[This % of homes with connected TVs is much higher than I would have 
guessed.]

TV Sets Are Connected to the Internet In 38% of Homes
Marks an increase from 24% two years ago according to a new survey from 
Leichtman Research Group

By George Winslow
Broadcasting & Cable,

4/9/2012 10:41:42 AM

http://www.broadcastingcable.com/article/482910-TV_Sets_Are_Connected_to_the_Internet_In_38_of_Homes.php


Nearly two fifths (38%) of all households have at least one television 
set connected to the Internet, up from 30% last year, and 24% two years 
ago, according to a new study from Leichtman Research Group, Inc. (LRG) 
reports.

The TVs could be sets with their own connection or could be connected 
via a video game system, a Blu-ray player, an Apple TV or Roku set-top 
box. These findings are based on a survey of 1,251 households nationwide 
that was primarily conducted in February of 2012 and are part of a new 
LRG study, "Emerging Video Services VI."

In another sign of the growing importance of video games in delivering 
video into the homes, video game systems were the primary connection, 
with 28% of all households owning a video game system connected to the 
Internet. Just 4% of all households are connected solely via an 
Internet-enabled TV set, and Apple TV or Roku set-tops are the only 
connected devices in 1% of all households.

While the study found growing penetration of connected devices it did 
not find that this shift in viewing patterns was impacting multichannel 
subscriptions.

Overall, 1.6% of households were not subscribing to the multichannel 
service but had subscribed to one in the past year. In addition, just 
0.1% of the sample who dropped service in the past year and do not plan 
to subscribe again in the next six months, told researchers say that 
they don't subscribe because of Netflix or because they can watch all 
that they want on the Internet or in other ways.

"Video is increasingly being watched on different platforms and in 
different places, yet these emerging video services still generally act 
as complements to traditional television viewing and services rather 
than as substitutes," said Bruce Leichtman, president and principal 
analyst for Leichtman Research Group, Inc. "Among all adults, reported 
time spent watching TV is similar to last year, and there remains little 
evidence of a significant trend in consumers ‘cutting the cord' to their 
multi-channel video services to watch video solely via these emerging 
services."

The study also highlighted the importance of Netflix in driving viewing 
of video on connected devices. About 35% of Netflix subscribers watched 
video from the Internet via a connected device weekly, compared to 5% 
weekly use among all non-Netflix subscribers.

Overall, the study found that 13% of all adults watch video from the 
Internet via a connected device at least weekly, compared to 10% last 
year, and 5% two years ago.

About 16% of all adults watch full length TV shows online at least 
weekly -- compared to 12% last year, and 10% three years ago, the new 
survey found.

Among all mobile phone owners, 19% watch video on their phones weekly -- 
compared to 15% last year, and 6% three years ago

Tablet usage remains somewhat smaller, with 9% of all adults watching 
video on an iPad/tablet computer weekly, up from 2% last year.

The study also includes a great deal of data on Netflix users, finding 
that 16% of all adults use Netflix's Watch Instantly feature weekly, 
compared to 12% last year, and 4% two years ago. About four fifths (79%) 
of Netflix Watch Instantly customers use it to watch movies and 
television shows on a TV set, and 59% of this group access Netflix via a 
video game system.

About half (50%) of Netflix subscribers are satisfied with the service, 
and 11% are likely to stop subscribing to Netflix in the next six 
months. But only 7% of Netflix subscribers reported that they were are 
likely to switch from their multi-channel video provider in the next six 
months - compared to 12% of non-Netflix subscribers. About 13% of 
Netflix subscribers would consider reducing spending on their 
multi-channel video service because of Netflix, a significant drop from 
21% last year.

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