A Smart TV is just like a regular TV, but with much more to offer. It can be connected to a cable box or an antenna to use as a regular TV. Or like your tablet and smartphone, you can also download apps, watch Netflix, stream and browse online, play games, and many more with the help of the internet. With further advancements in technology and the introduction of new features, now you can connect your smart TV’s with your smart home systems and monitor everything from the central dashboard on your TV. So, a smart TV has much more than a regular TV and is a way better deal.
According to a recent study, there are more than 100 million people in the US who are currently using Smart TV, and that number is expected to go over 120 million by the beginning of 2023. That shows the interest of the US market in Smart TV and the features that it is offering.
During the past decade, a smart TV has taken the market by storm. In 2012, about 9% of US households used to have a Smart TV, which in the year 2019 reached 60%. So, in 7-8 years, Smart TV has gained over 51% in the US market as per research conducted by Statista.com. One major reason for that is OTT (Over the top) content which has revolutionized the entertainment industry and decreased the cost of watching TV shows compared to Cable TV. Customers now have an alternative to cable and are benefiting from it in the best way possible.
With the rise in demand of OTT (Over the Top) which offers content directly through an internet connection instead of using standard cable lines and TV boxes, more users started shifting toward Smart TV as it can do both. In addition to network apps like HBO max, they have more options than ever to stream online such as Netflix, Hulu, Sling, Amazon Prime, and many more. Also, the increasing cost of standard cable allowed people to switch to streaming and save money. For example, Spectrum TV costs over $50 with the basic plan but Spectrum Streaming costs less than $30 if you are an existing internet customer. Moreover, you do not have to get cable boxes because you can stream easily by downloading an app or using your Roku. So, that is an additional saving on a regular customer’s end.
On the other hand, OTT devices and content providers are teaming up manufacturers such as Apple and TCL to offer built-in features in their smart TVs so people can stream without connecting any on top boxes. Furthermore, streaming bundles are also trending where the customers can get streaming apps like ESPN+, Showtime or Disney+ at a lower rate when they get the bundle. This value addition is not just promoting those streaming apps, but also offering the users a benefit in terms of price saving.
According to BusinesWire’s report, the expected growth rate of the US smart TV market is a CAGR of 10.5 % from the year 2020 to 2025. As per this market forecast, the biggest reason for this is OTT content. In addition to this, the US-China trade war will also be playing a major role in this as the majority of the Smart TV retailers are dependent upon Chinese manufacturing companies. Those vendors are building safety stocks in case things go sideways to avoid any troubles.
Moreover, more people would be upgrading to bigger screens and 4K Ultra HD smart TV’s in 2020. On top of that, the introduction of new technologies such as QLED in the 4K TV division is getting customer’s attention. So, in the coming years, there is significant growth expected in the 4K TV market. The demand for Ultra 8K is also expected to reach half a million which is going to be a new record for this specific segment.
With extensive entertainment options and lower monthly charges on OTT content, smart TVs are becoming the need of every household. Majority of the US market is switching from regular TV to smart TV as it offers better picture quality, better sound and more options than ever.