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Consumers & Emerging Multimedia Platforms: A Multiclient Study
A multiclient FROM PARKS ASSOCIATES
By The Parks Associates’ Analyst Team

Publish Date: Sep 04

SYNOPSIS

In the last three years the consumption of digital content and services at a variety of platforms in the home has inextricably changed the landscape for both service providers and technology developers. This survey of 4,000 U.S. Internet households highlights those changes, identifies key consumer segments driving tomorrow’s purchases, and provides a broad examination of trends shaping the “digital home” outlook.

“Commercial and self-created/personalized media content will be a driving force behind consumer acquisition of digital products and services, including home networking,” said Kurt Scherf, vice president and principal analyst. “Understanding exactly which consumer segments are driving content consumption will be key in positioning tomorrow’s hardware, software, and value-added services offerings to appropriate early-adopters.”

Download PDF of Table of Contents

CONTENTS: Consumers & Emerging Multimedia Platforms Executive Summary
1.0 Executive Summary
  
1.1 The Focus on Multimedia Platforms
      1.1.1 Questions Seeking to Be Answered in This Study
      1.1.2 What are Multimedia Ecosystems?
      1.1.3 Survey Methodology
   1.2 Major Findings: Access to the Home
      1.2.1 Broadband Internet Service
         Penetration Has Increased Among Lower-Income Households
         Broadband is Beginning to Cross the Age Gap
         Broadband Use at Home is More Prevalent Among Younger Consumers, Meaning Opportunity for Product Ecosystems
         Interest in Broadband among Dial-up Remains Strong
   1.3 Major Findings: Services & Content
      1.3.1 Television and Other Services
         The Cable/Satellite Duel is Key
         The Digital Video Recorder (DVR) is a Launch Platform for New Service Offerings
         PPV and VOD Programming Grow into Key Content Services
         Characteristics of “Advanced Video Services” Customers
            Common Characteristics
            Distinguishing Characteristics
            Differentiating Characteristics
      1.3.2 Bundled Services Offerings
         Bundles are Becoming More Popular: Digital Cable Subscribers are Far More Likely to Subscribe to the Triple-Play
         The Appeal of the Bundle is Nearly Ubiquitous: What Will Make Consumers Switch to Such a Service?
            Demographics that Matter: Appeal of the Bundle
      1.3.3 Media Owned and Consumed in Internet Households
         Characteristics of Active Digital Music Consumers
            What Defines an Active Digital Music Consumer?
            Key Demographics
            Additional Music Data
         Characteristics of Active Television Video Consumers
            What Defines an Active Television Video Consumer?
            Key Demographics
         Characteristics of Active Computer Video Consumers
            What Defines an Active Computer Video Consumer?
            Key Demographics
            Additional Video Data
         Characteristics of Active Photography Consumers
            What Defines an Active Photography Consumer?
            Key Demographics
         How “Clean” Are These Segments? Tracking the Level of Overlap
   1.4 Consumer Trends: The Internet as a Multimedia Pipeline?
      1.4.1 How Do Internet Households Use the Internet?
      1.4.2 But Is There an Upward Trend for the Internet as an Entertainment Pipeline?
         Overall Spending for Internet Services
            Demographics that Matter: Paying Customers for Online Music Services
            Demographics that Matter: Paying Customers for Online Video Services
            Demographics that Matter: Paying Customers for Online Game Services
            Demographics that Matter: Paying Customers for Voice-over-IP Service
         Who’s Likely to Pay for Online Music?
            Music Downloads
            Music Subscriptions
