According to the NPD Group, with awareness and interest on the rise, this holiday season could mark the shift in the 4K UltraHD TV consumer base from early adopter to mass market audience. The research house says 2016 has seen steadily growing consumer interest regarding 4K, with 38% of those surveyed saying they are very, or somewhat, likely to use a 4K TV in the future, an increase of five percentage points since Q1 of this year.
As the adoption of 4K technology expands, industry leaders are preparing for the impending demand for 4K content - from live TV infrastructure being developed to support the broadcast of sports in 4K, to streaming giants offering an array of 4K content. As of Q3, 87% of installed 4K TVs had active Internet connections, indicating that these consumers are eager to stream content. Streaming media player ownership is also on the rise, and recent 4K-capable device launches from Amazon, Roku and Google further signal the transition to 4K video resolution.
In Q3 2016, 32% of U.S. Internet homes had at least one installed streaming media player, an increase of 7 million homes over the past year, fueled by the growing number of streaming TV services. While a limited number of streaming media player owners have used a 4K streamer, findings indicate growth in awareness, interest and usage, driven by Millennials. More than one-third of consumers surveyed are aware of 4K streaming media player availability, and the number jumps to 52% of Millennials surveyed. Millennials are also the most eager to use these products, with 39% of respondents stating 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," said John Buffone, executive director, industry analyst, NPD Connected Intelligence. "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."
In order to stream 4K content, consumers must have the hardware, as well as the appropriate broadband speed. To stream 4K video to TV, an Internet connection speed of approximately 25 Mbps or higher is recommended. NPD says approximately 5 million U.S. households currently have both the hardware and broadband speed required. However, the average home also has eight connected devices, which can put a strain on the network's ability to transmit a 4K video stream. Positively, the number of U.S. households with 25 Mbps or greater Internet speeds has been increasing throughout 2016.
"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," said Buffone.