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CONNECTIONS™: The Premier Connected Home Conference
Event Summary 2015 Attendee Demographics The term “Internet of Things” (IoT) has emerged over the past two years as a key concept for the connected home and entertainment industries. Parks Associates defines the IoT as the range of networked products and services that are capable of sending and receiving data. This all- encompassing term broadly covers areas we have been examining at Parks Associates for nearly three decades.
The connected home has gone through many transformations, and we recently passed a new milestone. At the beginning of 2015, 78% of U.S. broadband households have a smartphone, compared to 69% that have a desktop, moving the connected home into a “post- desktop” phase now that more U.S. households own a smartphone than a desktop.
The connected entertainment and smart home industries need to ensure that the consumer side of the IoT works seamlessly, securely, and with a flexible design capable of integrating future innovations.
We strive to provide new insights and understanding at CONNECTIONS, including: a deeper understanding of the impact of new business models and partnerships in the connected home; insights into innovative technologies being introduced and tested; specific consumer adoption rates and intentions and highlight segments to target for specific products and services; and a networking venue that brings together all players of the ecosystem, from smart home and connected entertainment to digital media and tech support.
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Opening Comments: Emerging Trends and the Connected Consumer Speaker: Stuart Sikes, President, Parks Associates
Notes:
A key priority for Parks Associates research is to help identify emerging business models and engagement strategies that help develop profitable consumer products and services. Notable technology trends include the following: Consumer electronics devices started out as specialized devices; many have since evolved. Game consoles, for example, have evolved into entertainment and control devices. Mobile devices have surpassed computing and other devices and are now the second most penetrated connected device throughout the connected home, behind televisions. Connected cars – Consumers are beginning to show interest in the value propositions offered at the intersection of the connected home and connected cars. Many also have safety and privacy concerns, so the industry must be proactive in confronting these concerns. Connected healthcare devices are now transitioning from communication devices to devices that are predictive and facilitate preventative measures.
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Defining the Connected Home: Entertainment, Security, Health, Smart Home The concept of the smart home, as well as the penetration of smart devices, is expanding rapidly.
This panel focused on the major elements of the connected home, including consumer electronics devices (Panasonic), connected health and security systems (Nortek), digital content (Pandora), connected cars (Ford), and home controls systems (Honeywell, Cox).
Each of these vendors is a major player in growing ecosystems within the wider connected home experience.
By gathering these ecosystem leaders together, the panel discussed:
Integration between Ecosystems Is integration of the different home ecosystems a critical element of vendors’ strategies? Which entities have the market and brand power to begin to integrate different ecosystems? What are the first steps each ecosystem will take toward integration?
Coordination and Standardization Can coordination occur via natural evolution of consortia such as Thread? Will GAFA (Google, Apple, Facebook, Amazon, and peers) cause coordination through common APIs? Is coordination a threat to unique customer relationships?
Opposing Forces What are the strongest forces that are working against coordination? Will incumbent vendors be able to transform their business, or will disruptors take the industries by storm?
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Speakers: Kristine Faulkner, VP/GM Home Security & Smart Home, Cox Duane Paulson, SVP Product and Market Development, Nortek Security & Control Rob Puric, Director - Product Management Connected Home, Honeywell Todd Rytting, Chief Technology Officer, Panasonic Corporation of North America Geoff Snyder, Vice President, Business Development, Pandora Mike Tinskey, Global Director of Electrification and Vehicle Infrastructure, Ford Motor Company Moderator: Stuart Sikes, President, Parks Associates
Notes: The Internet of Things presents challenges and opportunities for the connected consumer industries. Products need to be developed with simple interfaces and intuitive designs that enable easy and personalized user experiences.
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Companies need to communicate the benefits and value of connected products in the home, including security and energy management, and promote the overall personalization of content and navigation for consumers. The ability to integrate connected home products is critical. Consumers expect devices to work together and aren’t concerned with how interoperability is achieved. Parks Associates research shows the value of interoperability grows with each device. Among U.S. broadband households with three smart home devices, 60% consider interoperability to be very important. Consumers will introduce connected products into their homes through a variety of different means. Some consumers purchase directly from their broadband service providers, where they expect a long-term relationship built on trust and loyalty. Other consumers are buying products at retail and integrating them into existing systems. Companies are still testing features that provide a different experience, such as voice controls. Functionality and design remain core considerations for manufacturers. Partnerships between companies are critical for interoperability and the integration of various technology platforms to create a cohesive user experience.
Opening Keynote: Taking a Mobile-First Approach to the Smart Home What lessons from the mobile-first economy can we apply to the smart home? Taking a mobile-first approach has created consumer delight and significant commercial value in other parts of the digital economy. This keynote from Farooq Muzaffar of Verizon explored what works and doesn’t work when it comes to mobile-first and how those lessons can be applied to the smart home.
Speaker: Farooq Muzaffar, Vice President, Corporate Strategy & Development, Verizon
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Innovative Partnerships: The Connected Home Smart home product and service providers are evolving. Smart home controllers and smart home platforms are adding more networks, more intelligence, more data analytics, and more value-added services. Today, smart home service providers control almost every aspect of their offering. Consumers make one choice, the service provider, and the service provider chooses everything else. The service provider determines what products work with the platform, what algorithms control those products, what the user interface looks like, and even how the system is installed. The consumer has almost no control. If consumers want a group of products that work together, the only choice is to select a service provider or home control platform. Products that work together are not available without a smart home controller or a smart home platform.
Smart home system vendors generally charge a recurring monthly fee for services. Smart product vendors charge an upfront fee in the form of a price premium for smart products. The business models used by different participants are a reflection of existing business models. However, connectivity opens up many new possibilities that use smart products to enhance the value chains of different industries, unlocking new value and enabling participation in new revenue streams that are not directly funded by the consumer.
The smart home market can be described using two axes: control of the smart home system and monetization of the smart home.
The vertical axis describes the entity which controls the smart home system, how it is installed, and what products, algorithms, apps, and user interface or interfaces are used. At the lower end of the vertical axis, the end user makes all of the decisions. Consumers get what they want—how they want it. The consumer chooses what products to purchase, when they are purchased, how they are purchased, what apps or subsystem controllers control those products, and what smart home platform, if any, they want. Consumers may acquire connected products over time, as they replace legacy products with new, smart products. Some consumers may proactively replace some products if they find the value proposition compelling.
