Parks Associates releases New White Paper - Consumer Research and Femtocells

Parks Associates recently released a new white paper, U.S. Consumer Attitudes on In-Home Mobile Services and Femtocells.

The consumer research and analysis described in this white paper were commissioned by the Femto Forum on behalf of its members. The Femto Forum is a not-for-profit membership organization founded in 2007 to promote femtocell deployment worldwide.

Femtocells are small cellular base stations that improve in-building signal coverage by integrating existing core mobile networks with broadband infrastructure. This white paper addresses highlights from the study that determined consumer perceptions and interest in in-home mobile services and femtocell solutions.

Security Monitoring Fees for U.S. households have increased 15% since 2007

Home security companies have avoided the worst of the recession due to a stable core of consumers who have kept their monitoring services despite rising fees.

In a recent report Home Systems: Home Security - Analysis and Forecasts, Parks Associates finds the average monitoring fee for a U.S. household increased from $28.60 to $32 between 2008 and 2010. This rise has kept revenues from home security relatively stable, despite declines in overall sales due to weak home sales and catastrophic drops in new starts. This strategy relies on a group of existing customers who will retain their service despite rising monthly costs, which has been successful but has its limits.

IP technologies open the door on all industries to new, nontraditional competitors. Moving forward, the security industry must be careful not to raise monthly fees too quickly, or it risks accelerating entry of these new players. Continued aggressive fee increases may create short-term benefits but risk long-term turbulence. Instead, security companies need to reposition to win new customers, rather than expecting their existing customers to carry the burden.

50% of U.S. households are interested in home energy monitoring

Home monitoring and controls companies will need to take alternate, more indirect routes to reach mass-market status, according to international research firm Parks Associates.

Almost 50% of U.S. households are very interested in an energy-monitoring device, with nearly 80% willing to pay $100 provided it saves 10-30% on their electricity bill. Energy applications are popular now because of the need for cost savings, but in the end, all home systems will need to be interconnected. By embedding their technologies into energy-related appliances and systems, controls and monitoring companies can get a foothold in the home and start to build traction on a mass scale with consumers.

Controls and monitoring companies can form strategic partnerships with system manufacturers, service providers, and utilities to build these inroads. Many utilities have smart grid programs, which have partnership opportunities, but the popularity of energy solutions has attracted new, nontraditional players. For example, Intel recently announced a sensor that monitors power usage throughout a home and shows the homeowner the amount of power used by different appliances and systems.

CONNECTIONS™ addresses business strategies and new technologies that leverage consumer interest in TV Everywhere services

Parks Associates reports TV Everywhere services are gaining popularity, with over 40% of U.S. broadband households very positive on these services, which will be a prominent topic at the upcoming CONNECTIONS™: The Digital Living Conference and Showcase.

CONNECTIONS™ includes multiple sessions on New Media and Digital Content:

• TV Everywhere and Online Video
• Mobile Internet and Cloud Services
• Trends in User Interfaces
• TV and Online Video Advertising Metrics
• DRM, Conditional Access, and Payment Models

Other Event Sessions:

Entertainment Platforms & Value-Added Services

• Digital Home Technical Support Services
• Digital Lifestyles
• Service Provider Innovation
• The Service Provider and the Connected Home
• Innovations & Investments: Venture Capitalist Insights

Consumer Electronics

• Design Elements for Connected CE
• Monetizing Connected CE
• The Future of the Set-top Box
• 3DTV
• TV Technology in the New Age of Consumer Buying

Home Systems & Controls

• Residential Energy Management
• Getting Consumers to Care about Home Controls
• Business Models for Energy Management
• Architectures and Implications for the Home Area Network
• Energy Management as a Key Application for Home Controls

For more information, visit www.connectionsus.com or contact sales@parksassociates.com, 972-490-1113.

U.S. Electronic Systems Contractors optimistic about business prospects in 2010

On average, U.S. home systems integrators, who have had revenues fall for the past two years, expect sales to pick up by more than 9% in 2010 over 2009, according to Home Systems: Channel and Consumer Monitor.

This report includes results of a fourth-quarter 2009 survey of integrators installing home controls, entertainment systems, and energy management solutions, conducted as a joint effort from international research firm Parks Associates and the Custom Electronic Design & Installation Association (CEDIA).

Home Systems: Channel and Consumer Monitor reports that integrators continue to generate two-thirds of their revenue from A/V systems but many integrators plan to diversity in 2010 by adding lighting controls and solar panels to their 2010 offerings. Approximately 40% of integrators plan to begin installing photovoltaic solar panels, and another 38% are seeking more information on this product category to determine its viability. In addition, the trend toward more retrofit projects, which accounted for 63% of 2009 revenues, will continue.

