Consumers not ready to embrace cloud-based digital locker solution for music and video

The industry is rapidly moving content solutions to the cloud, but consumer interest is not keeping pace, as less than 30% of U.S. broadband households find the digital locker an attractive alternative for music or video.

Cloud Media and the Digital Locker, a new report from Parks Associates highlights the challenges within the industry, including device and format interoperability, consumer awareness, and security and delivery issues. Market fragmentation is also a major inhibitor, and efforts including Digital Entertainment Content Ecosystem's (DECE) UltraViolet initiative and Disney’s Studio All Access aim to overcome these barriers.

The benefits of cloud services are popular with consumers, indicating significant market potential. Access via mobile devices is important, and over 50% of U.S. consumers consider multiroom access to music and video content and guaranteed replacement of lost or damaged media to be equally important features of the digital locker.

Cloud Media and the Digital Locker examines how key players from content owners and distributors to platform and technology solution providers are tailoring their cloud-based solutions to include secure delivery, high quality, and ubiquitous access models.

Trends We Are Expecting to See in 2011 and Beyond

Connected products:

One popular theme among the products displayed at CES was the ability to be connected, whether to the Internet, other products, or a consumer’s smartphone. There were numerous products at CES that were designed to be part of a network, with the goal of delivering more useful, efficient, and compelling customer experiences. The television is one product that’s undergoing a major transformation, with virtually every TV manufacturer at CES displaying their web-connected televisions. These products have the ability to stream content and access applications such as Netflix, Pandora, and games.

The living room isn’t the only room that’s becoming more connected; the kitchen is also being overhauled to be “smarter” for consumers. Appliances in the near future will be able to take stock of the food in the kitchen, present meal suggestions based on those ingredients, and even guide consumers through the cooking process.

A new meaning of “green”:

Eco-friendly certainly isn’t a new product trend, but manufacturers are shifting the meaning of “green” to focus more on energy-efficiency than in the past.

Appliance manufacturers such as LG and Samsung are offering solutions that help consumers determine the best time to run their appliances. Panasonic’s version goes so far as to include solar panels, home fuel cells, an electric vehicle (EV) charging station and energy storage units.

Continued focus on digital health:

The digital health movement continues to move forward with products that marry cutting edge technologies with the growing need for medical devices that help consumers manage their health more actively and dynamically. Medical devices are becoming more and more like consumer electronics devices, with many wearable, mobile medical products already or soon to be on the market. Examples include smartphones that double as heart rate monitors and watches that have GPS locators to help keep track of elderly loved ones. There were also numerous therapeutic and diagnostic devices, medication monitoring equipment, and robotic prosthetics on display.

-- Content submitted by Home Toys

Analyst Roundtable What's Hot in 2011 WEBCAST - JAN 20

What will be the defining consumer and technology trends of 2011?

Join Parks Associates on Thursday, January 20th at 1 pm CENTRAL for the webcast, Analyst Roundtable What's Hot in 2011, and learn more about CES 2011 announcements and notable trends in the digital home and CE industries. This event provides primary consumer data and trending, predictions, and forecasts for a number of product and service categories.

Parks Associates research finds:
-- U.S. sales of smartphones will reach nearly 60 million in 2011
-- Internet tablets will reach more than 13 million in 2011
-- By 2014, annual worldwide shipments of Internet-connectable CE will reach close to 300 million units
-- 80% of flat-panel TVs sold in the U.S. and Western Europe will have 3D capabilities

***Register for this complimentary event:
http://parksassociates.com/events/webcasts/registration/webcast_registration-free.htm

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JAN 20 | 1 PM - 2:15 PM CENTRAL
Analyst Roundtable What's Hot in 2011 WEBCAST
***Presenters include: The Parks Associates Analyst Team ***

This webcast features analysis and forecasts from Parks Associates examining:
-- Connected consumer electronics
-- 3D TV
-- Gaming
-- Mobile and portable devices, with a focus on smartphones, tablet computers, and e-readers
-- Broadband and digital television services
-- Advanced advertising
-- Digital home technical support services
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We look forward to you joining us for this Webcast!

