Parks Associates announced that, according to its latest report, consumers are not yet ready to embrace cloud-based digital locker systems for music and video.
For more information visit: www.parksassociates.com
Unedited press release follows:
Consumers not ready to embrace cloud-based digital locker solution for music and video
Parks Associates finds lack of single solution inhibiting consumer adoption of cloud media solutions
The industry is rapidly moving content solutions to the cloud, but consumer interest is not keeping pace, as less than 30% of U.S. broadband households find the digital locker an attractive alternative for music or video, according to Parks Associates.
Cloud Media and the Digital Locker, a new report from the international research firm, highlights the challenges within the industry, including device and format interoperability, consumer awareness, and security and delivery issues. Market fragmentation is also a major inhibitor, and efforts including Digital Entertainment Content Ecosystem’s (DECE) UltraViolet initiative and Disney’s Studio All Access aim to overcome these barriers.
“In terms of rich media, consumers want everything, everywhere, and companies are actively seeking ways to deliver,” said Laura Allen Phillips, research analyst, Parks Associates. “Netflix and Verizon’s Flexview offer cloud video services, and cloud-based music solutions include MOG, RealNetworks Unifi, and mSpot. However, taken as a whole, this market is fragmented, leaving consumers to cobble solutions together. Industry growth and consumer adoption rates of cloud-based services will rely on how effectively market players address this issue as well as other challenges.”
The benefits of cloud services are popular with consumers, indicating significant market potential. Access via mobile devices is important, and over 50% of U.S. consumers consider multiroom access to music and video content and guaranteed replacement of lost or damaged media to be equally important features of the digital locker.
“Smartphones, mobile tablets, and connected consumer electronics open the door to new opportunities for innovative delivery and revenue models,” Allen Phillips said. “Motorola’s acquisition of Zector, which provides synchronization and streaming solutions for digital media, is just one example of a large player expanding into the mobile cloud media space.”
Cloud Media and the Digital Locker examines how key players from content owners and distributors to platform and technology solution providers are tailoring their cloud-based solutions to include secure delivery, high quality, and ubiquitous access models. The report combines analysis of the consumer perspective with an exploration of the current cloud-based products and services landscape. It offers market recommendations for accelerating the growth of the cloud-based service space and adoption of the digital locker concept. For more information, visit http://www.parksassociates.com or contact 972-490-1113, sales@parksassociates.com.
About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
The company’s expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, energy management, and home control systems and security.
Each year, Parks Associates hosts executive conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA)®; CONNECTIONS™ Europe; and Smart Energy Summit.