Transcript CABA 2008 State of the Connected Home Report

2008 State of The Connected Home Market Study
Executive Summary
Executive Summary
Methodology
Background & Objectives
CABA's Internet Home Alliance Research Council (IHA-RC)
commissioned Zanthus, a high-tech research firm, to conduct a new
pulse of its State of the Connected Home Market study for 2008.
• Overall goal: To update the Council’s understanding of the U.S. market and to
establish a baseline understanding of the Canadian.
• This research program is designed to investigate consumer attitudes and
behaviors with regard to the connected home within three distinct functional
areas, or ‘ecosystems’: entertainment, family and career.
• Equal numbers of ‘primary’ (early adopter) and ‘mass market’ (later adopter)
consumers were interviewed to allow comparisons between the groups. The
final dataset was weighted to reflect the relative incidence of these groups.
• Previous waves of the study were conducted in 2003 and 2005. Due to
significant differences in goals and design from the 2003 study, comparisons in
this report are only made with 2005 data.
Methodology
Both the 2005 and 2008 studies involved conducting three Web surveys
among U.S. online households, one for each ecosystem (entertainment,
family and career). In 2008, the survey was fielded in both the U.S. and
Canada (in English only), and a subset of respondents from each
ecosystem survey was invited to take an optional mini-survey.
• For both the 2005 and 2008 studies, sample size is approximately 600 for each
ecosystem in the U.S. and 200 in Canada. In the 2005 study, approximately 600
completes in each ecosystem were collected for the U.S. only.
CABA’s Connected Home Research Council, Confidential
Slide 2
Connected Home Market
More Are Open to Connected Home Idea, Especially Computer Workers
The number of U.S. online households that consider
the connected home* idea ‘definitely appealing’ is
essentially unchanged since 2005—about one-fourth.
However, more are neutral about the idea now, and
fewer consider it unappealing than three years ago.
Target worker households—those with a member
who uses a computer at work at least 15% of the
time—are more interested in the connected home
concept* than online households in general.
This shift is driven by a change among mass market
(later adopter) consumers. In 2005, about one-third
were negative about the connected home; now, only
one-fourth are. Put another way: nearly three-fourths
of mass market consumers are now open to the idea,
compared to two-thirds in 2005.
29% of U.S. target worker households say the
connected home concept is ‘very appealing,’
compared to 23% of all U.S. online households.
U.S. consumers are a bit more positive than their
Canadian counterparts about the connected home.
Among Canadians, 20% of target workers say the
connected home is very appealing, compared to 14%
of the population of online households in general.
% Who Say
Connected
Home is
Very
Appealing
• U.S. target workers are now more interested in the
connected home than they were in 2005, when 23% found
it ‘very appealing.’
U.S. 23%
Canada 14%
0%
100%
Those most interested in the connected home idea:
•
•
•
•
•
Lead adopters (primary market consumers).
Those in multi-person households.
African-Americans, Asians and Hispanics.
U.S.: Western and southern states.
Canada: British Columbia.
* ‘Connected home’ defined as a home where
independent systems are linked and centrally
controlled. Click on link for full description.
CABA’s Connected Home Research Council, Confidential
Slide 3
Connected Home Market
Home Networks Mainstream; Interest Strongest in Linking Entertainment, Home Control
Connected Home
Foundational Technology Ownership
U.S. 2008
(A)
Canada 2008
(C)
All three connected home
foundational technologies—multiple
computers, home networks and
broadband Internet—are mainstream
and growing.
• About nine-tenths have broadband.
Broadband n=1,829
Internet
2 or more
computers n=1,849
U.S. 2005
(B)
87%
58% B
Home
43% B
Network* n=1,761
B
70%
n=1,824
n=1,834
53%
28%
n=1,768
Q8B, Q26, Q9A. Letters denote statistically significant differences among segments.
90%
n=628
n=649
54%
n=620 40%
• More than one-half have two or more
computers.
• About two-fifths have a home network.*
Consumer interest in Wi-Fi drove
increases in home networking
among both primary and mass
market consumers since 2005.
• Many who have (or aspire to have)
home computer networks want to
connect them with entertainment and/or
home control systems.
Nearly one-half of online households
have a computer in a bedroom. Other
popular locations are the den/office
and living room.
