Connected TV demand double that of 3D TVs

Michelle Clancy ©RapidTVNews | 20-12-2011

One in five US broadband households intends to purchase a new flat-panel TV before the end of 2011, and 73% of those plan to select a set with advanced features such as 3D capabilities or built-in Internet connectivity.

Also, as a new report from Parks Research has revealed. flat-panel purchasers are looking for smart TVs at twice the rate that they are 3D TVs-- a trend that could have implications for pay-TV cord-cutting.
This year, households with annual incomes of $50,000-$75,000 are responsible for the spike in smart-TV purchase intentions. A fifth of middle-income households intend to purchase smart TVs this holiday season, compared to only 12% of households with incomes above $75,000.
"Smart TVs are now pushing into the mainstream, whereas previously smart-TV buyers were largely early adopters and those from high-income households," said Kurt Scherf, vice president and principal analyst at Parks Associates. "The combination of a maturing product ecosystem with great holiday deals is putting smart TVs within the reach of the American middle class."
Also, these consumers are continuing to feel the effects of the recession and high unemployment, so consumers who intend to purchase a connected TV this holiday season are also more likely than average pay-TV subscribers to cancel or downgrade their pay-TV service within the next 12 months.
"Smart TVs expand a household's available content choices without raising content costs," Scherf said. "Consumers pay a premium for the device now, but our research indicates these purchases could be part of a long-term plan for many budget-conscious households to reduce their overall expenditures."