Internet-Connected TVs Command $100 Price Premium

April 1, 2009

This article is included in these additional categories:

Analytics, Automated & MarTech | CPG & FMCG | Technology | Television

Approximately 2.5 million broadband households in the US and Canada would be ready to purchase an internet-connected TV if it is priced at a $100 premium over regular TV sets, according to a recent consumer study from Parks Associates.

This dollar figure, according to the research, translates into $250 million in additional revenues for the consumer electronics industry.

The study, “Digital Media Evolution,” also gauges market demand for other internet-connected devices and the applications consumers want to use in conjunction with this? internet connectivity. It finds that though TVs have the strongest market potential, consumers also would be ready to pay lesser premiums for other internet-connected electronic devices, such as digital cameras, digital photo frames, and Blu-ray disc players:


Personalized and web-based content is the largest driver of consumer demand, the research found. 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 US and Canada want on-screen widgets, and 27% 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. “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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