*Click link below for
home network description
CABA’s Connected Home Research Council, Confidential
Slide 4
Connected Home Market
Consumer Segments Offer Insight on Promoting Connected Home Technology
Households in the U.S. and Canada can be profitably divided into six distinct segments based on their
interest in and engagement with connected home technology. The first two segments represent the
‘beachhead’ groups necessary to generate positive word-of-mouth. Once these segments are saturated,
companies will find it easier to convert mass market consumers, who presently lack context for
appreciating the connected home concept. Seeing lead consumers with meaningful solutions will prompt
them to take a greater interest in the market and broaden adoption of key products.
• Active Connected Seekers are the most interested and engaged of all segments, and include significant number of
minorities, especially Hispanics (8% in U.S., 4% in Canada).
• Aspiring Home Connectors have a high interest in the connected home, particularly family and career applications.
However, they are less engaged with digital entertainment media than other segments (5% in U.S., 4% in Canada).
• Involved Followers have only moderate interest in the connected home, but are active users of home technology and
home networks. They are more interested in entertainment than family or career applications (24% in the U.S.,19% in
Canada).
• Satisficers are engaged with technology, but don’t necessarily strive for more (19% in the U.S., 28% in Canada).
• Trend Trailers are less engaged and interested in connected home technology (27% in the U.S., 28% in Canada).
• Entrenched Resistors are the least interested in and engaged with technology (17% in both the U.S. and Canada).
Consumer Household
Segments
U.S.
17%
8%
17%
5%
Canada
Active Connected Seekers
4% 4%
Aspiring Home Connectors
19%
Satisficers
24%
27%
Involved Followers
Trend Trailers
28%
Entrenched Resistors
19%
28%
CABA’s Connected Home Research Council, Confidential
Slide 5
Entertainment Ecosystem
Interest in Entertainment Softens a Bit, Yet Adoption Grows; Key Desire is Convergence
Media entertainment technology continues to garner
strong interest among online households, though
mass market consumers are less interested now
than in 2005. Nearly all online households use
computers for entertainment purposes.
The most appealing new products/services offer a
compelling advantage: Providing users with the ability
to seamlessly access content of their choosing.
The percentage in the U.S. who are ‘very interested’
has slipped from about two-fifths in 2005 to about
one-third in 2008.
Respondents evaluated detailed descriptions of various
entertainment-related concepts, and rated their
likelihood to buy them in the next 12 months.
• The general decline in interest is due to falling interest
among mass market consumers. This finding may be due
to a drop in consumer confidence and/or increases in
adoption of digital entertainment in recent years.
A large majority of online households—90% in the
U.S. and 95% in Canada—say they’ve used a
computer for entertainment in the past three months.
Major activities:
•
•
•
•
At least two-thirds play computer video games.
About half watch video.
At least two-fifths listen to digital music and/or burn CDs.
DVDs also are popular, with at least one-third either
watching or creating their own DVDs.
• The number of online households that watch TV or movies
on a PC at least once every three months is now about on
par with the number that use a DVR/PVR.
Two stand out as worthy of further refinement and
testing/development in both countries:
• A wireless memory card for digital cameras.
• A personal multimedia player that offers a range of video
capabilities, including ‘download your favorite shows.’
In the U.S., additional concepts fared relatively well:
• A wireless Internet radio.
• An Internet entertainment service featuring anytime, anywhere
access to personal media from any device.
• An online home network assistant service.
• A full-featured multimedia server.
Respondents also expressed interest in:
• Computer-linked HDTV.
• Wireless home theater ‘in-a-box.’
• A computer TV tuner/DVR.
CABA’s Connected Home Research Council, Confidential
Slide 6
Entertainment Ecosystem
Video & Audio Adoption is Growing
Key Entertainment Technologies
U.S. 2008 (A)
Video game system
(Console or handheld)
U.S. 2005 (B)
57% B
(n=265)
42%
49%
(n=618)
NA
Listen to Internet radio
40% B
(n=618)
31%
Personal music/multimedia player
39% B
(n=618)
Used file sharing
program to download music
17%B
Used pay-per-song service like
iTunes/MSN music to download music
Canada 2008 (C)
49%
(n=212)
53%
(n=215)
(n=604)
43% A
(n=215)
24%
(n=604)
54% A
(n=215)
(n=606)
12%
(n=618)
24%
(n=212)
17%BC
(n=606)
11%
(n=618)
5%
(n=212)
HDTV service
11% B
(n=604)
5%
(n=610)
13%
(n=211)
Music phone
9%
(n=606)
NA
11%
(n=212)
Multi-room audio system
7%
(n=604)
5%
5%
(n=212)
Media server
3%
(n=604)
NA
7%
(n=88)
TV with built-in Internet connection
3%
(n=265)
NA
5%
(n=88)
Fiber-optic TV service
2%
(n=604)
NA
0%
(n=211)
Watch video on computer
(n=618)
(n=212)
Letters denote statistically significant differences among
segments.
