Enabling the Integrated Life, Enhancing the AV Experience€¦ · Familiar user experiences across venues 4. Universal access to AV content anytime, anywhere 5. Reliable, high bandwidth

www.parksassociates.com

Enabling the Integrated Life, Enhancing the

AV Experience

April 17 1:00 PM CT


Speakers

Sean Wargo Senior Director of Market IntelligenceAVIXA

Brad RussellResearch Director, Connected HomeParks Associates


Introductions Welcome to the Integrated Life

•7 Consumer Expectations•7 Enterprise Requirements

Advances in Smart Home Technology Adoption •Smart Home Device Adoption•Voice Interfaces and Platforms

Challenges to Realizing the Integrated LifeTranslating Smart-home into Pro AV OpportunityAudience Q & AClosing

Agenda

•Smart Entertainment Adoption•OTT and Streaming Video


7 Consumer Expectations1. Integration of personal technology in

professional, entertainment, and hospitality settings

2. Seamless plug-and-play performance and interoperability wherever they are

3. Familiar user experiences across venues

4. Universal access to AV content anytime, anywhere

5. Reliable, high bandwidth connectivity everywhere

6. Clear privacy and security protection

7. Content diversity with easy discovery

Welcome to the Integrated Life


7 EnterprisePriorities

7 Enterprise Requirements

Data and information

securityDefinable use-case

Interoperability

Scalability

ReliabilityResourcesto support

Clear ROIand/or benefit

© 2018 Parks Associates


Advances in Smart Home Technology Adoption


Almost a third of U.S. broadband households own at least one connected device and a quarter own a smart home device from a specified list.

The average home has 9.1 connected devices.

Smart home device adoption

26%

32%

17%

26%

0%

10%

20%

30%

40%

Q2/2014 (N=10,000,

±0.98%)

Q4/2014 (N=10,000,

±0.98%)

Q2/2015 (N=10,000,

±0.98%)

Q4/2015 (N=10,000,

±0.98%)

Q4/2016(N=10,000,

±0.98%)

Q2/2017(N=5,002, ±1.39%)

Q4/2017(N=10,025,

±0.98%)

Own any remotely monitored Internet-connected device inthe homeOwn at least one listed smart home device

Smart Home Device Ownership (2014 - 2017)Among All U.S. BB HHs


% S

peci

fyin

gO

wne

rshi

p


Smart thermostats, networked cameras, and smart light bulbs lead in both adoption and growth rate since 2014.

Video doorbells have become a “breakout product” after entering the market in 2015.

5%13%

0% 5% 10% 15% 20%

Smart water shut off valveSmart water leak detector

Smart sprinkler systemSmart lighting control systemSmart plug/adapted moduleSmart in-wall outlet/switch/…

Outdoor light fixture with cameraSmart smoke / CO detector

Smart door lockSmart garage door opener

Smart video door bellsSmart light bulb

Networked security cameraSmart thermostat

Q4/2017(N=10,025,±0.98%)

Q4/2014(N=10,000,±0.98%)

Adoption of Smart Home Devices (2014 - 2017)Among All U.S. BB HHs

© 2018 Parks Associates% Specifying Device Ownership

Smart home device adoption


Purchase intentions for smart home devices are up 66% year-over-year.

Almost half of U.S. broadband households plan to buy a smart home device this year.

Purchase intentions

48%

34%

0%

10%

20%

30%

40%

50%

60%

70%

Q2/2014 (N=10,000, ±0.98%)

Q4/2014 (N=10,000, ±0.98%)

Q4/2015 (N=10,000, ±0.98%)

Q4/2016(N=10,000, ±0.98%)

Q4/2017(n=5,018, ±1.38%)

Intention to buy at least one device (Rating 5)

Strong intention to buy at least one device (Rating 6-7)

Smart Home Device Purchase Intentions (2014 - 2017)Among All U.S. BB HHs

"ST2815. Over the next 12 months, how likely are you to purchase products of the following types that can be monitored or controlled from a smartphone, tablet, or computer?" | Source: Multiple Surveys: American Broadband Households and Their Technologies | © 2018 Parks Associates

% L

evel

of I

nten

tion

(Rat

ings

on

a 7-

pt. S

cale

)


While interest in standalone products has been increasing, 60-70% of intended purchases will be integrated with a security or smart home system.

