NPD Study Notes That Smart TV Penetration Lagging in North America

By Rob Scott
October 19, 2012

Approximately 20 percent of televisions shipped in North America are Internet-connected TVs, a penetration rate significantly lagging behind Asia and Europe, according to NPD DisplaySearch.
While Smart TV shipments are actually up 15 percent worldwide this year, adoption in North America has been slower.
“North American households consume the highest levels of Internet video, averaging over 30GB per household every month (according to Cisco), yet they don’t seem attracted to connected TVs,” explains NPD’s Paul Gray. “We find that North America leads by far in paid on-demand services, which tend to be tied to set-top boxes.”
“Smart TV shipments are tightly linked to content consumption habits,” reports Home Media Magazine. “For consumers in China, there is plenty of free content on the Internet and few structured services. This favors TVs with built-in browsers. Furthermore, Chinese consumers consider a TV to be a prestigious purchase and are prepared to invest more in them.”
“Terrestrial broadcasters’ repurposed content aggregators are beginning to dominate in Western Europe,” notes the article. “These broadcasters have no interest in hardware, so connected TVs are flourishing with open standards such as HbbTV rapidly gaining acceptance and evolving with new features.”
An estimated 43 million open Internet access smart TVs are expected to ship in 2012, a number predicted to grow to 95 million in 2016.

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