CABA’s
Connected Home Research Council, Confidential
Traditional video and audio
entertainment offerings are
strong and growing.
• Among those with video game
systems, more than one-fourth have
used them to watch a movie (data
not shown).
Audio activity is climbing, thanks
to portable devices and
computers. Multi-room home
audio, however, lacks traction.
In the early stages of adoption:
media servers, Internet TV and
fiber-optic TV services.
Slide 7
Entertainment Ecosystem
Conclusions & Recommendations
The entertainment ecosystem continues to be the primary gateway into the world of the connected
home. Growing consumer use of digital entertainment media is fostering a desire for ‘anytime,
anywhere’ access, and in particular, for bridging the worlds of digital computer content with the
traditional home entertainment network.
To foster this interest, develop products and services that appeal to higher-order needs:
•
•
•
•
•
Expressive instead of instrumental. The expressive side of technology refers to the possibilities that technology
creates in communicating emotions and expressing consumer values through opinions and behavior. For instance,
group video game play offers people the opportunity to convey their feelings toward others. Example: the
Nintendo Wii.
Pleasure-oriented instead of task-oriented. Pleasure-oriented activities are enjoyable for their own sake. It’s
possible, of course, for an activity to be both task-oriented and pleasurable, such as cooking for gourmands. Media
entertainment is by definition pleasure-oriented rather than task-oriented. Solutions that minimize the pain of
adoption and maximize the pleasure will find the most success. Example: the iPhone.
Multifunctional instead of unifunctional. Computers and increasingly TVs can be considered multifunctional for
the same reason—they have several distinct applications.
Greater instead of lesser social impact. Some technologies have a greater social impact than others. The notion
here is that technology alters one’s behavior, and at the same time, takes advantage of the ‘network effect’—the
more people take advantage of it, the greater the benefit. The degree of social impact caused by technology
indicates its social or cultural importance.
A balance of passive and active, as the situation requires. In general, passive technologies require less
manipulation and effort on the part of the user compared to active technologies. Customized universal remote
controls speak to this need for passive automation of complex processes related to media content consumption.
By contrast, the ability to actively engage in media production, as with photo slide shows or customized music
playlists, illustrates growing consumer desire to tailor their experience to their personal interests and tastes.
CABA’s Connected Home Research Council, Confidential
Slide 8
Family Ecosystem
Whole-Home Control Not Yet a Reality, But Consumers Use More Technology at Home
Mass market consumers have almost no interest in
using ‘technology’ for home ‘automation’ or ‘control.’
However, a substantial minority would use home
control products that offer compelling benefits, are
simple, and are compatible with their lifestyles.
About nine-tenths of online households use home
computers for information/education, and more than
two-thirds use them for networking/communicating.
Using VoIP or cell phones rather than landlines for
home phone service is on the rise in the U.S.
The primary market drives demand in the family
ecosystem almost exclusively; only about 5% of
mass market consumers have strong interest.
Top computer information/education activities:
• Interest among both primary and mass market consumers
has not increased in the U.S. since 2005.
While they aren’t interested in the general idea of
using technology for home management, mass
market consumers continue to be interested in
specific product concepts, especially for:
•
•
•
•
Home security.
Home energy management.
Communicating with household members.
Paying bills.
• Checking news (72% U.S.; 66% Canada).
• Doing online transactions (64% U.S.; 72% Canada).
Top computer networking/communications activities:
• Instant messaging (49% U.S.; 60% Canada).
• Social networking (34% U.S.; 47% Canada).
While most online households have traditional
(landline) phone service, a notable number in the U.S.
have switched, or want to switch, to cell phone-only
service or VoIP. In the U.S., 12% have cut the landline
cord.
Kitchen cell phone use is very prevalent—three-fifths
of online households use cell phones in the kitchen in
the U.S., and nearly one-half in Canada.
• While phones are primarily used for communicating, they
are also used for scheduling, grocery list management and
listening to audio entertainment.
