- Smart TVs now represent the most important point of entertainment aggregation, control, and data collection in the connected home, according to Parks Associates.
- Eighty-seven percent of US internet households subscribe to at least one OTT video service. More than half of US broadband households now combine one of Netflix, Amazon Prime or Disney+ services with at least one other subscription OTT service to form their online video service portfolio.
- Increases in connected device ownership, increased streaming video, and a large remote workforce have further strengthened the importance of home internet.
READ MORE: Following CES, Parks Associates Releases Top Insights across Key Tech Categories in Connected Home, Streaming Video, Health, SMB, and More (Parks Associates)
Smart TVs now represent the most important point of entertainment aggregation, control, and data collection in the connected home, according to a new report from Parks Associates, “2023 Top Insights – Smart Home,” based on findings from the Consumer Electronics Show.
The research analysts report that annual home service spending is $340 billion across home phone, internet, mobile, security and video services, amid continued growth of value-added services and connected devices in the home.
Consumers now place more value on their home’s internet service than previously. Increases in connected device ownership, increased streaming video, and a large remote workforce have further strengthened the importance of home internet.
Parks reports that consumers are seeking new bundles and services incorporating multiple service offerings, including home internet, pay-TV, landlines, mobile phones, and home security. The rise of these bundles, including broadband value-added services, has more than offset the decline in traditional bundles, it finds.
Such bundling and aggregation offer the traditional TV broadcaster “a path forward to reimagine video offerings in a multi-channel, multi-platform world,” the analyst says.
READ IT ON AMPLIFY: CES 2023: Where Are We With Smart TV Platforms?
READ IT ON AMPLIFY: CES 2023: The Consumer Technologies That’ll Impact Your Year
Data about consumer viewing via connected TVs allow providers to offer an improved experience with more relevant and personalized experiences for the viewer. Meanwhile, advertising partners can execute targeted marketing campaigns based on specific interests and behaviors. Parks cites new technologies promising to bring the “shoppable ad” vision to reality on TV through T-commerce experiences.
Content remains king — that is, the most significant factor influencing consumers’ viewing decisions regarding retention, engagement, and customer acquisition, per Parks’ report. Of this, live content has become a key component of many OTT service offerings and a staple of the consumer video portfolio, with good reason.
Sports programming, the biggest and most valuable component of live TV, is migrating from traditional broadcast television to internet streaming channels. Parks thinks that this transition makes it challenging for sports fans to locate content but that this creates opportunities for providers if they can attract fans with a bundled experience.
Internet service providers, meanwhile, are “modifying their relationships with pay-TV, treating the service as a value-add to home internet, and transitioning away from legacy cable head ends to cloud-based infrastructure and streaming TV services.” The goal is to reduce operational costs and widen service appeal, says Parks.
The analyst also notes that piracy is a real problem, potentially costing more than $67 billion dollars worldwide. It expects streaming services to experiment with new ways to protect content and to explore business models that can help recoup lost revenue from password sharing.
CONNECTING WITH CONNECTED TV:
- Connected TV Takes Over the World
- Connected TV Is the New TV, and That’s Where We Are
- FAST TV and SVOD Are “Channeling” the Cable Business Model
- More Consumers Are Headed Into the FAST Lane
- SVOD vs. AVOD Today, All Connected TV Tomorrow
- Ways Pay TV Operators Can Win the SVOD Game