We’re pleased to introduce MarketIntellnow, a leading market research and strategic consulting firm that is currently doing a report/survey on WiFi-Enabled Gizmos (WEGs). Over the next month, the team from MarketIntellnow will provide insight into their study results. We encourage you to visit their site and if so motivated to purchase their report.Â
Editor, WirelessPictureFrame.com
There are five key drivers for WiFi-Enabled Gizmos (WEGs):
- Wi-Fi penetration, currently at about 30% of U.S. households per our polling, is growing rapidly. A few WEGs– Digital Photo Frames and Webcams– already are riding the Wi-Fi wave. But these are single-purpose devices. We see a rise in multi-function devices, because…
- … there are a number of powerhouse widget-platform players like FrameMedia and AmnestyWidgets. They’re already driving content to PCs and laptops ’round the world. And Slide is in the #1 spot with a gaudy 177 million monthly worldwide uniques. So not only is there now plenty of “conduit” (wireless internet) in 30 million U.S. households and growing, but there’s also an easy way to self-provision content containers and the actual content therein.
- As to content, personalization (witness iTunes) is all the rage; everyone wants their “Radio Me,” as we like to call it. It’s easy to download audio and video content for one’s unique tastes (however esoteric). WEGs are new ways to distribute one’s personal content-set without having to carry around one’s iPod:
Your Content Where You Want It When You Want It.
- Appliance Intimacy: You’ve seen this. It’s the guy at the airport gazing deeply into the screen on his laptop, watching a video. It used to be that listening to music/watching a show was a group endeavor– it would happen in the “Family Room.” Increasingly, we’re cocooning with our devices, listening or watching solo, inches away. What this means for WEGs is everyone will want their very own (one per bedroom?), in part because your WEG plays your own unique content. As personal as a toothbrush.
- The United States is the richest country in the world, and almost without regard (within the relative range) to what consumer electronics SKU is offered, it moves at the magical price point of … $200. And of course, there is substantial elasticity south of $200.Consider Digital Photo Frames– some 5 million will sell in the USA this year. All they do is play photos, and to date it’s mostly been one’s own photos, not third-party content. Digital Photo Frames have been more a story of trial than adoption (ask a friend if he still uses the one he bought), but they support this thesis. These gadgets found momentum at the $200 price point, and as they hurtled toward $100, market demand surged.The ol’ Digital Photo Frame (single-function WEG) will give way to multi-function devices like this, beginning in earnest later this year, for the holidays:The questions we answer with our WEG survey include the following:
- What WEG functionality and content is desired most, by demographic?
- How will users want to manage their WEGs, and what’s the right form factor?
- What are folks willing to pay?
- Where will they put their WEGs? How many per household?
- What are the objections to WEGs, and can they be overcome?
- Where will folks want to buy their WEGs? And from what class of vendors?
Our ANWO survey is ongoing now, and the results with our accompanying analysis will be available 9/4/2007, via our eStore.
Questions? We’re marketintellnow on all the IM services.
Ten Questions I’m Itching to See Answered:
1) How much will 2010’s digital displays resemble today’s? Will the market be more for those “do-everything displays [control centers] for the digital home” or will the emphasis still be on photos?
2) Will the industry form some sort of standard (rss, xml, webshots, etc.) for aggregating photos from the Internet? Think: an iTunes-like store for scenic content that matches a daily weather forecast…or what about high resolution Monets or Rembrants?
3) With the cost of LCD’s decreasing, can I expect to see a portrait-sized frame-type display for the living room in the next few years? I’ve seen some people cover their plasma/LCD TV’s with paintings- what about combining the two?
4) Can we put yesterday’s displays back to work? What about some “little black box” that’ll turn existing hardware into dedicated photo/information viewers? The market’s inundated with wireless hub products that’ll display photos on your TV (along with videos and music), but what about something simpler- like an “install your old 15in monitor here” kit. Who knows, in 5 years every LCD display I’m using today may be obsolete. This may be an easy (and inexpensive) way to put garage filth to use.
5) How much will it cost? Right now, the only way to get a digital frame into my mother’s house is to buy it for her. When weighing the options (wood, glass and Kodak paper [$20.00] .vs. digital [$200.00]), her decision is fairly easy. Granted, people make this leap. The queen of England has an iPod, and so does the seven-year-old down the street. Both of them could function with a CD player, but they don’t (even given the $200.00 premium).
6) How much will resolution or image quality increase on small displays? Is today’s photorealism tomorrow’s black and white?
7) Who will be the targeted demographic? Baby-boomers (60+ by 2010) or their kids? Will the focus be on ease of use or number of features?
If this is truly as important a market as they say it will be, could it be the beginning of the end of paper photos? Instead of a wallet full of pictures, will every father have a PDA? Instead of developing or printing pictures, will people just go straight to frame? It may sound silly, but it could save some trees.
9) Who will dominate the market? Somebody’s going to take this by the horns and run with it. Samsung? Sony? Apple? Who has the marketing wherewithal to sell this to your grandmother?
10) Will intellectual property lawsuits make a comeback with still images? I know it’s a long shot, but will Time Magazine sue me for downloading their Princess Diana photos without a license?
Below is the press release from Parks Associates, a research firm that covers the digital picture frame industry. They project a huge market for digital picture frames over the next few years which provoked my questions above.
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For Immediate Release
Contact: Jenny Barrett, Chelsey Tyson
Parks Associates
972-490-1113
Annual Shipments of Digital Photo Frames Will Exceed 12 Million in 2010
Digital Photo Frame Market Experiencing Well-deserved Rebound
Dallas, Texas, July 13, 2006 – The global market for digital photo frame products will exceed 12 million units by 2010, up from an estimated 700,000 units shipped in 2005, according to Digital Cameras and Imaging: Analysis and Forecasts, a recently published report from Parks Associates. A digital photo frame is an electronic device in a conventional photo-frame form factor, and it allows consumers to store and display digital pictures on an LCD screen.
“The digital photo frame market has finally emerged from the doldrums of 2001-2003, when low consumer interest and high hardware costs dampened demand,” said Harry Wang, research analyst at Parks Associates. “This reinvigorated market is ready for its second life.”
Digital Cameras and Imaging: Analysis and Forecasts attributes the renewed interest in digital photo frame products to consumers’ heightened familiarity with digital imaging applications, the growing number and increasing significance of digital pictures in households around the world, more affordable prices for hardware and flash memory, and better product design and features which create a more enjoyable user experience.
“This industry still has to clear a few bumps in the road ahead, and consumers are not likely to change their habits overnight,” Wang said. “But gradually, the digital photo frame will convince families of its many merits, including convenience, ease of use, and stunning visual effects.” Wang also believes expanded retail presence will further heighten consumers’ awareness and push the product category into the mainstream.
Digital Cameras and Imaging: Analysis and Forecasts offers a holistic picture of the entire digital imaging value chain, focusing on the hardware, software, and services that fulfill the imaging needs of consumers. It probes consumers’ usage patterns and purchasing behaviors, segments consumers based on their imaging needs, evaluates product and pricing strategies of current products and services, analyzes market drivers and barriers, profiles major players, and estimates the market potential for digital cameras, photo printing services, and the emerging digital photo frame products and services.
For additional information on Digital Cameras and Imaging: Analysis and Forecasts, visit http://www.parksassociates.com or contact 972-490-1113 or sales@parksassociates.com.
About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are “digital” or provide connectivity within the home. The company’s expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.
Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts multiple fall events and co-hosts CONNECTIONSTM (in partnership with the Consumer Electronics Association) each year. http://www.parksassociates.com
