Parks Associates hosts "Social Gaming" Webcast - FEB 24

Join Parks Associates on Thursday, February 24th at 1 PM CENTRAL for the webcast, SOCIAL GAMING, and examine the current state of the social gaming industry and its business models.

Parks Associates research finds:
-- More than 200 million people play games on Facebook every month
-- 64% of U.S. broadband households with an Internet-connectable game console have it hooked to the Internet, a major increase from 2007, when only 25% had their next-gen console connected
-- PlayStation 3 and Xbox 360 have higher connectivity rates among the current generation of consoles, showing the power of multimedia offerings and popular game franchises in getting gamers online

Pietro Macchiarella, Research Analyst, Parks Associates will feature analysis and forecasts from examining:
-- How are social gaming publishers monetizing their popular games?
-- Are these companies at the mercy of social networks, or are they capable of developing brand loyalty?
-- Are open platforms, free distribution, and low development costs creating low entry barriers to this market?

Click here for registration information.

Nearly two-thirds of U.S. broadband households with a next-gen game console have connected it to Internet

Multimedia content, such as Netflix streaming services, and popular games with online components, such as Call of Duty and Madden NFL, are driving households to connect their game consoles and creating a new foundation for future growth in online video. Parks Associates' new report Connected Game Console Update finds 64% of U.S. broadband households with an Internet-connectable game console have it hooked to the Internet, a major increase from 2007, when only 25% had their next-gen console connected.

PlayStation 3 and Xbox 360 have higher connectivity rates among the current generation of consoles, showing the power of multimedia offerings and popular game franchises in getting gamers online. Despite the Wii's built-in wireless capabilities, it has been less successful in getting users online due to less compelling online games and multimedia content. However, with its large installed base, it still is a significant player in this market.

Parks Associates forecasts households will connect more than 260 million game consoles worldwide to the Internet by 2015. Broadband connectivity enables new business models for game consoles and positions them as hubs for all household entertainment services. Both Microsoft and Sony are now leading providers of premium Internet video content and derive a large share of their gaming revenues from their digital video outlets.

Nearly one-fifth of active gamers in the U.S. spend money on virtual items

The gaming business is undergoing a major shift away from subscription models as virtual items become a larger part of its economy, reaching almost $6 billion worldwide in microtransaction revenues by 2015, according to international research firm Parks Associates.

Gamers are investing real money in virtual items in Farmville, World of Warcraft, and other online games, to the point they are filing lawsuits to establish ‘ownership’ of these virtual goods. The enormous player base, availability on multiple devices, and the introduction of instruments such as Facebook Credits contribute to growing revenues.

The Parks Associates’ new report Online Gaming: Global Outlook finds 19% of active gamers in the U.S. spend money on in-game virtual items. In contrast, subscribers to premium online game services decreased from 35% in 2008 to 28% in 2010. Publishers of social games, like Zynga, have seen revenues explode as larger percentages of their customers opt to pay for virtual items. The same trend is visible for massively multiplayer online games, where companies such as Nexon America have managed to reach millions of dollars in revenues from microtransactions.

It is becoming increasingly difficult to justify subscription fees. Thanks to social games and free-to-play MMOs, both casual and hardcore players have the option of playing quality games online for free. The virtual-items model that has proven so successful in Asia is finally generating significant revenues in North America.

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.

National 3D Demo Days

As we indicated in our Trends in 3DTV report, educating consumers about 3DTV is one of the biggest challenges that the CE industry faces. Experiential marketing is going to play a more important role than it has played for the launch of other consumer electronics. 3D requires "being seen". Considering that most of the existing advertising channels are two-dimensional, manufacturers will have to rely on retail channels and road shows to promote their products. We are likely to see more initiatives like the National 3D Demo Days, currently promoted by CEA and ESPN.

3DTV coming of age soon

Jim O'Neill wrote a very nice overview of 3DTV on FierceIPTV.

The concept of 3D is becoming more of a reality as 3D-ready consumer electronics become more affordable and the availability of content increases.

There are many obstacles on the way to success: low consumer engagement, difficulties in marketing 3DTV effectively, advertising issues, etc.

