DALLAS—New data released by Parks Associates during CES2024 shows that consumers are connecting a record number of devices in their homes to the internet, with the average number of connected devices per U.S. internet household reaching 17 in Q3 2023.

Park’s Consumer Electronics Dashboard, an ongoing service that visualizes the most important metrics for consumer electronics (CE) devices in the home, also found that for the first time, smartphone ownership surpassed TV ownership, with 90% of households reporting ownership of a smartphone compared to 88% with a TV. The research also found that 92% of US households have fixed or wireless internet service at home. 

"Smartphones are ubiquitous now, and connected consumer electronics such as wireless earbuds, tablets, and smart TVs are commonplace," said Sarah Lee, Research Analyst, Parks Associates. "Today, these devices are essential for entertainment purposes and daily personal communications, which can include school, work, and family. This necessity drives continued purchases, as every year CE companies roll out innovative and advanced models that drive the consumer desire to upgrade."

Parks also found that among US internet households:

• 89% have a streaming video service
• 66% have a smart TV
• 42% have at least one smart home device
• 31% have a security system
• 39% have a smart watch

The research also found that consumer spending continues to show remarkable resilience. After a brief pause early in 2023, consumers' enthusiasm for consumer electronics products rebounded at the end of the year. Purchase intentions for popular entertainment devices such as gaming consoles, streaming media players, and VR headsets have increased compared to 2022 and now resemble 2021 levels, which was the height of the pandemic.

"Economic conditions and fear of a recession previously stalled purchases of CE categories," Lee said. "But higher intentions to purchase are likely a reflection of prolonged delayed gratification, the end-of-year holiday season, enticing retail promotions, and hope for continued economic improvement in 2024."

The tech fatigue many consumers began feeling during the lock-downs of Covid-19 seem to have translated into a growing ambivalence towards technologies with U.S. consumers looking to both adopt new technologies and simplify how they interact with consumer technologies. 

According to a new survey from Deloitte, the average U.S. household has reduced the number of connected devices in their homes to 21 connected devices (down from 25 in 2021). One third (33%) of those surveyed reported that they can’t afford to buy tech devices (up from 25% in 2022). 

Yet, almost one in five (17%) have already used or experimented with generative AI, and 72% plan to keep using it. More than six in ten Gen Zs and more than half of Millennials are interested in learning by viewing or interacting with 3D objects or representations. 

Consumers also say they are looking for more innovation in 5G apps and services.

Overall, the fourth annual Deloitte “Connected Consumer” survey indicates that consumers want to balance digital and physical lives as they streamline devices, spend selectively on technology, demand innovation, safety and utility in a connected world, the researchers said. 

More specifically it found that nearly half of households (48%) bought at least one new connected device in 2023, with 16% adding three or more. But as households add new tech devices, they are trimming devices that no longer fit their needs. Households have an average of 21 connected devices in 2023, down 22 in 2022 and below a peak of 25 in 2021 when many loaded up on technology during the COVID-19 pandemic, the study found. 

Consumers also reported that they want to trim tech complexity: 41% dislike managing their devices, while 28% say managing tech devices and subscriptions is “overwhelming.”   

“Deloitte’s Connected Consumer survey paints a vivid picture of a society that is learning to use technology wisely. Consumers are no longer amassing devices; they're carefully selecting them with purpose to foster digital harmony,” explained Paul Silverglate, vice chair, Deloitte LLP and U.S. technology sector leader. “From embracing a more conscious approach to device consumption to adapting to the changing landscape of virtual health care and hybrid work, the findings underscore the ingenuity and resilience of the modern consumer. The journey ahead is filled with opportunities for companies to innovate and respond to these evolving needs.” 

While the average number of digital devices in the household dropped by four in the past two years, from 25 in 2021, to 21 in 2023, that doesn’t mean consumers have less interest in devices, the researchers argued. 

Instead, it indicates they are streamlining and getting rid of obsolete or less-useful devices while still purchasing new ones. There is an opportunity for tech companies to better support customers wanting to strike a balance that maximizes benefits and minimizes the drawbacks of living a connected life, Deloitte reported. 

The survey of 2,000 U.S. consumers also found that nearly half (48%) of surveyed consumers purchased new connected devices for their household in the past year. 