Millions of U.S. households already using Internet-connected CE to watch video-on-demand, finding convenience and savings in these devices

Parks Associates reports three million U.S. broadband households plan to purchase an Internet-connected TV during the 2010 holiday shopping season, further eroding consumer need for brick-and-mortar video sources.

Nearly 25% of U.S. broadband households already own at least one connected TV device, and one-fourth of these households have watched a paid movie-on-demand at least once in the past month, according to Parks Associates' Connected CE Tracker, part of the firm's landmark Consumer Decision Process Service. Parks Associates’ analysts predict connected CE devices will be top sellers in this year’s holiday shopping season.

Only 38% of U.S. broadband households plan to purchase a CE device this year, but it’s the connected CE and smartphones that will be the most popular items. Connected devices are the future of content consumption and entertainment in the living room as they capture the broader trends of integration among different silos in consumers' lives. We will continue to follow their sales through 2011 with Connected CE Tracker.

Connected devices include Internet-connected game consoles, Blu-ray players, tablet computers including the iPad, and digital video players including Roku and Apple TV. By the end of 2010, more than 40 million U.S. consumers will have a broadband-connected game console, more than eight million will have a PC-to-TV connection, more than five million will have a connected Blu-ray player, and over four million will have a networked digital video player (such as an Apple TV or Roku Digital Video Player).

However, even the significant enthusiasm for these devices does not totally offset the drop in CE buying intentions reported for this holiday shopping season. In 2009, almost 50% of U.S. broadband households planned a CE purchase.

Manufacturers, retailers, and technology providers are noting the tight consumer purse strings and continue to roll out the deals. Consumers want deals; that is their trigger as economic conditions have made them more cautious buyers. Market players must stress the value and convenience of Internet-connected devices. It helps that consumers may choose to save the cost of a video membership and eliminate a trip to the store or kiosk.

For more information about Connected CE Tracker or Consumer Decision Process Service, visit http://www.parksassociates.com.

European Research Update: EU Developments in Digital Living

Parks Associates attended multiple conferences in the latter half of 2010, and we were encouraged by the industry developments throughout the continent. Here is a summary of some of our recent observations, which culminated with the recent CONNECTIONS™ Europe Summit, which Parks Associates hosted on November 15-16, 2010. Visit www.connectionseurope.com for more information on this and future Europe events.

European Service Providers Embracing the Connected Home

The operators in attendance at the Connected Home World Summit in London were from many different European markets - from Greenland, Estonia, Italy, Germany, France, and Russia to countries in between. We came away with the following takeaways from the panels and keynotes:

There are very different takes on the economics of deploying the "God Box"/über-box, which would bring in the functionality of the residential gateway (modem, routing, remote manageability, etc.) along with multiple set-top boxes (tuners, transcoding, server capability, etc.). For reasons related to cost, lifecyle differences in CPE, and the risk of one point of failure, many operators are taking a conservative approach in deploying fully integrated customer premise equipment hardware. At the same time, Intel (which was represented at the event by Brendan Traw) has had early success with some service providers, including Telecom Italia and Liberty Global, in delivering a high-powered gateway that takes on much of the functionality of the über-box.

To read more about the EU Developments in Digital Living, subscribe to Parks Associates' European Research Update Newsletter.

Click here to subscribe to other Parks Associates complimentary newsletters.

EU TV Markets: Progress of IPTV, VOD, DTT services

The Western European market for television service features a diverse set of offerings and regulations across nations. Terrestrial services are a common choice among consumers in all nations, but IPTV is making inroads in some areas, with France in particular serving as a worldwide leader in IPTV growth. The following is a brief overview of several key countries, with information and data from Parks Associates' recent report Television Services: Global Outlook (Second Edition).

The upcoming executive summit CONNECTIONS Europe™, November 15-16 in Amsterdam, will feature multiple sessions focused on advanced TV services and devices, including "Consumers and Connected Consumer Electronics," "Bringing the Content: Content Delivery and Control for Connected TVs," "Extending the Video Experience to Multiple Screens," and "Value-added Services & the Video Ecosystem." Register Today at www.connectionseurope.com.

