Analysts open '11 CES by addressing content and security issues facing manufacturers and developers in Internet-connectable CE

Parks Associates wrapped up the fifth-annual CONNECTIONS™ Summit at CES, the first day of 2011 International CES, by addressing the key issues facing CE manufacturers and solutions developers in 2011. The first session, "Analyst Roundtable: The Connected Home Is Here," which broke all previous attendee records, examined key trends and areas of concern, including how Internet-connectable TV devices can avoid the same underwhelming reception that plagued 3DTV after its big splash at CES 2010.

Parks Associates’ recent research finds that – the apps vs. open-browser debate notwithstanding – connected TV manufacturers will find market success with specific content application offerings, particularly premium video-on-demand (movies and TV shows), photo-viewing, social network feeds, streaming music service, customizable widgets, and gaming applications.

With sales of Microsoft Kinects exceeding the company's expectations, and multiple gesture-recognition products debuting at CES, how consumers interact with the television will also be radically changing starting in 2011.

Although online video and applications are major drivers for the rise of connected devices, other areas of focus for CE and service providers in 2011 will be backup, content protection and redundancy, and a greater emphasis on device security. This sets the stage for appliance- and cloud-based storage as well as device security and related features:

• According to Parks Associates, about one-third of U.S. broadband households (32%) are backing up content on at least a monthly basis.

• The firm's recent survey Consumer Demand for Technical Support Services found 20% of consumers are “highly concerned” about losing documents and other digital content because of technical issues, theft, or other catastrophic issues.

• Security concerns are moving into the mobile realm, where U.S. consumers are showing increasing demand for remote protection services for mobile and portable devices. This finding indicates 2011 will be a good year for companies such as Lookout, which provides location and lockdown services for smartphones.

Connected TV Owners Primarily Access Netflix, Not YouTube

In the slowly growing market of Internet-connected television, 57% of owners are primarily using the functionality to access Netflix streaming.

The percentage is significant considering it surpasses by 10 percentage points (47%) the number of connected TV owners accessing YouTube, the perennial leader in online video consumption. While more users access Netflix than YouTube, YouTube was still the second most-popular service used on connected TVs. Another 54% utilize connectivity to access music and photos.

Netflix in November launched a streaming-only service domestically after announcing that a majority of its subscribers stream content versus renting physical discs.

Ross Rubin, executive director of industry analysis, said that until CE manufacturers and media companies increase and simplify access to entertainment content to the TV from the Internet, early adopters will navigate toward marquee brands such as Netflix, Hulu and YouTube.

"Manufacturers are underselling the Internet features of connected TVs,” Rubin said. “Broadband features unlock worlds of on-demand content; manufacturers should provide the key by integrating Wi-Fi.”

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CONNECTIONS at CES addresses Operator Strategies, Connected CE, Smart Grid, Video Everywhere

Parks Associates announced the Call For Papers for the upcoming CONNECTIONS™ Summit at CES, taking place January 6 at 2011 International CES in Las Vegas. This event provides consumer data and analysis of business and marketing strategies for operators, CE manufacturers, utilities, and communications companies delivering connected devices and advanced services and applications to consumers.

During the first day of CES, Parks Associates analysts will moderate interactive panel sessions featuring leading industry executives on the following topics:

-- Operator Strategies: Video, Services, and Support
-- Monetizing Connected Consumer Electronics
-- Energy Utility Executive Roundtable: The Smart Grid & Home Area Network
-- Anytime Anywhere Entertainment & Communication
--Video Everywhere: Key Strategies

CONNECTIONS™ Summit begins with a roundtable discussion featuring Parks Associates analysts. This session will highlight key consumer and technology trends on core areas of research:

-- CE buying patterns in the recession
-- Broadband value-added services
-- Key trends in video services
-- Maturation of home networking technologies and applications
-- Consumer demand and the business case for connected CE
-- Mobile communications, broadband, and device trends
-- The new era of 3DTV
-- Trends in advertising
-- Consumer support services
-- Home systems
-- Health, energy, and home monitoring