Connected Living Rooms 2010.05.20

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A study on the connected living room.

Objectives:
* Map both demand and supply side of the connected living room landscape
* Identify the user preferences of lead users and predict trends in the mass market landscape

Primary & Secondary Research:
*Mapping demand and supply-side:
Qualitative interviews of industry leaders throughout the value chain: content producers, chip manufacturers, software, and hardware providers

Identifying lead user preferences:
*Qualitative interviews of connected living room users
*Quantitative surveys of US lead users

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  • >Speaker: MS
  • >Speaker: MS
  • >Speaker: VH
  • >Speaker: VH
  • >Speaker: VHTechnology Maturation 2005: Windows Media Center 2005 (UR2)2006: XBMC 2.02007: Content Library: Hulu Founded Netflix Launches Watch Instantly2008: Netflix on Xbox – Ease of Installation2009: Processing Power:Yahoo! Connected TV, compels high end CE manufacturers to put more processing power into the TV2009: Blue-Ray Players below $1002009: Net-Enabled DevicesYoutube?Create the StandardHarvest the StandardThe Model is: create hardware to get out thereThen move to softwareAlignment of Device/Service.TC manufacturers sell devices consumersContent companies provide services to consumersLook at Chesbrough. 
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  • MS TO DO
  • >Speaker: MSMatt says, I wanted to stop here and just remind us what companies we wanted to look at. We can go over some ohe analysis, but I think the primary research has some interesting tidbits.
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  • VH
  • >Speaker: VH
  • Melody to Speak
  • MS (talk about 23/24)
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  • Needs to be flushed out
  • Formatted
  • Connected Living Rooms 2010.05.20

    1. 1. Connected Living Rooms: Analysis of User Preferences and Market Trends<br />Melody Akhtari<br />Vincent Huang<br />Matt Salazar<br />June, 2010<br />Faculty Advisor: Pablo Spiller<br />UC Berkeley, Haas School of Business<br />
    2. 2. 2<br />Table of Contents<br /><ul><li>Executive Summary 3
    3. 3. Context, Definitions, and Objectives 4
    4. 4. Industry and User Trends 5
    5. 5. Industry Highlights 6
    6. 6. User Demographics & Trends 9
    7. 7. Analysis 13
    8. 8. Research Methodology 14
    9. 9. Competitive Landscape 15
    10. 10. SWOT Analysis 17
    11. 11. Primary Research 21
    12. 12. Industry Professionals 22
    13. 13. Connected Living Room User Interviews 23
    14. 14. Quantitative User Survey Analysis 24
    15. 15. Findings & Implications 29
    16. 16. Hypothesis Inventory 30
    17. 17. Hypothesis & Implications 31
    18. 18. Market and Users: Implications 44
    19. 19. Suggested Further Research/Steps 47
    20. 20. Inquiries, Contact Info 48
    21. 21. Appendix 49
    22. 22. A: Sample Survey 50
    23. 23. B: Regression Analysis 52
    24. 24. C: User Interview Guide 54</li></ul>UC Berkeley, Haas School of Business<br />
    25. 25. Executive Summary<br />Objectives: <br />Map both demand and supply side of the connected living room landscape<br />Identify the user preferences of lead users and predict trends in the mass market landscape<br />Primary & Secondary Research:<br />Mapping demand and supply-side:<br />Qualitative interviews of industry leaders throughout the value chain: content producers, chip manufacturers, software, and hardware providers<br />Identifying lead user preferences:<br />Qualitative interviews of connected living room users<br />Quantitative surveys of US lead users<br />3<br />UC Berkeley, Haas School of Business<br />