   1.5 Home Computer Ownership Trends
      1.5.1 Where are Home Computers Used?
         Characteristics of Households Least Likely to Have a Home Computer in the Home Office
         The Implications of Laptop Use Locations
      1.5.2 Co-Location with Entertainment?
   1.6 Consumer Trends: The PC as Multimedia Hub
      1.6.1 How are Consumers Using Home Computers for Multimedia Applications?
         Demographics that Matter: PC as a Multimedia Tool
      1.6.2 How Does the Media Center PC Shift Usage Habits?
      1.6.3 Ownership and Likelihood of Purchasing Media Center PCs
         Current Owners
         Likely Purchasers
   1.7 Moving Content from the PC to CE: Interest in Connectivity Solutions
      1.7.1 Current PC-to-CE Connections
      1.7.2 Interest in Emerging Home Networking Solutions
         Characteristics of High Intender (6 or 7) Households at $200
      1.7.3 Likelihood of Purchasing Solutions
         Media Adapter for Music
         Media Adapter for Video
   1.8 Consumer Trends: Home Networking
      1.8.1 Multiple-PC Penetration in Internet Households
      1.8.2 How Multi-PC Households are Derived
      1.8.3 Who Owns a Home Network and What Technology is Used?
      1.8.4 The Role of the Service Provider in the Home Network Acquisition
   1.9 The Media Server
      1.9.1 Media Server Functionality Should be Integrated Into…
         Which Form Factor Has Gained Attention in Previous Studies?
         Form Factor Preferences: By “Active Media” Consumers
         What about the Set-top Box among Pay TV Subscribers?
      1.9.2 Likelihood of Purchasing Media Server at Various Price Points1.9.3 Preferred Media Server Interfaces
      1.9.3 Perceived Value of Media Server Applications
         Music
         Stored Video Content
         Accessing Information: Inside/Outside the Home
   1.10 Remote Controllers
      1.10.1 Consumers Have Too Many
      1.10.2 Interest in a Single Remote is Strong
      1.10.3 Interest in Advanced Remote Controllers
   1.11 Home Controls
      1.11.1 Appeal of Remote Control Applications
      1.11.2 Appeal of Using Internet-Connected PC as Controller
      1.11.3 Appeal of Home Monitoring Solutions
   1.12 Structured Wiring
      1.12.1 Interest in Pre-Installed Home Network at Various Prices
         What Drives Structured Wiring? Multiple PCs and Networking
         What Drives Structured Wiring? High-end Entertainment
SLIDE DECK: Consumers & Emerging Multimedia Platforms: Final Research Results
Slides 5-6: Survey Methodology
Slides 7-31: Consumer Segmentation: Active Multimedia Users
Slides 32-43: Section B: Consumer Electronics Ownership
Slides 44-48: Section B: Televisions and Home Theater Systems
Slides 49-53: Who’s a Buyer?
Slides 54-62: Section B: Consumer Electronics Purchase Intentions: Portable Consumer Electronics
Slides 63-70: Section B: Consumer Electronics Purchase Intentions: A/V Equipment/Components
Slides 71-76: Section B: Consumer Electronics Purchase Intentions: Televisions
Slides 77- 81: Section B: Consumer Electronics Purchase Intentions: Home Computers and Equipment
Slides 82-88: Section B: Focus on Home Computer Ownership
Slides 89-91: Section C: Movies in the Home
Slides 92-97: Section C: Digital Cable vs. Satellite TV
Slides 98-103 Section C: Pay-Per-View, VOD, and DVRs
Slides 104-108: Section C: Broadband, Bundled Services, and VoIP
Slides 109-112: Broadband Upgrades
Slides 113-116: Section C: Current Bundle Subscriptions
Slides 117- 121: Section C: Attractiveness of Bundles
Slides 122-132: Section D: PCs as Multimedia Hubs
Slides 133-142: Section D: Home Computer Use for Multimedia
Slides 143-145: Key “Multimedia Ecosystems”: Music, Photography, Television, Movies, and Home Video
Slides 146-157: Section D: Media Center PC
Slides 158-177: Section E: The Home Data Network
Slides 178-198: Section E: Internet Content
Slides 199-216: Section G: Media Servers
Slides 217-222: Section H: Home Control
Slides 223-228: Section I: Hot Spot and Broadband Wireless
Slides 229-235: Section J: Remote Controls

