1) The document discusses several myths about connected consumer electronics, pay-TV churn, cloud computing, search capabilities, and demand for value-added services. 2) Data is presented showing that while connected devices are common, they do not necessarily lead to high rates of pay-TV cancellation. Consumer demand for new TV features is also fragmented across many options. 3) The cloud is perceived as having value when it enables lifestyle syncing, backup/sharing, and remote access applications rather than being too complex. Improving search and discovery of content is also still needed according to surveys.

1. Myths, Truths and
What Consumers Really Desire

2. Special Research Session
Presenter:
Kurt Scherf
Vice President and Principal Analyst
Parks Associates

3. Myth (Perhaps): Connected CE
Causes Pay-TV Churn

4. Connected CE and Cord-cutting
Penetration of Connected Consumer Likelihood of Cancelling Pay-TV
50%
20%
43% 17%
Percentage of Broadband Households (%)
Percentage of Broadband Households (%)
40%
15% 14%
34%
30%
10%
6%
20% 5%
5%
10%
0%
All BB HHs With All BB HHs With
0%
Connected Connected
CE CE
U.S. (n=2,500, ±1.96%) W. Europe (n=10,000,
±0.98%) U.S. (n=2,500, 1.96%) Europe (n=10,000,
±0.98%)
Sources: Consumer Decision Process (CDP) 2011: Summer Updates; Connected Consumers in Europe Sources: Consumer Decision Process (CDP) 2011: Summer Updates; Connected Consumers in Europe |
Sample bases: 2,500 consumers in U.S. broadband households, ±1.968%; 10,000 consumers in European Sample bases: 2,500 consumers in U.S. broadband households, ±1.968%; 10,000 consumers in
broadband households, ±0.98% | © 2011 Parks Associates European broadband households, ±0.98% | © 2011 Parks Associates

5. Myth: There is a “Killer App” for
Next-generation Television

6. Consumer Demand for TV-based
Features is Fragmented
Appeal of Additional TV Services - Top Ranked Features
(Among W. European Broadband HHs)
30%
% selecting as first rank
20%
17%
12% 11% 11%
10%
10% 9%
4%
3% 3%
1%
0%
Recorded TV access on multiple devices Access to online video on your TV
Customized recommendations Complementary information on second screen
Live TV access on multiple devices On-demand sports highlights on TV
Free-to-play casual games on the TV Remote DVR/PVR programming via smartphone
Smartphone as remote controller Access to lotteries or betting on your TV
Source: Connected Consumers in Europe | Sample base: 10,000 consumers in European broadband households, ±0.98% |
© 2011 Parks Associates

7. Myth: The Cloud is Too Complex for
Consumers to Perceive Value

8. Personal Cloud Categorization
Personal Cloud Categorization
Cloud Media:
Lifestyle Sync Backup/Sharing Remote Access
Remote Access Digital Locker
Video/Music/ Games
Enabling
remote access
to storage
appliances On-demand
Online backup with (drives, services that Digital copies
multi-platform network- provide for available for
Calendars, access, sharing, and attached multi-platform multi-platform
photos, contacts collaboration storage) access viewing

9. Myth: Search Cannot be Improved

10. Ease-of-Discovery is Lacking
Ease of Finding Content on the TV
(Percentage of respondents rating ease as a 6-7 on a 7-point
scale, where "7" means "Extremely good")
U.K. (n=808, ± 3.45%) 37%
U.S. (n=1,676, ±2.39%) 35%
Germany (n=670, ±3.79%) 31%
Italy (n=929, ±3.22%) 23%
Spain (n=818, ±3.43%) 19%
France (n=782, ±3.50%) 16%
0% 10% 20% 30% 40% 50%
Percentage of Broadband Households (%)
Sources: Digital Video: Three Screens and Beyond: U.S. and Europe | Sample bases: 2,000 consumers in U.S. broadband households, ±2.19%; 1,000
consumers in five European countries broadband households, ±3.10% | © 2011 Parks Associates

11. Myth: Home Controls and Technical
Support Elements Won’t Sell

12. Consumer Demand for
Value-added Services
Interest in Value-added Services
(Among broadband households)
U.S. (n=2,000, ±2.19%) W. Europe (n=10,000, ±0.98%)
Home energy monitoring n/a
service 19%
21%
Anti-virus service 17%
12%
Online data back service 9%
12%
A home monitoring service 9%
12%
A home security service 9%
Extra warranties for household 11%
electronics 10%
9%
Parental control features 7%
Premium technical support 9%
services 6%
0% 10% 20% 30%
% selecting as top 3 ranks
Sources: Consumer Demand for Technical Support Services | Sample bases: 2,000 consumers in U.S. broadband households, ±2.19%;
10,000 consumers in European broadband households, ±0.98% | © 2011 Parks Associates

13. The Evolution of
Value-added Services
Backup and File/Media Remote Access to
Home Monitoring
Sharing Content
Premium Technical Multi-platform Content
Cloud Media Services
Support Availability
CloudNetwork
Home
Media Mobile/Portable Device Enhanced CRM Uses
Enhancements Interaction with Analytics for
Access
(File/Print Sharing) Entertainment Recommendations
Today 1-2 Years 3+ Years