    26. 26. Context, Definitions, and Objectives<br />Context: <br />Users are beginning to use devices and services to consume content from the Internet. There has been an explosion of companies vying for adoption of their device/service. <br />Definitions:<br />ACS Living Room: Content connected via Antenna, Cable, Satellite. Content is viewed in the living room.<br />Connected Living Room: Content sourced from the Internet. Content is viewed in the living room. <br />Content: Videos<br /> Production Value: User generated content (UGC), Independent, Mainstream (e.g. movies, TV shows)<br /> Length: Short-Form (<10 min), Episodic (10-60 min), Feature-length (60+ min)<br />Content Acquisition: Recording, downloading, and streaming of content<br />Content Platform: Content providers or content aggregators<br />Devices: Companies whose core competencies are to create and sell physical products<br /> Devices include: Connected Blu-Ray players, connected TVs, game consoles, OTTB<br />Services: Companies whose core competencies are to provide content from the Internet<br /> Services include: Content aggregators, content broadcasters, content platforms, content applications<br />Our specific objectives include:<br />Identify drivers and challenges for organizations within the content ecosystem<br />Determine US lead user preferences for types of content consumed<br />Provide predictions and recommendations for organizations in the content ecosystem<br />4<br />UC Berkeley, Haas School of Business<br />
    27. 27. Industry and User Trends<br />Industry Highlights<br />User Demographics<br />User Trends<br />5<br />UC Berkeley, Haas School of Business<br />
    28. 28. Industry Highlights: A Complicated Value Chain<br />UGC<br />Indie Producer<br />Broadcast Network<br />Cable Network<br />Antenna<br />Cable<br />Satellite<br />Component Device<br />STB<br />OTTB<br />Content Aggregator<br />Content Platform<br />Internet Broadcaster<br />PC<br />Consoles<br />Internet Provider<br />TV Manufacturer<br />Product Co.<br />Fred, Shay Carl<br />hitRECord, Prom Queen, The Guild<br />ABC, CBS, Fox, NBC<br />Discovery, TBS, ESPN <br />Comcast, CableVision, TimeWarner<br />DirecTV, DISH<br />DVD, Blu-Ray Player<br />Scientific America, Motorola<br />(Over The Top Box)<br />AppleTV, Roku, TiVO<br />Clickr.com, Boxee<br />Hulu, Justin.TV, Netflix, Vudu<br />Koldcast TV<br />AT&T, Comcast, Verizon, CableVision, TimeWarner<br />Samsung, LG, Vizio, SONY<br />PS3, Wii, Xbox 360<br />Roof, Rabbit Ears<br />New Content and delivery channels have created multiple paths for consumption.<br />20th Century Fox, ABC, Disney, Endemol<br />Desktop, Laptop<br />Traditional to Traditional<br />Tradition to New<br />New to Trad/New<br />UC Berkeley, Haas School of Business<br />6<br />
    29. 29. Connected Living Rooms: On the Brink of Growth<br />2004Content Connects to PCs<br />Windows Media Center 2005<br />2008Ease of Installation<br />Netflix on Xbox<br />2006PCs Connect to TVs<br />XBMC 2.0<br />Revenue<br />2009Jump in Device Processing<br />Yahoo! Connected TVs<br />Blu-Ray Plays drops below $100<br />2007New Content Platforms<br />Hulu.com founded<br />Netflix launches Watch Instantly <br />2010Growth in Devices/Services<br />Walmart.com buys Vudu<br />Boxee gains 1M users<br />Time<br />Stage:<br />Strategy:<br />Growth:<br />Gain Market Share<br />Mature:<br />Incremental <br />Innovation<br />Decline:<br />Harvest Profits<br />Emerging:<br />Innovate and Disrupt<br />7<br />Source: Henry Chesbrough. <br />Open Innovation Business Models<br />UC Berkeley, Haas School of Business<br />
    30. 30. Customer Demand and Implementation: Key Challenges and Obstacles<br />There are many challenges and obstacles in creating the perfect connected experience.<br />UC Berkeley, Haas School of Business<br />8<br />Challenges in Consumer Demand<br />Industry<br /> Challenges<br />
    31. 31. Online Video Has Arrived For All<br />Online Video has become mainstream; 62% of online adults have used the Internet to watch or download video, nearly double since 2006.<br />On a typical day, 36% of adult Internet users watched videos online, up from 30% in 2008.<br />Source: RBC Capital Markets (September 2009)<br />9<br />UC Berkeley, Haas School of Business<br />80%<br />68%<br />50%<br />
