2011 CES trends to watch (Part II): Internet-enabled (everything) and the "app-lification" of CES

Shawn Dubravac, CFA, Chief Economist and Director of Research, Consumer Electronics Association.

USA: We covered two expected CES trends thus far (see Tablets and 3D). Now for two more: Internet-enabled (everything) and the "app-lification" of CES.

Internet-enabled (everything)
Last year the big showing for TVs was 3D. But least you forget, these TVs were also Internet-enabled through integrated WiFi or an Ethernet jack in the back. This year I expect these roles to reverse. The bigger story in 2011 will be Internet-delivered offerings. This won’t be about the technical feasibility of bringing the Internet to the TV, this will be about the meaningfulness for the end-user of marrying the TV with the Internet.

Bringing the Internet directly to the TV has been long discussed and the merits thereof veraciously debated. But with these TVs just now hitting the mass market, the real battles -- and the big questions -- begin.

With TVs now readily connected to the Internet the question becomes not how or if, but what to do with this new found feature? The real question -- a battle for relevancy -- is the type of battle that plays out fluently across CES each year.

Here are the types of questions I'll be exploring at CES: How is the connection being used? Is it only pulling down information and content to the device or is it also sending information and content elsewhere and which of these directional flows is dominating? Is the connection to devices inside the home more important than connections to devices outside the home? How will the device interact with other devices -- which will control and which will be controlled? What about Storage? Organization? Discovery?

We've focused thus far on TVs, but enabling everything with the Internet by definition encompasses more than just the TV. Because individuals expect their TV to last upwards of 10 years, TVs currently have a low level of obsolescence and a high degree of durability. On average, consumers do not replace them frequently. Because of this, I expect to see an increasing number of set-top boxes (and accompanying services) launch at the 2011 CES.

These devices have shorter lifecycles, lower price points, and the millions of unconnected televisions in the marketplace create an instant market for these offerings. In past CES, we've seen the debuts of devices like the SlingBox, the Boxee Box, and a host of connected Blu-Ray players. I expect to see increased innovation in this arena.

Thus far the Internet connection in these devices is largely being used to stream content from outside the home to the connected device. But we know the Internet is what you make of it and CES will highlight what you can make of marrying the TV with the Net.

Beyond TVs and connected set-top devices, the Internet will be ubiquitous at CES this year. Expect to see it garner further inroads into the vehicle, the camera, the printer, and every screen imaginable.

"app-lification" of CES
Apps continue to influence the tech industry and 2011 will witness the full applification of CES. I expect to see apps everywhere. I continue to hear from manufacturers claiming they are moving development resources away from designing new remotes and increasingly focused on app development instead.

This theme will permeate CES. I think 2011 will be the first year where not a single hardware category will exist sans apps. Command and control will be a common theme --allowing end-users to control devices from the comfort of…, well, …another device.

To be sure, apps will be omnipresent at CES in televisions, tablets and mobile phones. Apps are a conduit for the Web and consistent with the growth of Internet connectivity, I expect to see apps gain significant inroads in cameras, printers, in the vehicle and digital displays like photo frames.

I also expect to see apps gain significant inroads at CES into things like mobile and digital health, and sports and fitness. Monitoring will be a theme at this year's CES and I expect to see apps play an important role enabling individuals to along many facets of monitoring.

Beyond just command and control, I'm looking for apps that will add richness to the end-user experience and I expect to see these emerge at the 2011 CES.

To be continued…….