NEW YORK – Citing their fear of hidden costs or that new devices will be tricky to use, Americans are cautious and confused when looking at the new digital video products making their way onto the market, says a new study from Ipsos, the global survey-based market research firm.
Still, over half (61%) of online American adults are at least open to considering devices that connect PCs with consumer electronics for more convenient access to digital content. Ipsos estimates that upwards of 900,000 American consumers may purchase "digital den-type" devices in the next year if they can be offered at $100.
Among the group who would consider these media hub devices, movies and TV are as much in demand as music, though music content is much more available in a digitally portable form at this point “This finding has been consistent over the past year and also fits with other data we see, indicating that video content indeed could be the catalyst for greater consideration of in-home convergence devices and investments," said Todd Board, senior vice-president of the Ipsos Insight Technology & Communications practice, in the press release.
“Consistent with this latent potential, when we ask online Americans what benefits, if any, they would expect from these kinds of ‘media hub’ devices, fully half envision the convenience of being able to connect content across devices – basically, the same half who are at least open to considering these technologies."
However, when online Americans were asked what kinds of barriers or concerns they envision with using media hubs, sizable concerns remain around hidden costs and skepticism about whether it will really work as described.
“In this already time- and attention-starved world, Americans are asking themselves, ‘Once I start wading into these new devices that work with my media center PC to share stuff around the house, do I then have to buy cables, antennas, a new TV for the second bedroom, and so forth?’ It’s quite the Pandora’s Box,” said Board.
The results of this study are part of ongoing research by the Ipsos Insight Technology & Communications practice on in-home digital convergence (the “Digital Den”). In this case, Ipsos Insight researchers teamed up with forecasting and modeling experts at Ipsos Vantis. The most recent wave of data, in which 2,140 Americans were interviewed in depth between March 10 and 20, sheds new light on current barriers to consumer consideration of media hub-type investments, and includes a provisional category forecast for media hubs.
Ipsos Vantis Vice President John Kiser said the need for more immersive education may hinder the adoption of media hubs – as they did in the earlier days of the TiVo DVR. “Media hubs are where TiVo was a few years back. Various stakeholders in the emerging digital content channel need to work together to educate consumers and build their comfort and curiosity, just as TiVo had to with partnerships over time," he explained.
Kiser provided a provisional “next 12 months” forecast for media hub devices, varying across three potential price points: $100, $200, and $300. The Ipsos Vantis data strongly suggests that movement toward a $100 price point would be a significant catalyst for the media hub market. “This in turn would help ramp up the base of consumers who can get full value out of downloaded movies and TV programs, instead of watching them on the family PC or tiny screens in most cases," said Board.