To read more about the EU TV Markets: Progress of IPTV, VOD, DTT services, subscribe to Parks Associates' European Research Update Newsletter.

Click here to subscribe to other Parks Associates complimentary newsletters.

Smartphones + Tablets Most Popular Consumer Electronic Products as Holiday Season Approaches

Parks Associates reports consumer electronics buying in the U.S. rebounded in the first half of 2010, with 63% of broadband households making at least one purchase, a rate 6% higher than in the first half of 2009.

Smartphones promise to be the highest selling product through the end of the year, fueled by both repeat and first-time purchases. Twenty-one percent of broadband households intend to purchase a smartphone by year’s end, according to the report Consumer Decision Process: 1H 2010 and 2010 Summer Update. Of those intending to purchase a new smartphone in the next four months, 28% report an iPhone preference, 23% want a Blackberry, and 20% want an Android-based phone.

The study found that, on average, buying households purchased 4.3 CE products and spent $1,094 in the first half of 2010. Smartphones were a top purchase across most demographic segments, particularly among younger consumers, and 3-4% of broadband households bought at least one Apple iPad tablet. The study also reveals that standard iPad buyers are typical early adopters – they are younger than 35 with a graduate degree and household income greater than $100,000.

Parks Associates is currently launching 2010 Holiday Intentions, which will provide incidence of product ownership and data on 3Q 2010 purchases and purchase intentions for the 2010 holiday season.

Research Workshop features Broadband Services, 3D TV, Video Services, Connected CE

Parks Associates is hosting the special one-day research workshop Monetizing the Digital Lifestyle on September 20 to address operator strategies, value-added services, and new technologies such as 3D TV, connected CE, and multiscreen solutions. This interactive workshop takes place at the Connected Home World Summit in London.

Kurt Scherf, Vice President & Principal Analyst and Pietro Macchiarella, Research Analyst will present insight, analysis, and forecasts of the digital living markets in the following sessions:

-- Enhancing Broadband Services: Connected Home and Customer Support
-- Providing Depth on 3D TV Opportunities
-- Operator-provided Video Services: Coming into Focus
-- Connected Consumer Electronics: Platforms, Online Content, and the Consumer

Kurt Scherf will also chair and present on "Examining recent and forecast deployments of connected home services by operators and service providers" on September 21 at 9:30 a.m. In addition to hosting the research workshop and speaking at the event, Parks Associates is a supporting partner of the 2010 Connected Home World Summit. The Connected Home World Summit, part of the IPTV World Series, brings together key players in the connected home value chain to evaluate the commercial potential of connected home services and to clearly understand the technical and financial challenges of supporting them.

Parks Associates hosts 'Connected TV Outlook' webcast, August 26

Join Parks Associates on August 26 at 1 pm CENTRAL for the HomeGrid Forum sponsored webcast, Connected TV Outlook, and learn more about how the key technology trends behind developments in this space.

Kurt Scherf, VP, Principal Analyst, Parks Associates will present analysis and forecasts from Parks Associates examining the following:

-- Analysis on key business and technology drivers for connected TV devices
-- Consumer appetite & drivers for the purchase & use of these connected CE
-- Consumer and industry research from multiple Parks Associates surveys and market reports

This webcast is sponsored by HomeGrid Forum. HomeGrid Forum is a global, non-profit trade group promoting the International Telecommunication Union’s G.hn standardization efforts for next-generation home networking.

Click here for Thursday, August 26th webcast registration information.

New White Paper, Google TV - Searching for Success

Google is entering the market for smart TV at a time where there is much indecision about the ideal technology solution. The market is searching for a solution that will benefit the TV manufacturer, content owners, and advertisers.

This new white paper from Parks Associates looks at Google's strategy and the current market conditions for connected CE.

Click here to download.