0% 20% 40% 60% 80% 100%

Smart Water Leak/Humidity Detector (18% of BB HHs,…Networked Camera (26% of BB HHs, n=1,306, ±2.71%)

Smart Water Shut off Valve (19% of BB HHs, n=936, ±3.2%)Smart Sprinkler System (15% of BB HHs, n=775, ±3.52%)

Outdoor Light Fixture with Camera (26% of BB HHs,…Smart Motorized Garage Door Opener (19% of BB HHs,…

Smart Door Lock (24% of BB HHs, n=1,207, ±2.82%)Smart Lighting Control System (23% of BB HHs,…

Smart In-wall Outlet/Switch or Dimmer (24% of BB HHs,…Smart Plug/Adapter Module (23% of BB HHs, n=1,156,…

Smart Thermostat (26% of BB HHs, n=1,299, ±2.72%)Smart Video Doorbell (27% of BB HHs, n=1,378, ±2.64%)Smart Smoke or CO Detector (25% of BB HHs, n=1,274,…

Smart Light Bulb (27% of BB HHs, n=1,342, ±2.68%)Smart Speaker with Personal Assistant (26% of BB HHs,…

Standalone Part of a home security system Part of a home control system

Smart Home Device Purchase Intention: Standalone or System Integrated (Q4/17)

Among Purchase Intenders of Specified Devices

© 2018 Parks Associates% Likely to Purchase

System integration


Purchase considerations

50% 25% 0% 25% 50% 75% 100%

It is the same brand as my smartphone

It is the same brand as another smart product that I own

It works with the voice assistant I use on my phone

It can be controlled using voice commands

It is a brand known for innovation

It works with many different types of smart products

It works with the smart products that I own

It is a well-known, established brand

It works with the smart speaker with voice assistant I use at…

It has the best reviews

Not important (Rating 1-3) Important (Rating 5) Very important (Rating 6-7)

Importance of Smart Home Device Purchase Considerations (Q4/17)Among the 48% of U.S. BB HHs Intending to Purchase at Least One Smart Home Device, n = 2,407, ±2.00%

"ST2821. How important are the following when choosing a specific model to buy?"Asked of a subgroup of 5,018 U.S. BB HHs | Source: American Broadband Households and Their Technologies Q4 2017 | N=10,025, ±0.98% | © 2018 Parks Associates

% Rating Level of Importance (Ratings on a 7-pt. Scale)

Voice speaker and device interoperability have risen to the top of purchase considerations.


Among smart home device owners, Amazon Echo, Google Home and Works with Nest are equally popular control platforms.

Voice control preferences

23%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

None of the aboveControl4, Crestron, or Savant

IFTTTStringify

WinkApple HomeKit

Samsung SmartThingsWorks with Nest

Google HomeAmazon Echo

Platforms Used to Control Smart Home Devices (Q2/17)Among the 18% of U.S. BB HHs Owning At Least One of the Listed Smart Home Devices, n = 876,

±3.31%


% Using Specified Platform to Control Smart Home Device


Security system owners find voice control of their systems most appealing over other smart home devices.

Lights and door locks are the most popular devices for voice control, likely due to convenience of hands free control and frequency of use.

27%38% 41% 43% 46%

18% 15% 15% 14% 13%

41%32% 28% 29% 24%

60%

40%

20%

0%

20%

40%

60%

80%

Security system(Among securitysystem owners,n=657, ±3.82%)

Lights Door locks TVs Audio/musicdevices orsystems

Very appealing (Rating 6-7) Appealing (Rating 5) Not appealing (Rating 1-3)

Appeal of Voice Integration with Specified Devices (Q2/17)Among U.S. BB HHs Surveyed, n = 2,501, ±1.96%, Except Where Indicated

Note: * Asked to security system owners only, n=657, ±3.82%© 2018 Parks Associates