    32. 32. User Trends: Increasing Demand for Internet Delivered Content on the Television<br />Over a third of Netflix subscribers consume “Watch Instantly” content on something other than a computer monitor<br />The increasing demand for Internet connectivity on the television is bolstered by consumers under 44.<br />10<br />UC Berkeley, Haas School of Business<br />
    33. 33. User Trends: Internet Delivered Content is Both a Compliment and Substitute to Current Video Consumption<br />Substitute: Upward trend of cord cutters (1.6M over 3 years) but still small to total market size (101M subscribers)<br />Compliment: Upward trend in total video consumption<br />11<br />UC Berkeley, Haas School of Business<br />
    34. 34. User Trends: Significant Questions Remain to Video Content Business Models and Economics<br />44.2% of Baby Boomers say they’re most likely to give up paying a subscription fee for TV service over any other subscription-based service (RBC, September 2009)<br />Advertising: Support amongst users but revenue has not materialized<br />Payment: Only moderate support for online content purchases <br />Source: eMarketer (February 2010) <br />Source: eMarketer (April 2009) <br />12<br />UC Berkeley, Haas School of Business<br />
    35. 35. Analysis<br />Research Methodology<br />Competitive Landscape<br />SWOT Analysis<br />13<br />UC Berkeley, Haas School of Business<br />
    36. 36. Research Methodology<br />14<br />UC Berkeley, Haas School of Business<br />
    37. 37. Scoping: Identifying Key Players<br />Competitive landscape analysis of all companies offering a “10-Foot” living room experience<br />Narrowed list by focusing on:<br />Recognizable and identifiable firms<br />Firms recognized as industry leaders by users and industry experts<br />Significant install base<br />15<br />UC Berkeley, Haas School of Business<br />
    38. 38. Competitive Landscape: It’s Crowded at the Top<br />16<br />UC Berkeley, Haas School of Business<br />
    39. 39. Analysis of Key Players: AppleTV<br />17<br />UC Berkeley, Haas School of Business<br />
    40. 40. Analysis of Key Players: Boxee<br />18<br />UC Berkeley, Haas School of Business<br />
    41. 41. Analysis of Key Players: Roku<br />19<br />UC Berkeley, Haas School of Business<br />
    42. 42. Analysis of Key Players: WMC<br />20<br />UC Berkeley, Haas School of Business<br />
    43. 43. Primary Research<br />Industry Professionals Interview List<br />Connected Living Room User Interviews<br />Quantitative User Survey Analysis<br />21<br />UC Berkeley, Haas School of Business<br />
    44. 44. Roku<br />Brian Jacquet<br />Director, Corporate Communications<br />D-Link<br />Dan Wong<br />Director, Product Management<br />Trident Microsystems<br />Jackson Huang<br />Sr. Director Marketing<br />Industry Professional: Interview List<br />Devices<br />Netflix<br />Richard Ezekiel<br />Director, Partnerships<br />Vudu<br />Edward Lichty<br />EVP, Strategy and Content<br />Boxee<br />Andrew Kippen<br />VP, Marketing<br />Services<br />Endemol<br />Jerry Kowal<br />SVP Digital Media<br />Koldcast TV<br />Daniel Samuels<br />CEO, Koldcast TV<br />App Content Developer<br />Rob Spectre<br />Boxee App Dvlpr.<br />Content<br />Providers<br />22<br />UC Berkeley, Haas School of Business<br />
    45. 45. Users Interview Methodology <br />Individuals obtained from additional closing question requesting a phone conversation to better explore users’ habits<br />Questions formed around hypotheses: thoughts on downloading and streaming, high definition, obtaining content, consumption patterns<br />20-30 minute phone conversations with eleven US-based individuals<br />Interviewees included 44-year old female multi-solution user, a 25-year old male college student using Boxee, and a computer engineer using TivoHD with his wife and two young children, among many others. <br />Conversations centered on in-depth insights based on users’ homeset-up, preferences and behavior, consumption patterns, and personal media libraries. <br />23<br />UC Berkeley, Haas School of Business<br />
