Digital Lifestyles: U.S. (Second Edition) 2Q 2014
This report provides analysis and five-year forecasts for a variety of digital lifestyle product categories, including Internet, television services, digital content services, and connected home products, including home networks and connected CE.
1 REPORT SUMMARY
1.1 Purpose of the Report
1.2 Data Sources
2 DIGITAL LIFESTYLES
2.1 Digital Lifestyle Timeline
2.2 What Does the Connected Home Look Like Today?
2.3 Consumer Adoption of Digital Lifestyles
3 DIGITAL LIFESTYLES: PRODUCT AND SERVICES TRENDS
3.1 Broadband Services
3.1.1 Innovations in Access and Entertainment
DOCSIS 3.1 Provides Faster Speeds and More Capacity
Telcos Can Provide Faster Copper Speeds With Vectoring
3.1.2 Trends to Watch
Peering Agreements Are Increasing
Net Neutrality Generates Discussion
3.1.3 Growth Areas and Opportunities
Wi-Fi Hotspot Deployment is Increasing
Usage-based Pricing is a Double-Edged Sword
Providers Are In a Race to Offer Gigabit Speeds
3.2 Pay-TV Services
3.2.1 Innovation in Pay-TV Services
Video Compression Preserves Bandwidth
Providers Are Moving to Master-Client STBs
3.2.2 Trends to Watch
The Pay-TV Industry is Consolidating
Netflix Partners with Cable Providers
TV Everywhere Enters a New Phase
3.2.3 Growth Areas and Opportunities
The Aereo Decision Has the Potential to Change the Pay-TV Landscape
Pay-TV Providers Are Offering OTT Services
3.3 Digital Media
3.3.1 Innovations in Digital Media
Video Quality Gets Better with 4K/UHD
Multiscreen Services and Apps Are Playing an Important Role
Pay-TV Providers Are Implementing New Content Discovery Options
3.3.2 Trends to Watch
End-to-End Digital Video Solutions Growing in Importance
Content Owners Continue to Focus on Rights Protections
3.3.3 Growth Areas and Opportunities
Digital Multiplatform Services Are Growing
Content Costs Continue to Rise
Diverse Content Outlets Are Opening Up Opportunities
3.4 Advanced Advertising Trends & Innovations
3.4.1 Innovations in Advanced Advertising
Sync-to-Broadcast Technologies Enhance Promotion and Advertising
3.4.2 Trends to Watch
ACR-enabled Smart TV Advertising is Gaining Attention
Apps Are No Longer a Niche Advertising Channel
Multiscreen Video Engagement is on the Rise
3.4.3 Growth Areas and Opportunities
Smart TV Adoption Will Increase Addressable Market for Advertising
Mobile Advertising is Growing
Demand for Multiscreen Video Engagement is Growing
3.5 Mobile Services and Devices
3.5.1 Innovations in Mobile Services and Devices
Mobile Network Management and Optimization Challenges Addressed
3.5.2 Trends in Mobile Services and Devices
U.S. Market LTE Adoption Accelerates
Data Plan Competition Intensifies
Carriers Develop New Strategies for Device Pricing and Upgrades
Smartphone Adoption Drives New Mobile Lifestyle
Mobile Apps are Changing Mobile Entertainment
3.5.3 Growth Areas and Opportunities
Mobile Commerce and Payments Open Up New Opportunities
Wearables Emerge as a New Growth Market
The Tablet Market Has Potential to Replace the PC
3.6 Connected CE and Platforms
3.6.1 Innovation in Connected CE
Virtual Reality Can be a Game Changer
New TV Innovation is Unlikely to Drive an Upgrade Cycle
3.6.2 Trends to Watch
Internet-to-TV Connections Will Continue to Grow
Personal Computer Penetration Will Continue to Decline
Operators and CE Makers Will Collaborate on the User Experience
3.6.3 Growth Areas and Opportunities
TV Growth is in Larger Screens
Streaming Media Players Have Room to Grow
3.7 Digital Health and Fitness
3.7.1 Innovations in Digital Health
3.7.2 Trends to Watch
Demographics Drive Demand for Digital Health Products and services
Home Health Monitoring Becomes Part of Coordinated Care
PERS Platform Transformation is Underway
Consumer Interest in Wellness and Fitness Products Continues to Grow
3.7.3 Growth Areas and Opportunities
Healthcare Practices are Transitioning to Coordinated Care Models
PERS and Independent Living Systems are Going Mobile
Wearables for Wellness and Fitness Are Attractive to Consumers
The Convenience of Virtual Care Provides New Technology Opportunities
3.8 Smart Home Systems and Services
3.8.1 Innovations in Smart Home Systems and Services
Cloud Services Will Enable Differentiation and Operational Efficiency
Personalized Recommendations and Advertising Will Grow
Real-Time Data Analytics Will Change the Game
3.8.2 Trends to Watch
Individual Sensor Products Will Consolidate
Software Will Become the Main Differentiator for Smart Devices
3.8.3 Growth Areas and Opportunities
