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Internet Connected Consumer Electronics

According to the latest market study by Parks Associates, approximately 2.5 million broadband households in the U.S. and Canada are ready to purchase an Internet-connected TV -- if priced at a $100 premium over regular TVs.

This market opportunity translates into $250 million in additional revenues for the consumer electronics (CE) industry.

Parks Associates' latest consumer study, entitled "Digital Media Evolution," gauges market demand for Internet-connected devices and the applications people want to use in conjunction with this new capability.

The study covers digital cameras, TVs, digital photo frames, and Blu-ray players and finds digital TVs have the strongest market potential.

The top application consumers want through a connected TV is access to video-on-demand content. At the same time, roughly one-third of broadband households in the U.S. and Canada want on-screen widgets, and 27 percent want to access content stored on their home computers.

"Access to additional content is the key demand driver," said John Barrett, director of research, Parks Associates. In particular, new over-the-top video content.

Most people can get popular video titles through their pay-TV providers, but if they want to watch niche or personal content on their TV, they have to burn or buy DVDs. With a connected TV, they suddenly have lots more options.

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