• by Jack Loechner , Staff Writer @mp_research, April 17, 2012

According to new consumer research from Leichtman Research Group, 38% of all households have at least one television set connected to the Internet via a video game system, a Blu-ray player, an Apple TV or Roku set-top box, and/or the TV set itself, up from 30% last year, and 24% two years ago. 

Video game systems are the key connected devices, as 28% of all households have a video game system connected to the Internet.  Just 4% of all households are connected solely via an Internet-enabled TV set, and Apple TV or Roku set-tops are the only connected devices in 1% of all households.

Overall, 13% of all adults watch video from the Internet via a connected device at least weekly, compared to 10% last year, and 5% two years ago.  Use of connected devices remains skewed towards Netflix subscribers, with 35% of Netflix subscribers watching video from the Internet via a connected device weekly, compared to 5% weekly use among all non-Netflix subscribers.

Other related findings in the report include:

• Overall, 16% of all adults use Netflix’s Watch Instantly feature weekly, compared to 12% last year, and 4% two years ago
• 79% of Netflix Watch Instantly customers use it to watch movies and television shows on a TV set, and 59% of this group access Netflix via a video game system
• 50% of Netflix subscribers are satisfied with the service, but 11% are likely to stop subscribing to Netflix in the next six months
• 7% of Netflix subscribers are likely to switch from their multi-channel video provider in the next six months compared to 12% of non-Netflix subscribers
• 13% of Netflix subscribers would consider reducing spending on their multi-channel video service because of Netflix, compared to 21% last year
• 16% of all adults watch full length TV shows online at least weekly, compared to 12% last year, and 10% three years ago
• Among all mobile phone owners, 19% watch video on their phones weekly, compared to 15% last year, and 6% three years ago
• 9% of all adults watch video on an iPad/tablet computer weekly, compared to 2% last year
• Overall, 1.6% of households in the sample paid to subscribe to a multi-channel video service in the past year and do not currently subscribe.  Yet, just 0.1% of the sample dropped service in the past year, do not plan to subscribe again in the next six months, and say that they don’t subscribe because of Netflix or because they can watch all that they want on the Internet or in other ways

Bruce Leichtman, president and principal analyst for Leichtman Research Group, concludes by noting that “Video is increasingly being watched on different platforms and different places... yet these emerging video services... generally act as complements to traditional television... rather than as substitutes... there (is) little evidence of a significant trend in consumers ‘cutting the cord’ to their multi-channel video services to watch video... “

The overall sample has a statistical margin of error of +/- 2.8%. 

For additional information from LRG, please visit here.