International market research firm Parks Associates predicts three million US broadband households plan to purchase an Internet-connected TV during the 2010 Christmas shopping season, further eroding consumer need for brick-and-mortar video sources.
Nearly 25 per cent of US 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.
“Only 38 per cent of US 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,” said Kurt Scherf, VP, principal analyst, Parks Associates. “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.”
The significant enthusiasm for these devices does not offset the drop in CE buying intentions reported for this holiday shopping season. In 2009, almost 50 per cemt of US broadband households planned a CE purchase.
“Manufacturers, retailers, and technology providers are noting the tight consumer purse strings,” said Tricia Parks, CEO, Parks Associates. “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.”