Among respondents, 63% expect their spending on acquiring devices to stay the same over the next 12 months, and only 7% expect to decrease spending. Nine percent (9%) plan to increase their spending. 

Forty-nine percent (49%) of consumers delayed device purchases during the past year due to economic conditions, while 33% feel they can't afford to buy the tech devices their household needs (up from 25% in 2022).  

Consumers continue to grapple with managing their digital lives: 41% dislike managing their devices, and 28% feel overwhelmed by the number of devices and subscriptions they need to manage (up from 24% in 2022). 

Another key finding was consumers' continued call for innovative apps and experiences that take full advantage of 5G technology capabilities. More than half of the respondents with 5G smartphones (53%) said they’re looking for these apps, and more than a quarter (26%) expressed disappointment in the lack of such innovative apps and services.  

Overall, 62% of consumers with smartphones say they have 5G, up from 50% in 2022, the study found.

5G smartphone users say they do more of some things, compared to before they had 5G, with one in five using their phone more to pay for items in a store and to act as a hotspot. Nearly one in four watch streaming videos more (four in ten Gen Zs do more of this than before they had 5G), and nearly one in five play more videogames (one in three Gen Zs do more of this than before they had 5G). 

5G fixed wireless is an emerging trend for home internet: 12% of home internet consumers say they have fixed wireless (compared to 8% in 2022), and a majority of them say it's 5G, the researchers said. 

The study also points to the promising growth of immersive 3D experiences and growing interest and awareness in generative AI among consumers, especially in the younger generations. 

More than six in ten Gen Zs and more than half of millennials are interested in learning by viewing or interacting with 3D objects or representations; traveling to places of interest virtually; meeting with friends and family in 3D spaces; attending 3D virtual entertainment events; and shopping in 3D stores.  

Almost one in five respondents surveyed (17%) said they have experimented with generative Al or used it for projects/tasks: Of these, 72% used it for personal purposes, 21% for school/education, and 20% for their job/professional purposes. Seventy-two percent plan to keep using it.  

Other key findings include: 

• Employee preference for hybrid work increased by 7 percentage points in 2023. The main benefits of hybrid work cited by respondents include better relationships with family and co-workers, and improved health and well-being.  
• Satisfaction with virtual health visits is growing. Most people who experienced a virtual health visit would prefer virtual or hybrid options in the future for psychological health and chronic conditions.   
• Parents see positives in connected devices for their children, reporting they enhance learning, enable new experiences, and keep kids organized — but they also worry about potential harms and set boundaries on their children’s digital behaviors.  
• Security concerns have grown: 58% of surveyed consumers worry their devices are vulnerable to security breaches (up from 50% in 2022), and 58% worry that organizations or people could track them through their devices (up from 41% in 2022).  

The full survey can be found here. 

PHILADELPHIA—With a record number of connected devices expected to flood into homes during this holiday season, Comcast’s newly released Xfinity Cyber Health Report indicates that the vast majority of Americans are not taking proper precautions to deal with the cybersecurity threats these devices can pose. 

The new Comcast survey found that more than three in four Americans (78 percent) admit to risky online behaviors that open them up to cyber threats, such as reusing or sharing passwords and skipping software updates. And despite widespread publicity regarding the problems cyberattacks can create, that alarming level of unsafe behavior up 14% from just two years ago, Comcast reported. 

The report, which combines data from a new consumer survey with actual threat data collected by Xfinity’s xFi Advanced Security platform, also reveals that the service, which is free for Xfinity customers who lease a capable Xfinity gateway, has blocked nearly 10 billion cybersecurity threats since launching less than five years ago.

"Our Xfinity Cyber Health Report demonstrates that, despite more awareness about the prevalence of cybersecurity risks, we have to continue to be diligent to ensure our devices in homes, and the people using them, stay safe,” said Noopur Davis, executive vice president, chief information security officer and product privacy officer, Comcast. “The digital security of our customers is our top priority. As the number and complexity of cyber threats grow each day, we use smart tools and technologies across our network to offer multiple layers of protection to help keep our customers safe.”