Data Analytics Will Create a Seamless User Experience
Horizontal Interoperability Will Increase the Value of the Internet of Things
Integrating Unstructured Information is a Huge Opportunity
3.9 Consumer Tech Support
3.9.1 Innovation in Consumer Tech Support
Automating Tech Support Will Increase Efficiency and Reduce Error
3.9.2 Trends to Watch
Tier-0 Support Will Reduce Calls and Lower Labor Costs
Warranty Services Are Bundled With Tech Support Packages
3.9.3 Growth Areas and Opportunities
4 DIGITAL LIFESTYLES – OPTIMIZING GROWTH OPPORTUNITIES
4.1 Cloud Services
4.2 Real-Time Data Analytics
4.3 Smartphones as a Primary Digital Lifestyles Controller
4.4 Device Interoperability
4.5 Content Streaming
4.6 Mobile Commerce
5 CORE INDUSTRY FORECASTS
5.1 Broadband Services
5.2 Smartphones
5.3 Connected CE Devices
5.4 Smart Home Services
INDEX
1.1 Purpose of the Report
1.2 Data Sources
2 DIGITAL LIFESTYLES
2.1 Digital Lifestyle Timeline
2.2 What Does the Connected Home Look Like Today?
2.3 Consumer Adoption of Digital Lifestyles
3 DIGITAL LIFESTYLES: PRODUCT AND SERVICES TRENDS
3.1 Broadband Services
3.1.1 Innovations in Access and Entertainment
DOCSIS 3.1 Provides Faster Speeds and More Capacity
Telcos Can Provide Faster Copper Speeds With Vectoring
3.1.2 Trends to Watch
Peering Agreements Are Increasing
Net Neutrality Generates Discussion
3.1.3 Growth Areas and Opportunities
Wi-Fi Hotspot Deployment is Increasing
Usage-based Pricing is a Double-Edged Sword
Providers Are In a Race to Offer Gigabit Speeds
3.2 Pay-TV Services
3.2.1 Innovation in Pay-TV Services
Video Compression Preserves Bandwidth
Providers Are Moving to Master-Client STBs
3.2.2 Trends to Watch
The Pay-TV Industry is Consolidating
Netflix Partners with Cable Providers
TV Everywhere Enters a New Phase
3.2.3 Growth Areas and Opportunities
The Aereo Decision Has the Potential to Change the Pay-TV Landscape
Pay-TV Providers Are Offering OTT Services
3.3 Digital Media
3.3.1 Innovations in Digital Media
Video Quality Gets Better with 4K/UHD
Multiscreen Services and Apps Are Playing an Important Role
Pay-TV Providers Are Implementing New Content Discovery Options
3.3.2 Trends to Watch
End-to-End Digital Video Solutions Growing in Importance
Content Owners Continue to Focus on Rights Protections
3.3.3 Growth Areas and Opportunities
Digital Multiplatform Services Are Growing
Content Costs Continue to Rise
Diverse Content Outlets Are Opening Up Opportunities
3.4 Advanced Advertising Trends & Innovations
3.4.1 Innovations in Advanced Advertising
Sync-to-Broadcast Technologies Enhance Promotion and Advertising
3.4.2 Trends to Watch
ACR-enabled Smart TV Advertising is Gaining Attention
Apps Are No Longer a Niche Advertising Channel
Multiscreen Video Engagement is on the Rise
3.4.3 Growth Areas and Opportunities
Smart TV Adoption Will Increase Addressable Market for Advertising
Mobile Advertising is Growing
Demand for Multiscreen Video Engagement is Growing
3.5 Mobile Services and Devices
3.5.1 Innovations in Mobile Services and Devices
Mobile Network Management and Optimization Challenges Addressed
3.5.2 Trends in Mobile Services and Devices
U.S. Market LTE Adoption Accelerates
Data Plan Competition Intensifies
Carriers Develop New Strategies for Device Pricing and Upgrades
Smartphone Adoption Drives New Mobile Lifestyle
Mobile Apps are Changing Mobile Entertainment
3.5.3 Growth Areas and Opportunities
Mobile Commerce and Payments Open Up New Opportunities
Wearables Emerge as a New Growth Market
The Tablet Market Has Potential to Replace the PC
3.6 Connected CE and Platforms
3.6.1 Innovation in Connected CE
Virtual Reality Can be a Game Changer
New TV Innovation is Unlikely to Drive an Upgrade Cycle
3.6.2 Trends to Watch
Internet-to-TV Connections Will Continue to Grow
Personal Computer Penetration Will Continue to Decline
Operators and CE Makers Will Collaborate on the User Experience
3.6.3 Growth Areas and Opportunities
TV Growth is in Larger Screens
Streaming Media Players Have Room to Grow
3.7 Digital Health and Fitness
3.7.1 Innovations in Digital Health
3.7.2 Trends to Watch
Demographics Drive Demand for Digital Health Products and services
Home Health Monitoring Becomes Part of Coordinated Care
PERS Platform Transformation is Underway
Consumer Interest in Wellness and Fitness Products Continues to Grow
3.7.3 Growth Areas and Opportunities
Healthcare Practices are Transitioning to Coordinated Care Models
PERS and Independent Living Systems are Going Mobile
Wearables for Wellness and Fitness Are Attractive to Consumers