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At the upper end of the vertical axis, the service provider makes all of the decisions. Most smart home systems on the market today are closed to both new products and third-party app developers. Smart home service providers tightly control the ecosystem to assure that the user experience is positive; nonetheless, they know that a system open to both apps and products will beat a closed system in the long term. Today, business—rather than technology—issues create friction and slow down integration. To be successful in the long term, smart home platforms must simplify business transactions and make integration more scalable.
Monetization is represented on the horizontal axis. On the left side of the scale, the consumer pays for products and services directly, either in recurring or upfront fees. On the right side of the scale, alternative business models allow manufacturers and smart home service providers to generate revenue, indirectly, from other industry players.
In the long run, non-consumer-funded options will win a significant market share. Smart products and systems with no recurring revenue fees appeal to a large segment of consumers. Recurring fees may be able to start markets, but without strong value propositions, most will yield to solutions with no fees. It is hard to charge for something that others are giving away.
Speakers: Greg Blackett, Senior Product Manager, Tyco Chris Boross, President, Thread Group Seth Frader-Thompson, President, EnergyHub Adam Mayer, Vice President & General Manager, IntelligentHome, Time Warner Cable Amanda Parrilli, Director, Strategic Business Development, The Home Depot Moderator: Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates
Notes: Smart home partnerships are all about building up an ecosystem so that a “network effect” can drive adoption. There are too many players across the value chain for a single player to dominate. Still, ISPs are in a great position to lead the space because they have the billing relationship with consumers, the tech support infrastructure, and more, but they can’t do it alone. Providers are not built to sell, fulfill, and install devices. Smart home companies have to work together to expand the pie and bring consumers into the market; if industry players worry about partners becoming competitors down the road, they will build barriers that will limit the overall success of the space.
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Internet of Things: Innovations and New Value Propositions Smart devices are still in their early adoption phase; as technology enablers, platform providers, and manufacturers move forward, all companies in the value chain must understand the short- and long-term criteria for success. The smart home is forcing companies to evolve in two ways: First, products must leverage sensors, data analytics, and cloud mash-ups to add highly differentiating features.
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Second, every aspect of business operations must be transformed to take advantage of the new data and connection to customers. Connectivity also enables new business models, which can and will have a disruptive impact on current markets. Manufacturers must simultaneously expand product capabilities and work on business transformation initiatives.
Connectivity enables manufacturers to enhance product capabilities in many ways. One example of smart product capabilities is a smart thermostat that can determine that no one is home and automatically adjust the temperature set point. For smart kitchen appliances, extended functionality could include software that improves the meal preparation process or take inventory and reminds the consumer of ingredients to purchase.
Connectivity also enables numerous opportunities to transform every aspect of the business. Smart products can improve operational efficiency. OEMs can use the connection to improve their operations, automate warranty administration, and use remote diagnostics to minimize service costs.
Expanding e-commerce provides a method for consumers to order accessories and access service or warranty support conveniently using remote diagnostic capabilities. E-commerce features include sending targeted, event-based promotions. For example, a customer would receive a coupon when an HVAC filter needs changing, as indicated by system performance deterioration data from a smart thermostat. Ideally, systems will help consumers solve whatever problem they are experiencing with a single click. Simply telling the customer there is an issue and recommending a solution falls short of the envisioned ideal experience. E-commerce solutions must close the loop by helping people take action to solve the problem. Consumers are increasingly likely to use in-app purchasing and value-added features. By sending alerts and notifications as well as by providing new feature downloads, the manufacturer is able to maintain and enhance its relationship with the customer. The manufacturer becomes an advisor by providing feedback on how users are operating their device/product and the actions necessary to improve performance. For example, the Chevy Volt provides drivers a braking rating so that they can compare their performance with others and chat with top-rated users. Users may also benefit from being able to query operational history. This feature allows the user to know when maintenance is needed, as well as to identify the key usage patterns of the device.
Speakers: Larry Goldman, Director, North American Sales & Business Development, Kwikset Kurt Hoppe, VP, Applications & Services, Prodea George Land, Business Director, Nexia Home Intelligence, the Ingersoll Rand company Ralph Morales III, Innovation Architect, Hewlett Packard Eran Sandhaus, Senior Director, Product Management, Qualcomm Atheros Moderator: Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates
Notes: Value-added services are a very important part of the smart home ecosystem. The best opportunities for value-added services are those that solve a real problem for consumers and create sustainable value over time. Creating value- added services also drives the replacement cycle of smart home devices—consumers want the new, more valued features and services, rather than the new device itself, but they will acquire or upgrade the device to get that value.
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Smart home solution providers should develop a portfolio of new profit centers supported by new business models that are continuously introduced. Low customer awareness and familiarity are obstacles that must be overcome. There is a need to “Google-ize” how we think about big data from connected home systems and devices, to create value from the data based on outcomes rather than causes. Connecting products—such as connecting a door lock with a thermostat—changes the original products and creates new opportunities, new business models, and motivates consumers to buy something new and different. The initial benefit of value-added services is in product and service differentiation; over time this moves to the impact on alternative business models. Infotainment is a growing segment within services for set-top boxes, gaming consoles, smart TVs, and cameras.
Keynote: IoT: Creating New Solutions for the Connected Home Ecosystem As the IoT expands to encompass the entire connected home ecosystem, the growing number of devices and services is creating challenges for both consumers and the industry. As connectivity, mobility, and functionality produce untold possibilities, companies must make the right choices in “building the things we should and not building them just because we can.” In this keynote, Mr. Rytting offered Panasonic’s perspective on IoT, including a perspective on the history of IoT and connected appliances. He also shared insights on ways to intelligently expand the IoT for the connected consumer—moving beyond the home to include the car, on-the-go activities, and even public events so that consumers can receive the value they want from the IoT wherever they are.
Speaker: Todd Rytting, Chief Technology Officer, Panasonic Corporation of North America
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Notes: While much of the IoT buzz is about connectivity, the real value is in what happens with the information. Knowledge of consumers is what gives Panasonic an edge in providing services to these consumers. Panasonic views the IoT broadly. The company considers airplanes, stadiums, and cars as “things.” They want to integrate everything with the home, and this effort requires extensive knowledge of their consumers, their attributes, and activities and devices interactions within the connected home. IoT consumer technology has been with us for years, including work initiated by emWare in 1996. The Internet of Things is a recent label on decades of innovation. Given that we have been talking about these things for so long, why aren’t they staples in everybody’s homes by now? One opportunity is for the industry to improve upon how they present information to consumers. Partnerships are essential in this space. Panasonic’s activity in North America is primarily focused on Business-to- Business relationships, where the consumer is their customer’s customer.
