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Report: 2.5M North American Homes Want Web TV, Blu-ray At Right Price

8 Apr, 2009 By: Erik Gruenwedel

Citing an increased consumer demand for video-on-demand (VOD), about 2.5 million households in the United States and Canada are set to purchase an Internet-connected TV if priced no more than $100 over regular TVs, according to a new report.

This market could translate into $250 million in additional revenues for the consumer electronics industry, according to research firm Parks Associates.

That figure could escalate if President Obama succeeds in disseminating $7.2 billion in broadband stimulus funds as part of its American Recovery and Reinvestment Act of 2009. The federal government has determined that about 10 million households do not have access to broadband Internet services.

Included in the stimulus is $200 million for public computer access, $250 million on programs to encourage broadband adoption, and up to $350 million on broadband mapping and planning.

“The possible addition of broadband subscribers is a positive trend for Internet video services such as Netflix, Vudu, Amazon Video On Demand, and others,” said Jason Blackwell, senior analyst, digital home with ABI Research.

Parks also found consumers are willing to purchase a Blu-ray Disc player if priced no more than $50 above a standard DVD player.

The top application consumers want through a connected TV is access to VOD content. At the same time, roughly 30% of broadband households in the United States and Canada want on-screen widgets and 27% want to access content stored on their home computers.

“Access to additional content is the key demand driver,” said John Barrett, director of research, Parks Associates. “Most people can get popular video titles through their pay-TV providers, but if they want to watch niche or personal content on their TV, they have to burn or buy DVDs. With a connected TV, they suddenly have lots more options.”

The findings are part of a new consumer study gauging market demand for Internet-connected devices and the applications consumers want to use in conjunction with this new capability.

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