 

FIGURES: Consumers & Emerging Multimedia Platforms Executive Summary
The Multimedia Value Chain
Multimedia Ecosystems
Access Technologies in Broadband Households
Growth of Cable/DSL Broadband Service
Broadband Penetration: By Household Income
Broadband Penetration: By Age of Respondent
Comparing Broadband Use by Age Categories: Activities Done at Least Monthly via the Internet
Household Members Using Broadband Internet
Proclivity for Digital Music Applications: By Age of Broadband Users
Percentage of Dial-up Subscribers Likely to Upgrade to Broadband
Likely Broadband Upgraders: By Household Income
Likely Broadband Upgraders: By Age of Respondent
Paid Services Used by Internet Households
Growth of Premium Television Services: 1998-2003
Premium Television Subscriptions: By Internet Access Subscription
DVR Subscriptions: By Digital Cable/Satellite Television Subscriptions
DVR Subscriptions: By Digital Cable/Satellite Television Subscriptions
Pay at Least Monthly for PPV and VOD Programming
Movies Ordered via Pay-per-View, Monthly
Services Used by Internet Households: Broadband, Bundles, and VoIP
Presence of Triple-Play Bundle: By Premium Television Subscription
Subscribe to a Bundled Service Package: By Household Income
Attractiveness and Chances of Switching to One Company for Voice, Video, and Data Services
Appeal and Likelihood of Switching Providers: The Lure of Bundled Services Packages
Home Computer Capabilities and Hardware
Percentage of Respondents Exhibiting Individual Traits of Active Music Consumers
Targeting the Active Digital Music Consumer
Demographic Characteristics: Active Digital Music Consumers
Number of Music CDs in the Household
Number of Music Files Personally Downloaded onto a PC
Monthly Expenditures for Streaming/Downloading Online Music
How is Fee-Based Online Music Typically Used?
Percentage of Respondents Exhibiting Individual Traits of Active TV Video Consumers
Targeting the Active Television Video Consumer
Demographic Characteristics: Active Television Video Consumers
Percentage of Respondents Exhibiting Individual Traits of Active Computer Video Consumers
Targeting the Active Computer Video Consumer
Demographic Characteristics: Active Computer Video Consumers
Number of Movies Owned by Internet Households
Monthly Expenditures for Streaming/Downloading Online Video
Percentage of Respondents Exhibiting Individual Traits of Active Photography Customers
Targeting the Active Photography Consumer
Demographic Characteristics: Active Photography Consumers
How Much Overlap Exists Between Content Segments?
How Consumers Use the Internet
Percentage of Broadband Households Using the Internet for Entertainment
Broadband Use for Entertainment: Targeting the 18-24 Age Bracket
Average Money Spent, per Month for Online Content
Monthly Spending on Online Services
Who Pays for Online Music?
Who Pays for Online Video?
Who Pays for Online Games?
Who Pays for VoIP Services?
Likelihood of Buying Online Digital Music
Who is Likely to Pay for Music Downloads?
Who is Likely to Pay for Music Subscriptions?
Desktop Computer Locations and Laptop Use
Is a Desktop PC Co-Located with a Primary Television and/or Stereo?
Are Desktop Home PCs Co-located with the Primary Entertainment Ecosystem?
Computer Usage Habits, Monthly
Weekly Activities on the PC: By Age
Weekly Activities on the PC: By Gender
Monthly Activities on the PC: By Media Center PC Ownership
Weekly Activities on the PC: By Media Center PC Ownership
Ownership of a Media Center PC: By “Content Segment”
Awareness and Ownership of Media Center PCs
When Did You Purchase Your Media Center PC?
Decision Criteria for Buying Media Center PC
Importance of Media Center PC Capabilities
Who’s Likely to Purchase a Media Center PC: By “Content Segment”
Likelihood of Purchasing a Media Center PC
Most Important Reason for Media Center PC Interest
Preferred Option for Buying a Media Center PC Who’s Likely to Purchase a Media Center PC: By Use of the Home Computer
Are Computers Connected to TVs/Stereos?
Uses of PC Connection to TV/Stereo
Appeal of Media Adapters/Wireless Speakers
Appeal of and Likelihood of Purchasing: Digital Music Adapters
Appeal of and Likelihood of Purchasing: Digital Video Adapters
Penetration of Multiple PCs in Internet Households
Configuration of Multiple-PC Households, 2001
Configuration of Multiple-PC Households, 2004
Percentage of Internet Households with a Data Network
Percentage of Internet Households that Have a Data Network: 2001-2004
Network Media Used for Data Connectivity
Who Has Been Offered and Who Has Accepted Home Networking Solutions from their Broadband ISP?
Recent Broadband ISP Success in Deploying Data Networks?
Current and Planned Connections on the Home Network
Do Non-Networked Households Intend to Acquire Home Networking Components?
Broadband Households Likely to Acquire Home Networking Components
Media Server Functionality Should be Integrated Into:
Most Reliable Platform: Receiving & Controlling a Variety of Services (2001)
Most Reliable Platform: Receiving & Controlling a Variety of Services (2003)
Comments from Consumers about a “Living Room PC”
Media Server Functionality Should be Integrated Into: (By “Content Segment”)
Media Server Functionality Should be Integrated Into: (By “Pay TV Subscriptions)
Media Server Functionality Should be Integrated Into: (By DVR Status)
Likelihood of Purchasing a Media Server: Various Price Points
Desired Interface for Media Server
Desired Programming and Configuration Interfaces
Perceived Value of Remote Search/Play Capabilities
Perceived Value: Transfer Music Playlists to Other Devices in the Home
Perceived Value: Search, Watch, Pause, and Replay Media from Other Devices in the Home
Perceived Value: Transfer of Recorded Video to Portable Players
Perceived Value: Interactive Program Guide for All Stored Content
Perceived Value: Applications from a TV or PC Inside the Home
Perceived Value: Applications from Devices Outside the Home
Number of Remote Controls Used
How do Consumers Feel about the Number of Remote Controls Owned?
How Valuable is a Single Remote to Control Any TV or Stereo from Any Room in the Home?
Appeal of Universal Remote Form Factors
Appeal of Universal Remote Form Factors: By “Content Segment”
Big Screen TV and Home Theater Intenders More Interested in a $250 Universal Remote than Non-intenders
Appeal of Remote Control Applications
Appeal of Using Internet-Connected PC as Controller
Appeal of Home Monitoring Solutions: Broadband Households
Likelihood of Adding a Full Network: At Additional Costs Per Month
Likelihood of Adding a Full Network: $50 (PCs and Networks)
Likelihood of Adding a Full Network: $30 (PCs and Networks)
Likelihood of Adding a Full Network: $15 (PCs and Networks)
Likelihood of Adding a Full Network: $50 (High-End Entertainment)
Likelihood of Adding a Full Network: $30 (High-End Entertainment)
Likelihood of Adding a Full Network: $15 (High-End Entertainment)
FIGURES: Consumers & Emerging Multimedia Platforms Appendices

