Advanced Television

Research: Untapped market for connected devices in US

September 30, 2010

According to a report by The NPD Group, there is a large and untapped market for devices that offer connected capabilities and the digital content played on those devices. NPD’s report reveals how US consumers are adopting connected devices and using digital content, as well as what motivates specific consumer groups to use connected devices and connect to, and purchase, content.

“What we learned in our research is that while some people already experience the world in a connected way, most do not,” said Russ Crupnick, vice president and senior entertainment analyst for NPD. “For many who are connecting it is not about the flashiest apps, but more about the fundamentals like web browsing and email. The promise of the connected experience is coming, as prospective Blu-ray owners want their players to come with connectivity, and half of game consoles are already connected. The doors are also opening wider for music, video, gaming and other forms of entertainment.”

According to NPD’s report, as the industry grows consumers are beginning to access a broader array of content and services, and they are doing so from more devices. Although 75 per cent of US consumers (age 13 and older) did not connect or download content in the previous three months, 15 per cent connected and downloaded content via PC or Mac computer; 6 per cent connected with a video-game player; 4 per cent connected via smartphone; and 2 per cent connected via a Blu-ray Disc player or a digital video player, like Apple TV or Roku.

Devices with associated services, like XBox Live and Amazon’s Kindle store, are driving content associated with particular types of devices, but owners are consuming more general content, as well; for example, smartphone platforms are increasingly accessing a range of media services, from games to music to video to productivity apps. “Discoverability, driven by a rich user experience, is key to content exposure,” according to Anita Frazier, industry analyst for toys and video games for NPD.

Categories: Articles, Consumer Behaviour, Equipment, Mobile, Portable Media, Research