    46. 46. Survey Methodology<br />Length: 10 Questions<br />Time: Survey Ran from 4/22/10 to 5/6/10<br />Forums Surveyed:<br />AVSForum.com<br />CNET.com<br />TheGreenButton.com<br />Mac-Rumors.com<br />TivoCommunity.com<br />Boxee Forums<br />Results: 140 Valid Responses<br />24<br />UC Berkeley, Haas School of Business<br />
    47. 47. Survey Topline<br />Who are they?<br />67% consider themselves early adopters<br />55% describe themselves as technology experts<br />What is their setup?<br />85% have multiple computers in their household<br />77% have connected a computer/laptop to their television<br />70% have created or modified software/hardware to fit their technological needs<br />25<br />UC Berkeley, Haas School of Business<br />
    48. 48. Demographics Chart<br />26<br />UC Berkeley, Haas School of Business<br />
    49. 49. Time Spent Watching Chart<br />27<br />UC Berkeley, Haas School of Business<br />
    50. 50. Number of Devices Used<br />48% of respondents use more than two solutions to consume digital content<br />28<br />UC Berkeley, Haas School of Business<br />
    51. 51. Findings & Implications<br />Hypothesis Inventory<br />Hypothesis Testing & Implications<br />Market Trends & Implications<br />29<br />UC Berkeley, Haas School of Business<br />
    52. 52. Hypothesis Inventory<br />User Behavior<br />Users do not watch short-form content on their TVs<br />Control over experience and setup is critical to power users<br />Users predominantly like new and current content.<br />Where Does Content Reside?<br />People do not care whether content is streamed or downloaded.<br />Users would rather build a digital library for their content<br />Influencers Towards Connected Living Rooms<br />HD Quality (720p or better) will drive users to connected living rooms<br />The desire to watch content on the living room screen is positively correlated with length<br />Users use one single device in the connected living room<br />Content Discovery<br />Users want social recommendations for content discovery<br />Users want a content recommendation engine<br />30<br />UC Berkeley, Haas School of Business<br />
    53. 53. Hypothesis 1: The (Un)importance of Short-Form<br />Hypothesis: Users do not watch short-form content on their TVs<br />Results: True<br /><ul><li>Less than 10% of users would like watch short-form content on their TVs.
    54. 54. The majority of users desire mainstream content.
    55. 55. “I'd rather watch the full movie. I don't really stream clips, but if it's something I really, really, really want to watch, then I'll watch a clip. I'll watch post-game interview/highlight clips. Value-added things that are in addition to the whole show.”
    56. 56. “Clips are worthless, I want to watch full episodes of things. It's like ‘Hey, here's a great scene from an episode I can't watch!’”</li></ul>Implications:<br /><ul><li>Most users do not find the offer of short-form video compelling. In few occasions where short-form is value-add, short-form video is not a strong selling point for connected devices. users feel that if they’re going to watch something on their television, it might as well be more significant than a short video.
    57. 57. Linkages to short-form content libraries, like YouTube, do not provide significant utility to the user. </li></ul>31<br />UC Berkeley, Haas School of Business<br />
    58. 58. Hypothesis 1: The (Un)importance of Short-Form<br />32<br />UC Berkeley, Haas School of Business<br />
    59. 59. Hypothesis 2: Flexibility and Control of Experience<br />Hypothesis: Control over experience and setup is critical to power users<br />Results: True<br /><ul><li>“I have a large-screen TV in the living room, PCs in the office, and both wireless & wired networking at home for my own media library. Entertainment is consolidated in a hand-made console, with an HTPC and AV receiver with surround sound.”
