Operators have been paying more attention to their 4K content delivery strategies this year, and if recent predictions of consumer behavior prove out, providers may need to pick up their UHD pace yet again. This holiday season could mark a bellwether moment for 4K TV sales as CED has reported here and here, and additional findings were released this week indicating that current interest in the technology is going well beyond early adopters. The new research also says that operators offering beefier speeds to their subscribers are primed for growth as attention to 4K streaming devices rises in addition to the TVs themselves.
The NPD Group’s “Connected Intelligence Home Entertainment Report, 2016” indicates steadily growing consumer interest in 4K with 38 percent of those surveyed for the research saying they are very or somewhat likely to use a 4K TV in the future. That marks an increase of five percentage points from just the first quarter of this year, according to NPD.
The research firm also notes that as of Q3 2016, 87 percent of installed 4K TVs had active internet connections, which tends to imply that these consumers are among those who’d lean toward streaming media player ownership. NPD says a limited number of streaming media player owners have used a 4K streamer, but its findings show growth in awareness, interest, and usage − driven by Millennials. More than a third of consumers surveyed for the report are aware of 4K streaming media player availability, and this goes up to 52 percent of Millennials surveyed. Around 39 percent of respondents in the Millennial demographic also stated they have interest in future usage.
“While younger consumers are watching more video on their smartphones, they are also driving consumer interest in 4K streaming on TV, as these behaviors are not mutually exclusive,” John Buffone, executive director, industry analyst at NPD Connected Intelligence, says. “As consumers make the shift to 4K capable hardware, content providers will be working to distribute 4K content, and in-home broadband speeds will become an important consideration for viewers to ensure a smooth 4K streaming experience.”
So, with some recommendations saying a connection speed of about 25 Mbps or higher is best to stream 4K video to the TV, all the interest around UHD has implications for service providers’ broadband offerings. 4K’s potential stress on a network is well known in the industry, and that has been among the issues gigabit pundits have pointed out as part of the reason that anyone would need even close to 1 Gbps service in their house.
Of course, it doesn’t take a Gig to stream 4K, and the “Connected Home Entertainment” report estimates that approximately five million U.S. households currently have both the hardware and broadband speed required to stream 4K. However, it notes that the average home also has eight connected devices, which can put an additional strain on some networks’ ability to transmit a 4K video stream.
“Content distributors with an infrastructure prepared to offer 4K UHD video streaming are poised to take advantage of the pending inflection point in the display and TV programming industries, as viewers who stream video will be the first to expect their movies and TV shows delivered in 4K resolution,” Buffone comments.
The NPD Group says the survey was conducted in July and August, and its results are based on panel research of 5,364 U.S. consumers who were 18 years old and up from a variety of regions and demographical backgrounds. An open source broadband speed test was reportedly embedded into the survey to capture consumer’s actual in-home broadband speeds.