Visit www.parksassociates.com for more information on Home Systems: Channel and Consumer Monitor.

Parks Associates predicts expanded adoption for Personal Health Records due to $19 billion government incentive

The U.S. government’s recent EMR (electronic medical records) incentive will trickle down to benefit personal health record (PHR) providers over the next few years, raising awareness among consumers and pushing total number of PHR users over 100 million by 2014, according to Electronic Health Records: Information Center of Connected Care.

This new industry report from international research firm Parks Associates notes that the $19 billion financial incentive from the U.S. federal government designed to promote EMR adoption includes a “meaningful use” requirement. PHR, though not fully spelled out, is implied in one of the requirements.

Parks Associates defines PHRs as software and applications designed to enable consumers to access and store personal health and wellness information for self-care or for sharing with doctors or designated recipients.

Electronic Health Records: Information Center of Connected Care analyzes adoption of EMR and PHR among providers and consumers and offers insights on usage models, government incentives, pilot programs, and technology trends.

U.S. - Japan Clean Tech Symposium 2010

Parks Associates is supporting the U.S.-Japan Clean Tech Symposium 2010: Why Being in Japan and Partnering with Japanese Companies are Essential for Clean Tech on February 18th in San Francisco.

This event will highlight clean tech opportunities and encourage collaboration between U.S. and Japanese companies through discussion and sharing of strategies and plans (e.g., investment in U.S. and Japan; innovation opportunities for U.S. and Japanese companies; entry into third-country markets by U.S. and Japan collaboration).

For more information, click here to see event brochure.

Parks Associates supports Digital Music Forum East

Parks Associates is supporting the Digital Music Forum East to be held from February 24-25 in New York City.

Digital Music Forum East is the only event in the United States that brings together the top music, technology and policy leaders for high-level discussions and debate, intimate meetings and unrivaled networking about the future of digital music. More Info

U.S. Department of Commerce, Austin Energy to keynote Smart Energy Summit

International research firm Parks Associates announced executives from Austin Energy and the National Institute of Standards and Technology (NIST) will keynote the Smart Energy Summit: Engaging the Consumer. The two keynotes provide unique perspectives from business and governmental sides of the residential energy management (REM) industry, offering expert insight on successful deployment strategies and the impact of U.S. funding for smart grid projects.

Recently, the Department of Energy (DOE) announced over $3 billion in funding for smart grid projects, with matching private-sector funds pushing the total over $8 billion. This funding has implications for technology developers, utilities, and end users, and today there is the right mix of government incentive, competition, and societal pressure to make smart energy solutions viable.

Dr. George W. Arnold, National Coordinator for Smart Grid Interoperability, NIST, U.S. Department of Commerce, will be the luncheon keynote on Tuesday, January 26. He will provide insight into government initiatives for promoting smart grid projects.

Andres Carvallo, CIO, Austin Energy, will present the morning keynote “A New Journey: Utility 2.0” on January 26. He will share his vision of the utility of the future, informed by his company’s experiences developing and deploying its Smart Grid. Mr. Carvallo will also highlight new business models and technologies designed to transform consumers into “prosumers” - producers and consumers all in one.

For more information, visit www.energysmartsummit2010.com

Consumer viewing of movies and TV shows online doubles in 2009

The number of U.S. broadband households watching premium online content, including movies and TV shows via the Internet, doubled in the last year, according to Broadband, Communications, and Entertainment Bundles, a new study from Parks Associates. Currently over 25 million U.S. broadband households regularly watch full-length TV shows online, while over 20 million watch movies online.

The international research firm reports that the growing popularity of online portals such as Hulu.com shows rapid growth in the number of viewers who use the Internet to watch long-tail and premium content. This shift highlights the opportunity for service providers to extend their current pay-TV and video-on-demand services to include online and mobile video features. In fact, providers will have to embrace online video services, including the ability to deliver content across multiple platforms, if they are to remain competitive and attract new subscribers.

Consumer interest in time-shifting content through online portals has increased significantly. Close to 40% of broadband households today watch full-length television shows over the Internet. Enabling access to content anytime through any broadband-enabled device will be a significant challenge for the service providers. However, broadband video opens new revenue channels and opportunities to upgrade subscribers into higher tiers of services.

For the full press release, click here.

Digital Photo Frames enter mass market with 25% penetration in U.S. broadband households

Product category hits new phase in lifecycle

Digital photo frames will transition from an emerging to mainstream product category in 2009, when it will exceed 25% penetration in U.S. broadband households this holiday season, according to Parks Associates.

The international research firm recently released Global Digital Photo Frame Market Update, part of its Digital Photo Frame Service, which reports that penetration in U.S. broadband households exceeded 20% in the first half of 2009, up from 7% in 2007.