Section 1.0 Appendix Section B
Percentage of Households with at Least One CE Product: Major CE Products
Growth of Penetration of CE Products in Internet HHs: 2001 to 2004
Growth of Penetration of CE Products in Internet HHs: 2001 to 2004
Average Number of Products Per Household: Major CE Products
Average Number of Products Per Household: 2001 to 2004
Average Number of Products Per Household: 2001 to 2004
Percentage of Households with at Least One CE Product: Televisions and A/V Systems
Average Number of Products Per Household: Televisions and A/V Systems
Millions of Consumer Electronics Products in U.S. Internet Households
Percentage of U.S. Internet Households Using Specific Home Computer Brands
Likelihood of Purchasing a Mobile Phone
Likelihood of Purchasing a Portable Digital Music (MP3) Player
Likelihood of Purchasing a Game Console
Likelihood of Purchasing a Stand-alone Digital Camera
Likelihood of Purchasing a Digital Camcorder
Likelihood of Purchasing a PDA
Likelihood of Purchasing a Portable Game Player
Likelihood of Purchasing a DVR
Likelihood of Purchasing a DVD Player
Likelihood of Purchasing a Stereo
Likelihood of Purchasing a TV
Likelihood of Purchasing a Big Screen TV
Likelihood of Purchasing a Flat Panel TV
Likelihood of Purchasing a Flat Panel TV
Likelihood of Purchasing a Home Theater System
Likelihood of Purchasing a Wireless Computer Monitor
Likelihood of Purchasing a Desktop PC
Likelihood of Purchasing a Laptop PC
Likelihood of Purchasing a Multi-room Audio System
Likelihood of Purchasing Home Theater Cables
Summary of Purchase Intentions: Mobile Consumer Electronics
Summary of Purchase Intentions: A/V Equipment/Components
Summary of Purchase Intentions: Televisions
Summary of Purchase Intentions: Home Computers and Equipment
Did Households Add Equipment to Primary Entertainment Center?
Degree of Difficulty: Connecting the Devices
Degree of Difficulty: Using the Interface to the New Piece of Equipment
Degree of Difficulty: Programming the Remote Controls
How Much Did Households Spend on Entertainment Equipment in the Past Year?