    60. 60. “Any TV viewing is either from download or Netflix stream or in-mail DVD. That's the only way we watch anything. We have a TV with a WDTV Live box in the main living room downstairs with mostly cartoons for our younger two kids. We have a living room upstairs, where my husband and I watch Lost and network shows on the Xbox 360. We only watch the .avis up there because it won't play other formats like .mkv so we watch a lot of SD. Then in my ‘Me’ room I watch old movies from archive.org using a PC with WMC on it. It’s important to be able to access content off the network all over the house.” </li></ul>Implications:<br /><ul><li>Power users will invest more resources (time and money) to perfect their set-up. Most users believe that there is not a one-stop solution in the market; consequently, they will invest time and money to customize their experience through multiple platform efforts.
    61. 61. Given the fragmented preferences, a one-stop solution remains elusive and serves as a large barrier to mass-market adoption.</li></ul>33<br />UC Berkeley, Haas School of Business<br />
    62. 62. Hypothesis 3: Desire for Fresh Content<br />Hypothesis: Users predominantly like new and current content<br />Results: Uncertain<br /><ul><li>The type of content drives consumption of new versus cataloged content.
    63. 63. Users followed new episodic content and appreciate cataloged movie content.
    64. 64. “I prefer new TV shows, and movies I prefer to watch what I haven't seen. If it's an old movie I haven't seen that's fine. My wife wanted to watch Soylent Green the other day; since we haven't seen it, I don't mind watching it.”
    65. 65. It's a mixture. I've found that I'm watching shows that have been off the air for a long time that users have previously suggested to me. I'm watching Red Dwarf right now because it's on Netflix and someone suggested it to me. It's easy to find. It's a mixture, I watch half new shows and half old shows.</li></ul>Implications:<br /><ul><li>To consumers, movies are seen as timeless, while TV shows have a steeper half-life.
    66. 66. User profiles are complex as they carry over taste preferences from traditional media to online content. However, availability of content complicates what they can consume. Further research is recommended. </li></ul>34<br />UC Berkeley, Haas School of Business<br />
    67. 67. Hypothesis 4: Streaming Vs. Downloading<br />Hypothesis: Users do not care whether content is streamed or downloaded.<br />Results: True<br /><ul><li>While users exhibit preferences, the proportion of people preferring streams is not statistically different from the proportion preferring downloads (p=.254)
    68. 68. Streaming or downloading is a means to an end, and not an end unto itself. The preference for streaming/downloading is driven by other attributes such as content quality and content availability.
    69. 69. For Millenials, there is a significant preference for downloading over recording (p=.047) but not for streaming over recording (p=.187)
    70. 70. For Boomers, the preferences are reversed, where there is a significant preference for recording over downloading (p=.028)
    71. 71. “I just want to watch my show, it doesn't matter where it comes from.”</li></ul>Implications:<br /><ul><li>Given the indifference to streaming or downloading, organizations distributing content should message on performance. </li></ul>35<br />UC Berkeley, Haas School of Business<br />
    72. 72. Hypothesis 5: Building Digital Libraries<br />Hypothesis: Users would rather build a digital library for their content<br />Results: It depends on the content<br /><ul><li>Users prefer to digital libraries for content that are either favorited or consumed multiple times.
    73. 73. “We don't add any more drives to our media library. We keep all our kids' content because they want to watch it over and over, but for our current shows/movies, we download-watch-delete.”
    74. 74. "Yes there's a difference between streaming and downloading. Downloaded stuff is stuff I look forward to seeing and I can't find anywhere (like making a run to blockbuster, it's special). Streaming, to me, is more like flipping through channels; it's less choices but it's instant gratification. Streaming is for content that I have a bit of interest in, but I don't look forward to that content as much as I do to content that I have downloaded onto my computer, which I've gone out of my way to get.</li></ul>Implications:<br /><ul><li>We thought power users would want to own their shows and movies, but many people mostly want to watch their content, and then move on. They’ll only want to keep or own those shows/movies they highly value, their favorites. </li></ul>36<br />UC Berkeley, Haas School of Business<br />
    75. 75. Hypothesis 6: HD as a Driver<br />Hypothesis: HD Quality (720p or better) will drive people to connected living rooms<br />Results: False<br /><ul><li>HD content (p=.358) does not significantly raise the likelihood someone will stream content to their television.
