Video-on-demand (VoD) libraries and widgets will be the first generation of video services driving adoption of connected television experiences in the U.S., according to a new report from Parks Associates.
Parks Associates said that consumer electronics manufacturers and service providers will benefit from higher margins and ARPU generation in providing these web-like experiences via the television.
The new white paper From Boob Tube to YouTube: Consumers and TV, reports strong interest among US broadband households for VoD libraries and TV widgets, which are web-like displays that show customised news, weather, sports, or traffic information.
In particular, 33% are interested in widgets, and almost 50% are interested in premium web content, including TV shows and movies, through a connected set-top box.
Kurt Scherf, VP and principal analyst, Parks Associates, said: “Broadband households are growing accustomed to viewing video off the internet.
“Demand for web and user-generated content will increase, and those desires will influence their CE purchases and service provider choices, while widgets and VoD libraries will be the first in a long line of advanced video services people will want in their living rooms.”
Leichtman Research Group recently revealed that 34% of US adults online at home report that they view some type of video online at least weekly, including 11% who view video online daily (see US online video viewing increases).
Overall (including those not online), LRG found that 1% of adults view recent TV shows online daily, and 8% weekly – compared to 6% weekly last year.
At the start of last month, comScore forecast that the coming year will see a rise in online video viewing and a shift to online ad spending (see Online video viewing to rise in 2009).
Viewing of TV and movie content online continues to become a more mainstream behaviour, said comScore, offering advertisers a new opportunity to capitalise on this highly engaged audience.
