Family Ecosystem Forum 2007
Ecosystem Review
Outline
• Who is Zanthus?
• Connected Home Ecosystem Overview
• State of the Connected Home Study – Key Findings
CABA IHA-RC 2007 Family Forum
Slide 2
Zanthus has a long-term relationship conducting research on behalf of
the Internet Home Alliance Research Council (IHA-RC), now part of
CABA (Continental Automated Buildings Association).
• Automotive
• Digital entertainment
• Digital kitchen
• Home PC networking
• Telecommunications and Internet
• Video gaming
CABA IHA-RC 2007 Family Forum
Slide 3
Outline
• Who is Zanthus?
• Connected Home Ecosystem Overview
• State of the Connected Home – Key Findings
CABA IHA-RC 2007 Family Forum
Slide 4
A market taxonomy provides a common reference, encourages
comprehensive analysis, reveals opportunities
A market taxonomy is a conceptual framework used for analyzing business
opportunities. It should:
• Provide a common language or series of reference points.
• This facilitates communication with consumers and other members,
and can lead to shared business strategies.
• Help ensure that complete information is analyzed.
• It should be broad enough to cover the entire marketplace, while
providing a convenient way to divide the market.
• Provide a unique perspective on the market, revealing opportunities
previously hidden.
CABA IHA-RC 2007 Family Forum
Slide 5
Connected
Home ‘Ecosystems’ map to consumer needs at home
Ecosystems
and beyond, is platform-independent
Entertainment
Family
Career
“Entertain me”
“Help me take care
of my family”
“Help me with
my career”
CABA IHA-RC 2007 Family Forum
Slide 6
Each
Ecosystem reveals insights about consumer evolution
Ecosystems
Entertainment
Family
Career
“Entertain me”
“Help me take care
of my family”
“Help me with
my career”
Promises the greatest
immediate return.
Music
Video
Gaming
Has the most unmet demand.
Home Systems
Family Communications
Scheduling
Health & Fitness
Community
CABA IHA-RC 2007 Family Forum
Mobile workers are key.
Productivity
Communications
Scheduling
Commuting
Work Skills
Work/Life Balance
Slide 7
Ecosystems
Zanthus
IHA-RC research covers all three ecosystems
State of the Connected Home 2003
State of the Connected Home 2005
Home Networking
Digital Youth
Senior Living
Custom Mobile Advertising
Entertainment
Family
Career
iPTV Demand (I & II)
Digital Kitchen
Future of Collaborative Work
Digital Entertainment Needs
Assessment
Laundry Time Pilot
Mobile Worker Pilot
Mealtime Pilot
SMB Needs
Health & Wellness
Safe Secure & Comfortable
Asset Management
CABA IHA-RC 2007 Family Forum
Slide 8
Outline
• Who is Zanthus?
• Connected Home Ecosystem Overview
• State of the Connected Home – Key Findings
CABA IHA-RC 2007 Family Forum
Slide 9
In 2005, about one-in-five online consumers considered the
connected home concept ‘very appealing’
The features of the connected home exist today; they are not dreams of tomorrow. This home is
connected in the sense that normally independent systems are linked into one centrally
controlled system, which is called a home network. For example, your PC, television, lighting
and heating controls, and home security system can all be linked to a home network.
You can control various parts of your home through your home PC or a variety of mobile
devices, including your TV remote control. For example, in a connected home you could turn
up the heat using your TV remote control. Or you could see your phone’s caller ID on your TV
screen. When you’re away from home, you can control your home network using any device with
Internet access, like a cell phone, or by going to a special, secure Web site.
Right now, manufacturers and service providers are developing products and services for the
connected home. In general, these are products and services designed to provide
entertainment programming, automate common household tasks, and let people
communicate with each other more easily.
The connected home will be reliable, easy to control, and easy to upgrade. You will not have
to rewire or spend an extravagant amount of money to start setting up a connected home.
CABA IHA-RC 2007 Family Forum
Slide 10
Mainstream consumers interested in entertainment technology;
leading consumers also interested in family, career
Cross-Ecosystem Interests
% Very Interested, 6-7 Ratings
Among Total HHs (n=1,834)
Entertainment
42%
50%
Media
Entertainment
for the Home
Streamline
Routine Tasks
Family
Automate Basic
Home Systems
Improve Work
Productivity
While on the Road
Career
Improve Work
Productivity
at Home
0%
31%
13%
21%
3%
12%
22%
2%
13%
26%
4%
9%
Total Online HHs (n=612)
Primary Market Consumers (n=318)
Mass Market Consumers (n=294)
17%
3%
20%
Source: Zanthus IHA State of
Connected Home Study, 2005
40%
60%
80%
100%
Q39A-Q39E
CABA IHA-RC 2007 Family Forum
Slide 11
Digital entertainment achieving mass market potential
U.S. household ownership of top growing
consumer electronics entertainment products
(CEA, April 2007)
Other growth areas:
• Replacement TVs
• Mobile satellite radio
32%
MP3 players
Key drivers of adoption are
interest in:
• Time-shifting.