Explosion of OTT Services The OTT space has expanded beyond Netflix, Hulu, and Amazon to include the likes of Sling TV, MLB.TV, and the WWE Network. What was once an outlet for on-demand consumption by time-constrained consumers has evolved into a delivery mechanism for live content and anytime-anywhere entertainment. Along with these new services comes new content, spawning the term “OTT Originals,” which have hit the market with a broad range of success. As the new video delivery system evolves, so must the ISPs and device makers involved in delivering the associated data and building a high-quality experience. This session explored the following trends in the OTT video space: The rise of a variety of OTT video services available to the consumer The consumption habits and business models associated with OTT video services Implications for traditional and emerging players in the OTT video market
Speakers: Tim Alessi, Director of New Product Development, LG Leah Belsky, Senior Vice President of Operations, Kaltura Philip Jones, Product Information Manager - Video, Sony Jen Robinson, CTO, AwesomenessTV Moderator: Glenn Hower, Research Analyst, Parks Associates
Notes: OTT video subscribers tend to be younger; Parks Associates finds 70% of U.S. consumers who subscribe to OTT services are ages 18-34. The smartphone will be the screen that is responsible for the most OTT viewership in the next year. OTT providers face the challenge of making the user experience work for multiple screen sizes (large and small), content types (long form and short form), and content quality (from 480p to 4K). At this stage, it makes most sense to experiment with different business models, such as subscription, transaction, and ad-supported models. In order to future-proof a business, OTT players shouldn’t invest everything in any one business model.
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OTT enhances physical TVs by providing ways to differentiate models and to take advantage of capabilities of premium TVs like 4K. There needs to be a reliance on hybrid models, especially as the market transitions to new technologies while still needing to support a large base of existing “standard” solutions.
4K UHD TVs: The TV Landscape and Next Market Opportunity 4K UHD TV is the next big thing for TV manufacturers, with the expectation that it will drive a new upgrade cycle in the flat- panel TV category and increase unit sales and profit margins in an industry with historically tight margins. OTT content services, including Netflix and Amazon Prime, are aggressively entering the 4K services arena, hoping to obtain market share before larger players do so; however, in general, there is limited 4K UHD content and services available. Many industry players are waiting until there is strong consumer demand and mass-market adoption of 4K devices. At that time, content and services will increase to meet consumer demand.
The industry must also consider the role of broadband speed and performance as a component of a satisfactory 4K UHD experience. There are technologies such as Adaptive Video Acceleration (AVA) that enable CE makers and broadband operators to boost performance.
This panel examined the market for 4K UHD TVs and other devices, the impact of scarce content, the components of a satisfactory user experience, and additional technology improvements such as high dynamic range and an expanded color gamut.
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Speakers: Tim Alessi, Director of New Product Development, LG Satish Annapureddy, Sr. Director, Strategy & Business Development, NeuLion Philip Jones, Product Information Manager - Video, Sony Moderator: Barbara Kraus, Director of Research, Parks Associates
Notes: OTT is the best case for streaming for 4K. Consumers don’t have to wait for 4K content to enjoy 4K TV. The prices of 4K televisions are decreasing, so adoption is increasing. Broadband performance impact on 4K should not be an issue, since broadband household Internet speed continues to increase.
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IoT and APIs: Extending Functionality for Connected Devices Several technologies are available to manufacturers to expand interoperability between devices. Open APIs represent the best short-term opportunity. Open APIs allow manufacturers to innovate more rapidly as third parties develop novel solutions using data and fill edge use cases. Open APIs may also open up new distribution channels. API exchanges help advertise APIs to the vast app developer community and provide a federated interoperability model. Unlike common protocols that abstract interfaces to the lowest common denominator of features, the federated interoperability model provides an interface that represents the superset of available features. APIs also enable app mash-ups that aggregate functionality of multiple apps, enabling subsystem control.
Smart product manufacturers and service providers have numerous opportunities to work together to expand the market. Misaligned objectives in the early market can be resolved as market participants come to an understanding that partnerships grow—not split—the pie.
While many of these partnerships will take the form of traditional partnership agreements, many will move to more loosely coupled relationships, using APIs in the cloud to not only extend the reach of products and services but also to connect with partners. The result of well-executed partnerships will be more value delivery to customers.
Speakers: David Friedman, CEO & Co-Founder, Ayla Networks Jim Hunter, Chief Scientist and Technology Evangelist, Greenwave Systems Curt Schacker, VP, Connected Devices, EVRYTHNG Moderator: Maia Hinkle, Research Analyst, Parks Associates
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Notes: IoT is too big for one giant company to control. Instead there will be an orchestration of a lot of ecosystems working together. APIs must be selectively open. Security issues are a huge consideration when considering opening APIs. First-generation IoT is about single devices with single-use cases (e.g., a connected fridge or a connected light). Use cases become more compelling as more devices are connected (e.g., food will tell the fridge when it will expire, clothes will tell the washer not to wash reds with whites). There is a balance between protecting your technology (closed API) and having the flexibility to grow new future capabilities (open API). Interoperability is the key to the next-gen vision of the IoT. Open APIs will let companies future-proof their technologies so they can be prepared when new capabilities emerge.
The Ideal Smart Home User Experience The user experience is evolving rapidly. Ten years ago, who would have thought that consumers would be using a smartphone and tablet app to see and talk with someone at the front door and then unlock the door to let them in? Mobile devices play an incredibly important role in connected home today, but their reign may be limited.
Consumers prefer to use whatever device they happen to be holding at the time to perform the task at hand. Abstracting the user interface functionality from the product is one of the goals of protocols like AllJoyn, which allow consumers to use the UI of any device to control any other device.
The method of interface is also changing. Gesture recognition, video analytics, and voice recognition are gaining prominence. Products such as Amazon Echo use natural language and the primary user interface.
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User interface technology is advancing concurrently with modeling and control algorithms. Truly smart products make smart decisions on their owner’s behalf without the need to set up a rule, program a specific scene, or click on an app. Products communicate with each other in the background and work together automatically. No user interface may become the ideal user interface.
