Great consumer interest in Apple connected TV
Posted on Sep 18, 2012 by YuMe
Whenever Apple releases a new piece of technology, the public – and savvy marketers – take notice in a big way. Case in point: the September 12 announcement of the iPhone 5. However, when it comes to one anticipated Apple device, consumers may have some trepidation because of price.
CNNMoney cited a Munster survey that found only 12 percent of people said they would be willing to pay the estimated starting price point of $1,500 for a 42-inch Apple-branded television set with internet connectivity. The average survey respondent said they would be willing to spend $530 on it.
Aside from its price, the survey found that many people would be enthusiastic about such an offering. Close to half of the survey's respondents said they would buy an Apple connected TV set and 29 percent they would get one even if they did not need a new television, CNNMoney reported.
"We actually believe the market for consumer desktops could see pressure in the wake of an iTV product by 2014, much the same way that the overall notebook market's growth slowed after the introduction of the iPad," said Ben Reitzes, an analyst for Barclays, according to CNNMoney. "The reason is that an Apple TV would represent an easy way to check email and the web as well as share photos (and even edit them in the same way as an iPhone/iPad can)."
The introduction of an Apple-branded television set could dramatically increase consumer interest in connected TV. An IMS Research survey from July found that smart televisions were responsible for 70 percent more television sales than they were in 2011. However, the IMS report found that consumers consider price when deciding on the purchase of new television sets, a point that could hurt the financial success of the Apple TV should it be initially priced at $1,500.
Still, Reitzes predicted that Apple would do well financially with a smart TV set, as even a 10 percent market share in the growing field could provide a significant new revenue stream for the company, CNNMoney reported.
How an Apple TV would affect brand advertisers
One issue that video advertisers would have to consider is the TV's operating system. According to ReelSEO, there is no universal operating system used by smart TV set manufacturers, meaning brand advertisers have to make sure their spots are optimized for a variety of formats. Despite this, the significant consumer interest in connected TV suggests brand advertisers would find success pursuing strategies that include this screen format.