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Three-quarters of connected TV users engage with online TV

In fact, new research from Parks Associates has revealed that 75% of those with internet-connected smart TVS regularly watch online video. Moreover, Parks also found that the percentage of US smart-TV owners who used their connected device to watch online video increased by over 30% in six months. In addition, three-quarters of smart-TV owners also watched on-demand online films at least monthly, compared with 57% in 2011. Only slightly less, 71%, watched online TV shows at least monthly, versus 51% in 2011. On a near-daily basis, 30% watched films and nearly a third (32%) watched TV shows.

"The percentage of smart-TV owners connecting the device to the Internet has steadily increased, from approximately 40% in 2010 to 56% today," explained Pietro Macchiarella, Research Analyst, Parks Associates. "This device, when connected, offers a toehold to a variety of players, including broadcasters, over-the-top video providers, and pay-TV providers."

Such findings have huge implications given that it is likely over half of the HDTV sets shipped in 2012 will be internet-connectable, part of a trend that has seen the number of Internet-connectable TVs shipped will jump from less than 1% in 2008 to over 45% in 2012.

"Smart TVs have the potential to be both a threat and an opportunity for pay-TV providers," said Brett Sappington, Director, Research, Parks Associates. "Smart TVs provide consumers another way to access over-the-top services like Netflix on the TV, providing a new distribution channel that all players can leverage to deliver content to consumers. However, by integrating the smart TV into their distribution model, pay-TV providers can leverage their strengths in content costs, customer relationships, bundling, and other areas to play a more substantial role in OTT. In addition, pay-TV providers can potentially use smart TVs to lower subscriber CPE costs, an important consideration in a highly competitive market."

From the article, "Three-quarters of connected TV users engage with online TV" by Joseph O'Halloran.

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