart display. “The connected entertainment space is moving towards a smartphone model, in which a handful of platform players control the operating system, UX, and consumer access to services and features,” said Kristen Hanich, Senior Analyst, Parks Associates. “These platform players stand to win big as consumers increasingly choose to sign up for their OTT service subscriptions through storefronts like Amazon Prime Video Channels, Apple TV Channels, or Roku Channel Premium Subscriptions.”

 

 

 

The firm’s “Connected Entertainment Ecosystems: Competition & Cooperation” notes, state that 6.4 million US consumers cut the cord on their traditional pay-TV service, and switched to OTT streaming and/or broadcast television in 2019 alone. Both figures continue to rise in adoption and usage.

The notes help create profiles, product ecosystems, and market strategies for companies like Amazon, Apple, Comcast, Google, Roku, Samsung, and Sony. They further analyze the benefits and drawbacks of closed versus open device and app ecosystems and offer insights on consumer expectations for their devices as content consumption shifts toward streaming service options. The report also notes that in 2019 alone, 6.4 million US consumers cut the cord on their traditional pay-TV service, transitioning to OTT streaming and/or broadcast television, both of which continue to rise in adoption and usage. “Major changes in content distribution and consumption are affecting the CE market, notably the rise of OTT services and decline in pay-TV subscriptions,” Hanich said. “The increasing fragmentation in the content services market means there’s no single path to reach consumers. These factors, along with the consumer demand to access their content when and where they are, are pushing the connected entertainment market slowly but steadily in favor of open ecosystems where consumers can access most, if not all, of the services they want on the device they want regardless of which platform they decide to use.”

The connected entertainment space is moving towards a smartphone model, in which a handful of platform players control the operating system, UX, and consumer access to services and features. These platform players stand to win big as consumers increasingly choose to sign up for their OTT service subscriptions through storefronts like Amazon Prime Video Channels, Apple TV Channels, or Roku Channel Premium Subscriptions.” Kristen Hanich Senior Analyst, Parks Associates