    76. 76. "Yes, HD is very important to me. I would say I wouldn’t sacrifice quality for variety, but I do it now since Netflix's on demand isn't as high quality as I would like, so yes we sacrifice for the ease of instant playback. But I prefer quality, which is why we rent Blu-ray discs as well."
    77. 77. "I like HD, but only care a 'medium' amount for it. For TV shows, what I have right now is enough (480p and stereo surround on Hulu and PlayOn). But when I buy a movie, it should only be on Blu-Ray unless it's super rare or super cheap. If I'm buying something for my collection, it needs to be the best.”</li></ul>Implications:<br /><ul><li>While consumers show a strong preference towards higher quality content, content selection takes precedence. More succinctly, consumers are going to watch what they want to watch even if its not available in HD picture quality.</li></ul>37<br />UC Berkeley, Haas School of Business<br />
    78. 78. Hypothesis 6: HD as a Driver (Cont.)<br />38<br />UC Berkeley, Haas School of Business<br />
    79. 79. Hypothesis 7: Correlation of Place and Length<br />Hypothesis: The desire to watch content on the living room screen is positively correlated with length<br />Results: False<br /><ul><li>On a whole, no significant correlation, no significant difference in likelihood or watching short form content over medium or long form content on the television.
    80. 80. Caveat: Boomers have a significantly stronger desire to watch Internet-delivered episodic content on their televisions (p=0.023) when compared to other generations.</li></ul>Implications:<br /><ul><li>Length and quality are not key drivers to whether users consume content via connected living rooms.
    81. 81. Overall consumption is the single largest driver to whether users consume via connected living room experiences.</li></ul>39<br />UC Berkeley, Haas School of Business<br />
    82. 82. Hypothesis 8: Single Solution Connected Experiences<br />Hypothesis: Users have one single device in the connected living room.<br />Results: False<br /><ul><li>48% of respondents use more than 2 connected living room solutions to consume digital content (this is in addition to a computer/laptop), 14% of respondents use more than 3 connected living room solutions</li></ul>Implications:<br /><ul><li>No one-stop integrated solution to consume digital content current exists. To increase market share, companies will need to support multiple use-cases or convince users to change their behavior onto a consolidated platform.</li></ul>40<br />UC Berkeley, Haas School of Business<br />
    83. 83. Hypothesis 9: Social Discovery<br />Hypothesis: Users want social recommendations for content discovery<br />Results: False<br /><ul><li>Relative to other features, social discovery is significantly less important than most other features (p=.00) such as availability of mainstream content, HD picture quality content, and discovery from a recommendation engine.</li></ul>Implications:<br /><ul><li>Despite being in the Web 2.0 era where social discovery is becoming ubiquitous, connected living room platforms should not be distracted with these type of features that rank orders of magnitude lower than most desired feature.</li></ul>41<br />UC Berkeley, Haas School of Business<br />
    84. 84. Hypothesis 10: Recommendation Engines<br />Hypothesis: Users want a content recommendation engine.<br />Results: True<br /><ul><li>Preferences for a recommendation engine is larger than recommendations from friends (p=.00) but is significantly less important than mainstream content or HD picture quality (p=.00)</li></ul>Implications:<br /><ul><li>Algorithms and machine learning are crucial skills platform owners will need going forward. Recommendation engines should be used as tools to help users navigate expansive content libraries.
