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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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    1. Actualizing the Digital Vision:Wireless Entertainment Networking in the Home Michael Greeson Senior Analyst, Director of Broadband Research Parks Associates

    2. ENTERTAINMENT The Search for the Killer Application What is truly compelling to the mainstream consumer?

    3. Ownership of Entertainment Products Bundled Services & Residential Gateways (October 2001)

    4. Subscription to Entertainment Services Bundled Services & Residential Gateways (October 2001)

    5. 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)

    6. 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

    7. 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

    8. 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

    9. 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

    10. 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

    11. How Much Entertainment is Actually Taking Place on the PC? E-Home 2001

    12. 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)

    13. 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)

    14. Growth in Network-Capable Set-top Boxes (U.S. Only, Cumulative)

    15. Growth in Network-CapableMP3 Jukeboxes/Internet Radios

    16. Growth in Shipments of Media Servers (U.S. Only, Cumulative)

    17. Market Opportunity: Entertainment-Centric Home Networks

    18. 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.

    19. 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.

    20. 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