ifa usa presentation by strategy analytics

Strategy Analytics’Digital Consumer Practice

An Overview of the US Consumer Electronics Market: Now Getting

Connected

Copyrights@GFK AVING ASSOCIATES reports this as news

Strategy Analytics:Insights to Support Client Business Planning

Proprietary Consulting

Advice

Work shops

Projects

Strategic Advisory

Services

Reports

User Experience

Bench marking

Best Practice

Insights for

SuccessOffices in US, UK, France, Germany, India, China, South Korea and Japan

Global client list including technology leaders, service providers, investment bankers, VCs and government agencies

Expert Analyst Teams focused on:

Wireless, Connected Home and In‐Vehicle

Technologies: Components, Devices, Applications, Networks

80 Employees

More than 40 years consulting and strategic advisory

experience in the technology and communications

industries


3

ConsumerBehavior

Media & Entertain‐ment

Service Providers

ConsumerElectronics

•How much traffic will OTT video bring onto the

networks?

•Is pay TV doomed or will 3D TV save the day?

Service Providers

•How is the television industry changing?

•What industry challenges is this new TV

paradigm creating?

Media & Entertainment

The Digital Consumer Practice Delivers a 360° Research Perspective – A Holistic View of the Digital Ecosystem

•How many connected TV devices will be sold in the

coming years?

•What are the CE vendors strategies for OTT video?

Consumer Electronics

•What is driving early adopters to seek out

Connect TV experiences?

•How are they changing their behavior around what TV they watch?

Consumer Behavior

DIGITALECOSYSTEM


Current Macro Trends in CE

DigitalAnalogue Connected

• Consumer Trends– Connectivity

– Mobility

– Personalization

• Device Trends– Rise in software and services (in hardware)

– Evolving command and control

• Technology Trends– Ubiquitous Wi‐Fi

– Embedded 3G, From “why?” to “Why not?”


OEMs Need to Add‐Value to Offset Falling Prices.US Consumer Electronics Market: Retail Sales(US$ Billions)


One of the Key Drivers for Connected CE Devices is Broadband Penetration: 100 million homes by 2015


US Digital TV homes are another key driver:Steady low‐single digit growth, mid 80% HH penetration

0

20

40

60

80

100

120

200820

1020

1220

14

US Digital TV Homes (M)s

Telco IPTV

DigitalTerrestrial

DigitalCable

DigitalSatellite

• Driven by analog switch‐off, US digital TV homes grow to over 100 M

• Telco TV growing in importance

• DTT and DTH will increasingly deploy hybrid solutions using the broadband channel for VOD

• All platforms will increasingly offer web video “TV Anywhere”options for accessing content while outside the home


U.S. Market Moves Inexorably to Connected Devices

17

57

69

89

298

606

A US Installed Base of >1 billion IP-Network-Enabled Consumer Devices by End 2014Connected Convergent

Devices

Connected TV Devices

Connected Gaming Devices

Connected Audio Devices

Connected Ad-Hoc Devices

Connected Imaging DevicesSource: Strategy Analytics Connected

Home Devices service


The Evolving Connected (IP) Device Mix


Three Big Waves Lifting the TV Industry

2. 3D Television1. High Definition 3. Hybrid (OTT) TV

1. HD is now mass market in most developed regions. Especially the US.

2. 3D TV Ready sets have appeared in 2010 but content is still missing. The bubble is bursting already

3. In Retail, Cable & Satellite, Set‐Tops are appearing to blend broadcast services with Web services.High interest in this area


0%10%20%30%40%50%

60%70%80%90%100%

01.01.19

00

02.01.19

00

03.01.19

00

04.01.19

00

05.01.19

00

06.01.19

00

07.01.19

00

08.01.19

00

09.01.19

00

10.01.19

00

DVD Players

Blu‐ray

GamesConsolesFPTV

HDTV

HDTV – Driving Penetration Growth in Video: US Household Penetration


Will US Consumers adopt 3D?Some Barriers to Overcome First

Source: Strategy Analytics Connected Home Devices Service


Consumer Devices bring 3D to the mass market and provide 3DTV set opportunities. Gaming 1st.



Profile of the 3DTV Buyer

• Younger, more affluent.

• Avid consumers of TV shows and movies.