Advanced Advertising Session addresses new content distribution models, ad solutions, and revenue opportunities

Parks Associates is hosting a special research presentation, “Advanced Advertising: Engaging the Digitally Connected Generation,” sponsored by Chase Paymentech, on Wednesday, May 5, at Digital Hollywood in Santa Monica, Calif.

Parks Associates estimates revenue from addressable, interactive TV advertising will reach $133 million in 2010 and will increase to $4.3 billion by 2014. Digital media technologies (DVR, advanced TV, Internet, and mobile) have changed the game for service providers, technologists, content owners, and advertisers, creating new content distribution models, ad delivery solutions, audience measurement capabilities, and revenue opportunities.

Join Heather Way, Research Analyst, Parks Associates, as she will discuss strategies for industry players and investors to capitalize on digital media platforms and services in order to build revenues and increase consumer engagement.

Parks Associates will be in Booth #2 during Digital Hollywood, May 3-6.

Request your complimentary pass to attend the research presentation by completing this online form.

U.S. households using PCs and game consoles to extend online video to the TV

Parks Associates finds consumer interest in Web-on-TV applications is so strong that households are making their own connections via PCs and game consoles. From 2008 to 2009, the number of U.S. households using Web-connected game consoles increased by 64%, and the number connecting a PC to a TV increased by 36%, according to the firm’s latest report Digital Lifestyles: 2010 Outlook.

Over three-fourths of U.S. households with PC-to-TV connections and one-third of Xbox 360 owners are using these connections to stream online video. These households, as they extend online video and other Web experiences to the TV screen, are laying the foundation for future behaviors with connected CE and entertainment services.

Digital Lifestyles: 2010 Outlook examines the rise of Web-connected CE as one part of the many developments in consumer electronics and services. The report provides analysis and forecasts for a variety of digital lifestyle product categories, including broadband Internet, television services, digital content services, and products (home networks and consumer electronics).

For more information, visit http://www.parksassociates.com.

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.

Consumer Reports Gives Seal of Approval to "Connected TVs"

Broadcast & Cable reported on Consumer Reports' tests of Web-connected TVs and Blu-ray players and devices such as broadband-connected TiVos and game consoles. It sounds like the reviews were generally favorable - Consumer Reports indicates that video quality was pretty decent. One of the key conclusions from them is for consumers to take a closer looks at the connected Blu-ray players, as they will obviously be lower-cost alternatives to a full-blown connected TV. That makes sense - the major manufacturers are basically duplicating the same features and Web services on their Blu-ray players as their TVs.

CONNECTIONS™ Summit at CES to focus on connected products and services and business strategies for 3D TV, advertising, and energy management

Parks Associates today released the preliminary agenda for CONNECTIONS™ Summit at CES, which focuses on new business strategies for connected CE, service providers, 3D video, Smart Grid technologies, and other connected home solutions.

The international research firm will host this event on January 7, 2010, in the Las Vegas Convention Center, on the first day of 2010 International CES. Parks Associates’ expert analysts will moderate the Summit sessions, presenting consumer research on buying habits, purchase intentions, and interest in a variety of connected home solutions. The sessions also feature executives in the digital living markets, who will discuss the challenges of today’s business climate and the areas of service and innovation that fit best with the changing needs of households throughout the world.

Summit Sessions:
• Consumer Electronics Purchases: Are Consumers Back in the Buying Mood?
• The Connected TV – Displays and Beyond
• Service Provider Strategies for the Connected Home
• The Mobile Aspect of Unified Infotainment: Opportunities and Challenges
• Advances in Television Advertising
• Bringing the Smart Grid to the Smart Home
• 3D: Adding New Dimensions to Entertainment

For more information, visit www.connectionssummit.com.

Parks Associates is also hosting CONNECTIONS™ Europe Summit, in Amsterdam, Netherlands, on November 4, 2009.

