nScreenMedia OTT multiscreen media analysis

Connected TV and SVOD growth closely related

Connected TV and SVOD growth closely related

New data from Nielsen emphasizes the tight relationship between the growth in SVOD and use of connected TV (CTV).

The close link between connected TV and SVOD growth

Nielsen data reveals the close link between growth in Internet-enabled TV penetration and SVOD access. In the year between September 2017 and 2018, the US household penetration of internet-enabled TV-connected devices grew 5%, to 68%. Over the same period, the number of US homes with SVOD access grew 6%, to 67%.

Providers like Netflix confirm that the connected TV is the center of the experience for their services. Cindy Holland, Netflix’ VP of original content, says that the majority of viewing now takes place on the connected TV, not on mobile.

Smart TVs, streaming media players lead CTV growth

Though there are many devices a viewer could use to watch internet video on TV, two devices are driving growth. The number of TV households with an enabled smart TV grew 9% between September 2017 and 2018, to reach 41%. Streaming media playersHouseholds with an internet TV connected device US q3 2019 like Roku and Apple TV also increased their presence in American homes over the same period. Penetration grew 4%, to 39%.

CTV is now very much the focus of a consumer’s connected entertainment experience. None of the other screens at our disposal showed appreciable gains in usage between 2017 and 2018. For the three screens – PC, smartphone, and tablet – the share of time spent with entertainment media shrank slightly from 24% to 23%. The PC lost a little usage for entertainment, the smartphone was flat, and the tablet gained a little.

Time spent with CTV increases among users

Nielsen provides two views of CTV usage. The first is usage averaged across the entire US adult population, whether they use a CTV or not. CTVs average usage grew between 2017 and 2018:

  • The share of daily time spent grew from 6% to 7%
  • Time spent increased from 40 minutes a day to 47 minutes

However, the actual time spent with the device by users of CTV is much higher than average usage would suggest. The 92 million people (37% of the US adult population) with access to a CTV device spent 1 hour and 11 minutes per day using it. 43% of 18-34-year-olds have access to a CTV device and spent 1 hour and 19 minutes per day using it.

Meanwhile, traditional TV usage continued to decline. The time spent with live and time-shifted TV declined from 42% of total media time to 40% between Q3 2017 and Q3 2018. The decline among 18 to 34-year-olds was even more extreme. Live and timeshifted viewing slumped from 27% to 22%, or just one hour and 51 minutes per day.

Why it matters

Penetration of Internet-enabled TV-connected devices grew 5% over the last year.

The number of US homes with SVOD access grew 6% over the same period.

Streaming media devices and smart TVs lead the growth in connected TVs.

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