% R

atin

g Le

vel o

f App

eal (

Rat

ings

on

a 7-

pt. S

cale

)Voice control preferences


36%

36%

0%

20%

40%

60%

80%

100%

Streaming mediaplayer

Blu-ray player Gaming console Smart TV DVR

Q4/2010 (N=2,500, ±1.96%)Q3/2011 (N=2,500, ±1.96%)Q1/2012 (N=10,000, ±0.98%)Q1/2013 (N=10,000, ±0.98%)Q1/2014 (N=10,000, ±0.98%)Q1/2015 (N=10,000, ±0.98%)Q1/2017 (n=5,158, ±1.36%)Q3/2017 (n=5,009, ±1.38%)

Internet-Connected In-Home Entertainment Device Ownership(2010 - 2017)

Among All U.S. BB HHs


% A

ctua

lly C

onne

ctin

g th

e D

evic

eto

Inte

rnet

Smart TVs now rival gaming consoles as the top connected entertainment device in the home.

Streaming media players are the third most commonly connected entertainment device.

Smart video entertainment adoption


Almost 50% of U.S. broadband households have 2 or more connected video entertainment devices.

Smart video entertainment adoption

Numbers of Connected Home Video Entertainment Devices (Q1/17)


69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Q1/2013(N=10,000, ±0.98%)

Q1/2014(N=10,000, ±0.98%)

Q2/2015(n=5,029, ±1.38%)

Q3/2016(n=9,967, ±0.98%)

Q3/2017(n=5,009, ±1.38%)

Overall OTT Service Subscriptions (2013 - 2017)Among U.S. BB HHs Surveyed

"DM6005. To which of the following video services does your household subscribe (do not include services that you are using on a trial basis)?"Source: Multiple Surveys: American Broadband Households and Their Technologies | © 2018 Parks Associates

% S

ubsc

ribin

gto

At L

east

One

OTT

Ser

vice

Subscriptions among U.S. broadband households:•Netflix – 52%•Amazon Prime – 32%•Hulu – 18%•Sling TV – 3%•DIRECT TV Now – 3%•Playstation Vue – 2%

OTT video adoption


Since early 2016, more than 30% of BB HHs have had multiple OTT services. In late 2017, that figure stood at 38%.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1/2014 (N=10,000,

±0.98%)

Q2/2015 (n=5,029,±1.38%)

Q1/2016 (n=4,984,±1.39%)

Q3/2016 (n=4,973,±1.39%)

Q3/2017(n=5,009,±1.38%)

4 or moreservices

3 services

2 services

1 service

0 services


Number of OTT Service Subscriptions (2014 - 2017)Among U.S. BB HHs Surveyed

% S

ubsc

ribin

g to

Spe

cifie

d N

umbe

r of

OTT

Ser

vice

sOTT video adoption


Challenges to Realizing the Integrated Life


Challenges persist around smart home value propositions, price, and data privacy and security concerns.

Purchase inhibitors


Smart Home Devices: Purchase InhibitorsAmong the 47% of U.S. Broadband Households

Not Owning or Intending to Buy Any Smart Home DevicesI don’t see any benefit to my lifestyle 51%

Smart home devices are too expensive 41%I have data privacy and security concerns

about having smart devices in my home23%

Smart home devices would make my life more complicated

16%

I want to wait for the technologybugs to be worked out

12%

I’m confused about how to setup or use smart home technology

12%

Other 14%


Almost half of households are “very concerned” (rating 6-7 on a 7-point scale) about hackers getting control of connected devices.

Consumers are equally concerned about hackers getting access to historical data from those devices.

In recent years, the share of unconcerned has been cut in half.

Privacy and Security

60%

40%

20%

0%

20%

40%

60%

80%

Q4/14 Q4/16 Q4/14 Q4/16

Concerned that someone willget access and control yoursmart products without your

permission

Concerned that someonecould access the historical

data from your smart productswithout your permission

Very concerned(Rating 6-7)

Concerned(Rating 5)

Not concerned(Rating 1-3)

% R

atin

g Le

vel o

f Con

cern

(Rat

ing

on a

7-p

t. Sc

ale)


Concerns About Hacking of Smart Products (Q4/14 - 16)Among U.S. BB HHs Surveyed, n = 2,500, ±1.96%


Almost 50% of smart home owners who set up devices themselves experience some kind of difficulty.

