What is Connected TV? Complete Overview for 2025
The cord-cutting revolution has transformed television. Streaming now captures 41% of total TV usage while cable continues its decline. Connected TV sits at the center of this shift.
For marketers and business professionals, understanding connected television is essential. It's no longer an emerging channel—it's how streaming audiences consume content today.
The historical evolution of the connected TV industry shows how quickly this transformation reshaped television.
What is Connected TV?
Connected TV refers to any television device that streams digital content through an internet connection. This includes smart TVs with built-in streaming capabilities and traditional televisions using external streaming devices.
Connected television technology transforms standard TVs into comprehensive entertainment hubs. Instead of relying on cable or satellite signals, these internet-connected devices use broadband to access streaming platforms. Viewers get unlimited programming choices through apps and on-demand services.
The key difference: Traditional broadcast television delivers scheduled programming. Connected TV enables viewers to stream content on their own schedule.
The differences between Linear TV and connected television impact both audiences and advertisers.
Types of Connected TV Devices
Smart TVs
Modern smart televisions from Samsung, LG, Vizio, and Sony include built-in internet connectivity and streaming applications. No external devices needed.
- 88% of U.S. households own at least one internet-connected television
- Direct access to streaming services through native apps
- Regular software updates add new streaming capabilities
Streaming Devices
External streaming devices add connected TV functionality to any television:
- Roku - 48% market share, platform-neutral streaming approach
- Amazon Fire TV - 28% market share, integrated with Amazon's ecosystem
- Apple TV - Premium streaming device with Apple service integration
- Chromecast - Google's casting-focused streaming solution
Gaming Consoles & Other Connected Devices
- PlayStation and Xbox function as comprehensive streaming platforms
- Cable set-top boxes increasingly include streaming TV apps
- Blu-ray players often feature smart TV capabilities
The Connected TV Viewing Experience
Key Differences from Traditional Television
On-Demand Streaming Watch any show, any time. No more scheduling around broadcast times.
Personalized Content Discovery Streaming platforms use algorithms to recommend programming based on viewing history. Each household gets a customized entertainment experience.
Cross-Device Flexibility Start watching on your living room TV, continue on tablet. Seamless transitions between connected devices.
Global Programming Access Stream content from around the world. No geographic restrictions on your entertainment.
Viewer Control
Connected television puts audiences in charge:
- Pause, rewind, fast-forward streaming content
- Binge entire seasons immediately
- Create personal viewing schedules
- Skip programming that doesn't interest them
This control has created new viewing behaviors that impact how businesses reach streaming audiences.
The Connected TV Ecosystem
Streaming Service Models
SVOD (Subscription Video on Demand)
- Netflix, Disney+, HBO Max
- Monthly fees for ad-free streaming
- Heavy investment in original programming
AVOD (Ad-Supported Video on Demand)
- Hulu, Peacock, Paramount+
- Lower cost with commercial breaks
- Growing rapidly as cord-cutters seek affordable options
FAST (Free Ad-Supported Streaming TV)
- Pluto TV, Tubi, Roku Channel
- Completely free streaming with ads
- Attracting budget-conscious viewers
Hybrid Models
- Streaming services offering both ad-free and ad-supported tiers
- Maximum flexibility for different viewer preferences
Content Distribution
Direct-to-Consumer Streaming Content creators launch their own streaming platforms. No middlemen required.
Platform Aggregation Services that combine multiple streaming sources. Simplifies the connected TV experience.
Exclusive Programming Streaming platforms invest billions in original content. Creates differentiation and subscriber loyalty.
Connected TV Viewership Trends & Market Growth
2024 Streaming TV Landscape
Streaming Dominance
- 41% of total television usage (September 2024)
- Cable: 26.1% and declining
- Broadcast: 22.6%
Viewing Time Surge
- Daily connected TV viewing returned to pandemic peaks
- Up 5% year-over-year (Q3 2023 to Q3 2024)
- Streaming session lengths increased 7%
Platform Performance Leaders
YouTube - 10.6% of total TV usage across connected devices
Netflix - 7.9% share, maintaining streaming leadership
Amazon Prime Video - 12% monthly growth, 3.6% total share
Disney+ - Platform-best 2.5% share with Hulu integration
FAST Channel Growth
- Ad load: 9.1 minutes per hour (vs. 15-18 for traditional television) (Wurl CTV Trends Report, 2024)
- Reality TV dominates FAST programming
- Younger cord-cutting demographics embracing free streaming
- Expanding connected TV reach to new audiences
Current streaming TV viewership patterns and platform trends show continued growth across all metrics.
How CTV Differs from Streaming
While connected TV and streaming are both forms of online video, they have distinct differences that are important to understand.
Content Delivery CTV refers to the delivery of video content and ads through a connected television set, while streaming refers to the delivery of video content through the internet on any device. This means that CTV can only be accessed on a television set while streaming can be accessed on any device with internet access such as smartphones, tablets, and computers.
Ad Formats CTV platforms offer traditional 30-second commercials, while streaming platforms offer a wider range of ad formats such as skippable and non-skippable ads, in-stream ads, and interactive ads. Additionally, streaming platforms also offer a wider range of ad placements, such as pre-roll, mid-roll, and post-roll ads.
Level of Control Over Ad Placements With CTV, advertisers typically have more control over where their ads will be placed and how often they will be shown, as they can negotiate ad deals directly with networks and cable providers. On the other hand, streaming platforms rely on a programmatic approach to ad buying, which can result in less control over ad placement and frequency.
Ownership of Audience Data In CTV, the cable or satellite providers own the data of their subscribers, including information on their viewing habits, demographic data and other personal information. Streaming platforms such as Netflix, Hulu, and Amazon Prime own their own audience data and have more control over the data, using it more effectively for targeted advertising and personalization.
In summary, CTV is better suited for watching content on a larger screen and in a shared or family setting, while streaming is more commonly done on a personal device and on-the-go. Understanding these differences helps advertisers choose the right platform for their campaign objectives.
Why Connected TV Matters for Businesses
The New Reality
Connected television isn't the future—it's the present. Consider these facts:
- 88% household penetration of internet-connected TVs
- Nearly 2 hours daily streaming time
- Primary television consumption method for most Americans
Businesses ignoring connected TV miss reaching modern audiences where they actually watch.
Business Advantages
Connected television combines traditional TV's broad reach with digital's precision:
- Target specific streaming audiences impossible with broadcast TV
- Measure actual results like digital channels
- Premium streaming environments enhance brand perception
- Flexible budgets work for any business size
Meeting Viewer Expectations
Today's streaming audiences demand:
- Personalized viewing experiences
- Relevant advertising messages
- Respect for their time
- Content on their schedule
Connected TV platforms deliver on all fronts, making them essential for modern marketing strategies.
Connected TV advertising strategies and implementation best practices show how to leverage these advantages.
Conclusion
Connected television has become the standard for how Americans watch TV. With streaming at 41% of total television time and growing, businesses must adapt or risk irrelevance.
The shift goes beyond streaming technology. Connected TV changed how people think about television:
- Scheduled programming → On-demand viewing
- Passive consumption → Active content selection
- Regional broadcasts → Global streaming libraries
- Mass advertising → Targeted messaging
For businesses, the question isn't whether to use connected television—it's how to use it effectively. Understanding connected TV fundamentals prepares you to reach modern streaming audiences and drive real results.
The television revolution is here. It's connected, measurable, and ready for your business.