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As free to air TV stations struggle to hold onto viewers and advertisers, comes news that consumers are prepared to pay a small premium for TV’s with an Internet connection that allows them to access online content.
As free to air TV stations struggle to hold onto viewers and advertisers, comes news that consumers are prepared to pay a small premium for TV’s with an Internet connection that allows them to access online content.
International research firm Parks Associates claims after an extensive research study that consumers are ready to purchase an Internet-connected TV if priced at a $150 premium over regular TVs. This figure translates into $400 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,” said John Barrett, director of research, Parks Associates. “Most people can get popular video titles though their pay-TV providers, but if they want to want niche or personal content on their TV, they have to burn or buy DVDs. With a connected TV, they suddenly have lots more options.”
