Service providers and manufacturers benefit from interest in widgets, VoD libraries --

Video-on-demand (VoD) libraries and widgets will be the first generation of video services driving adoption of connected television experiences in the U.S., according to international research firm Parks Associates. Consumer electronics manufacturers and service providers will benefit from higher margins and ARPU generation in providing these Web-like experiences via the television.

Parks Associates, in its new white paper From Boob Tube to YouTube: Consumers and TV, reports strong interest among U.S. broadband households for VoD libraries and TV widgets, which are Web-like displays that show customized news, weather, sports, or traffic information. In particular, 33% are interested in widgets, and almost 50% are interested in premium Web content, including TV shows and movies, through a connected set-top box.

Broadband households are growing accustomed to viewing video off the Internet. Demand for Web and user-generated content will increase, and those desires will influence their CE purchases and service provider choices. Widgets and VoD libraries will be the first in a long line of advanced video services people will want in their living rooms. Consumers respond favorably to enhanced interactive features and are willing to pay – either on the price of a television or as an additional subscription cost – for certain features. For manufacturers and service providers, creative, well-organized interactive services will be key to creating new value out of the television.