Setup and support issues

0% 10% 20% 30% 40% 50% 60%

None of the above

The device did not work as advertised

The device was broken or defective

Did not have all the required cables

Difficulty learning how to use it

Difficulty connecting the device to interactwith other devices

Difficulty with the physical installation of thedevice

Difficulty connecting the device to theInternet/router

Difficulty configuring settings

Q1/2017 (n=642, ±3.87%)

Q1/2016 (n=845, ±3.37%)

Q1/2015 (n=462, ±4.56%)

Problems in Setting Up Smart Home Devices (2015 - 2017)Among U.S. Smart Home Device Owners Who Setup their Devices Themselves


% Experiencing Specified Problem


• IT Requirements• Limits on Liability• Access• Maximizing Security/Minimizing Support• Pace of Innovation• Consumer Tech Considers Home

Use/Needs First

Enterprise Challenges

Innovations that enhance the consumer AV experience

Anywhere availability

High quality

Content diversity

Diverse business models

Portability

Low threshold for delays

Bringing new entertainment innovations into the enterprise is challenging for multiple reasons


What are your biggest challenges in capitalizing on Pro AV opportunities?• Learning new technologies• Developing new skill sets• Servicing and supporting clients over long term• Determining operational costs and pricing• Assessing stability and reliability of applications

Audience Poll


Translating Smart-home into Pro AV Opportunity


Voice Control

Cisco Spark


What workplace use cases will most drive voice control integration?• Communications and collaboration applications• Integration with office software• Control interface for office devices and systems• Control interface for AV equipment• Search and retrieval of information

Audience Poll


AR/VR


Where are you most likely to utilize AR/VR technologies in your solutions?• Retail • Live events• Corporate environments• Manufacturing or field service• Healthcare

Audience Poll


AI/Machine Learning

Roku – AI for Content Engines

Aloft Hotels – Voice Control

IC Realtime Ella – Video Analytics

Vivint Sky Assistant –Personalized Automation


What applications of AI/Machine Learning are most likely to impact your projects in the next few years?• Video and audio analytics• Voice control and search• Content recommendations• Personalized automation and anomaly detection• Cybersecurity

Audience Poll


Audience Q & A


Thank You

Sean Wargo Senior Director of Market IntelligenceAVIXA

Brad RussellResearch Director, Connected HomeParks Associates

www.parksassociates.com www.connectionsus.com

600+ senior executives focused on consumer IoT including connected entertainment, connected health, connected car, and smart home

industries in an intimate networking environment


At the inaugural Integrated Life Day, produced by Parks Associates and in partnership with AVIXA™, Parks Associates will share insights on the convergence of audio/visual and connected technologies as well as new business opportunities.

Integrated Life Sessions• Integrated Life: How the Enterprise and

Connected Home Are Converging

• Simplifying the AV Experience: User Interface Innovations

• Delivering Value by Safeguarding Security and Privacy

• Enabling the Integrated Life: Interoperability, System Design, and Managed Services

• Artificial Intelligence, Virtual Reality, and Voice: The Impact of Innovative Technologies

• How Sensors, Automation, and Big Data Create Personalized Experiences

• Understanding Consumers' Expectations and Why They Buy "Smart" Devices

• Changing Consumer Habits and the Effect on Technology Experiences in Hospitality and Entertainment

Learn More: http://www.infocommshow.org/integrated-life-day


This whitepaper examines how the demand for AV experiences anytime, anywhere offers expansion opportunities for

Integrated Life: AV Convergencein Life, Work, and Play

Download Today: http://www.parksassociates.com/whitepapers/integratedlife

AV solution providers in commercial, residential, hospitality, entertainment, mobile, or other public environments.


WWW.PARKSASSOCIATES.COM

Brad RussellResearch Director, Connected Homecc

[email protected]

Thank You

Documents

Enabling the Integrated Life, Enhancing the AV Experience€¦ · Familiar user experiences across venues 4. Universal access to AV content anytime, anywhere 5. Reliable, high bandwidth