Speakers: Amena Ali, Senior VP and General Manager, WeatherBug Home Dan Lieberman, Head of Research & Standards, SmartThings Mark Spates, Head of Connected Home Platform, Logitech Moderator: Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates
Notes: There is not just one kind of smart home but rather millions of different smart homes as each user creates their own unique user experience. Creating a balance between comfort/automation and control/physical interaction is key for an optimal user experience. Entertainment (TV room, etc.) is the “Trojan horse” for the smart home market—people start with entertainment then move to other automation to enhance their experience throughout the home.
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Connected Cars: The Next Smart Platform Parks Associates estimates that by the end of 2015, 21% of light vehicles in operation in the U.S. market will be equipped with a connectivity solution, and 16% of light vehicles, or 41.4 million vehicles, will have an active connection.
As the market has grown, so has the ecosystem. Auto manufacturers, mobile network operators, aftermarket device manufacturers, and software and service providers from both the auto and mobile industries have vested interests in this space. The auto industry is grappling with how best to evaluate potential partners and how to respond to new entrants that potentially threaten the auto manufacturer’s role in the ecosystem. At the same time, smart home devices and services have been gaining traction. In many ways, the smart home ecosystem has been growing in parallel with the connected car system: both are benefiting from the falling costs of sensors, networking technologies, and data as well as by expanded cloud services, the mass penetration of smartphones, and consumer demand for the connected lifestyle. In 2015, these ecosystems are beginning to converge, with particular use cases, such as remote home controls, entertainment on-the-go, and home energy management, emerging at the intersection. For instance, Parks Associates data from Q1 2015 reveals that 42% of electric vehicle owners in U.S. broadband households find the concept of a solution that helps optimize their home energy consumption by coordinating the charging of their EV with other energy- consuming appliances in the home as “very appealing.”
This panel explored current connected vehicle strategies from a variety of industry viewpoints and provides insight into partnerships that cross the connected vehicle—mobile—smart home ecosystems.
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Speakers: Jay Giraud, CEO, Mojio Andrew Poliak, Global Director, Business Development, QNX Software Systems Mike Tinskey, Global Director of Electrification and Vehicle Infrastructure, Ford Motor Company Moderator: Jennifer Kent, Director, Research Quality & Product Development, Parks Associates
Notes: The auto industry has attracted attention from tech giants Apple and Google, which threaten to shake up the industry. QNX, which is the dominant provider of in-vehicle software, views auto solutions from Apple and Google as complimentary, not competitive. Apple and Google will bring content from the phone into the auto ecosystem, but QNX will continue to reside on the auto side to decode that data for the vehicle. Auto OEMs face a difficult choice: they want to incorporate technology that enhances the driving experience without sacrificing potential revenue streams to new entrants. Ford’s approach is to partner with Apple and Google; while Ford wants to control the in-car experience, the company also wants the consumer to have the power of choice.
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Consumers already have access to solutions that bridge the connected car and connected home ecosystems. Aftermarket connected car solution provider Mojio is developing partnerships with hardware manufacturers with the goal of allowing the Mojio dongle to trigger actions in the home. Currently, Mojio users can trigger their SmartThings devices in the home from the Mojio app by using the If This Then That (ITTT) logic engine.
Winning Channel Strategies for Smart Home Services Custom electronics dealers have been installing smart home central controllers in the homes of wealthy homeowners for many years. However, the entry of large and well-known companies—such as security company ADT, cable operators such as Comcast and Time Warner Cable, telecom operators such as AT&T, and retailers such as Lowe’s, Home Depot, and Best Buy— will help the market gain momentum due to their popular brands, large customer bases, large marketing budgets, and extensive direct sales experience. Their marketing clout can help create awareness and educate the mass market on the capabilities and value propositions of smart home management.
Despite industry momentum, consumer awareness remains low for mass market smart home systems and the category does not have a concise value proposition. Platforms and systems are available to accommodate any household preference—there can be as many use cases as there are households. Due to the scope of individual use cases, it is challenging for companies to develop a succinct message that summarizes the key value propositions of the smart home.
Smart product manufacturers are also entering the smart home market. Several start-ups have developed innovative products and services, but lack the marketing resources necessary to improve awareness and educate the consumer. Retailers have the resources; however, selling smart home products and services requires a trained and knowledgeable sales staff. Smart home
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sales efforts, at least in the early stages of the market, need to be staffed as smartphone sales efforts are. There is an expectation that each transaction will require a one-on-one consultation. Given that awareness is low, channel strategies must adapt to win early adopters and be positioned for the early majority.
Speakers: Kris Bowring, Director of Business and Channel Development, Iris Smart Home Business Unit, New Business, Lowe's Scott Burns, Senior Director of Innovation, Reliant, an NRG Company Ryan Petty, Vice President, Product Development & Innovation, ADT Security Services Adam Sager, CEO & Co-founder, Canary Brian Seemann, President, Resolution Products Chris Williams, Senior Director Product Strategy, Time Warner Cable Moderator: Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates Notes: The smart home provides added value to consumers and creates a new experience for the consumer. Consumers are looking for and adopting products that can advance over time. The smart home market will continue to grow, creating opportunities for many industries to do well within the smart home ecosystem. A key to driving adoption is bringing a sense of security to the consumer—ensuring that all smart home devices connect consumers to the things they care about most. Smart home products will be distributed through multiple channels—service providers will leverage retail channels. Service providers are better positioned for the mid-market but retailers are better positioned for the mass market.
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Opening Keynote: Driving Adoption of the Smart Home What will it take to drive adoption of the smart home? This keynote from Daniel Herscovici of Comcast Cable explored the types of experiences needed to drive adoption of the smart home beyond the early adopters and tech enthusiasts to the mass market. Speaker: Daniel Herscovici, SVP & GM, Xfinity Home, Comcast Cable
Notes: Positioning the smart home as approachable will reduce user intimidation and increase consumer trial and adoption. It is advantageous to provide demos for potential customers to enable them to see and engage with the experience. Once consumers receive a taste of automation, they will understand the benefits and want more. Trials can be increased by requiring little or no upfront effort and cost. The “smart home” is not just about technology—it is about solutions. Solutions should be pre-packaged and easy to understand, and they should provide a holistic solution for specific consumer use cases. Unifying platforms and the user experience is critical. This effort includes integrated point solutions, a single sign-on, and a consistent interface across devices. In addition, there should be multiple options for device interaction, depending on what is most convenient, whether the device is a smartphone, a remote controller, or a computer.
