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One in five US broadband households intends to purchase a new flat-screen television before the end of 2011, making it the most popular CE product this holiday season, according to new research from Parks Associates.

Among those households planning to purchase a flat-panel TV, 73% plan to buy a set with advanced features such as built-in Internet connectivity or 3D capabilities. Demand for Smart TVs is estimated to be nearly twice that for 3DTVs, according to the report.

"Smart TVs are now pushing into the mainstream, whereas previously smart-TV buyers were largely early adopters and those from high-income households," said Kurt Scherf, vice president and principal analyst at Parks Associates. "The combination of a maturing product ecosystem with great holiday deals is putting smart TVs within the reach of the American middle class."

Middle-class households with annual incomes of US$ 50,000 to US$ 75,000 are believed to be responsible for the spike in Smart TV purchase intentions: 20% of middle-income households intend to purchase Smart TVs this holiday season, compared to only 12% of households with incomes above US$ 75,000.

While solid consumer interest in Smart TVs may be good news for equipment manufacturers, it could become worrisome for pay-TV providers, as consumers gain increased access to over-the-top (OTT) video content on their main television, according to Parks.

Consumers who intend to purchase a Smart TV this holiday season are also more likely than average pay-TV subscribers to cancel or downgrade their pay-TV service within the next 12 months, according to the report.

"Smart TVs expand a household's available content choices without raising content costs," added Mr. Scherf. "Consumers pay a premium for the device now, but our research indicates these purchases could be part of a long-term plan for many budget-conscious households to reduce their overall expenditures."

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