Monday, June 4, 2012

Smart TV in Europe - Diffused but not Adopted

A report from McKinsey's Consumer and Shopper Insights suggest that the marketing of Internet-connected TVs (Smart TVs) hasn't been terribly effective.
  The study of consumers in France and the U.K. found that only 42% of French households even knew about the technology.  Awareness was higher in the U.K., with 62% having a clue.  In contrast, 80% of U.K. homes knew that game consoles could feed Internet content to TVs, and 81% of French households were aware of OTT boxes as an intermediary that could feed Internet content to TVs.  In the meantime, sales of Smart TV sets are increasing rapidly (around 70% gain per year), and are expected to have placed more than 500 million Smart TVs in homes by the end of 2015.
  If those numbers weren't bad enough, the same study reports that more than half of Smart TV owners have never even tried to connect their sets to the Internet, and only 3% of Smart TV owners have actually used their sets' "Internet functionality."  Add to that the fact that only a third of Smart TV set owners indicated that they were satisfied with their purchase, and you can see that consumers in these countries lave little demand for Smart TV products.
  One contributing factor may be that movie and TV program streaming services are fairly new to those markets, and those are (for now) the primary driver of internet video to the big screen.  So there is perhaps room to increase awareness and increase the perceived value of SmartTV, which, according to Roger's Diffusion of Innovation theory, should increase adoption and use of the technology.

Source - Internet TV Slow To Adapt (sic) in France, UK,  MediaDailyNews

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