Role of Smart Watches and Wearables in the Connected Home The emergence of wearables is surrounded by constant debate about their potential role in a consumer’s digital life, which is increasingly shaped by the Internet of Everything. Innovations in form factors, functions, and low-power personal area
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networking technologies make wearables increasingly more attractive to consumers. Whether they can become a mass- market product category similar to smartphones or HDTVs depends on innovations in use cases, a smooth user experience, and a price range that matches consumers’ value expectations.
The smart watch has potential, and smart home players must develop strategies for interacting with leading wearable devices. The smart watch’s easy access makes it a great mobile device to act as a remote control for smart home systems and devices. Watch users could theoretically turn on lights remotely, close garage doors, and adjust thermostat settings, among other tasks, without reaching for their smartphones.
However, the implementation of some of these features is limited by battery life concerns, the relatively low processing power of the smart watch compared with smart phones, as well as the small size of the screen that makes user interaction difficult for setting up complex scenarios and workflows.
Speakers: Greg Jones, Business Development Director, Misfit Kenny Mathers, Senior Director, MediaTek Inc. Ted Schremp, CEO, PEQ John Valiton, Chief Business Development Officer, Playtabase
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Tom Wesselman, Director of Communications Ecosystem Architecture, Plantronics Moderator: Tejas Mehta, Research Analyst, Parks Associates Notes: The value in a wearable is less in its ability to be another remote control device, like the smartphone, and more in the ability of its sensors to provide contextual awareness. This will allow for more customization without manual input from the user. Wearables makers will do the industry a real disservice if they just try to replicate the smartphone experience. Taking a services-based approach will drive more wearable adoption.
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Unlocking the Value of Personalization: Balancing Big Data and Privacy Operators, CE makers, OTT video services, and other market players have been touting personalization for several years as an important aspect of engaging consumers and retaining subscribers. Technology vendors have emphasized the benefits of personalization and offer products that allow for personalized services, experiences, and products. Yet, personalization toda y appears to only be scratching the surface in terms of actual implementation and impact on the user.
This session looked at the state of personalization today, how it is changing, and what the future of personalized services will be. Panelists also discussed personalized data, protection of that data, and creation of user experiences that inspire rather than worry consumers.
Speakers: Sefy Ariely, EVP Americas, Viaccess-Orca Daren Gill, Vice President of Products, Advanced Search and Recommendations, Rovi Corporation Kshitij Kumar, Big Data Consulting Practice Leader, Ericsson Stuart Rosove, VP, Advanced Solutions, Irdeto Robin Wilson, VP Business Development, NAGRA Moderator: Brett Sappington, Director of Research, Parks Associates
Notes: The smartphone is one of the most popular methods of controlling connected consumer electronic devices. While it’s easy to create personalization for an individual, it’s much more difficult to do so for a family. Families differ greatly, and the personalization the algorithm cannot easily know which family member to prioritize.
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False positives are much more impactful than false negatives. It is a glaring error if the system puts something in front of a consumer that they didn’t want to see, compared to not showing a consumer something they did want to see. Personalization works well for the mobile phone works well, but in the IoT, industry players don’t yet know what aspects of personalization will be valuable to consumers Companies abuse consumers’ data, which gives personalization a bad name and leads to marketer distrust. For personalization, there is a hierarchy of perceived intrusion (called the “hierarchy of creepiness” in the session) that ranges from background monitoring of the network (less intrusive) to identification of highly personal and sensitive data (very intrusive). Consumer reaction for a need for privacy controls is directly related to this perception.
Streaming as Standard: The New User Experience Roughly two-thirds of U.S. broadband households use a streaming device to connect their TV to the Internet. As content streaming has gained in popularity and usage, the user experience has taken on new importance as a factor in device sales, content purchases, and brand loyalty.
CE makers can differentiate the user experience through features, search and discovery options, and personalization. Newer technologies can improve broadband performance and provide multi-screen access in and out of the home. Panelists discussed the impact of the user experience on monetization, best-in-class UX design today, and future trends for the user experience.
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Speakers: Rick Herman, Chief Strategy Officer, MobiTV Tom Lattie, VP, Market Management & Development, Video Products, Harmonic Ali Vassigh, Director of User Experience, Roku Yoel Zanger, CEO and Founder, Giraffic Technologies Moderator: Barbara Kraus, Director of Research, Parks Associates
Notes: The keys to a great user experience in the video space are consistency, a frictionless interaction, and video quality. A lot of current investment in the video space is focused on unifying content across platforms and services; cable authentication is not the answer. The development of next-generation sensory controls is too distinct; voice, gesture, and vision technology should be integrated to make new UI approaches more natural.
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Integrating IoT into Smart Home Platforms Manufacturer Perspective on Integrating Products with Smart Home Platforms
Manufacturers of smart products face several decisions regarding how to integrate with the larger connected home ecosystem. Some OEMs see a clear opportunity for incremental product sales through smart home service providers. Those vendors may choose a flexible, even modular architecture to support whatever protocol is required by the smart home service provider. Protocols have extensions to allow OEMs to offer new features and capabilities and to provide a standard, straightforward method to connect to a smart home platform. Other OEMs do not believe that smart product service providers will become a source of incremental sales, but do believe that there is value in connecting to a larger smart home ecosystem. Those OEMs may choose to have a direct connection to the cloud where the OEM controls the data and can add new, cloud-enabled differentiating features to the product. Integration with the larger smart home ecosystem can be accomplished via a direct connection to the smart home controller or through APIs in the cloud. The OEM must decide what to expose in an API, how open the API should be, and what business models to pursue.
Smart Home Platform and Service Provider Perspectives on Integrating Products with Smart Home Platforms
Smart home platform vendors face several challenges. First, from the consumer perspective, the smart home platform vendor must avoid adding complexity to the platform. Consumers want the technology to work for them, to make their life easier, automatically making smart decisions on their behalf. As more products are added to the home, the complexity increases. Consumers don’t want to spend time setting up rules or trying to figure out the interaction between rules.
Smart home platforms must also balance the need to avoid complexity with the need to differentiate and provide advanced features. As OEMs add new features and capabilities, platform vendors must keep pace. One approach would be to compete
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with OEMs to provide advanced features. Smart home platforms could also work with OEMs to fully integrate all advanced features, including app and data integration. Smart home platforms also have a business issue related to integration. While the cost of integrating each additional device is clear, it is not clear how service providers will gain incremental revenue from integrating additional devices.