Parks Associates states that in this new steady-growth stage, many early-growth drivers like expanded retail availability and price discounts and promotions will have less impact on the future growth of the product category.

Parks Associates started its Digital Photo Frame Service in 2007. Its latest report on this market summarizes sales data for the first half of 2009 by major regions, frame screen sizes, retail channels, and brand market share. It also provides industry growth forecasts through 2014.

For the full press release, click here.

Residential gateways and home networks to open new revenue streams for service providers

Service providers will see a quick return on investment and be able to build new profits through residential gateway (RG) deployments, which will account for over 50% of all global home networks by 2013, according to Connected Home: Global Outlook.

This new report from international research firm Parks Associates finds U.S. broadband households with a home network from their service provider show a spike in interest in enhanced services such as home network tech support, managed Internet security and parental controls, and online file backup.

Connected Home: Global Outlook analyzes the worldwide market for home network deployments from broadband service providers, including the role of the RG and related solutions in reducing operational expenses, increasing customer satisfaction, and expanding connected home value-added services and features.

For the full press release, visit newsroom.parksassociates.com

Electronic Systems Contractors diversify their services with green and retrofit opportunities

Majority expect sales drop to continue through 2009, expanding business in retrofit and energy management to compensate

The majority of U.S. home systems integrators, who have had average revenues fall almost 17% since 2007, are making adjustments to compensate for declines in new-home construction and consumer spending by diving into the green and retrofit markets according to Parks Associates’ Channel and Consumer Monitor and CEDIA.

Parks Associates conducts quarterly surveys of the home systems channel, including online surveys of integrators installing home controls, entertainment systems, and energy management solutions. The most recent report, based on a second-quarter 2009 survey, was conducted as a joint effort from Parks Associates and the Custom Electronic Design & Installation Association (CEDIA).

Channel and Consumer Monitor reports that integrators, who have traditionally installed expensive control and entertainment systems in new homes, now get the majority of their revenues from retrofit jobs, which represents a major shift in this business sector.

The survey also found awareness of Smart Grid terms and technologies, such as smart meter and AMI, was low among installers, although almost one-third of integrators have installed some type of energy-monitoring system in the last year.

Results of the recent survey are only available to participants.

For the full press release, click here.

Parks Associates supports 2009 FTTH Conference & Expo

Parks Associates is supporting FTTH Conference & Expo from September 27th to October 1st in Houston, Texas.

Come to Houston in September 2009 for Building the Business of FTTH where industry leaders and operators will share success stories and lessons learned about the business elements needed to make money with FTTH. Hear from consumers about applications they are willing to pay for. Learn from other service providers about how FTTH has advanced their business and take home practical information and marketing strategies to take your network to the next level.

For more information, click here.

Wireless Home Healthcare to be $4 Billion Industry by 2013

Mobile carriers to open new market opportunities in healthcare with wireless technologies

The U.S. market for wireless home-based healthcare applications and services will grow at a five-year cumulative annual growth rate of over 80% and become a $4.4 billion industry in 2013, according to Wireless Healthcare: Analysis & Forecasts.

The report from international research firm Parks Associates predicts the push for healthcare reform from the Obama Administration will ultimately boost adoption of wireless technologies in healthcare. The Federal Government is committed to promoting technology that improves healthcare efficiency, evident in the stimulus funds already allocated to electronic medical records (EMR) adoption, and this focus will open new long-term opportunities for wireless providers.

Parks Associates finds wireless technologies can benefit home care in areas such as chronic care management, medical diagnostic device monitoring, wellness and fitness applications, medication management, and senior independent living solutions.

The report suggests that mobile carriers will leverage their network resources to target vertical markets like healthcare through both wholesale and retail partnerships. Deals such as recent agreements from Verizon Wireless with LifeWatch and Qualcomm will become more commonplace as this market moves into wider availability.

Wireless Healthcare: Analysis and Forecasts analyzes how mobile and wireless networking technologies can transform personal health applications and highlights market opportunities for businesses in the global mobile healthcare market.

For the full press release, click here.

Parks Associates forecasts over 640 million broadband households worldwide by 2013

Value-added services, stimulus funds will help increase subscriber numbers --

The demand for high-bandwidth applications will jump in the next few years as the number of households worldwide with broadband will reach close to 650 million by 2013, according to international research firm Parks Associates. The firm’s new report Broadband Services: Global Outlook warns that service providers will have to continue investing in network technologies to accommodate multiple services such as video-on-demand and converging social-networking applications.

Parks Associates reports the number of broadband households worldwide grew by over 18% in 2008 to exceed 400 million. Asia-Pacific is the largest market, accounting for over 160 million subscribers, and it will have over 49% of the global market share by 2013.

