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January 6, 2020


Seventy-seven percent of smart TVs owned by US broadband households are now connected to the internet

CONNECTIONS Summit at CES 2020 spotlights smart TV market, including 8K, screen sizes, and growing role of streaming services for video content 

Ahead of CES® 2020, Parks Associates announced new research showing that more than 70% of US broadband households now own at least one streaming entertainment product and 50% own a smart TV. 360 Deep Dive: Demand and Perception of Connected TVs also reports that 77% of smart TVs owned by US broadband households are now connected to the internet, an increase from only 62% in 2014.

360 Deep Dive: Demand and Perception of Connected TVs features research and insights from a survey of 10,000 US broadband households including a detailed examination of ownership, purchasing, features, sizes, brands, and consumer usage of both smart TVs and basic, non-smart TVs.

Parks Associates - smart TV ownership by generation, ages

“Manufacturers have invested in improvements to the app and user experience on their smart TVs and are being rewarded with higher connection rates, which keeps the user within their ecosystem,” said Kristen Hanich, Senior Analyst, Parks Associates. “Higher connection rates result in greater opportunity in monetizing the user base, which is increasingly important as manufacturers and software providers look to extend into subscriptions and ad-supported OTT video services, such as Samsung’s new ad-supported video service Samsung TV Plus. We will see a lot of announcements at CES this year focused on delivering a superior user experience to keep consumers in their ecosystem.”

The renewed focus on app development and user experience is particularly important as the younger generation (“Generation Z”) starts to mature, as their preferences for entertainment delivery and consumption are markedly different from prior generations. Generation Z shows a strong preference for other forms of entertainment over watching TV programming, which will represent a growing challenge to TV makers.

“Overall television ownership is beginning to decline, even as smart TV adoption grows,” Hanich said. “Millennials and Generation Z collectively represent the largest segment of TV buyers, but their unique demands on the TV are forcing manufacturers to rethink the role and form factor of the TV set.”

Smart TVs are the most commonly adopted streaming entertainment product type, and increasing adoption of OTT services has helped drive device purchases. Parks Associates finds that 72% of US broadband households subscribe to at least one OTT streaming service, and 25% of US broadband households purchased a TV in the past 12 months.

Additional research:

  • 90% of US broadband households own at least one television; 50% own at least one smart TV while 40% own basic televisions only.
  • 56% of recent smart TV buyers purchased a TV with 4K video support - only 33% owned a TV with this feature in Q1.
  • Households with children purchase smart TVs at two times the rate of households without children.
     

Parks Associates will host the fifteenth annual CONNECTIONS™ Summit: Smart Home Business Models and Strategies, January 7 at CES® 2020 in Las Vegas. The event includes eight executive sessions and a networking reception, sponsored by Alarm.com, on January 7, the opening day of CES. During CES, visit Parks Associates at Booth #42452.

For information on 360 Deep Dive: Demand and Perception of Connected TVs, contact sales@parksassociates.com.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

About CONNECTIONS™ Summit at CES

CONNECTIONS™ Summit at CES is an annual research and industry event hosted by international research firm Parks Associates at CES in Las Vegas. In 2023, the executive event features one day of panel discussions on the state of the smart home, connected health, home security, and new home services, with trends and implications for connected consumers and opportunities for companies to build new revenues and develop innovative business models.

The 17th annual CONNECTIONS™ Summit will take place January 5 during CES, which runs January 5-8 in Las Vegas. Parks Associates hosts a day of sessions at the Venetian Hotel, Lando 4304, followed by a networking reception. Follow the event on Twitter at @CONN_Summit.

For information about CONNECTIONS™ Summit, contact sales@parksassociates.com or call 972-490-1113 or visit www.connectionssummit.com.