Oregan and Micronas Announce Connected TV Market Stats: TV Media Browsing Demand to Rise with Internet Video as Default TV Feature, Success Depending on Ease of Use and Video Streaming Quality.
London, UK and Freiburg, Germany – January 7, 2009 – A US consumer study into High Definition TV purchase drivers carried out by Oregan Networks™, an Internet TV software company and Micronas®, a leading supplier of innovative TV application-specific IC system solutions, has revealed that the ability to access the Internet from the comfort of the living room in parallel or in addition to watching regular TV programming, is making its way into the purchasing criteria of today’s tech-savvy consumers who plan to purchase a TV within the next 2 years.
The research measured the importance of Internet and home media browsing, placing emphasis on key features and the difference between the incumbent PC based Internet usage and the emerging TV-based usage scenarios. In addition, the study addressed the social and behavioural aspects of interacting with network-connected TVs.
71% of all respondents would prefer a default media browser to be installed, although they would like the option to be able to change it. Additionally, if their next TV did not come with a pre-installed media browser, 29% of respondents said that they "definitely would" download one, while a further 45% would be likely to download one. 69% of respondents would pay something to download a digital media browser to their next television, if this was supported. 87% of respondents would select a TV with a media browser because it would offer them more entertainment choices.
One of the key findings of the research is related to the differentiation between what is seen as desirable use cases and appropriate websites for TV based Internet. User managed video and multimedia sites, including YouTube™ and Hulu, delivered in a full screen mode, as well as pay per view Hollywood blockbuster services, such as Netflix® and CinemaNow, are perceived as adding most value to the regular TV feature set, as well as enabling families to spend more social time together. 85% agreed that a TV media browser would offer a "better audiovisual experience for watching web video" compared to a PC, while the same proportion agreed that it would provide a "more customized and personalized entertainment experience".
For all user segments, the ability to access Video on Demand services without the need for a PC or any other equipment was considered to be the most valuable feature of a TV media browser.
The second most valuable feature was considered to be the ability to search the home network for media and content stored on other devices. Ability to access user-generated content such as YouTube™ videos was ranked third on average overall.
Advertising-Supported or Pay Per View Movies
51% of all respondents would prefer to watch movies for free with advertising. Of the remaining 49%, half would only pay to watch movies if they were still in theatres.
"Couples with No Kids" are most likely to want to pay for advertising-free video, however 36% of this group would only pay for movies that are still in theatres, or "day and date" releases.
The study also investigated key concerns with browsing Internet media on TV.
The largest proportion of comments was related to the perceived ability to download or stream media at a sufficiently high speed to provide an acceptable quality of audiovisual experience. Several comments mentioned the frustrating experience which users have related to the latency and buffering of web videos on their PC.
17% of respondents had concerns about how easy the UI of the browser would be including the complexity it would introduce into their TV watching experience, while 12% had concerns about the TV being more expensive to fix if it were to break.
Only 6% of respondents were concerned how much the television would cost to buy. Most of these comments came from the "Student" user group.
In summary, the research has revealed a clear trend for a gradual but steady uptake of TV Internet usage with the mass-market inflection point occurring over the next 3-5 years.
Produced by Strategy Analytics, the study has concluded that there is now significant momentum behind Internet usage on the TV, from both the industry as well as consumer pull.
David Mercer, VP Digital Consumer Practice commented: "In previous years, Strategy Analytics has identified a degree of consumer skepticism towards the concept of using TVs to access the Internet. However, the results of this latest study suggest that the growing popularity of video downloading services and video-centric User Generated Content sites, especially YouTube, among other factors are now driving increased interest in having a superior audiovisual experience for consuming multimedia content over the Internet."
About Oregan Networks Ltd
Oregan Networks provides lightweight media browser solutions for retail consumer electronics and carrier grade IPTV appliances, enabling delivery and sharing of Internet video, music and photos. Since incorporation in 1997, over 3.5 million units of Oregan's software have been licensed to leading global brands, including Sony Computer Entertainment, Philips Consumer Electronics and NTT. The company's headquarters and primary R&D center are located in London UK, with branch offices in USA, Japan, Korea and Taiwan.
For more information, please visit www.oregan.net
Micronas (SIX Swiss Exchange: MASN), a semiconductor designer and manufacturer with worldwide operations, is a leading supplier of cutting-edge IC and sensor system solutions for consumer and automotive electronics. As a market leader in innovative global TV system solutions, Micronas leverages its expertise into new markets emerging through the digitization of audio and video content.
For more information, please visit www.micronas.com
Oregan Networks and Oregan are trademarks of Oregan Networks Ltd. Micronas is a registered trademark of Micronas Semiconductor Holding AG. Netflix is a registered trademark of Netflix, Inc. YouTube is a trademark of Google, Inc. Other names may be trademarks or registered trademarks of their respective owners.
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