Use of personal media players rivals the use of
computers in the kitchen.
CABA’s Connected Home Research Council, Confidential
Slide 9
Family Ecosystem
Families Increasingly Use Internet & Mobile Technology; Home Buyers Get Wired
Families are increasingly using the Internet and mobile technology to stay connected to people and
information.
Security systems, programmable thermostats and built-in high-speed Internet are commonly purchased for
households whose home was built in the year 2000 or later. More than half have these items.
• By contrast, energy monitoring/control and lighting control are included in one-fifth or fewer of homes built in 2000 or later.
• Most who didn’t get centralized lighting or home energy monitoring/control didn’t even consider them at the time they bought
their home.
U.S. 2008
(n=618; A)
U.S. 2005 Canada 2008
(n=604; B)
(n=215; C)
Laptop in home network
(Base: mass market consumers)
67%
48%
69%
Social networking
34%
NA
47%
Cell phone Internet use
22%
B
11%
18%
Consulted an in-vehicle
GPS navigation system
8% B
1%
10%
(n=581)
(n=593)
(n=176)
B
Options Purchased When Current
Home was Purchased,
Among Homes Built 2000 or later
2008 U.S. and Canada
Total Online HHS n=60
Wired security system
60%
Programmable thermostat
59%
Built-in high-speed Internet
throughout the home
56%
Structured wiring
45%
Home energy monitoring/control
18%
Centralized lighting control
12%
A
Letters denote statistically significant differences among segments.
CABA’s Connected Home Research Council, Confidential
Slide 10
Family Ecosystem
Conclusions & Recommendations
To make home control and automation appealing to mass market consumers, offer easy-to-understand
products with discrete functionality that can be linked to a centralized network, ultimately evolving into a
‘connected home’ experience.
•
Highly desirable discrete products also could be bundled together, such as an energy efficiency solution with lighting and
heating control.
To get beyond the early adopters—who are primarily concerned with functionality—offer a fun and easy user
experience, from purchase through installation and use.
•
Stimulate the imagination with hands-on installations in retail outlets, model homes—and even hotels where appropriate
(one-touch lighting). Virtual online demonstrations also can pique interest.
•
Integrate with home theater—take advantage of HD graphics and home audio—even consider adding games/challenges.
(How much electricity do you think we can save this month?)
To mitigate against consumer inertia, companies should offer products that facilitate existing behaviors,
helping consumers save time or effort.
•
Wireless home networks and laptops are mass-market phenomena—offer platforms that can be easily installed and
controlled via wireless connections.
•
Cell phones are ubiquitous, and cell phone Internet access is rising. Allow cell phone control as an ‘add-on’ when
consumers are ready. Remember that cell phones are often used inside the home as well as when on-the-go, and that
young people are the most ready to start using them to control their homes.
•
Provide easy, familiar user interfaces (think point-and-click Web sites, TV remotes, media players) that can be
customized. Men, especially, like the idea of controlling home systems via a TV—let them.
Because family ecosystem products will likely sell better as recognizable lifestyle choices, industry players
should focus on families purchasing new homes or going through an extensive remodel.
•
Many new homes have the necessary infrastructure to support a deeply integrated home automation system. The notion
here is to make home control (not home automation, which sounds technical and intimidating to many consumers) part of
a generational trend.
CABA’s Connected Home Research Council, Confidential
Slide 11
Career Ecosystem
Increase in Remote Work Fuels Interest in Staying Connected
Interest in improving remote work productivity at
home edged up in the U.S. between 2005 and
2008. Remote work (especially at home) and
freedom to choose where work is done also are
rising.
Now, nearly one-fifth (18%) of U.S. online
households have a strong interest in improving
work productivity at home (up from 15% in 2005).
American and Canadian target workers (those who
use a computer at least 15% of the time) are equally
likely to engage in remote work behaviors—both at
home (more than one-third), and on the road (less
than one-fourth).
• Both of these practices are up since 2005 in the U.S.
One-half of target workers feel they have some or
complete freedom to choose where they work. By
contrast, only 43% felt that way in 2005 in the U.S.
Target workers are most drawn to concepts that
make it easier to pursue their chief interest—staying
connected to friends, family and colleagues.
A service that guarantees users will never lose
their broadband connection, ‘reasonably priced’
Unified Messaging and Wireless/Landline Transfer
services, and competitively priced Visual
Voicemail services for the cell phone score most
favorably among the career-related products and
services tested.