The Xfinity Cyber Health Report summarizes cyber threat trends from Xfinity’s xFi Advanced Security, the growing list of devices in connected homes, and a view into consumers’ attitudes and behaviors around cyber protection. Key findings include:

• Connected Homes Are Expanding and So Is Attack Volume: Xfinity xFi homes average 15 connected devices, up 25 percent from 2020. Power users average 34 devices. And 58 percent of consumers plan to buy at least one connected device this holiday season. xFi Advanced Security blocks an average of 23 unique threats per home each month – with the total number of attacks at least three-to-four times that number, since many attacks are repeated.
• Consumers Still Underestimate Threats: Nearly three fourths (74 percent) of Americans believe less than 10 attacks hit their home network every month. 61 percent believe devices are protected from threats right out-of-the-box at purchase. This leaves many new devices open to potential threats without protection.
• Consumers Unsure They’d Know They’ve Been Hacked: When asked how soon they would know whether they were a victim of a cyberattack, only 20 percent said immediately. Another 32 percent said they aren’t sure they’d ever know if they were a victim of a cyberattack. And 51 percent of respondents noted they are not confident that they would know if a non-screen device was hacked, such as a robot vacuum or a smart plug.
• Emerging Device Vulnerabilities Misunderstood: Computers and smartphones remain the top two targeted devices consistent with findings in 2020. While consumers recognize the risks associated with these two device types, they underestimate the risk with emerging devices in their homes. In fact, xFi Advanced Security blocked threats to smart watches, lighting, thermostats, doorbells, garage openers, sports and fitness equipment, sprinkler systems and even cars, drones and pet accessories.
• Generational Cyber Divide: 70 percent of Boomers admit to unsafe behaviors compared with Gen X (82 percent), Millennials (83 percent) and Gen Z (87 percent). Gen Z had the lowest awareness of common threats such as phishing and malware. 77 percent of Millennials are likely to buy a connected device this holiday season, the most for any segment surveyed.

In addition to the network and consumer data, the 2022 Xfinity Cyber Health Report includes insights from Asad Haque, Comcast’s executive director of security architecture, regarding connected home security with Matter and xPKI; a technology primer on Comcast’s threat analytics platform from David White, vice president, security engineering at Comcast; an overview of the role of Comcast’s xGitGuardTM software in data privacy from Bahman Rashidi, Ph.D., director, cybersecurity & privacy engineering research; and five actionable tips for consumers on securing their connected home.

As the largest broadband provider in the U.S. serving more than 32 million internet customer households, Comcast provides the xFi Advanced Security service to protect home networks from cyber threats and is free to all internet customers with the xFi Gateway who sign in through the Xfinity app. 

The survey, conducted by Wakefield Research, polled 1,000 nationally representative U.S. adults ages 18 and older in November 2022, using an email invitation and an online survey. 

The full 2022 Xfinity Cyber Health Report is available here.  

DALLAS—Parks Associates released new data at CES 2022 showing that the number of connected devices in broadband homes continues to explode, growing from 9.6 in 2017 to 14.5 per home in 2021, and that 41% of broadband homes now have a streaming media player. 

The data is based on its surveys of 10,000 US broadband households. 

Other notable stats from the Parks Associates data include: 

• 38% U.S. broadband households have a gaming console.
• 36% of U.S. broadband households subscribe to or are trialing a video gaming service.
• 31% of U.S. broadband households or 30+ million households use free ad-based OTT services.
• 50% of cord-cutters cite the high cost of traditional pay-TV services as the reason to cancel the service.

 “Streaming video consumption and the devices that enable it are fixtures of modern life,” said Paul Erickson, director of research, Parks Associates. “Consumers are increasingly willing to spend for better entertainment experiences at home, and they now see greater tangible value in the content, services, and devices that maximize the quality of their home audio and visual experiences.”

More information is available at here.

DURHAM, N.H.—New consumer research from Leichtman Research Group finds that watching video on connected devices is now a daily habit in many homes, with two in five adults (39%) watching video on a connected device each day but the usage, which jumped during the pandemic, is leveling off. 

The survey also found that the habit is widespread, both among pay TV subs and people without a pay TV service. About 35% of adults with a pay-TV service watch video via a connected TV device daily, compared to 50% of pay-TV non-subscribers.

Overall, 60% of adults watch video via a connected TV device at least weekly. That is about the same as 2020 (59%) but notably up from 52% in 2019, 40% in 2016, and 10% in 2011.

