Connected TV market to hit 76% by 2015

While their presence was more subtle than 3DTV and not as in-your-face as non-iPad tablets, connected consumer electronics devices were more diverse and pervasive at the 2011 International Consumer Electronics Show in Las Vegas, with every major manufacturer showing off new electronics that have their own built-in apps and can access content from the Internet.

With devices that incorporated complete Internet browsers, HDTVs that offered hundreds of applications, even set-tops that turned current HDTVs into a completely connected device, the theme of combining the home theater set-up with a PC experience was everywhere.

“We’re starting to see some real trends develop here,” said Kurt Scherf, VP and principal analyst with Parks Associates. “And connected TV is not just about online video.”

Consider: In 2010 less than a quarter of all HDTVs were connected, according to research firm Parks Associates. By 2015, Parks believes that number will hit 76% (more than 150 million units). The firm projects that by 2015 there will be more than $8 billion worth of transactions on connected consumer electronics devices, from e-purchases to gaming to VOD and streaming.

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CES is over, so now what? Analyst predictions.

Huge TVs and digital photo frames. Smarter remotes and 3D games. Home controls, home networks and home monitoring. By now everyone knows the buzz from CES, but what's next?

Parks Associates analysts reveal the following consumer research data and forecasts:

• Consumers want videos & programs on demand more than anything when it comes to value-added TV features.
• Broadband video services pushing a movies-only format underperformed; movie rentals/downloads from the Internet were only $99 million in 2007.
• Consumers are buying more broadband video - 48% of broadband Internet users watch Web video on at least a monthly basis and 20% are downloading longer episodes.
• More people use iTunes to download videos longer than 10 minutes. Amazon.com's Unbox & BitTorrent services follow in second & third place.
• In 2008 and beyond, we'll see a greater emphasis placed on bringing broadband video to the television via media adapters, game consoles, and network-connected devices such as TVs, stand-alone set-tops, and DVD players. Broadband video revenues for content consumed at the television will total $1.5B by 2012.
• The connected home - More people want the ability to monitor webcams in their homes from any Internet-connected device, more so than to control a home's thermostat from an Internet-connected device or to control lights from an Internet-connected device.
• Mobile Internet will begin to see mass market adoption, and the form factors will diversify to include devices such as portable multimedia players (PMPs) and portable game consoles.
• There will be major investments in the cable MSO space. Switched digital and DOCSIS 3.0 will help to reclaim bandwidth and expand offerings.
• Place-shifting features (currently embodied through products such as Slingbox and Orb Networks) will move beyond after-market products with nearly 53M WW households using such features by 2012.
• Virtual worlds will ride the hype cycle, and we'll see a growing emphasis on these applications in corporate settings as a means to enhance collective collaboration.
• The 700 MHz auction will spur more innovation on the mobile phone handset and will reduce the influence of the mobile carriers.
• Home theater systems become the next "appliance" offered by home builders.
• Europe will be the decisive market for powerline networking.
• Tracking new payment methods (such as micro-transactions) for online consumers will be an interesting model to watch.
• The first major cracks will appear in the movie distribution widows, and video-on-demand services will be enhanced by the earlier availability of certain content.
• The in-car entertainment experience begins to reflect the living room.

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