As streaming device and smart TV players continue to invest in operating systems, new data from Hub Entertainment Research finds the OS is exerting more and more influence over consumers’ search and discovery of content.
In general, the percentage of primary household TVs connected to streaming platforms is rising (now at 60% compared to 40% in 2020) while those connected to a cable pay TV providers keeps declining (38% in 2024 versus 52% in 2020), according to Hub’s Evolution of the TV Set 2024 report.
Smart TV OS interfaces and apps installed on the home screen are now most often the first thing that users see when they turn on their TV (38%), followed by apps on the home screen of an external streaming media player (27%), such as a Roku player or Apple TV device. Comparatively, just under one-fifth of viewers report seeing a show in-progress or channel guide from a cable provider when they first power on a TV.
“The discovery process is becoming one driven by apps and smart TV operating systems,” wrote Hub in its findings.
According to survey data from Parks Associates streaming media players have increased their market share in U.S. households, with 46% of internet households owning at least one. Roku and Amazon’s Fire TV stick continue to dominate with 43% of respondents reporting they use Roku the most often and 35% of streaming media player users saying they use Amazon-branded external devices the most.
However, penetration of smart TVs paces ahead of external streaming devices, counting a presence in 68% of U.S. internet households. And more households consider the smart TV as their primary device for consuming video (56%) than external streaming devices (34%), per Parks Associates.
The increasing influence of smart TVs is also evident in the Hub research, where installing and surfacing apps on the home screen, as well as built-in universal search functions, play into what services consumers use to ultimately watch content.
Per Hub, half of viewers say they typically open a specific app, such as Netflix or Disney+, to first find something to watch. But the other half say they pick content from shows or movies that appear on the smart TV home screen (26%) or use the built-in smart TV search function (24%).
It speaks to why streaming apps and services are eager to get broad device distribution, as well as why platform players like Roku, Vizio, Amazon and others are prioritizing home screen real estate as opportunities for monetization and discovery, including to promote programmer partner content.
And as Hub noted, while 50% of viewers still go directly to an app as their first entry to find content, the smart TV has a strong influence on what apps are used to discover programming in the first place, particularly as they prompt users to install during the initial set-up process.
The survey found that 51% of respondents installed a new TV app that was recommended by their smart TV OS when they set up their TV. And once users are done initially adding apps to the homepage, many don’t further expand that roster. According to Hub, 47% of viewers said that once their TV was set up, “they rarely or never added more apps.” Still, surfacing content and related apps to install could give viewers a reason to do so, as 42% said they “sometimes” add more apps while 11% do “often.”
The research firm expects this trend to continue picking up steam as nearly 80% of respondents say that when purchasing a new TV they prefer to buy one with the same operating system as their existing TV, “only further entrenching that OS in which shows and apps they find out about ultimately use.”
The research indicates that consumers are aware of and considering TV operating systems as they make purchases, which could bode well for those OEMS investing in TVOS. During a panel session on TVOS at the StreamTV Show in June, executives from smart TV makers indicated they’d love for the OS to be a TV buying driver, but Google TV’s Rob Caruso said he thinks most TV purchasing decisions are still primarily made based on factors of size and price.
That said, buying smart TVs based on a preference for the OS is a goal for those building new interface-based experiences and the home screen presents opportunity for platforms to entice programmers and advertisers alike.
"You can't underestimate the power of what people see first when they turn on the TV," said Jason Platt Zolov, senior consultant at Hub, in a statement. "Smart TVs are clearly becoming home technology hubs, giving programmers and advertisers more opportunity to partner with TV manufacturers in compelling ways that will only deepen engagement with viewers.”