Market Snapshot: Smart TVs & the User Experience

A Parks Associates SnapshotA Parks Associates Snapshot

Market Snapshot: Smart TVs & the User ExperienceStreaming media player adoption and smart TV adoption experienced sustained growth until 2016 and are now showing signs of flattening. As a result of flattened or declining adoption in several product segments, device makers are emphasizing the user interface as a point of differentiation to win consumers.

The smart TV is the most used interface in the home for video viewing, creating a new opportunity for partnerships to enhance the consumer experience.

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Ownership of Home Entertainment Devices (2010-2017)U.S. Broadband Households

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Gaming Console

Smart TV Streaming Media PlayerBlu-ray Player

Smart Speaker with Personal AssistantDVR Internet Connected Multiroom Music System

Virtual Reality Headset

0%

60%

70%

40%

20%

10%

30%

50%

Q1/2010 Q1/2011 Q1/2012 Q2/2013 Q1/2014 Q1/2015 Q1/2016 Q2/2017

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Most Commonly Used Connected EntertainmentPlatform for Online Video

Among U.S. Broadband Households with at Least OneHome Video Entertainment Device Connected to the Internet

0%

30%

40%

50%

20%

10%

Smart TV Streaming Media Player Gaming Console Smart Blu-ray Player DVR

Q1/2016 Q1/2017Q1/2015 Q2/2015

Consumers prioritize ease of use and a single point of access over desired content when determining the ideal user experience.

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As smart TVs expand their digital content sources, the need for additional connected entertainment devices such as smart Blu-ray players declines. While streaming media players (SMPs) have seen strong growth in recent years, they too are susceptible to this trend in the long run.

Smart TVs and Streaming Media PlayersThe home entertainment device market is consolidating around the smart TV. Smart TVs are now the most commonly used platform for accessing online video content.

In response, many SMP makers are adjusting their strategies to leverage their strength in user interface design, where they have valuable expertise in making it easy for users to find the content they want.

With the user interface as a strength, makers of streaming media players are teaming up with smart TV makers to close the gap on the user experience. Better navigation to content will cement the smart TV’s role as the main connected entertainment platform in the home.

SMP makers are preparing for the future by investing in their software platforms so that they extend across device form factors.

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Reasons Why a Connected In-Home Entertainment Device is Perceived as Easier to Use

Among U.S. Broadband Households Choosing Their Connected Entertainment Device Due to its Ease-of-Use

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0%

It is easier to set up

The search function is easier to use

It is easier to �nd the content I want

The device display is easier to navigate

60%30%

The customer service is good

It can network with a PC or other devices

More video formats are supported

Other

% Citing Reason

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Ease of Finding Content by Most Used CE DeviceAmong U.S. Broadband Households Selecting the Speci�ed

Connected Entertainment Device Due to its Ease-of-Use

20%

80%

60%

40%

StreamingMedia Player

GamingConsole

DVR Smart TV Stand-aloneBlu-ray Player

Smart TVs and Voice Controls

Over half of U.S. broadband households find voice control appealing for entertainment and smart home devices.

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Appeal of Smart Speaker with Personal Assistant to Control Other Devices

U.S. Broadband Households

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20%

40%

60%

0%

20%

40%

Not Appealing (Rating 1-3)

Appealing (Rating 5)

Very Appealing (Rating 6-7)

ControlEntertainment

Devices

ControlSmart Home

Devices

When asked to specify home devices and services they would most like to control with a personal assistant, most consumers ranked smart home devices at the top of the list.

Still, it is notable that one-third of smart TV owners selected that product among their top five devices they would most like to control with a personal assistant.

Voice control for TVs is still in early market stages and not heavily marketed by TV manufacturers. The growing use of voice assistants and voice-enabled remote controls, such as those from Comcast and Roku, is helping increase awareness for smart TV manufacturers.

Preferred Smart Home Products forPersonal Assistant Control

Device Owners or Service Subscribers Among U.S. Broadband Households

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0% 80%40%

Ranked 1st Ranked 2nd/3rd

Smart lighting

Smart programmable thermostat

Smart door lock

Home security system

Smart TV

Streaming media players

DVR/PVR

Smart sprinkler system

Pay-TV service

% Ranking Device/Service at Speci�ed Level

ATTRIBUTION—Authored by Parks Associates. Published by Parks Associates. © Parks Associates, Addison, Texas 75001. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America. DISCLAIMER—Parks Associates has made every reasonable effort to ensure that all information in this report is correct. We assume no responsibility for any inadvertent errors.

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