• Ease of control.
25%
DVRs
• ‘Anywhere’ access.
Mass Market
Threshold: 16%
• Interactivity.
25%
HDTV
0%
• Customization.
20%
40%
• High-definition content.
60%
80%
CABA IHA-RC 2007 Family Forum
100%
Slide 12
Internet is most desired source of home entertainment
Media Entertainment at Home
% Very Interested
(Total Online HHs n=618)
67%
Internet access
Movies
52%
46%
TV programming
38%
Recorded music
Personal photo (view
on computer or TV)
35%
0%
Source: Zanthus IHA State of
Connected Home Study, 2005
33%
Home video/movies
20%
40%
60%
CABA IHA-RC 2007 Family Forum
80%
100%
Slide 13
Internet is near top of list for mobile entertainment
Media Entertainment On-the-Go
% Very Interested
(Total Online HHs; n=618)
22%
Recorded music
Internet access
19%
Radio music
programming
18%
Movies
16%
TV programming
11%
Audio books
10%
0%
20%
Source: Zanthus IHA State of
Connected Home Study, 2005
40%
60%
CABA IHA-RC 2007 Family Forum
80%
100%
Slide 14
Consumers want to distribute entertainment via home network
(especially audio)
Online HHs with
Online HHs Likely
to Have
Home Network (n=491)
Home Network
Current
Use
Future
Use
(n=100)
Listen to PC music on a
stereo
22%
18%
36%
View PC video on a TV
9%
19%
31%
Access Internet streaming
audio via stereo
17%
15%
24%
Interest
Source: Zanthus IHA State of Connected Home Study, 2005
CABA IHA-RC 2007 Family Forum
Slide 15
Consumer
Needs
Updating
skills,
communication, access are key career interests
Career Ecosystem Interests
Career Ecosystem Interests
Top-5 Responses, % Very Interested, 6-7 Ratings
35%
Update or develop
new work skills
Communicate with
family and/or friends
Remotely access
business email
Remotely access
electronic files on your
network/computer
45%
24%
30%
40%
20%
30%
35%
17%
30%
34%
16%
30%
Get directions while
driving
32%
16%
0%
20%
40%
60%
80%
100%
Total Online HHs (n=604)
Primary Market Consumers (n=296)
Mass Market Consumers (n=308)
QC53_1_15; Letters denote statistically significant differences among markets.
CABA IHA-RC 2007 Family Forum
Slide 16
Networking & portability spur sales of top career products
Top growth areas (CEA):
• Network routers or hubs
• Replacement phones
(including web-enabled cell
phones)
• Mobile GPS devices
CABA IHA-RC 2007 Family Forum
Slide 17
Streamlining routine tasks appeals to leading consumers
Routine Tasks
(Top-2 Box; % Very Interested)
Paying
household bills
Running car
maintenance diagnostics
Cleaning (general)
Drying clothes
Communicating with
other HH members
Washing clothes
QY42-QY43Q
0%
26%
11%
21%
44%
36%
9%
16%
26%
6%
16%
26%
5%
16%
31%
4%
15%
26%
5%
20%
40%
Total Online HHs (n=612)
Primary Market (n=318)
Mass Market (n=294)
60%
CABA IHA-RC 2007 Family Forum
80%
100%
Slide 18
Home energy automation and monitoring are appealing to
leading-edge consumers
Home Automation
% Very Interested
21%
Home energy
consumption
42%
5%
18%
Heat/ventilation/
air conditioning
37%
3%
15%
32%
Outdoor Lighting
3%
15%
32%
Indoor Lighting
Total Online HHs (n=612)
Primary Market Consumers (n=318)
Mass Market Consumers (n=294)
Source: Zanthus IHA State of
Connected Home Study, 2005
2%
0%
20%
40%
60%
80%
CABA IHA-RC 2007 Family Forum
100%
Slide 19
Connected home foundation reached critical mass in 2005
A critical mass of
consumers is poised to
take advantage of
connected home
technologies.
Key Technologies Among
All U.S. Households
100%
Broadband HH (% HH)
Networked HH (% HH)
Multi-PC HH (% HH)
80%
Among online households:
60%
• About 55% have broadband
• 53% have multiple PCs
• 28% have a home network
40%
20%
Mass market threshold is 16-17% of all households
0%
2001
2002
2003
2004
2005
2006
Source: The Diffusion Group (2004), and Zanthus.
CABA IHA-RC 2007 Family Forum
Slide 20
However, foundational technologies not enough – further
convergence of networks, devices, content is needed
Adoption Curve
Hype Curve
Adoption Curve
Early
Majority
Early
Adopters
Moore’s
Chasm
Late
Majority
Laggards
Innovators
Time
CABA IHA-RC 2007 Family Forum
Slide 21
Questions?
Carole Wiedmeyer
Zanthus
115 S.W. Ash St., Suite 610
Portland, OR 97204
971.404.0275
www.zanthus.com