Strategy Analytics: Will TV Providers get beaten to the punch by Smart TVs and Media Devices?

– Value-added Features on Smart TVs and Media Devices Make the Set-top Box Seem Obsolete

BOSTON, Aug. 6, 2014 /PRNewswire/ — Smart applications and more interaction with the TV, both with different devices and for better navigation without a cumbersome TV remote, are priorities for consumers’ next TV purchase in the UK and US.

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A recent study from the Digital Home Observatory (DHO) at Strategy Analytics ( surveying consumers in the UK and USA, found that functionalities such as being able to mirror a smartphone’s display, or providing a simplified human-machine interface (HMI), for example through voice or gesture control, were highly appealing features. However, such capabilities come at a cost. Rather than snapping up a more expensive smart TV, consumers are now looking to less costly media solutions such as Google Chromecastor and Roku, to provide such features.

Taryn Tulay, Senior Analyst and report author commented, "As traditional TV continues to be threatened by over-the-top subscription based video-on-demand (OTT SVOD), TV providers cannot allow smart TVs and media devices to beat them to the punch by providing the consumer with the value-added features they want making it easy to cut-the-cord to pay TV for good. Consumers are going to continue streaming OTT SVOD as it continues to provide a less expensive source of TV/video content. The opportunity to offer added features and applications in a set-top-box (STB) may keep consumers subscribing to pay TV, while at the same time providing a device they simply cannot live without".

Diane O’Neill, Director, UXIP added, "Consumers are finding less and less incentive to continue subscribing to costly TV packages.  It’s time for cable/satellite TV providers to revamp the set-top box as it’s full of glitches and is often unresponsive; its design is unappealing and there is a lack of DVR storage and connected applications/features. While simplicity and ease of use is provided by most STBs, more and more often consumers are beginning to see the big box as too basic and obsolete. Traditional pay TV providers need to give the consumer value for money."

About Strategy Analytics 
Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. 

About Digital Home Observatory
The Digital Home Observatory forms part of the User Experience Innovation Practice (UXIP) at Strategy Analytics. Focusing on user behaviors, motivations and interests within automotive, wireless devices, connected home and digital media research areas, UXIP helps clients meet consumer needs, develop usable solutions and deliver compelling user experiences. Extensive expertise and highly experienced in large-scale survey work, in-depth interviews, focus groups and observational sessions, UXIP’s research methodology allows strategic user-centric analysis on the potential for new technologies that would otherwise be unavailable. Providing actionable insight, go-to-market strategies and business recommendations, UXIP is a leading supplier of consumer knowledge to the technology industry. Click here for more information.

Press Contacts

US Contact: Taryn Tulay, +1-617-614-0746,
European Contact: Diane O’Neill, +44(0)-1908-423-669,