Are Internet-Connected TVs Nearing Saturation?

New Edge  Nearly three-quarters of all American broadband households have at least one television set that is connected to the Internet, The Diffusion Group (TDG) reported this week.

This represents 50% overall growth since 2013, when 50% of all broadband households had an Internet-connected television.

However, on a year-by-year basis, growth is slowing. The number of broadband households with Internet-connected TVs grew 22% between 2013 and 2014, and 15% between 2014 and 2015. From 2015 to 2016, the growth rate was only 4%.

“At 74% penetration, connected TV use is squarely in the Late Mainstream phase of its trajectory,” said Michael Greeson, TDG president and director of research. “Barring any major disruption in TV technology or market conditions, growth will slow each year as the solution reaches saturation.”

More than a decade ago, TDG recognized that the growth in Internet-connected television closely tracks broadband adoption rates. Growth in broadband adoption rates has indeed slowed dramatically—in fact, Pew Research numbers show a slight decline in overall broadband adoption in recent years.

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