The Games Console has become the most popular device for US consumers to watch online content on their TV screens. While PC remains the dominant screen for online viewing overall, transferring this experience to the big screen is becoming increasingly popular and is a key driver of consumption of filmed entertainment delivered via IP. Twelve percent of US households use games consoles to watch online content, more than the percentage of US households that connect PCs to TV via HDMI, according to a report from the Strategy Analytics Connected Home Devices (CHD) service.

Strategy Analytics found that 65 percent of US-based weekly Xbox 360 users under the age of 25 access online TV shows and movies primarily via games consoles–even more than they do on desktop or notebook PC screens. "These findings indicate significant levels of consumer demand for such services. The upcoming Xbox TV launch for the holiday season will demonstrate an expansion of the partnership between the games consoles and the online TV and video industries," says Jia Wu, Senior Analyst. Games consoles have already become the key media hub in US households."

Ed Barton, Director of Digital Media Strategies (DMS) at Strategy Analytics, added, "Device-led digital content services are proliferating in the modern entertainment ecosystem. Both manufacturers and service providers are scrambling to optimize their strategies. Xbox Live content expansion addresses the desires of an increasingly demanding customer base and offers more reasons than ever to use the Microsoft box as opposed to its myriad alternatives. Competition will intensify through 2012 as rival opportunities are brought to market."