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Installed Connected Devices Top Half Billion: NPD

PORT WASHINGTON, N.Y. — The long-promised “connected home” has arrived, confirmed research by The NPD Group, which put the number of devices installed within U.S. homes that are actively connected to the Internet at 520 million.

According to NPD’s new “The Connected Home: Consumer Index” report, this sea change has impacted many previously secure business models, and front and center among those affected are the home entertainment market and associated devices, given that there is no longer just one entertainment hub (the TV) in the home, but rather a range of devices that can be used to source content.

However, the degree to which these devices are used online varies significantly. For instance, Internet- capable TVs and Blu-ray Disc players are the least likely to actually be connected to the Internet and used for online features, while streaming media players and video game consoles are connected and used the most.

The index attempts to quantify the use of connected devices for app developers, manufacturers, advertisers and retailers.

Some other findings included in the report include:

Family networks such as Nickelodeon and Disney Channel have viewers who are more likely to have Internet-connected video game consoles.

Certain new digital video services, such as Redbox Instant by Verizon, have a core target audience with a high propensity to own TVs that are connected to the Internet through the smart TV itself, as well as other connected devices.

MMA, WWE and MLS fans are more likely than the general population to be reached through their connected game consoles and streaming media players.

Non pay-TV homes’ ownership of streaming media players over-indexes the norm. These consumers are beginning to source their TV content over-the-top as opposed to through pay-TV providers’ cable services.

Many omnichannel opportunities exist for retailers to bolster guest engagement by bridging their shoppers’ diverse connected device assortment to their digital video services, such as Vudu and Cinema- Now.

“The Connected Home: Consumer Index” can be purchased from The NPD Group by calling (866) 444-1411 or emailing [email protected].