The NPD Group reports that sales of IPTVs increased some 38% in the first eleven months of 2010 (over 2009) and are 12% of all flat panel sales now. That, of course, is going to continue to rise as more and more TV come out that have Internet connectivity. But what are people doing with that connectivity?Neflix.  Are you paying attention Hollywood? Netflix

“Manufacturers are underselling the Internet features of connected TVs,” said Ross Rubin, executive director of industry analysis at The NPD Group. “Broadband features unlock worlds of on-demand content; manufacturers should provide the key by integrating Wi-Fi.”

The majority of Internet TV owners, 57%, are using Netflix and 47% are using YouTube. 54% of owners say they use the connectivity for video, music and photos on the home network.

“Video services are leading the way on connected TV usage,” said Rubin. “These include the ubiquitous Netflix and the rapidly expanding presence of Hulu Plus. But NPD research indicates that manufacturers have an opportunity not only to provide more content choices, but inventive ways to navigate them.”

Inventive ways, like Google TV? Perhaps an army of widgets?

Now if you want to make some money, as a content creator, it sure looks like Netflix is the place to partner with. If millions of Internet connected TVs are going to be sold in 2011, and 57% or more of those owners like Netflix, don’t you think it’s time you reconsidered your position in regards to them?

Most Internet content is not in 1080p yet, but it’s coming I’m sure. I just got a press release about a product at CES called WHDI.

WHDI (Wireless Home Digital Interface) is the new wireless High Definition video standard that will change the way people use Audio/Video devices in the home. WHDI is the first and only standard that enables top-quality wireless uncompressed 1080p/60Hz HD and 3D video delivery throughout the home, allowing consumers to connect any source in the home to any display. WHDI Consortium was formed by Amimon, Hitachi, LG Electronics, Motorola, Samsung, Sharp and Sony to create a whole home wireless HD connected CE ecosystem.

If that’s going to work in the home it’s certainly going to allow for 1080p everywhere. However, thanks to the FCC’s terrible decision recently in regards to Net Neutrality, you’ll probably be paying soon to access places like Netflix and Hulu, above and beyond what you pay for Internet now.

Personally, I think that’s wrong because paying for 10Mbps means I should be able to use 10Mbps nonstop for whatever I want. If the ISPs can’t support that, then they need to upgrade their networks because they sold us the promise of that speed at all times, without restriction and now they’re probably going to impose restrictions.  Poor Form!