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.

IGUGU Gamecore - another PC-to-TV solution

Here's another offering in the wireless PC-to-TV solution category. The IGUGU Gamecore includes a transmitter/receiver to provide connection between the computer and television, and IGUGU has also designed a ten-foot user interface for PC applications on the TV, particularly gaming. ASUS' WiCast product is another one on the list.

Veebeam - another addition to the wireless PC-to-TV connection products list

A couple of weeks ago, I commented on the number of wireless PC-to-TV products that are popping up, taking advantage of a market trend where ten million U.S. households will be using some kind of computer-to-television hookup by the end of this year to watch online video.

Now, you can add Veebeam, which has two PC-to-TV video streamer products. Two models will be available--the $99 Veebeam SD and the $139 Veebeam HD (which adds an HDMI output).

Wireless PC-to-TV product market is heating up

During last week's Webcast - Connected TV Outlook - I had looked at PC-to-TV connections as one iteration of a "connected TV" experience. The number of U.S. households making connections between a computer and their high-definition display to watch online video is not insignificant - it was nearly six million households at the end of last year and it's expected to exceed ten million households this year.

This could spell an opportunity for developers of wireless PC-to-TV links. We've seen reference designs from companies such as Alereon and icron, and now we're seeing end-user products from the likes of IOGEAR, NETGEAR, and Wisair. The latest entrant is ASUS, which will use AMIMON's wireless technology for its upcoming WiCast EW2000 PC to TV connectivity kit.

Intel's GM to keynote at CONNECTIONS

INTEL's GM for Retail CE, Wilfred Martis, will be the new keynote at the CONNECTIONS Digital Living Conference June 8-10 in Santa Clara. He will be discussing "Smart TVs: Ready for Primetime."

Martis joins other keynotes including:

-- Joseph Ambeault, Director, Product Development & Management, VERIZON - The Service Provider and the Connected Home
-- Scott Birnbaum, VP, SAMSUNG - TV Technology in the New Age of Consumer Buying
-- Mitch Singer, CTO, SONY - Entertainment in a Connected World

Nearly 20% of U.S. broadband households have a PC-to-TV connection and the vast majority is using a DIY solution (like game consoles) to stream online video. Parks Associates forecasts Web-connected consumer electronics will grow from 57 million devices in 2009 to more than 200 million by 2013, with Web-connected TV shipments exceeding 80 million units by 2013.

For advanced advertising, U.S. revenues for online video advertising will exceed $1.3 billion in 2010. Almost 50% of heads-of-household aged 18-34 indifferent to targeted advertising, while 42% aged 25-54 and 25% aged 55 or older are similarly neutral.

For more information about the CONNECTIONS Conference, visit www.connectionsus.com.

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.