Nonetheless, Internet TVs began gathering retail momentum this year, as 1 in 4 high-definition televisions sold in the U.S. provided Internet capability, according to researcher Parks Associates. Fewer than half of the consumers who purchased such high-end devices, or 40%, took advantage of this feature, Parks found.

A scant 5% of people whose televisions are connected to the Internet have used their TVs to access online video services such as Netflix, Amazon Video on Demand, Vudu or Hulu Plus. Although this is seemingly insignificant compared with the 60 million people who subscribe to pay TV, analysts say this nonetheless represents a meaningful shift away from these Internet-based on-demand services as computer-centric experiences.

"It's a huge jump," Parks Associates analyst Kurt Scherf said. "This is one of the most important implications for connected devices in general is what it means for video rentals and video downloads. Over time, these devices become your movie rental store."

From the article, "More TV viewers may be cutting the cord this year" by Dawn C. Chmielewski and David Sarno

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