“Use of connected TV devices levelled off over the past year after being pulled forward due to the coronavirus pandemic last year,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Still, 39% of adults watch video on a TV via a connected device daily, and 60% at least weekly. Over 80% of TV households in the U.S. now have at least one connected TV device, with a mean of 4.1 devices per connected TV household."

Younger individuals are most likely to use connected TV devices. Among all ages 18-34, 54% watch video on a TV via a connected device daily, compared to 43% of ages 35-54 and 22% of ages 55+.

About 55% of TV households have at least one stand-alone streaming device, up from 49% in 2019, 33% in 2016, and 3% in 2011

In addition, about 43% of all TV sets in U.S. households are connected smart TVs, an increase from 32% in 2019, 19% in 2016, and 7% in 2014. 

But as usage has increased, spending on new sets is down as consumers are able to buy larger sets for less money. The survey found that spending on a new TV was about $530, down from $795 in 2016.

These findings are based on a survey of 2,000 TV households in the U.S., and are part of a new LRG study, `Connected TVs 2021.’ 

This is LRG’s eighteenth annual study on TVs in the U.S.

Although the U.S. video and TV industry saw a meager 1 percent growth in consumer spending in 2018, the small uptick masks a “seismic” shift in how viewers consume television, according Futuresource Consulting.

That shift is being driven by several phenomenons, according to the market researcher: The increasing presence of connected devices, the rise of subscription-based video on demand (SVOD) services such as Netflix, Hulu and Amazon Prime, and perhaps most importantly, the increasing consolidation in the media industry that is being driven by these changes.

“There’s no doubt that 2018 was a significant year for the US video and TV industries,” comments David Sidebottom, Principal Consultant at Futuresource Consulting. “The entertainment landscape was redefined with companies changing their strategies and undergoing some major M&A activity. Disney’s proposed acquisition of Fox and confirmation of its direct-to-consumer service, Disney+, along with the completion of AT&T’s acquisition of Time Warner, were key moments in a turbulent twelve months. Internationally, Comcast’s acquisition of Sky brings two like-minded companies together, both considered to have best-in-class pay-TV service offerings. It also provides Comcast with wider geographical reach and entry into key European markets. Such acquisitions and collaboration will help redefine customer relationships and play a pivotal role in the battle for the living room, but the dust isn’t going to settle any time soon.”

But despite the ongoing consolidation, Futuresource expects the market will become more fragmented, something that Sidebottom attributes to increasing concerns about private data.

“Many consumers don’t like the idea of relying solely on one company to control the living room and smart home,” says Sidebottom. “They may feel uncomfortable with a single brand being responsible for so much of their personal data. As a result, the wider sector will stay competitive, but there will no doubt be further consolidation. Those with big aspirations of becoming super aggregators of services will need deep pockets and the determination to evolve beyond entertainment.”

The strength of SVOD is reflected in the fact that, for the first time ever, SVOD revenues exceeded video rental and purchase revenues for the first time. Futuresource predicts that SVOD revenues will have risen 30 percent in 2018 while it expects a 2 percent decline in pay-TV revenues for 2018 to $97 billion. Futuresource says pay-TV will continue to play a significant role for the near future, however, accounting for more than two-thirds of total entertainment spending through 2022.

Futuresource also thinks the TV set will continue to be a key driver in streaming adoption. “Despite the growth in second screen viewing, the TV screen remains the preferred viewing platform for premium streaming services,” the researcher said. 

Ocean Media, an independent media planning and buying firm, has just released “The Power of Connected Devices,” on OTT trends that illustrates the transition for viewers, programmers and advertisers. Ocean’s infographic highlights the who, how and where of “television” consumption, the speed of the transformation, and how the advertising market is shifting in its wake.

Among its findings:

• America now counts 8.8 connected devices per household--60 million devices overall

• One in three households has cut the cord

• Four in 10 “light” TV viewers are “heavy” OTT consumers

• Streaming viewership has increased 30 percent year on year, while linear viewership decreased 6 percent year on year (42 hours OTT vs. 132 hours TV)

• Ad completion rates for video per break stand at 95 percent – against an average video ad completion of 81 percent for Q1 ’18, per the IAB

• The connected population skews younger and wealthier, and tilts toward the West Coast