Digital Home: Consumers Don’t Get It

While the great “digital home” hype implies that the technology of tomorrow is here today, consumers beg to differ. Or, maybe they just don’t get it – found a recent Hill & Knowlton survey conducted by Penn, Schoen & Berland Associates. More than two-thirds of the survey respondents could not define the term “digital home.”

When given a definition of the “digital home”, most people (90 percent) assumed it was very expensive, and two-thirds (66 percent) believed it was too hard to set up. However, consumers did show a definite interest in the individual digital home offerings. More than 63 percent of those surveyed wanted technology to control various devices in their home both while they are at home and when they are away.

“It’s clear that many people don’t fully understand the technology that’s available right now, whatever technology advances the future holds. Companies must simplify product or service messages, demonstrate functions and speak the targeted consumer segment’s language,” said MaryLee Sachs, global marketing head and US chair, Hill & Knowlton. “Bottom line: Company communication impacts sales.”

One third of individuals (34 percent) surveyed said they have a home network, almost half (49 percent) said their home entertainment system is controlled by either a PC, Mac, TV or stereo, and 74 percent want technology devices to integrate.

Convergence Technology: Manufacturers Make It, But Will Consumers Buy?
When asked how they currently use their television and what other purposes they would like it to serve, people reported that their highest usage was watching broadcast programs and DVDs; 35 percent wanted to use the television to serve as the interface for the home entertainment system, for accessing the Internet (29 percent), for viewing photos (28 percent), and as a computer screen (28 percent).

On the computer front, the majority of people use their computers to send/receive emails, access the Internet, view photos/other images and play games. They expressed interest in activities for which they do not currently use their computers, such as: watching streamed television shows (44 percent), creating/editing video or audio (41 percent), watching or recording programs directly from cable or satellite (38 percent) and controlling their home entertainment system (25 percent).

“Despite today’s technology advancements, the two potential drivers of the digital home - the television and computer - aren’t being used to full potential,” said Joe Paluska, global technology leader, Hill & Knowlton. “IPTV is poised to take the lead in this category as it blends the entertainment and information of television with Internet technology.”

The survey was conducted online by Penn, Schoen & Berland Associates between October 30 – November 3, 2006. The survey polled 1,000 adult consumers and the margin of error is +/- 3.1 percent.

SOURCE Hill & Knowlton, Inc.