Online TV applications that integrate TV viewing and Internet use are setting up to be the next big thing in the app world, especially since consumers have widely adopted the app experience through mobile apps for smartphones and tablets. As greater numbers of ‘smart’ TVs hit the market and viewers get comfortable using them, more than 60% of “connected households” will use a TV app at least once a week, according to an In-Stat research survey.

Netflix and YouTube users dominate the TV app space at present, “but as Netflix competitors become more numerous and as applications are optimized for the big screen, TV apps will become part of the mainstream TV viewing experience,” commented In-Stat research director Keith Nissen.

According to In-Stat’s, “Q2 ’11 US Digital Entertainment Database”:

  • Shipments of connected TVs with integrated TV applications will grow by an average 36% over the next five years;
  • 22% of US BB (broadband) households already own an HDTV with integrated TV apps;
  • TV apps are not the primary reason for purchasing connected TVs;
  • Adoption of online video streaming services, such as Netflix, does not increase the propensity to purchase online video content;
  • The viewing of DVR recorded TV programming does not lead to the adoption of free VOD services from a pay TV operator;
  • Consumers favoring subscriptions to both pay-TV and online video services rose from 18% to 30% during 2010, contributing to the continued growth of Netflix.


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