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Actualizing the Digital Vision: Wireless Entertainment Networking in the Home. Michael Greeson Senior Analyst, Director of Broadband Research Parks Associates. ENTERTAINMENT. The Search for the Killer Application. What is truly compelling to the mainstream consumer?.

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Actualizing the Digital Vision: Wireless Entertainment Networking in the Home

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Actualizing the Digital Vision:Wireless Entertainment Networking in the Home

Michael Greeson

Senior Analyst, Director of Broadband Research

Parks Associates


ENTERTAINMENT

The Search for the Killer Application

What is truly compelling

to the mainstream consumer?


Ownership of Entertainment Products

Bundled Services & Residential Gateways (October 2001)


Subscription to Entertainment Services

Bundled Services & Residential Gateways (October 2001)


Interest in Digital Entertainment

(Among Internet and Soon-to-be-Internet Households, n = 1490)

Audio

Networking

Personal

Video-Recording

Movies-on-

Demand

Bundled Services & Residential Gateways (October 2001)


Growth in Internet Radio Listeners

Percent of Americans Who Have

Listened to Internet Radio

30%

23%

20%

20%

14%

Percent of Americans (%)

10%

6%

0%

1998

1999

2000

2001

Source

: Arbritron/Edison Media Research Internet VII

The Internet and Streaming: What Consumers Want Next

, Q3 2001


Interest in Listening to

Internet Radio on Stereo

(Households that rate interest as a “5-7” on a 7-point scale, where “7” means “extremely interested”)

Consumers Age 18-34 (n=166)

High-End Entertainment HH (n=148)

Broadband Households (n=212)

Households with Children (n=224)

All Internet Households (n=711)

E-Home 2001


Interest in PC-Centric

Entertainment Networking

(Households that rate interest as a “5-7” on a 7-point scale, where “7” means “extremely interested”)

E-Home 2001


Likelihood of Acquiring Home Networks Among Various Consumer Segments

(Rating of 6 or 7 on a 7-point scale, “7” meaning “extremely valuable”)

Non-Networked Multi-PC Narrowband HH (n=711)

Non-Networked Multi-PC Broadband HH (n=38)

Non-Networked Multi-PC HH (n=143)

All Internet Households (n=711)

Source: E-Home 2001


Consumer Preference Among Network Solutions

(Among Internet Households Likely to Adopt a Home Network, n=78)

Don’t Know

No Preference

Wireless Solution

Wired Solution

Source: E-Home 2001


How Much Entertainment is Actually Taking Place on the PC?

E-Home 2001


Network-Capable Set-Top Boxes

Motorola DCT 5000

(Ethernet, IEEE 1394, USB)

Pioneer Voyager 3000

(IEEE 1394 [optional], USB)

Bell Canada’s ComboBox (possible model, similar to EchoStar’s Pro 501)

(Ethernet)

Scientific-Atlanta Explorer 4100

(Ethernet, USB)

uniView 310 VOD

(Ethernet, USB)

Samsung SMC-2100C

(Ethernet, USB)

Thomson

RCA DSL 1500

(Ethernet, HomePNA)

Rogers Cable Triple Play

(Ethernet, 802.11b)

Moxi™ (Digeo) Media Center™

(Ethernet, 802.11a)


Network-Capable Digital Music Players

Compaq Computer Corp.

iPAQ Music Center (HomePNA)

Motorola Simplefi™ Wireless

Digital Audio Receiver

(HomeRF)

Turtle Beach

AudioTron

(HomePNA, Ethernet)

SONICblue

Rio Advanced Digital Audio Receiver

(HomePNA, Ethernet)

Fullplay Media Systems Inc.

Darwin Digital Jukebox

(Ethernet)

Kenwood USA Ltd.

Entré

(HomePNA)


Growth in Network-Capable Set-top Boxes

(U.S. Only, Cumulative)


Growth in Network-CapableMP3 Jukeboxes/Internet Radios


Growth in Shipments of Media Servers

(U.S. Only, Cumulative)


Market Opportunity:

Entertainment-Centric Home Networks


Entertainment Networks Classified

Point-to-Point: Allowing a television or stereo to link with a PC. These networks allow existing consumer electronics products to receive content from the Internet or a stored source (such as a computer’s hard drive).

Distributed Enabling video and audio signals (digital and analog)

(Multi-room): to be transmitted from one device or appliance (such as a personal video recorder or DBS receiver) to a television or stereo in another part of the home.

Cluster: Enabling entertainment products to “announce” themselves to a network, digitally configure, and communicate via a high-speed connection so they can share processing and storage resources. This will enable a new generation of applications that coordinate the control of several consumer electronics devices simultaneously and simplify operation of devices by the consumer.


The Future of Wireless Entertainment Networking in the Home

  • Consumers are embracing digital electronics and services,

    and are beginning to understand the concept and value

    of a home network.

  • As compelling digital entertainment content becomes

    available, consumers will seek to network this content

    among multiple devices.

  • All things being equal, consumers will naturally gravitate

    toward wireless solutions.

  • Cluster entertainment networks will be slow to materialize,

    while point-to-point and distributed entertainment

    networks will dominate in the early market.


Upcoming Parks Associates’ research

  • New primary consumer research on value-added

  • services among both narrowband & broadband

  • households.

  • New reports on networked set-top boxes, wireless

  • LANs, and structured wiring.

  • Continued research on trends among installers

  • and integrators.

  • Parks Associates’ Forum 2002: Actualizing the

  • Digital Vision – October 2002 in San Francisco


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