Consumers Remain Indifferent To Smart TVs

by Wayne Friedman , October 28, 2013

A majority of consumers aren’t interested in buying a new smart TV over the next 12 months -- but advertising its strong attributes could help turn that indifference around.

Some 73% of consumers have given a thumbs down to buying a new smart TV over the next 12 months, according to a survey from TV Systems Intelligence Service unit of IHS. It says “purchase intention” is just 7%.

Veronica Thayer, analyst for consumer electronics and technology at IHS, stated: “Few consumers at present want to buy smart TVs now. However, demand can be cultivated if television brands better explain to consumers what smart TVs are, what they do and why they should buy one.”

Those elements which should be touted, according to IHS: online interactivity, Internet television, home networking, over-the-top content and on-demand video streaming capabilities.

Almost 90% of smart TV owners connect their sets to the Internet; 80% of them to services such as Netflix, Hulu Plus, Amazon and Instant.

Overall, during the next 12 months, 20% of consumers intend to buy a TV compared to projections of 31% in 2012.
Last year, IHS says 50% of consumers stated that screen size was the factor in their purchase decision. Now, in 2013, price has overtaken larger screen size as the main factor in TV purchase

internet, iptv, technology, tv

5 comments about "Consumers Remain Indifferent To Smart TVs".

Check to receive email when comments are posted.

Jeff Einstein from The Brothers Einstein, October 29, 2013 at 7:56 a.m.
Maybe the consumer indifference to smart TV reflects the inherent oxymoron...
Reply

Abbott Wool from TelamericaMedia, October 29, 2013 at 9:18 a.m.

Very skewed reporting. The dato just as readily say "More than one-third of consumers intending to buy a new tv intend to buy a smart tv"

Dan Ciccone from MEDIAFICIONADO, October 29, 2013 at 10:21 a.m.

Those elements which should be touted, according to IHS: online interactivity, Internet television, home networking, over-the-top content and on-demand video streaming capabilities.

Many younger consumers are using a portable device or have one close by when watching TV - it's easier for them to get online via mobile device vs. the arduous and slow process of getting to the internet through the TV interface. It's also easier to stream the online experience from your iDevice.

Secondly, there is no "over the top content" and the on-demand content is typically more expensive than on-demand services through the cable provider.

In a nutshell, most affordable "smart" TVs offer a clunky and more expensive content alternative - and throw in irrelevant ads on the home screen and there's nothing really "smart" about the new TVs.

Doug Garnett from Protonik, LLC, October 29, 2013 at 4:51 p.m.

I'm skeptical that communication would work. Dan is right that "over the net" is so easy & ubiquitous on mobile that in many homes SmartTV adds only tiny consumer value. And there's a lot of hassle for such small value. Succeeding with over the top requires multiple devices, multiple accounts - and is really quite a mess. Here's a challenge. Want to watch "Lethal Weapon" (or another specific movie like Woody Allen's "Take the Money and Run")? Figure out where you can get it for free. And if you can't find it there, where can you pay for it? Turns out, it takes more than 20 minutes to do a search like that. Kinda sucks - but the OTT guys are so caught up in their venture capital funded chutzpah, I don't think they are able to see with the eyes of consumers.

Edmund Singleton from Winstion Communications, October 30, 2013 at 5:30 a.m.

I can understand why most people do not associate a television set with the internet, I was one just a few years ago...