Half of potential photo frame buyers want photo frames that are video capable, according to a recent study by high-tech market research firm, In-Stat. As this market migrates towards next generation devices, In-Stat’s survey also revealed that consumers want Wi-Fi and Internet connectivity.

“Next-generation features will play prominently in future digital photo frame purchases. Competitors must carefully balance price and feature sets. Competitors must carefully balance price and feature sets,” said Stephanie Ethier, an In-Stat analyst.

Digital photo frames that are used primarily to showcase digital photos in slideshow mode reflect a growing consumer electronics opportunity. Sophisticated digital photo frames support a number of advanced functions, including Wi-Fi connectivity, Bluetooth capability, MPEG video files, audio files, and the ability to print pictures directly from the frame to a photo printing device.

According to a research by In-Stat, traditional brands are still very important in the photo industry.

The firm claims that based on its survey 1547 respondents, Kodak is the brand owned by the highest percentage of digital photo frame respondents. Other popular brands included Pandigital and Philips.

Although not high in current owners, HP and Sony have strong interest among those looking to buy digital photo frames within the next 12 months.

Among users interested in purchasing a future digital photo frame, the most desired feature on digital photo frame is movie clip playback, followed by the ability to transfer pictures from Internet photo sharing sites, like Snapfish and Flickr.