Technology | Media | Telecommunications

Saturday, June 28, 2008

Opportunity for Consumer Managed Services


Parks Associates explored the implications of high-speed connections and the exponential growth of digital devices within U.S. homes, at the kickoff to their Connections conference.

Their session on this topic featured analysis of the digital living industry and focused on trends in broadband and access services, video delivery, online content services, advertising, digital health, and in-home systems.

"The percentage of U.S. households with broadband exceeded 50 percent in 2007," according to Kurt Scherf, Vice President and Principal Analyst.

"By 2012, over 33 million U.S. households will have connections of 10 Mbps or more. As households add bandwidth, there is greater capacity for more devices and services, adding to the rich but complicated equation for digital living."

Consumer habits in entertainment are changing in accordance with this surfeit of new devices and services. As of 2007, 50 percent of U.S. Internet households were watching short video clips online, and 25 percent were downloading short video files.

DVR household penetration reached over 40 percent of the U.S. online population in 2007, further increasing the place-shifting aspect of video consumption.

"No product is sold in isolation anymore," Scherf said.

"A device connects to a network, which brings content and applications to the consumer both in and outside the home. This arrangement puts pressure on providers for customer support, which they should see as a new business opportunity. Technical support services for the digital home will be a $1 billion market by 2011."