However, as I told Jim, "there is no doubt in my mind that 3D is here to stay, and it will be a standard feature in sets being sold."

Increasing consumer awareness, lower prices, and quality content will contribute to its success.

More content and lower costs will push 3D into more CE

Parks Associates reports a modest increase in awareness of 3DTV among U.S. broadband households in 2010, but the mainstream viability of 3D depends on availability of premium video content and not one-off events such as the World Cup.

The firm’s latest report Trends in 3DTV finds 13% of households are familiar with 3DTV, an increase from 10% from the previous quarter. In some cases, 48% of these households are willing to pay for 3D content, provided they have access to the right types of content, including movies and TV shows.

Efforts such as the ESPN 3D broadcast of the 2010 World Cup are great experiments and effective in building awareness of the technology, but they have not resulted in extraordinary 3D TV sales. As content and service providers launch new 3D channels and Blu-ray discs, consumers will start to see more value in this technology, and shipments will increase as a result. By 2014, 80% of the TVs sold in the U.S. will be 3D-ready.

Parks Associates research indicates 3D movies generate the most interest from U.S. consumers. One-third or fewer of consumers are willing to pay for 3D television shows and sporting events, but nearly one-half are willing to pay for 3D movies. Trends in 3DTV provides a detailed overview of 3D technology and examines business strategies by industry segment. The report analyzes the availability of content, reviews issues and progress with each content delivery method, and describes the impact of 3D on CE.

Revenues from Network-Attached Storage to Exceed $4.4 Billion in 2014

DVRs and video downloads will push the storage needs of U.S. broadband households to almost one terabyte by 2014, creating a parallel rise in the market for file backup and storage solutions, according to international research firm Parks Associates.

Parks Associates’s new report Consumer Storage Opportunities finds almost 50% of households are performing regular backups, including external storage, flash drives, and online backup, up from only 35% in 2006.

This is a classic example where growth in one area is spurring another industry. As people accumulate more digital content, the prospect of losing that data becomes more ominous. Companies marketing network-attached storage (NAS) and home server devices should target high-use consumers such as videophiles and music enthusiasts and demonstrate the ease with which these products protect against loss of critical data.

The majority of consumers still use less-reliable media such as CDs, DVDs, and flash drives, but in the past four years, portable hard drives and direct- and networked-attached storage have become more popular. This trend will accelerate, fueled by growth in digital media and dropping storage costs. In particular, product revenues from NAS devices will nearly quadruple between 2010 and 2014.

Parks Associates hosts 'Trends in 3D TV' webcast, June 24

Join Parks Associates on June 24th at 1 pm CENTRAL for the Trends in 3D TV webcast. This will be a great opportunity to learn more about latest 3D TV consumer research and the business opportunities and implications for CE manufacturers, content creators, and service providers.

Pietro Macchiarella, Research Analyst will present analysis and forecasts from Parks Associates examining the following questions:

-- What challenges will 3D TV present within the digital content and CE ecosystem?
-- What opportunities will it offer?
-- What is the consumer mindset regarding 3D?

3D TV advocates are moving quickly to bring this technology to market, despite lingering skepticism of its mainstream viability. Several 3D services have launched in Europe and the U.S. (from industry heavyweights such as Sky, DirecTV, Comcast, and ESPN), and CE manufacturers are starting to deploy 3D-ready models at retail.

Click here for registration information.

Parks Associates Analyst speaks at the NAB Show

Pietro Macchiarella, Research Analyst from Parks Associates is moderating the NAB Show's Broader-casting track "Digital Shopping: Video Transforms eCommerce & the Retail Experience" on Tuesday, April 13, 10:30 - 11:30 a.m. in Las Vegas.

“All digital, everywhere, all the time” enables new networks to thrive and supports new outlets for syndication or licensing. Programming can be tied to video shopping, taking place on multiple devices within and outside of the home. And now other environments can support standalone video networks which allow sell-through to move products, expanding the notion of brand ROI. Even better for the consumer— video can also transform retail spaces into experiential marketing experiences.

For more information about the NAB Show, click here.