"Connected" consumer electronics appear set for a huge period of growth, according to a study released this week by Parks Associates
The ability to network is going to be a huge factor in the purchases of the next generation of consumer electronics purchases. That's according to a study released earlier this week by Parks Associates.
For retailers looking to add higher margin services to their business models (and who’s not?), it might be time to stat beefing up your repair, support and consulting departments. In its latest report, “Digital Home Services: Carriers, Retailers, and the Consumer,” Parks Associates estimates consumer spending for remote and/or on-site IT support services for home computers and networks will grow from about $450 million this year to $977 million by the end 2011, while in-home services for the installation and configuration of new PCs will generate revenues of more than $700 million for the same period. This presents big opportunities for retailers
Consumer adoption of Internet and mobile services, fueled by more broadband connectivity, will jack up domestic spending on digital living services and products to nearly $300 billion by 2010, according to Parks Associates’ Digital Living 2006 Forecast study. Current investment and developments in services, such as broadband access and television, as well as the shift to digital and IP delivery of communications and entertainment services, will spur new digital products and services, reported Kurt Scherf, vice president and principal analyst with Parks Associates. Expect many of those new products to pass through national and regional retailers. Parks expects sales of media servers
Several retailers recently told us that sales of home entertainment PCs and media servers have increased since the beginning of the year. They have also seen an increase in the amount of services they sell, including wired and wireless home network installations. That’s good news for the retail industry because the combination of those products and services lays a foundation for the sale of other connected devices and additional services. Those devices – including digital still, video and surveillance cameras; MP3 players; and digital/personal video recorders – are creating an incredible amount of large, valuable digital files that consumers want to protect, easily
The Parks Associates’ study “Digital Living 2006 Forecasts” predicts that consumer spending on over 50 digital lifestyle categories will rise over the next few years to reach $229 billion by 2010. Kurt Scherf, vice president and principal analyst with Parks Associates, explains, “Recent investment and developments in such services as broadband access and television, including the shift to digital and IP delivery of communications and entertainment services, have given rise to a host of new digital living products and services.” Entertainment-related categories such as gaming, music and on-demand video, are expected to have some of the greatest revenue. The study predicts that