Dallas-based Parks Associates estimates that 14 million media players will sell in 2012, underscoring increased consumer demand for access to video entertainment via non-traditional sources such as the Internet. Indeed, 31% of U.S. broadband households regularly watch movies and TV shows from the Web, according to a recent Parks survey.

“In the 2011 holiday season, 4% of households bought one of these inexpensive, single-function devices, which enable households to view over-the-top (OTT) video from Internet-based services such as Amazon Prime Instant Video and Netflix,” said Kurt Scherf, VP and principal analyst with Parks Associates. “Nearly 20% of these holiday-season buyers are over 45 years of age, so these devices have achieved relatively broad appeal among multiple consumer segments.”

“While this trend does not yet frequently equate to canceling pay-TV services, it can mean shaving some premium channels for a set of households,” Scherf said. “That is a risk that pay-TV providers must address and a trend that both manufacturers and content providers are following with eagle eyes and plans for defensive actions.”

From the article, "31% of Broadband Homes Use Web to Watch TV, Movies" by Erik Gruenwedel

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