Those who are more satisfied with their work/life
balance are generally more interested in the use
of technology for both personal and work-related
reasons.
Use of productivity-related work tools (both at work
and at home) is on the increase in the U.S.:
•
•
•
•
•
Laptop computers.
Cell phones.
Smart phones, such as the RIM Blackberry.
Instant messaging.
Web-based meeting tools such as NetMeeting.
CABA’s Connected Home Research Council, Confidential
Slide 12
Career Ecosystem
Conclusions & Recommendations
Computer workers, especially those who work remotely, are increasingly interested in using
technology to enhance their productivity—and their numbers are expected to grow.
•
World at Work, a human resources group, forecasts increasing requests by employees to work from home as
the result of rapidly rising gas prices.
The most common work-related technology problems faced by remote workers involve getting
seamless, secure access to the information they need. Consider offering:
•
Easy ways to encrypt and protect home Wi-Fi networks for secure transfer of proprietary work-related
information.
•
Concepts that bridge platforms (computers, landline phones, cell phones), allowing access to files, email and
voicemail from any device, using the most convenient method—audio, text and/or video.
•
Options for working while on-the-go, including large-screen (touchscreen) cell phones, and services like the
Guaranteed Broadband concept tested in this study.
A desirable work/life balance is enhanced by easy, on-demand communication with family, friends
and co-workers, along with a flexible ability to plan and schedule events. Consider offering:
•
•
The Visual Voicemail and Unified Voicemail concepts tested in this study, which make it easier to retrieve
and respond to messages.
A comprehensive, easy-to-use shared calendar system that facilitates event planning and scheduling.
Target workers are highly interested in using technology to bridge the worlds of work and home.
And they are more interested in the connected home concept than online households in general.
Take advantage of this natural inclination to use technology to improve quality of life.
•
A wireless home network established so work can be done on a laptop at home can be leveraged for a
variety of home-specific uses, such as streaming computer content to a TV, or monitoring home energy
usage.
•
Remote workers have a relatively high interest in home security and home control. Concepts that help them
stay connected to people at home (such as video phones) could be enhanced to assure them that their home
is safe and secure.
CABA’s Connected Home Research Council, Confidential
Slide 13
Executive Summary
Connected Home Concept Description
The features of the connected home exist today; they are not dreams of tomorrow. This home is
connected in the sense that normally independent systems are linked into one centrally controlled
system, which is called a home network. For example, your PC, television, lighting and heating controls,
and home security system can all be linked to a home network.
You can control various parts of your home through your home PC or a variety of mobile devices,
including your TV remote control. For example, you could turn up the heat using your TV remote control,
see your phone’s caller ID on your TV screen, or turn on the lights inside your home from another
location, via the Internet. When you’re away from home, you can control your home network using any
device with Internet access, like a cell phone, or by going to a special, secure Web site.
Right now, manufacturers and service providers are developing products and services for the connected
home. In general, these are products and services designed to provide entertainment programming,
automate common household tasks, and let people communicate with each other more easily.
The connected home will be reliable, easy to control, and easy to upgrade. You will not have to re-wire or
spend an extravagant amount of money to start setting up a connected home.
Click to return to
appeal results
CABA’s Connected Home Research Council, Confidential
Slide 14
Executive Summary
Home Network Description
A home network allows computers and other electronic devices in the home to communicate with one
another so they can share content and/or an Internet connection.
The following are home networks:
• A connection between a router and one or more other
devices such as computers, storage devices, webcams
and/or game consoles, or
• A connection between two or more computers
The following are NOT home networks:
• A single computer hooked up to the Internet, or
• A connection between a single computer and a printer,
even if the devices are in separate rooms,
• A connection between a computer and portable devices
like portable media players/iPods and digital cameras
Click to return to
Foundational Technology Ownership
Q26.
CABA’s Connected Home Research Council, Confidential
Slide 15
David Edwards
Carole Wiedmeyer
Founder & CEO
115 SW Ash Street, Suite 610 Portland Oregon 97204
T 971.404.0275\101 F 971.404.0274
Senior Research Consultant
115 SW Ash Street, Suite 610 Portland Oregon 97204
T 971.404.0275\121 F 971.404.0274
[email protected]
[email protected]
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consumers and not independently verified; accordingly the results may reflect inaccuracies in the underlying data. Other methods or approaches to the study
may have yielded different results.
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