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DisplaySearch is reporting in the first quarter of 2012 approximately 27% of TVs shipped worldwide had internet connectivity. The highest shipments of smart TVs was to Japan where 46% of TVs had network connectivity, followed by Western Europe with 36% and closely behind China with 32%.

“Connected TV is largely driven by content,” said Paul Gray, Director of TV Electronics Research for NPD DisplaySearch. “Where there are compelling things to watch, the internet becomes a major source of entertainment. We are now seeing a second stage of evolution as internet video relocates from a PC screen onto the TV screen. In particular, Chinese consumers have found plenty to watch on the internet, so internet connectivity follows.”

The report can be found here and the news release here