Smart TV shipment will grow 36% by 2016

According to the latest research survey by In-Stat, an estimated 60 percent of smart TV customers have used integrated TV applications at least once per week. Although considered new relative to smartphone and tablet applications, TV applications are gaining ground and are becoming popular.

"As expected, Netflix and YouTube currently dominate the TV application space," said Keith Nissen, research director at In-Stat. "But as Netflix competitors become more numerous and as applications are optimized for the big screen, TV apps will become part of the mainstream TV viewing experience."

The research found that 22 percent of U.S. households already own an HDTV with integrated TV apps. Consumers with subscriptions to both pay-TV and online video services rose from 18 percent to 30 percent during 2010, contributing to the continued growth of Netflix. Although TV applications are not the primary reason for purchasing connected TVs, shipments of connected TVs with integrated TV applications will grow by about 36 percent over the next five years. Additionally, the adoption of online video streaming services, such as Netflix, does not increase the tendency to purchase online video content. Moreover, the viewing of DVR recorded TV programming does not lead to the adoption of free VOD services from a pay TV operator.