In the U.S., the federal government, at the request of the Obama Administration, will soon release billions of dollars from the stimulus package to promote expansion of affordable high-speed Internet services in rural areas, which will open new areas in this country to advanced online services.

Bandwidth will continue to be a focus as the operators re-architect their networks to deliver multiple services over the same infrastructure; however, in such a competitive field, bandwidth alone is not enough to win subscribers. Blended applications, combining services such as online video and customer support, offer operators an opportunity to increase ARPU. In addition, innovative new services will help differentiate service providers, which can then compete on factors beyond pricing or raw bandwidth.

For the full press release, click here.

Smartphones, Data Plans, New Apps to drive Mobile Advertising Revenues to $1.5 billion in 2013

Revenues for mobile advertising in the U.S. and Canada will grow from $208 million in 2009 to approximately $1.5 billion by 2013, according to the new Parks Associates report Mobile Advertising: Analysis and Forecasts. Adoption of smartphones, 3G network data plans (or newer wireless services), and downloadable applications will spur this growth in ad revenues, with significant increases beginning in 2010.

Parks Associates estimates there were 62 million smartphone users in North America in 2008, with user penetration to reach 239 million in 2013. Parks Associates projects U.S. 3G network data plans will reach 95% penetration by 2013, with Canada achieving 70% penetration.

Mobile advertising is poised to take advantage of opportunities presented by the diffusion of 3G networks and devices such as the smartphone. Advertisers will begin to incorporate mobile into their media campaigns as this medium matures into a viable marketing space.

Way cautions that advertisers could encounter early resistance from consumers. Parks Associates’ Mobile Entertainment (Second Edition) found 38% of respondents do not want to receive mobile ads, while 37% remain neutral to the idea of ads on their mobile phone.

However, teens and young adults are more receptive to ad-supported mobile content, particularly in entertainment genres. Advertisers need to develop innovative ways to reach these consumers.

Mobile Advertising: Analysis and Forecasts examines the current mobile advertising market. It includes a market overview and analyzes effective mobile ad formats and current pricing models. The report examines opportunities driving overall growth and inhibitors threatening continued expansion and includes mobile advertising revenue forecasts through 2013.

For the full press release, click here.

Parks Associates forecasts over 1.4 billion subscribers worldwide for TV services by 2013

Primetime anytime services will help providers gain and retain subscribers --

Broadband households in Europe and the U.S. consistently rank primetime anytime VoD services as the most valuable service out of all TV 2.0 offerings, according to Parks Associates’ new report Television Services: The Global Outlook.

The international research firm says that primetime anytime services, which allow viewers to watch a show on-demand on their TV regardless of its original air date, will help service providers gain and retain customers in the competitive global market for TV services. The number of households worldwide subscribing to TV services will exceed 1.4 billion by 2013.

Competition among service providers has increased substantially in past few years. For example, while cable operators retain the largest share of the U.S. television service market, subscriptions to telco/IPTV services grew over 110% from 2007 to 2008. Providers can overcome the challenges of this shifting market by leveraging primetime anytime services, which will increase customer satisfaction and create avenues for new revenue-generating service strategies, such as ad-supported VoD offerings.

Parks Associates’ upcoming CONNECTIONS™ conference features new research regarding advanced television services. For information about this event, visit www.connectionsconference.com.

2.5 Million U.S. and Canadian Households ready to buy an Internet-connected TV

Personalized and Web-based content driving consumer demand --

Parks Associates reports that approximately 2.5 million broadband households in the U.S. and Canada are ready to purchase an Internet-connected TV if priced at a $100 premium over regular TVs. This figure translates into $250 million in additional revenues for the consumer electronics industry.

Parks Associates’ latest consumer study, Digital Media Evolution, gauges market demand for Internet-connected devices and the applications consumers want to use in conjunction with this new capability. The study covers digital cameras, TVs, digital photo frames, and Blu-ray players and finds TVs have the strongest market potential.



The top application consumers want through a connected TV is access to video-on-demand content. At the same time, roughly one-third of broadband households in the U.S. and Canada want on-screen widgets, and 27% want to access content stored on their home computers.

Access to additional content is the key demand driver. Most people can get popular video titles through their pay-TV providers, but if they want to watch niche or personal content on their TV, they have to burn or buy DVDs. With a connected TV, they suddenly have lots more options.

U.S. Internet Population now 220m

The results of Parks Associates National Technology Scan 2008 show that there are now 220m Internet users in the United States including ~30m that only access the Internet outside the home (at work, school, libraries, etc.). The 80m Americans that do not use the Internet are largely split between the very old and the very young. Nearly 20m of the non-users, for example, are children under the age of 9 that live in homes with Internet access. These individuals will presumably start using the Internet as they grow older. At the same time, nearly 40% of all children age 9 and under regularly do use the Internet at home. Interesting results indeed.