European share of worldwide connected CE market approximately 40%

CONNECTIONS Europe to address connectivity, convergence as sales of connected consumer electronics double between 2009 and 2013

CONNECTIONS™ Europe Summit released the preliminary agenda for its upcoming executive conference, November 4, 2009, which will feature consumer research and expert analysis on the role of connected consumer electronics (CE) and related services in the connected home ecosystem.The event, titled The Roadmap for Connected Consumer Electronics and hosted by international research firm Parks Associates, will take place in Amsterdam at the Mövenpick Hotel. The Summit features insight into European and global consumer markets from expert analysts and high-level executives representing the top international players in the markets for advanced digital products and services.

The sale and installation of home network-enabled consumer electronics products will more than double between 2009 and 2013 to more than 100 million units annually. The European market will be particularly strong in such categories as connected TVs, game consoles, Blu-ray players, network-attached storage, alternative set-top boxes, and whole-home DVRs. Sales and installations of such products in Europe will grow from 20 million units in 2009 to almost 40 million by 2013.

CONNECTIONS™ Europe Summit will quantify demand and address the challenges and opportunities created as these Internet-capable devices are added the network in order to share content and expand interactive services. Rob Timmer, Senior Director Net TV, BU TV, Philips Consumer Lifestyle, will deliver the event’s Keynote Address.

Summit Sessions
Connected Europe: Trends and Numbers
Defining the New Video Experience
Evolution of the “Digital Furnace”: Residential Gateways and Set-top Boxes
Business Models for On-Demand Lifestyles
Enabling Technologies: Connecting It All
Wrapping It Up – Predictions for the Next Five Years

Deadline for speaker submissions is August 28, 2009.

Visit www.connectionseurope.com to submit or to register for the event.

Interesting collaboration among Miniweb, Intel, and Metrological Media

The connected CE market will have a new solution that will combine aspects of converged internet and broadcast video services, plus targeted, Web-style advertising on the TV. Miniweb Interactive announced today that it is collaborating with Metrological Media Innovations, a provider of middleware and reference designs based on the Intel® Media Processor CE 3100, to provide CE 3100 powered devices with converged internet and broadcast video services. The collaboration integrates the Metrological Metroconnect OS and the Miniweb services platform and will be available to a range of Intel-based consumer electronics (CE) devices, including satellite, cable and terrestrial hybrid set-top boxes and integrated Digital TV sets.

This platform will be as equally attractive to Internet Service Providers looking to converge broadcast content with their existing broadband offering as it will be with cable, satellite and DTV operators that want to combine broadband enabled OTT video with their existing broadcast services. This platform includes support for web-style interaction; centralized video search & recommendations, community functionality as well as advertising and payments services. The platform is now integrated and ready to order for shipment commencing in two months time.

Over 100 million households worldwide to have telco IPTV services by 2013

Microsoft keynote to address Customer Service and IPTV at CONNECTIONS™ Europe Summit--

Parks Associates welcomed Roger Pitton, Program Director, TV, Video & Music Business, Microsoft Corporation, as the Keynote speaker for CONNECTIONS™ Europe Summit, taking place March 31, in Nice, France. It has a full agenda featuring consumer data and expert analysis on advanced video solutions, digital media solutions, and connected consumer electronics.

The worldwide market for telco IPTV services will exceed 100 million households by 2013, a CAGR of approximately 38%, according to international research firm Parks Associates. Mr. Pitton’s keynote “IPTV and the keys to keeping customers” will address the best business strategies to gain and retain customers in the highly competitive European market for these services.

Mr. Pitton has several years of firsthand experience in marketing and selling IPTV services. In his keynote, he will specify the keys to differentiation, including unique content, an unmatched user experience, and the convergence of technology and content, required for sustaining success.
CONNECTIONS™ Europe Summit Sessions:
>> European Consumer Trends
>> Broadband and Value-added Services
>> Video Services
>> Digital Media Content & Delivery
>> Connected CE
>> Digital Home Tech Support

Event sponsors include Affinegy, Enure Networks, and HomeGrid Forum. Global Sponsors include ActiveVideo Networks, Affinegy, Cloakware, DSC, HD-PLC Alliance, Icron, Macrovision, MoCA, ProVision Communications, Radialpoint, Telcordia, and Zilog.

For more information, visit http://www.connectionseurope.com/.