Integrating products and platforms is not only a one-time expense. In order to be competitive, smart home platforms must continually update and maintain the interface as new features are added and APIs are extended. As more OEMs begin to provide open APIs to integrate products, the problem of maintaining those APIs becomes more costly.
Finally, in the same way that OEMs must decide when and how to provide APIs to others, platform vendors face the same questions. What is good for the goose should also be good for the gander. Open platforms can scale to provide advanced services and algorithms, and to fill in edge use cases.
Speakers: V. Rory Jones, Co-Founder and Chief Executive Officer, PlanetEcosystems Jay Kenny, Senior Vice President of Marketing, Alarm.com Sebastian Popovic, CEO, Zipato Adam Tichelaar, Director, Connected Home Solutions, Amdocs Brett Worthington, VP - General Manager, Wink Inc. Moderator: Maia Hinkle, Research Analyst, Parks Associates Notes: Consumers are looking to buy products, not platforms. A key value-add for smart home platforms is interoperability—a single use interface. Interoperability is the lubricant that makes smart home solutions work; it takes the burden off the consumer. Platforms enable experiences in the background using control algorithms without the consumer knowing it. The success or failure of smart home platforms will be determined by their ability to enable user experiences and provide specific solutions that consumers will value. Light bulbs are leading the smart home category. DIY is the fastest growing consumer segment in the smart home market, and from this segment we are learning how people use smart devices Ease of use and simplicity are critical.
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Evolution of Content Access: Cloud-based CE and Video Services This session examined the state of cloud-based features, services, and technologies for the video and pay-TV industry today. Topics included: Obstacles and challenges in a move to the cloud The impact of OTT video services The evolution of pay-TV services The role of various players in the video delivery chain Innovations in virtualization and cloud-based services
Speakers: Jeff Allen, VP Business and Corporate Development, Clearleap Steve Christian, SVP, Marketing, Verimatrix Chris Drake, Vice President, thePlatform, a Comcast company David Grubb, Chief Technical Officer for Cloud Solutions, ARRIS Stephen Ludin, Chief Architect, Akamai Technologies Moderator: Brett Sappington, Director of Research, Parks Associates
Notes: OTT has a warped reputation—it was originally seen as separate from other pay-TV services and was created as an escape from cable. Now it is considered equal to cable offerings, as everyone pays for video one way or another. The OTT distinction/designation will go away as more services are delivered online (IP/http).
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Which platforms matter? Tablets, set-top boxes, game consoles, Google Chromecast, smart TVs, iOS, web, and Android are all options. Tablets now represent a leading platform for video consumption. Both Android and iOS are important for mobile devices. Consumers don’t care about where the content comes from. They just want access to that content.
Managing IoT Services Broadband households in the U.S. are embracing new connected devices introduced by IoT, as the value proposition of increased convenience and control appeals to consumers and will continue to drive connected device adoption across different device categories.
Manufacturers of complex connected devices and systems are tasked with creating innovative products and services with advanced features, while making them simple, easy to use, and intuitive. However, achieving the device-to-device communication or device interoperability necessary for enhanced connected home systems and services is often challenging. Even with the growing availability of device communication protocols, many OEMs use proprietary software in their devices and systems that limit access and control by third parties. Similarly, many service provider connected home systems are not equipped with the ability to add third-party devices or to integrate third-party applications.
The support provided to these consumers will be a primary differentiator among providers. Support will significantly influence how consumers experience these products and services and likewise the long term viability of these industries.
Speakers: Peter Blanks, Vice President Technology, Asurion Art Lancaster, CTO, Affinegy Marcus Scheiber, CEO & Co-Founder, ROC-Connect
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Tal Schierau, VP Sales and Account Management, Radialpoint Paul Weichselbaum, Executive Vice President, PlumChoice Moderator: Patrice Samuels, Research Analyst, Parks Associates
Notes: The IoT is both expanding tech support needs and providing the tools and data for more proactive support services. The Internet of Services must underlie the Internet of Things for the market to be successful. The ideal consumer experience is plug-and-play. However, this approach is actually becoming harder, not easier, to implement, as new devices ship with bugs, interoperability issues, and other problems related to software and connectivity. The industry needs free, open software that everyone can use. Consumers don’t need seven or eight different radios in a single hub. The smart grid and smart meter are particular security concerns because they are often the entry point into the smart home. Consumers report many different challenges, including setup, functional glitches, interoperability challenges, and security and privacy concerns. Service and support in the IoT will be very different than service and support for traditional products.
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Next-Gen Support Services: Connected Devices and IoT As more products and new product categories enter broadband households, the technical and support needs of consumers change. New products have generated increasing support needs in areas such as set-up and installation, enablement, break/fix, and security and privacy. Support services must evolve, not only to serve the needs of consumer more effectively, but to also minimize the increasing burden on support resources given the growing complexity of broadband households.
The increasing demand on support resources challenges brands’ abilities to provide unwavering support to customers; however, providing exceptional support that meets or exceeds customers’ expectations will be necessary to generate product adoption, sustain product usage, and build customer loyalty in the highly competitive consumer electronics industry.
As brands navigate this dilemma, they embrace new support automation strategies that help them to minimize handle time of support requests and utilize channels and technologies that make the support process more effective, all while creating a better support experience for consumers.
Speakers: Chris Koverman, VP Engineering and Operations, Support.com Jeff Unterreiner, Senior Vice President, Connected Living, Assurant Solutions Sridhar Santhanam, Founder & CEO, HFN Inc. / Nanoheal Moderator: Patrice Samuels, Research Analyst, Parks Associates Notes: Support should be so integral to the device or app experience that users don’t think of it as support.
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The market is moving towards proactive and remote-controlled support, but until that transition occurs, IoT players must provide users other means of support. Physical service networks will still be vital for supporting connected devices; the key is to get the right technology into service technicians’ hands to make on-site visits as quick and effective as possible. The more devices consumers have, the more problems they have. Customer experience can be a competitive differentiator making support services an integral part of a competitive strategy
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Multichannel Networks and Emerging Content Alternatives From self-made online personalities like PewDiePie to established powerhouses like Conan O’Brien, the Internet video space has married grassroots and celebrity like no other medium before. With Millennials’ attention split between television, Netflix, and YouTube, the market has struggled to connect with young viewers, maintain their attention, and monetize their viewership. With tech natives knowing no lifetime without their devices, the need to push appropriate content to a variety of devices is a challenge but becoming more of a necessity. Traditional companies like Disney, Warner Bros., and AT&T have invested substantial amounts in multichannel networks, aggregating thousands of independent content creators in an attempt to capture young audiences with the hope of finding the next Jenna Marbles.
