tech-savvy residents expect tech-savvy homes
DESCRIPTION
This presentation was shown at the National Apartment Association's 2008 Education Conference in Orlando. Dave Hanchette from Russound presented this data from the Consumer Electronics Association, which was followed by a discussion about the implementation and marketing of technology in apartment communities.TRANSCRIPT
2008 NAA Education Conference
Tech-Savvy Residents Expect Tech-Savvy Homes
Public: @mdutech
Anonymous: d mdutech
www.twitter.com/mdutech
Dave Hanchette, Russound
Henry Pye, JPI
Steve Sadler, Post Properties
Mike Whaling, InfiniSys Electronic Architects
Panelists
Dave HanchetteRussound
CE Industry Growth
Billions of Revenue
$98.4$105.6
$116.3$128.9
$145.7$155.2
2002 2003 2004 2005 2006 2007
10.1% 13.1%6.5%
Source: CEA Sales and Forecasts, Jan 2007
50% over 5 years
Mega Trends Impacting CE
Trend The Good The BadPrice Deflation Easier to Sell Lower Margins
Collapsing Products(Convergence)
Convenient, More Likely to Use
Fewer Products to Sell
Sales Channel Proliferation
CE Everywhere Channel Conflict,Battle for the Shelf
Rise of Software and Services
Content, Connectivity
Not spending on CE
Interoperability Issues Winner Take All Forces Choice
Trends That Cut Both Ways
Food for thought:How do these trends affect your business?
New Home Builders87%
73% 75%
57%51%52%
81%
68%
76%
50%53%58%
67%73%
83%82%
Home Technology Offerings
StructuredWiring
MonitoredSecurity
Multi-RoomAudio
HomeTheater
LightingControls
HomeAutomation
EnergyMgmt.
20062007
Source: CEA 6th Annual State of the Builder Technology Market Study
CentralVacuum
IntercomSystems
N/A N/A
Who Installs Home Techs?
3%
10%
17%
22%
62%
65%
63%
2%
8%
7%
21%
58%
62%
72%
Other Installer
Builder's Company
Major Retailer
Utility Company
Custom Installer
Security Installer
Electrical Contractor20062007
Source: CEA 6th Annual State of the Builder Technology Market Study
Food for Thought:• Are electrical contractors eating into business opportunities?• Geek Squad experiment?
Technology and Marketing
Very Important
Somewhat Important
Not at all Important
Is Offering Technology Important in Marketing Homes?
11%25%
64%
Source: CEA 6th Annual State of the Builder Technology Market Study
Technology and Marketing
More Important
Neither More nor Less
Less Important
Is Offering Technology Important in Marketing Homes Compared with Two Years Ago?
37% 53%
10%
Source: CEA 6th Annual State of the Builder Technology Market Study
Research Objectives
• Who? Profile the types of consumers who are listening to audio sourced from a computer.
• What? Identify CE products associated with computer-sourced audio consumption in the home.
• How? Understand how consumers are connecting CE products for computer-sourced audio consumption at home.
• Why? : Learn users’ motivations for consuming audio through a computer at home.
2007 PC Audio Study
What market opportunities does this activity represent?
A Collapsing Universe
MP3Voice
GamesVideo
PC
TVDVR/STB
PCGames
AVR
NavigationTelematics
VoicePlayback
Diagnostics
Portable orInstalled Systems?
Game Consoleor PC?
Cell Phone or Portable Media?
AnywhereTechnology
In-The-HomeTechnology
In-the-CarTechnology
Market Size
Desktop62%
Laptop15%
Both23%
122 million PC Audio Users
73% of online adults use computer-sourced audio content at home.
Why Listen to PC Audio?
“I can listen while I work …”
“I always seem to be on the computer”
“It stores all my songs, lets me rip my CDs into mp3s, lets me download new music, allows me to play with an equalizer, etc, all through [one] piece of equipment …”
Convenience / Efficiency
“There are sources of audio content that can only be accessed on the Internet”
“Most of my music is stored on my computer.”
“…to sample new music.”
Access to Content
Why Listen to PC Audio?
“Better sound than a stereo system …”
“Great sound and flexibility …”
“I think the sound quality is better than my TV and portable headphones …”
Better Sound Quality
“You have more control playing audio through a computer …”
“I just like to …” “I like listening to music.”
“It’s easy to set-up and listen to what you want.”
Technical Reason / Enjoyment
Where Do They Listen?
14%
26%
8%
18%
27%
35%
19%
62%
3%
3%
4%
6%
12%
17%
25%
31%
Other Location
Kitchen
Basement
Recreation Room / Den
Other Bedroom
Master Bedroom
Home Office
Living / Family Room DesktopLaptop
News
Music
TV Shows
MoviesWeather
Music Videos
VideoGames
Sports
Talk RadioHome Movies
Traffic
Audio Books0
50
100
0 1 2 3 4 5 6 7 8 9 10
% Listening
Mean Hours Spent Per Week
PC Audio Activity Engagement
Special InterestContent
EnthusiastContent
PopularContent
GeneralInterestContent
Overall SatisfactionPC Audio Listening Experience
Neutral
Very Satisfied
Satisfied
37%
49%
13%
Dissatisfied (1%)Overall 86% of PC audio users are satisfied with their experience.
Is there any room for improvement?
What Would They Improve? Top Five
16%
17%
18%
20%
36%
More Storage for DigitalAudio Files
Easier to Access Files on PCand Listen Around Home
Abililty to Access Files onPC and Listen Around Home
Easier to Connect PC toHome Audio System
Better Sound Quality
Trading Quality for Quantity
27%
38%
48%
47%
47%
38%
26%
15%
13%
Overall HomePC Listeners
Downloaders
18-24 YearOlds
Quantity Quality Not Sure
Spending on Audio ContentPrevious Six Months – Home PC Audio Users
$76 - $175
<=$75
$176 - $275
$276 or More
53%29%
9%
8%Mean Spending = $101
Spending Window:Oct 2006-Mar 2007
Mean Spending= $87
Overall Home Audio Listeners
Market Value = $12.3 Billion
How Much Will They Spend?
Previous Spending Window:Oct 2006-Mar 2007
Market Value = $12.3 BillionMean Spending = $101
Future Spending Window:Apr 2007-Sept 2007
Market Value = $11.2 BillionMean Spending = $92
Market Value = $23.5 Billion
Annual Content Spending:Oct 2006-Sept 2007
Home PC Audio Users
Conclusions
• Home PC audio use is widespread.• Music is content of choice – physical media still rules.• Users satisfied, but still see room for improvement.• Sound quality can always be better (CD standard).
– Connections may be part of the answer.– High-resolution MP3s could be another.
• Users seek balance between quality and quantity.• Content spending is significant - estimated $23.5 B
It’s About Marketing
Capitalizing On The Trends
• IP addressable speakers• AVRs with wireless PC connections• Less compressed digital music files– Services– CODECs
• Sound bridge devices / media extenders• Higher-end powered speakers/headphones• DACs specifically for compressed audio
What Opportunities Exist for the Industry?
Dave [email protected]
Henry [email protected]
Steve [email protected]
Mike [email protected]
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