Section 2.0 Appendix Section C
Movies Owned by Internet Households
Paid Services Used by Internet Households
Movies Ordered Via Pay-Per-View, Monthly
Services Used by Internet Households
Access Technologies in Broadband Households
Household Members Using Broadband Internet
Percentage of Dial-Up Subscribers Likely To Upgrade to Broadband in the Next 12 Months
Most Important Driver to Subscribing to Broadband
Most Important Inhibitor to Subscribing to Broadband
Attractiveness and Chances of Switching to One Company Providing TV, Internet and Telephone on One Bill
Preference for Phone Service Options

Section 3.0 Appendix Section D
Location of Desktops and for Laptop Use
Is a Desktop In the Same Room as a Primary Television and/or Stereo?
Are Computers Connected to TV’s/Stereos?
Uses of PC Connection to TV/Stereo
Preference of Buying Components to Connect Computer top TV or Stereo Wirelessly
Appeal of and Likelihood of Purchasing: Digital Music Adapters for PC-to-Stereo Connectivity
Appeal of Media Adapters / Wireless Speakers
Appeal and Likelihood of Purchasing: Digital Video Adapter for PC-to-TV Connectivity
Operating Systems Used on Home Computers
Home Computer Capabilities and Hardware
Do PC’s Have an Integrated DVR Solution?
Awareness and Ownership of Media Center PC’s
Decision Criteria for Buying Media Center PC
When Did You Purchase Your Media Center PC?
Importance of Media Center PC Capabilities
Most Recent Computer Purchase
Reason for Most Recent Computer Purchase
Time Frame for Most Recent Computer Purchase
Most Important Reason for Media Center PC Interest
Preferred Options for Buying a Media Center PC
Number of Music CD’s in the Household
Number of Songs Downloaded into a PC
Number of Music Files Personally Downloaded into a PC
Computer Usage Habits
When not Using the PC, Do You Turn it Off?