    85. 85. It is intriguing that in the current era of social and peer discovery, recommendation engines have a significantly higher preference ranking over other forms of discovery. Further research in this area is advised.</li></ul>42<br />UC Berkeley, Haas School of Business<br />
    86. 86. Hypothesis 10: Recommendation Engine<br />43<br />UC Berkeley, Haas School of Business<br />
    87. 87. Market and User Trends: Findings & Implications<br />The concept of a digital locker in the cloud is still very foreign. Social validation will be a key driver in helping users accept a digital locker. <br />Implication: Companies will need to create user profiles to display content in “virtual shelves” when purchased from the cloud. These shelves are public and enable the user to broadcast their taste preferences and purchases to peers. <br />Video streaming will supersede downloading only when HD (720p or higher) content is available for streaming.<br />Implication: Content platform companies should significantly invest in optimization their distribution systems to deliver HD quality content without any initial buffering.<br />There is little room for new content platforms.<br />Implication: The content platform is crowded. New entrants have extremely high barriers of entry. Unless new entrants can deliver exclusive content or unparalleled user experience, new entrants should enter through acquisition. Existing companies should focus on a market share strategy.<br />44<br />UC Berkeley, Haas School of Business<br />
    88. 88. Market and User Trends: Findings & Implications<br />Physical device product lifecycles, while shortened, will continue to be much longer than software service lifecycles.<br />Implication: Companies within the connected living room space will need to be extremely agile to keep up with its competitors. Moving to the cloud will enable companies to quickly iterate and innovate.<br />Analytics will serve as the catalyst to incentivizing digital content distribution.<br />Implication: Create infrastructure to collect, synthesize, and act upon data. Companies that can best serve analytics to content owners will be best positioned to find new models to monetize the content.<br />While many players will build and provide an “apps” platform, in the long run, these platforms will be undifferentiated.<br />Implication: Exclusive content and UI will be key differentiators for companies. Applications platforms will be will be a baseline requirement for connected living room devices. <br />45<br />UC Berkeley, Haas School of Business<br />
    89. 89. Market and User Trends: Findings & Implications<br />In the short term, connected Blu-Ray players are best positioned to have the best connected living room experiences.<br />Implication: Blu-Ray devices contain both the necessary processing power and price point for consumers. Device manufacturers should seek strategic partnership with content platforms to deliver an integrated device/service.<br />The connected living room will drive increased consumption of independent content<br />Implication: While mainstream content will remain mainstream, connected living rooms encourage the long-tailed consumption of content. Given the initial explosion of options, UI will be a critical component of organization and discovery.<br />46<br />UC Berkeley, Haas School of Business<br />
    90. 90. Suggested Further Research/ Future Steps<br />47<br />We chose to focus on intrinsic user behavior and preferences<br />Potential next steps and opportunities for future research:<br />Consumer tastes on “Ownership” and how these preferences will translate with cloud based streaming services.<br />Further understanding of discovery preferences from recommendation engine and social network.<br />Map user preferences along specific product features. This study focused on intrinsic user behaviors and did not seek to correlate user behaviors with specific product features.<br />Examination of developing business models and economic trends for video content.<br />Create quantitative analysis of findings from the Market & User Trends: Findings and Implications section. Trends were were derived qualitative interviews with industry professionals.<br />Analyze consumer preferences for new versus cataloged content.<br />Examination of developing business models and economic trends for video content. Monetization and understanding consumers willingness to pay was not within the scope. However, interviews indicate that many players throughout the value chain are deeply interested in this area.<br />UC Berkeley, Haas School of Business<br />
    91. 91. For Inquiries, Contact Us<br />Melody Aktari, BS 2011<br />melodyakhtari@berkeley.edu<br />@iMelody<br />Vincent Huang, MBA 2011<br />vincent_huang@mba.berkeley.edu<br />@huangv<br />Matt Salazar, MBA 2011<br />matt_salazar@mba.berkeley.edu<br />@mattsalazar<br />48<br />UC Berkeley, Haas School of Business<br />
    92. 92. 49<br />Appendix<br />A: Sample Survey<br />B: Regression Analysis<br />C: Sample User Interview Guide<br />UC Berkeley, Haas School of Business<br />
    93. 93. Appendix A: Sample Survey<br />50<br />UC Berkeley, Haas School of Business<br />
    94. 94. Appendix A: Sample Survey<br />51<br />UC Berkeley, Haas School of Business<br />
    95. 95. Appendix B: Regression Analysis<br />52<br />UC Berkeley, Haas School of Business<br />
    96. 96. Appendix B: Regression Analysis<br />53<br />UC Berkeley, Haas School of Business<br />
    97. 97. Appendix C: User Interview Guide<br />54<br />UC Berkeley, Haas School of Business<br />

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