The Convenience of Virtual Care Provides New Technology Opportunities
3.8 Smart Home Systems and Services
3.8.1 Innovations in Smart Home Systems and Services
Cloud Services Will Enable Differentiation and Operational Efficiency
Personalized Recommendations and Advertising Will Grow
Real-Time Data Analytics Will Change the Game
3.8.2 Trends to Watch
Individual Sensor Products Will Consolidate
Software Will Become the Main Differentiator for Smart Devices
3.8.3 Growth Areas and Opportunities
Data Analytics Will Create a Seamless User Experience
Horizontal Interoperability Will Increase the Value of the Internet of Things
Integrating Unstructured Information is a Huge Opportunity
3.9 Consumer Tech Support
3.9.1 Innovation in Consumer Tech Support
Automating Tech Support Will Increase Efficiency and Reduce Error
3.9.2 Trends to Watch
Tier-0 Support Will Reduce Calls and Lower Labor Costs
Warranty Services Are Bundled With Tech Support Packages
3.9.3 Growth Areas and Opportunities
4 DIGITAL LIFESTYLES – OPTIMIZING GROWTH OPPORTUNITIES
4.1 Cloud Services
4.2 Real-Time Data Analytics
4.3 Smartphones as a Primary Digital Lifestyles Controller
4.4 Device Interoperability
4.5 Content Streaming
4.6 Mobile Commerce
5 CORE INDUSTRY FORECASTS
5.1 Broadband Services
5.2 Smartphones
5.3 Connected CE Devices
5.4 Smart Home Services
INDEX
LIST OF FIGURES
The Digital Lifestyle Timeline
The Connected Home
Number and Type of Devices in the Average Connected Home
Consumer Electronics Adoption (2009 - 2014)
Percentage of Broadband Households Connecting CE Devices to the TV and Internet
Video Consumption by Platform (2010 - 2014)
Consumer Intentions to Buy a Smart Home Control Device
U.S. Broadband Households and Penetration
Most Popular Video Services for Connected CE Devices
Relative Importance of Services in Bundle
U.S. Pay-TV Households and Penetration (2010 – 2013)
Awareness of TV Everywhere Service
Video Viewing Habits (2011 - 2013)
Most Important Video Sources by Age
U.S. TV Households, Smart TV HHs & ACR-enabled Smart TV HHs 2014-2018
U.S. Mobile App Revenues
Network Management and Optimization
U.S. LTE Rollouts
Shared Data Plan Adoption in the U.S.
Tier 1 Wireless Carrier Upgrade Programs
U.S. Smartphone Penetration (2010 - 2014)
Mobile App Usage by Smartphone OS
Mobile Commerce/Payment/Banking App Use
Preferred Device Platforms for Digital Activities
Most Frequently Used Connected CE Device
Flat-Panel TV Penetration
U.S. Households with Internet-Connected CE (2010 - 2014)
Screen Sizes of Flat Panel and Smart TVs
U.S. Patient Population with Common Chronic Conditions
Smart Home Service Provider’s Approach to Safety and Security
Layers of Data Analytics and Value Added Services
Automation Strategies
Forecast: U.S. Broadband Households
U.S. Smartphone Sales Forecast
U.S. Streaming Media Player Unit Sales Forecast
U.S. Smart TV Unit Sales Forecast
U.S. Smart Home Controller Unit Sales Forecast
The Digital Lifestyle Timeline
The Connected Home
Number and Type of Devices in the Average Connected Home
Consumer Electronics Adoption (2009 - 2014)
Percentage of Broadband Households Connecting CE Devices to the TV and Internet
Video Consumption by Platform (2010 - 2014)
Consumer Intentions to Buy a Smart Home Control Device
U.S. Broadband Households and Penetration
Most Popular Video Services for Connected CE Devices
Relative Importance of Services in Bundle
U.S. Pay-TV Households and Penetration (2010 – 2013)
Awareness of TV Everywhere Service
Video Viewing Habits (2011 - 2013)
Most Important Video Sources by Age
U.S. TV Households, Smart TV HHs & ACR-enabled Smart TV HHs 2014-2018
U.S. Mobile App Revenues
Network Management and Optimization
U.S. LTE Rollouts
Shared Data Plan Adoption in the U.S.
Tier 1 Wireless Carrier Upgrade Programs
U.S. Smartphone Penetration (2010 - 2014)
Mobile App Usage by Smartphone OS
Mobile Commerce/Payment/Banking App Use
Preferred Device Platforms for Digital Activities
Most Frequently Used Connected CE Device
Flat-Panel TV Penetration
U.S. Households with Internet-Connected CE (2010 - 2014)
Screen Sizes of Flat Panel and Smart TVs
U.S. Patient Population with Common Chronic Conditions
Smart Home Service Provider’s Approach to Safety and Security
Layers of Data Analytics and Value Added Services
Automation Strategies
Forecast: U.S. Broadband Households
U.S. Smartphone Sales Forecast
U.S. Streaming Media Player Unit Sales Forecast
U.S. Smart TV Unit Sales Forecast
U.S. Smart Home Controller Unit Sales Forecast