Section 4.0 Appendix Section E
Percentage of Internet Households with a Data Network
Configuration of Home Network
Network Media Used for Data Connectivity
Has the Wi-Fi Network Changed Your Computer Use?
Have Broadband Subscribers Been Offered Home Networking Solutions?
Did Broadband Subs Accept the Home Networking Offer?
What is Connected to the Home Network?
Current and Planned Connections on the Home Network
Brand of Data Networking Equipment Used
Has the Home Network Improved Quality of Life?
Do Non-Networked Households Intend to Purchase Home Networking Equipment in the Next 12 Months?
Most Important Reason for Wanting to Purchase Home Networking Equipment
Which Home Networking Technology Are You Likely to Purchase?
Most Important Reason for NOT Acquiring Home Networking Equipment

Section 5.0 Appendix Section F
How Consumers Use the Internet
Monthly Spending on Online Services
How is Fee Based Online Music Typically Used?
Likelihood of Buying Online Digital Music

Section 6.0 Appendix Section G
Media Server Functionality Should be Integrated Into
Likelihood of Purchasing a Media Server at Various Price Points
Consumer Preferences: Purchase or Rent the Media Server?
Desired Interface for Media Server
Desired Programming and Configuration Interfaces
Perceived Value of Remote Search/Play Capabilities: By Type of Music Played
Perceived Value of the Ability to Transfer Music Playlists from the PC to Other Devices in the Home
Perceived Value of the Ability to Search, Watch, Pause and Replay Media from Other Devices in the Home
Perceived Value of the Ability to Transfer Recorded Video to a Variety of Portable Multimedia Platforms
Perceived Value: Applications from a TV or PC Inside the Home
Perceived Value: Applications from Devices Outside the Home
Perceived Value: An Interactive Program Guide to Access Video Content from all Devices in the Home

Section 7.0 Appendix Section H
Appeal of Remote Control Applications
Appeal of Using Internet-Connected PC as Controller
Appeal of Home Monitoring Solutions

Section 8.0 Appendix Section I
Familiarity with Hot Spot Services
Where Have Hot Spot Users Paid for Services
Where Would Wireless Internet be MOST Desirable
Most Beneficial Wireless Internet Applications
Platform Preference for Broadband Wireless Services
Mean Score of Platform Preference for Nomadic Broadband Wireless Services
Likelihood of Subscribing to a Broadband Wireless Service As an External Broadband Service at Various Price Points
Likelihood of Subscribing to a Broadband Wireless Service As Both External and Internal Broadband Replacement at Various Price Points
Most-Trusted Service Provider for Broadband Wireless Internet
Consumer Familiarity with the Term “Wi-MAX”

Section 9.0 Appendix Section J
Number of Remote Controls Use
How Do Consumers Feel about the Number of Remote Controls Owned?
Number of Universal Remote Controls Used
Consumer Desire for Single Remote to Control Any TV and Stereo in a Single Room
How Valuable is a Single Remote to Control Any TV or Stereo from Any Room in the Home?
Appeal of Universal Remote Form Factors – Option 1
Appeal of Universal Remote Form Factors – Option 2
Appeal of Universal Remote Form Factors – Option 3
Summary: Appeal of Universal Remote Form Factors
Likely Purchasers of a Universal Remote at Various Prices

Section 10.0 Appendix Section K
Gender
Respondents by Region
Race or Ethnic Background
Age
Income
Marital Status
Education
Currently Attending College?
Type of Residence
Do You Currently Own or Rent Your Home?
Price Range of Home
Likelihood of Purchasing a Home
Likelihood of Purchasing a Second Home
Likelihood of Purchasing a Newly-built Home
Likelihood of Adding a Full Network at Additional Costs per Month
Adults Living at Home
Children Living at Home
Work-at-Home Trends: Who Telecommutes?
Work-at-Home Trends: Who Takes Unfinished Work Home?
Work-at-Home Trends: Who Completes Work for an Additional Employer at Home After Hours?
Work at Home Trends: Who is Self-employed, Working at Least 30 Hours per Week at Home?
Work at Home Trends: Who is Self-employed, Working Less than 30 Hours per Week at Home?

 

ATTRIBUTES
Authored by: The Parks Associates' Analyst Team
Executive Editor: Tricia Parks
Published by Parks Associates

© September 2004 Parks Associates
Dallas, Texas 75230

All rights reserved. No part of this book may be reproduced, 
in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America.

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