• 43% of these individuals have seen a 3D movie in the theater in the last 12 months.

• 57% of those planning to buy within the next 3 years consider themselves early adopters of technology.

Source: CEA


Portable 3D Players will find a niche


16

Get Ready for Connected TV!• 140 million connected TV

devices already in use in the US at end 2010– Games consoles– Blu‐ray– Media players and STBs

• Connected TVs add momentum from 2010 onwards– Almost 400 million connected TV

devices installed by 2014

CONNECTED VIDEO DEVICES, US INSTALLED BASE (M)


Younger age groups are rapidly turning to the Internet for watching TV content

66%76%

47%

59%

8%

33%

2008 2010

Ever Watched At least once a month At least once a week

Trend in watching TV via the Internet among US 15‐24 year olds

SOURCE: Strategy Analytics’ 2008 and 2010 Digital Media & TV Survey


What are youngsters watching online?

34%

40%

44%

47%

49%

60%

65%

70%Catch‐Up TV Episodes

Older TV Episodes

Movies / Feature Films

Entertainment Shows

News / Current Events

Factual / Documentary

Sports

Upcoming TV Shows

US 15‐24 year olds Watching Online Video Every Month

SOURCE: Strategy Analytics’ 2010 Digital Media & TV Survey, N=2,000, n=324


Keeping Things in Perspective: TV is PopularLots of Potential for LCD and Plasma TVs

The Average American Spends 20% of Their Day Watching TV

020406080

100120140160180

TV DVR Netflix Hulu YouTube

Hou

rs per M

onth

Source: Neilsen & Strategy Analytics Connected Home Devices Service


At ~3 TVs per US Household, Still plenty of room for growth

US FPTV Unit Sales (M)s

0

5

10

15

20

25

30

35

40

2008

2009

2010

2011

2012

2013

2014

Plasma

LCD

US Installed Base of FPTV

0

50

100

150

200

250

300

2008

2009

2010

2011

2012

2013

2014



Blu‐ray Still provides OEMs and Retailers with opportunities to drive new sales growth

US Blu‐ray Sales ExpandingUnit Sales in Millions

0

5

10

15

20

25

30

35

2008 2009 2010 2011 2012 2013 2014

Blu‐ray

DVD



It’s clear to see why OEM and retailers want US consumers to upgrade to BD.

US Blu‐ray increasing Share of Retail Market Value

56%33% 24% 18% 13% 11% 11%

44%67% 76% 82% 87% 89% 89%

2008 2009 2010 2011 2012 2013 2014

Blu‐ray

DVD



23

Get Ready for Connected Convergent Devices: Tablets a Disruptive Force

•Compelling, “Connected” experiences driving evolution

• Consumers will think hard about usage, some products feel immediate impact, others not so much, yet.

General Computing Dedicated / Optimized Multimedia

Apple iPad

HP Touchpad

Lenovo ThinkPad X120e

Sony VAIO E Series Notebook

Amazon Kindle 3G

Barnes & Noble Nook Colour

Asus Eee Pad

RIM Playbook


24

Tablets: Universal appeal, at the right price‐point.Significant growth forecast.

• US leads the World in Tablet consumption

• Innovative and compelling user experience, particularly for browsing and media consumption.

• Plenty of room for growth in verticals, enterprise, education and connected home.

Source: Strategy Analytics Tablet & Touchscreen Strategies (TTS) service


Apple’s iPad Tablets challenged by Google’s Android from H2 2011

Source: Strategy Analytics Tablet & Touchscreen Strategies (TTS) service


US: 2011 Conclusions

• US Retail Sales of technology products have clearly rebounded

• Sales revenue reaches a record $140 billion this year

• Innovation Inspires;– Connected TV with rich content from Web as well as traditional Pay TV

– 3D OEMs trying to overcome consumer dis‐interest

– Tablets become the 2nd TV screen

• Other highlights:– LED TVs, cooler, thinner, Internet and App ready

– Motion Gaming; Kinect the fastest selling CE product of all time.

– Wi‐Fi enabled devices replacing the need for wires

– 3G devices spreading beyond the handset into multiple CE Devices


Thank YouQ&A

Peter King

Director: Digital Consumer Practice

[email protected]


ifa usa presentation by strategy analytics

Documents