This session explored the following trends in alternative video content: Potential opportunities that multichannel networks and emerging content alternatives present Challenges and potential solutions for success in the unproven space of multichannel networks Implications that online video presents to the video content space
Speakers: Scott Maddux, Vice President, Business Development, Gracenote Jim O'Neill, Principal Analyst, Ooyala Jody Stark, EVP - Commercial Strategy, Piksel Moderator: Glenn Hower, Research Analyst, Parks Associates
Notes: Multichannel networks aren’t going away, but they are changing. Over the next 12 months, it is expected that they will change shape dramatically as traditional content companies invest in and hold more influence on multichannel networks. Video creators spent substantial time building and promoting their brands. Monetization comes from advertising and sponsorships. MCNs are promoting across many different social media platforms to reach consumers, including Instagram, Twitter, and Facebook. Movie and TV studios are very engaged in taking ownership of new content alternatives. Panelists expect a compressed evolution of this business in the next 12 to 24 months. Millennials have a four-second attention span—they want short videos with an easy rating system.
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Fireside Chat - A Smart Home Solution for Every Segment While there are many similarities between Digital Life and Icontrol (channels, ecosystem design), there are many differences between the solutions as well. The central question is to engage the next 80% of broadband households who currently do not have a security system—what will be the features, channel strategies, and business models to attract and engage those without security?
Speakers: Letha McLaren, Chief Marketing Officer, Icontrol Networks Kevin Petersen, President, AT&T Digital Life Moderator: Stuart Sikes, President, Parks Associates
Notes: The expansion of the peace-of-mind concept includes increased consumer interest in access functionality. In addition to security functionality such as smart door locks, consumers want to see who is at the door and ringing the door bell, or if there are packages left at the door. Consumers still need to be shown the value of knowing what their house is doing when they are not there. Adoption of the smart home is driven by personal use cases. Consumers relate to their own situations and can understand the benefits of smart home devices and functions when they have an “a-ha” moment and realize a need for a specific solution. The key value propositions for the smart home are flexibility and convenience. The smart home is not a rubber-stamp value equation but requires solutions to individual use cases. Giving people “choice within reason” is key, as is personalization.
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Low consumer awareness means that home controls are still a consultative sale at this point; staff must be available to answer potential customers’ questions.
New business models will help the DIY segment adopt home controls services, such as shorter contract terms and monitoring on demand.
Wearables and Connected Health Opportunities in the Home As wearables emerge, it intensifies the debate about their role in a consumer’s digital life. Whether or not wearables can become a mass-market product category similar to smartphones or HDTVs depends on innovations in use cases, a smooth user experience, and a price range that matches consumers’ value expectations.
Parks Associates envisions over the long term that wearables will mesh well with consumers’ lives, giving personalization a new meaning as different devices find their distinct and respective “sweet spots.” The emerging smart home industry is exploring the role of wearables in extending daily living functions and connecting home living with healthy living. Collaboration between the smart home industry and wearables has already kicked off with notable partnerships between Nest and Misfit and between SmartThings and Jawbone. As more wearable form factors and innovative use cases emerge, the growth opportunities for device OEMs, application developers, and consumer service providers can be significant.
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Speakers: Jason Donahue, Senior Product Manager, Jawbone David Glickman, Co-Founder and COO, Lively Chris Otto, VP of Business and Product Development, MobileHelp Darrell Sontag, Vice President, Marketing, Honeywell Life Care Nick Warnock, President, Wellograph, Inc. Moderator: Harry Wang, Director, Health & Mobile Product Research, Parks Associates
Notes: Wearables are in an early stage. Makers need to focus on specific use cases and not just the technology. Wearables should make consumers’ lives better. There is a need for industry players to create a solution that is simple to use. However, designing “simplicity” into wearable devices requires taking maintenance into account—where will a consumer wear this device, how, and how often will they need to charge this device? Just one company cannot tackle the spectrum of health, wellness, and safety needs in the connected health market; partnerships are necessary. Partnerships will raise visibility of both parties, expand distribution, and result in a more ambitious solution for consumers than could be accomplished alone. The consumerization of the aging space is happening now; demographics and cost trends make this market an enormous opportunity. Currently, 70%-80% of healthcare spending is on aging and end of life.
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Keynote: Where the Jetsons Went Wrong: A Look Inside the More Thoughtful Home of the Future What will our homes look like 20 years from now? Or 50? For decades, the media and popular culture have portrayed the home of the future as spacey, sterile, and fully automated. But what if they're wrong? In this session, Nest's Mike Soucie examined the state of connected homes today and explored how our future homes may look familiar but function—and think—differently.
Speaker: Mike Soucie, Head of Consumer Product Partnerships, Nest
Notes: The smart home vs. “thoughtful home” – A smart home makes a mobile device a remote control; a thoughtful home creates a user experience in which all products are self-aware, work together, and adapt to consumer needs. Industry challenges for the thoughtful home include networking protocols, security/privacy, and intelligence. Industry players must be transparent about privacy rules, allowing consumers to be in control of their data and asking permission to use their data. A personalized, immersive, thoughtful home is coming with multiple interfaces and functions—this will lead to a “thoughtful world,” where homes connect to each other and to cities.
The Future of Robotics in the Connected Home The most visible consumer robot is the floor cleaner, but both start-ups and established companies are working to develop in- home robots for a variety of use cases in entertainment, housekeeping, and healthcare. This panel looked at current use cases
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for in-home robots as well as new robotic applications in the next three to five years. Panelists discussed the challenges of developing robots for the home market as well as the potential technology solutions.
