SMART TV penetration has reached a milestone in Q2 2015 with 46 million U.S. internet households now owning a connected device. According to NPD’s Retail Tracking Service these devices include TVs, video game consoles, streaming media players, and Blu-ray Disc players that consumers can connect to the Internet giving access to over-the-top (OTT) content services such as Netflix, Amazon Prime and Hulu for over-the-top content.

As connected devices increase in penetration, pay-tv subscribers see declines. Approximately 470,000 video subscribers dropped their pay-tv service in 2Q 2015, up from 305,000 video subscribers lost in 2Q 2014.

More connected televisions also impacts advertising placement. The Association of National Advertiser (ANA) reports that close to half of current connected TV and OTT advertisers (48%) plan to increase their OTT media budgets next year, with advertising dollars coming from traditional TV activity (71%) and digital media (37%).

Read NPD’s Connected Home Entertainment Report