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March 05, 2009

Report: Increased Interest in Web-Enhanced Features on TV

By Jayashree Adkoli, TMCnet Contributor


Research firm Parks Associates has indicated in its new white paper, “From Boob Tube to YouTube (News - Alert): Consumers and TV,” that more than 33 percent of U.S. broadband households are showing a strong interest in Web-enhanced features such as widgets for connected TVs and set-top-boxes (STBs).  
 
In general, a Web widget is a portable chunk of code that can be installed and executed within any separate HTML-based Web page by an end user without requiring additional compilation. Widgets are organized and save time with live updates and provide an at-a-glance view with a rich user experience.  
 
Connected TV brings an interactive widget-based user experience to the TV, as well as best of the Web to a wide array of livingroom devices via various TV Widgets. With this, a user can watch Internet content while watching a TV show, chat with friends, share photos and video via community Web sites, or personalize widgets and watch a missed episode of a TV show, all on TV screen. 
 
The report also indicates that nearly 50 percent of U.S. viewers are interested in premium Web content such as video-on-demand (VoD) libraries, including TV shows and movies, through a connected set-top box. Web-like displays that show customized news, weather, sports, or traffic information are the ones that have attracted the viewers the most, said the research firm.
 
With first generation of these video services driving the adoption of connected television experiences in the U.S., service providers and consumer electronics manufacturers are benefiting the most - with higher margins and ARPU (average revenue per user), says the report.
 
"Broadband households are growing accustomed to viewing video off the Internet," said Kurt Scherf, vice president, principal analyst, Parks Associates (News - Alert). "Demand for Web and user-generated content will increase, and those desires will influence their CE purchases and service provider choices. Widgets and VoD libraries will be the first in a long line of advanced video services people will want in their living rooms."

Scherf also said that consumers are responding favorably to enhanced interactive features and are also willing to pay - either on the price of a television or as an additional subscription cost - for certain features.
 
Parks Associates said that the present connected TV research at CONNECTIONS Europe in Nice, France, and also at the Cable Show.
 
The company creates research capital for companies ranging from Fortune 500 to small start-ups by offering market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is Fixed Service Strategies for Mobile Network Operators, brought to you by Comverse (News - Alert).

Jayashree Adkoli is a contributing editor for TMCnet. To read more of Jayashree's articles, please visit her columnist page.

Edited by Michelle Robart



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