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Speakers: Dr. Todd Hylton, EVP, Brain Corporation Joesph Y. Ko, Chairman & CEO, TechKo Maid Inc. Nancy Nunziati, Vice President of Marketing, Neato Robotics Moderator: Barbara Kraus, Director of Research, Parks Associates
Notes: Consumers distinguish robotics from other connected devices primarily based on the robot’s mobility and movement. Falling costs of enabling technologies are helping to drive the robotics market, but vision systems and object manipulation advances are needed to make the leap into the next generation of consumer robots. The home represents the greatest opportunity, and both Europe and Asia are high growth markets for consumer robotics. Differences in typical home construction and layout (e.g., carpet versus hardwood or tile floors) make each market unique in programming and navigational challenges. The number one robot in the home is a vacuum, and the CONNECTIONS™ audience agreed that the housekeeping vertical will provide the greatest day-to-day value in the consumer robotics space in the next five years. Millennials are key to growing the robotics market because they have fewer concerns than older generations about robots in the home.
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Standards and Interoperability: Creating Competition through Cooperation Interoperability between devices and systems has been an elusive, challenging goal. Solutions for interoperability include the adoption of peer-to-peer communication technologies, common protocols, gateways to bridge between protocols, or cloud- based solutions. New groups are forming to solve different aspects of the interoperability challenge. New entrants include Thread, the Open Interconnect Consortium, and Apple HomeKit.
Common protocols: The number of common protocols is growing rather than coalescing. Market forces will eventually determine the winner, but it could take years to determine the outcome. Peer-to-peer communication: Adoption could be as easy as a firmware download, but this option requires some degree of hardware to support it. Like common protocols, OEMs must individually decide whether or not to adopt a specific solution; therefore, the introduction will be paced by both the market and new product introductions. Gateway bridging solutions: Because no single protocol has emerged as a market leader, gateways provide a mechanism to abstract the protocol details so that, from the perspective of the developer, the interface is uniform and consistent. This solution adds cost and complexity to the gateway device. Given consumer price sensitivity, a consumer-funded gateway that supports multiple protocols could be at a market disadvantage to those solutions that support only the most common protocols.
Open APIs and mash-up apps: Connected device manufacturers may elect to open their APIs to developers, enabling mash-up apps and new solutions that bridge products and fill use case gaps. The app development community is likely the largest, most nimble collective group. However, most OEMs have not elected to open their APIs.
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API exchanges, federated interoperability: Fragmentation and competitive forces in the industry impede standards development. API exchanges provide a mechanism to attract the developer community and to participate in the API economy. OEMs must still provide access via APIs for this option to become a viable interoperability solution.
Speakers: Avi Barel, Director Business Development, ULE Alliance Joe Dada, CEO, INSTEON Tim Harrington, GM Products Group, CEL Bill Scheffler, Director of NA Sales and Business Development, Sigma Designs/Z-Wave Mark Skarpness, Director of Systems Engineering, Open Source Technology Center, Intel Corporation Moderator: Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates
Notes: Regarding the factors that will determine winning protocols, the panelists gave varying weight to different factors. Given the ubiquity of the smartphone, mobile phones could play a critical role in determining the protocol that wins, but some of the panelists felt that product makers and consumer preferences will be more important in determining which protocol eventually wins. Adoption of smart home products and systems is still relatively low, making it possible for a new interoperability standard to unseat an incumbent. Multiprotocol gateways, which are increasingly being used, could help to a make disruptive change possible. Having similar standards is what the industry needs. A start-up cannot afford to incorporate all protocols in their product, and many still do not know which interoperability protocol to bet on. The complexity of the IoT is so great that no single communication standard can address all needs.
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Entertainment and the New User Experience As consumer entertainment services become more disaggregated, and as providers struggle to monetize their assets in the chaos of over-the-top delivery, consumers are having more difficulty finding valuable content. With countless options
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available, consumers risk burnout while providers risk getting lost in the quagmire of content. Along with more content comes evolving ways to consume content, including via 4K UHD, expansion of streaming video services, improvements in broadband networking and delivery technology, and interactive advertising.
This session covered the following areas: Use of the user interface and discovery to create an effective and seamless consumption experience Advancements in video and delivery technology to create a higher standard for quality of experience The role of advertising in the overall user experience and creating value along the entire distribution chain among content owners, distributors, advertisers, and the consumer Implications related to a shared ownership and control over the user experience
Speakers: John Driver, Chief Operating Officer, PacketVideo Mike Fisher, Head of Strategy and Innovation, BrightLine Mike Talvensaari, VP of Product Management, Wowza Media Systems Jason Thibeault, Sr. Director, Marketing Strategy, Limelight Networks Özgür Yildirim, North America Business Unit EVP & General Manager, AirTies Moderator: Glenn Hower, Research Analyst, Parks Associates Notes: Technology enables more distribution, and in this space, it is allowing consumers to access more and more content, although more content doesn’t necessarily mean better content. It is the viewer (of which there are now many) who is demanding better content, which is driving the push to create high-quality content. Technology is the disruptor, but consumers, through their demands, are enabling better content. Separate video portals and logins are a frustrating experience for consumers, but there will not be a single portal for content owned by one single company. Bundling Hulu/Amazon/Netflix would be ideal, but each of these players wants to own the consumer experience, so such a bundle is not likely to happen soon, if at all. Advertising models will change with future entertainment. There is disagreement on whether there will ever be one dominant portal/platform.
Investing in the IoT Markets The CONNECTIONS™ audience consists of managers and executives from large companies, a few early stage companies, and many “intrapreneurial–minded” people. This panel of investors and recently backed companies that are active in the connected home space provided advice to the audience about technology company trends that are particularly interesting to investors as well as what methods of attracting investment may be more effective. The panelists also discussed the changing investment environment, particularly with the popularity of crowdfunding sources, and provided insight from executives who are currently investing or have been through the investment process. Speakers: Greg Berkin, Managing Director, Concours Ventures Manny Fernandez, CEO & Co-founder, DreamFunded.com
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Jason Johnson, Co-founder and CEO, August Jeremy Kaplan, Editor in Chief, Digital Trends Michael Yang, Managing Director, Comcast Ventures Moderator: Stuart Sikes, President, Parks Associates
Notes: The smart home market is heated this year, but panelists predicted some cooling off in years to come if industry players do not make progress generating returns. The bar is set high, and 2016 will see less investments overall. Crowdfunding services have brought great ideas to the attention of the investment community; they act as feeder programs and market research for professional investors, and they do not compete with professional investors in the market. Evaluating products used to be about performance metrics and features. Now, investors must take a broader look at how products fit into an ecosystem. Concrete things like keyless door locks and connected thermostats will become the main hubs within the smart home and will only support a few protocols. Multiple devices are not talking to each other yet, so there is time for the industry to develop interoperability. Consumers just want their devices to work and don’t care about the protocol.
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